UNIT-I

Business Communication
Concept of Communication
The English word ‘communication’ has been derived from the Latin word, ‘Communicare’
which means to impart or participate or to transmit. The word ‘Communicare’ is derived from
the root ‘Communis’ which means to make common or to share. Communication is the
activity or process of sharing or exchanging ideas, feelings, information, experience between
two or more persons an act or instance of transmitting; the information actually
communicated by some means.
Definitions of communication:
1) The Oxford English Dictionary defines communication as “the action of conveying or
exchanging information and ideas.”
2) Peter Little defines communication as “the process by which information is transmitted
between individuals and or organizations so that an understanding response results.”
3) Allen Lui (Louis) defines communication as “ Communication is the sum of all the things
one person does when he wants to create understanding in the mind of another. It is a bridge
of meaning. It involves a systematic process of telling, listening, understanding and
responding.”
4) Keith Davis defines communication as “Communication is the transfer of information and
understanding from one person to another.” Business Communication: William G. Scott
defines business communication as “Administrat
Business Communication:
William G. Scott defines business communication as “Administrative communication is a
process which involves the transmission and accurate replication of ideas ensured by
feedback for the purpose of eliciting actions which will accomplish organizational goals.”
The last definition covers 4 aspects of administrative communication, as follows:
1) The sender’s ability to transmit his own ideas accurately.
2) The receiver’s mental ability to get the same idea as were transmitted i.e. accurate
replication.
3) The feedback or the receiver’s response.
4) Eliciting action which will help to achieve the goals.
NATURE OF COMMUNICATION:
Communication has the following features:
1. Two-way process: Communication is a two-way process of understanding between two or
more persons – sender and receiver. A person cannot communicate with himself.
 2. Continuous process: Exchange of ideas and opinion amongst people is an ongoing process
in business and non-business organizations. Continuous interaction promotes understanding
and exchange of information relevant for decision-making.
3. Dynamic process: Communication between sender and receiver takes different forms and
medium depending upon their moods and behaviour. It is, thus, a dynamic process that keeps
changing in different situations.
4. Pervasive: Communication is a pervasive activity. It takes place at all levels (top, middle,
low) in all functional areas (production, finance, personnel, sales) of a business organization.
5. Two people: A minimum of two persons — sender and receiver — must be present for
communication to take place. It may be between superiors, subordinates and peer group, intra
or inter se.
6. Exchange: Communication involves exchange of ideas and opinions. People interact and
develop understanding for each other
Features of Communication:
 Communication is an unavoidable system.
 It is a two-way process.
 It is a social activity.
 It is a continuous process.
 It is universal.
 It may be formal or informal.
Importance of communication:
1. Healthy relations
2. Better performance
3. High morale 4. Good image unity
5. Reaching final goals 6. Smooth functioning
7. Greater efficiency
8. Higher productivity
9. Effective decision-making
10. Co-operation & Co-ordination
Purpose of Communication:
1. Flow of Information:
The relevant information must flow continuously from top to bottom and vice versa. The staff
at all levels must be kept informed about the organisational objectives and other
developments taking place in the organisation. A care should be taken that no one should be
misinformed. The information should reach the incumbent in the language he or she can
understand better. The use of difficult words should be avoided. The right information should
reach the right person, at right time through the right person.
2. Coordination:
It is through communication the efforts of all the staff working in the organisation can be
coordinated for the accomplishment of the organisational goals. The coordination of all
personnel’s and their efforts is the essence of management which can be attained through
effective communication.
3. Learning Management Skills:
The communication facilitates flow of information, ideas, beliefs, perception, advice,
opinion, orders and instructions etc. both ways which enable the managers and other
supervisory staff to learn managerial skills through experience of others. The experience of
the sender of the message gets reflected in it which the person at the receiving end can learn
by analyzing and understanding it.
4. Preparing People to Accept Change:
The proper and effective communication is an important tool in the hands of management of
any organisation to bring about overall change in the organisational policies, procedures and
work style and make the staff to accept and respond positively.
5. Developing Good Human Relations:
Managers and workers and other staff exchange their ideas, thoughts and perceptions with
each other through communication. This helps them to understand each other better. They
realize the difficulties faced by their colleagues at the workplace. This leads to promotion of
good human relations in the organisation.
6. Ideas of Subordinates Encouraged:
The communication facilitates inviting and encouraging the ideas from subordinates on
certain occasions on any task. This will develop creative thinking. Honoring subordinates’
ideas will further motivate them for hard work and a sense of belonging to the organisation
will be developed. It will provide them with the encouragement to share information with
their superiors without hesitation. The managers must know the ideas, thoughts, comments,
reactions and attitudes of their subordinates and subordinates should know the same from the
lowest level staff of their respective departments.
Importance of Communication:
1. Base for Action:
Communication acts as a base for any action. Starting of any activity begins with
communication which brings information necessary to begin with.
2. Planning Becomes Easy
Communication facilitates planning. Planning is made easy by communication. Any type of
information regarding the human resource requirement of each department of the organisation
with their qualifications, the type and kinds of job etc. can be collected through
communication which helps in human resource planning. Policies and programmes for their
acquisition can be prepared and implemented. In the entire process communication plays a
vital role, it also facilitates managerial planning of the organisation.
3. Means of Coordination:
Communication is an important tool for coordinating the efforts of various people at work in
the organisation.
4. Aids in Decision-Making:
The information collected through communication aids in decision-making. Communication
facilitates access to the vital information required to take decisions.
5. Provides Effective Leadership:
A communication skill bring manager near to his subordinates and exchange ideas and
submits appropriate proposals, knows their opinions, seeks advices and make decisions. This
enables a manager to win confidence of his subordinates through constantly communicating
with them and removing probable misunderstandings. In this way he leads his people to
accomplish the organisational goal.
6. Boosts Morale and Motivation:
An effective communication system instills confidence among subordinates and workers
ensuring change in their attitude and behaviour. The main cause of conflict and dissatisfaction
is misunderstanding which can be removed through communication skills. The removal of
misunderstanding makes manager and his subordinates understand each other and create
good industrial relations. This boosts up the morale of the people and motivates them to work
harder.
Principles of Communication:
1. Clarity:
The principle of clarity means the communicator should use such a language which is easy to
understand. The message must be understood by the receiver. The words used should be
simple and unambiguous. The language should not create any confusion or misunderstanding.
Language is the medium of communication; hence it should be clear and understandable.
2. Adequacy and Consistency:
The communicator must carefully take into account that the information to be communicated
should be complete and adequate in all respect. Inadequate and incomplete message creates
confusion and delays the action to be taken. The adequate information must be consistent
with the organizational objectives, plans, policies and procedures. The message which is
inconsistent may play havoc and distort the corporate interests.
3. Integration:
The principle of integration portrays that through communication the efforts of human
resources of the organisation should be integrated towards achievement of corporate
objectives. The very aim of communication is to achieve the set target. The communication
should aim at coordinating the activities of the people at work to attain the corporate goals.
4. Economy:
The unnecessary use of communication system will add to cost. The system of
communication must be used efficiently, timely i.e. at the appropriate time and when it is
necessary. The economy in use of communication system can be achieved in this way.
5. Feedback:
The purpose of communication will be defeated if feedback is not taken from the receiver.
The confirmation of the receipt of the message in its right perspective from its receiver
fulfills the object of communication. The feedback is essential only in case of written
communication and messages sent through messengers. In case of oral type of
communication the feedback is immediately known.
6. Need for Communication Network:
The route through which the communication passes from sender or communicator to its
receiver or communicate refers to communication network. For effective communication this
network is essential. The managerial effectiveness will also depend upon the availability of
adequate network.
7. Attention:
The message communicated must draw the attention of the receiver staff and ensure action
from him in the right perspective. The efficient, sincere and prompt manager succeeds in
drawing the attention of his subordinates to what he is conveying.
Process of Communication
To have successful & effective communication it is very important to know about the
communication process. It always guides us towards realizing effective communication.
Every individual that follows the communication process will have the opportunity to
succeed in every aspect of their profession.

The Communication Process Involves the Following Aspects:

Sender:
The sender is the person who sends the information to the receiver. This is why the
communication process has started for the sender. It is also called an encoder because the
sender always puts the message into words or images.
Message:
It is the second aspect of the communication process. It is a kind of information that the
sender wants to convey to the receiver.
Channel:
It is the medium of sharing information from one person to another. It can be a language or
any other. or it simply means various methods of sending the message e.g., telephone,
television etc.
Receiver:
The receiver is the person or group who receives the message or information which is
sent/given by the sender. It is also called a decoder because it decodes the information sent by
the sender.
Feedback:
Feedback is the key to any effective/successful communication. It is one of the fundamental
aspects in the process of communication, through which the sender can understand whether
the message has been successfully received or not.
Types of Communication
1. Formal Communication
Formal communications are the one that flows through the official channels designed in the
organizational chart. It may take place between a superior and a subordinate, a subordinate
and a superior or among the same cadre employees or managers. These communications can
be oral or in writing and are generally recorded and filed in the office.
Formal communication may be further classified as Vertical communication and Horizontal
communication.
Vertical Communication
Vertical Communications as the name suggests flows vertically upwards or downwards
through formal channels. Upward communication refers to the flow of communication from a
subordinate to a superior whereas downward communication flows from a superior to a
subordinate.
Application for grant of leave, submission of a progress report, request for loans etc. are some
of the examples of upward communication. Sending notice to employees to attend a meeting,
delegating work to the subordinates, informing them about the company policies, etc. are
some examples of downward communication.
Horizontal Communication
Horizontal or lateral communication takes place between one division and another. For
example, a production manager may contact the finance manager to discuss the delivery of
raw material or its purchase.
Types of communication networks in formal communication:
 Single chain: In this type of network communications flows from every superior to
his subordinate through a single chain.
 Wheel: In this network, all subordinates under one superior communicate through
him only. They are not allowed to talk among themselves.
 Circular: In this type of network, the communication moves in a circle. Each person
is able to communicate with his adjoining two persons only.
 Free flow: In this network, each person can communicate with any other person
freely. There is no restriction.
 Inverted V: In this type of network, a subordinate is allowed to communicate with
his immediate superior as well as his superior’s superior also. However, in the latter
case, only ordained communication takes place.
2. Informal Communication
Any communication that takes place without following the formal channels of
communication is said to be informal communication. Informal communication is often
referred to as the ‘grapevine’ as it spreads throughout the organization and in all directions
without any regard to the levels of authority.
Informal communication spreads rapidly, often gets distorted and it is very difficult to detect
the source of such communication. It also leads to rumours which are not true. People’s
behaviour is often affected by rumours and informal discussions which sometimes may
hamper the work environment.
However, sometimes these channels may be helpful as they carry information rapidly and,
therefore, may be useful to the manager at times. Informal channels are also used by the
managers to transmit information in order to know the reactions of his/her subordinates.
Barriers of Communication
The communication barriers may prevent communication or carry incorrect meaning due to
which misunderstandings may be created. Therefore, it is essential for a manager to identify
such barriers and take appropriate measures to overcome them. The barriers to
communication in organizations can be broadly grouped as follows:
1. Semantic Barriers
These are concerned with the problems and obstructions in the process of encoding and
decoding of a message into words or impressions. Normally, such barriers result due to the
use of wrong words, faulty translations, different interpretations, etc.
For example, a manager has to communicate with workers who have no knowledge of the
English language and on the other side, he is not well conversant with the Hindi language.
Here, language is a barrier to communication as the manager may not be able to communicate
properly with the workers.
2. Psychological Barriers
Emotional or psychological factors also act as barriers to communication. The state of mind
of both sender and receiver of communication reflects in the effective communication. A
worried person cannot communicate properly and an angry recipient cannot understand the
message properly.
Thus, at the time of communication, both the sender and the receiver need to be
psychologically sound. Also, they should trust each other. If they do not believe each other,
they cannot understand each other’s message in its original sense.
3. Organizational Barriers
The factors related to organizational structure, rules and regulations authority relationships,
etc. may sometimes act as barriers to effective communication. In an organization with a
highly centralized pattern, people may not be encouraged to have free communication. Also,
rigid rules and regulations and cumbersome procedures may also become a hurdle to
communication.
4. Personal Barriers
The personal factors of both sender and receiver may act as a barrier to effective
communication. If a superior thinks that a particular communication may adversely affect his
authority, he may suppress such communication.
Also, if the superiors do not have confidence in the competency of their subordinates, they
may not ask for their advice. The subordinates may not be willing to offer useful suggestions
in the absence of any reward or appreciation for a good suggestion.
7 C’s of communication
1. Concise
2. Clear
 3. Correct
4. Concrete
5. Complete
6. Courteous
7. Coherent
1. Concise
Being concise means being able to convey your messages in shortest possible words. But this
doesn’t mean that you provide the information less but articulating in such a possible way
that you get to spread the message across everyone and that too in fewer words.
2. Clear
Clear or clarity is very important in business communication. Through this, you are able to
emphasize a specific message or a goal at that time. In a business communication, you cannot
achieve too much in one go. That is why you need to clear about your ideas.
3. Correct
The understanding of your audience is directly proportional to the correctness of your ideas.
Because correct communication of thoughts and ideas is also an error-free form of
communication. There are many ways to achieve this correctness in your sentences.
4. Concrete
Concreteness refers to the idea of being clear and particular. It avoids the basic fuzziness and
general in your ideas and thoughts. Concreteness also adds to your confidence level.
5. Complete
A message or an idea is complete when the audience has everything that they want to be
informed. Also, this gives an authority to them to move to call of action.
6. Courteous
Courtesy is the respect that we show to others and in business communication also it means
the same thing. You should show respect to your reader by having courteous communication.
The individual while sending the message should be polite, sincere, enthusiastic, and
reflective.
7. Coherent
The messages that you send should be logical and that is why coherent communication is
important. The message involves certain ideas and thoughts and thus when they are coherent
than only they are able to convey the main idea of the message. All the points that you have
mentioned should be relevant to the topic and connected.
Communication Structure
A communication structure is a pattern that is implemented in the organization to maintain
the flow of information. It regulates the flow of information within an organization.
Communication structure is also called a communication network or communication channel.
For the smooth flow of information, different formal communication networks are necessary
to establish. Such networks make communication more interesting and effective.
Though managing different communication structures is complex in big organizations, when
managed properly it provides effectiveness in the transmission of information. Depending
upon the organizational culture, nature of work, people involved, etc. different structures can
be used.
Types of Communication Structures

Chain Structure
In the chain communication structure, there is a vertical upward and downward form of
communication. This structure has everything an organizational chain of command has.
In this chain structure, a person can only communicate with his immediate superior and
subordinate. Information flows in chain form. If the top manager wants to communicate with
lower-level employees, the information should go first from the top manager to the middle
manager.
And, from the middle manager to lower-level employees. And, lower level employees
message to middle and from middle to the top manager. The information flows in sequence.
As such this communication structure is more time-consuming.
Y Structure
In this structure, all information is controlled by the two main people at the top level, for
example – Manager A and Manager B. As such, the shape of this communication network
becomes like the letter Y.
Only limited information is disseminated by the top managers through a single chain of
command. This structure is more popular in functional organizations.
Wheel Structure
Wheel structure shapes look like the wheel of a car or motorcycle. Here, the central person
i.e. the manager is pivotal. The manager holds all the authority for communication.
These types of communication structures are found in centralized organizations. In this
structure, employees should communicate with and through only one manager.
In this wheel structure, employees have no right to communicate with each other to exchange
official information. They should communicate one by one with the manager to get and share
the information. This structure is faster and suitable for routine tasks but is the most
authoritarian structure too.
Circle Structure
It is a sideward or horizontal form of structure. In this structure, a person can communicate to
his right and left people but not to others in his group.
For example, in a meeting, you can communicate with only two people one is from your right
side and another from your left side. To get communicated with others you should ask your
neighborhoods to ask them. As such the disadvantage of the circle structure is that
communication becomes slow.
Free Flow Structure
The free-flow structure is also called an all-network structure. In such a communication
structure, there is no restriction in the flow of information. It is a decentralized and informal
form of the communication network. The leader of the group does not hold the exceptional
power to control group members.
Everyone is free to communicate with anyone in the organization. There is no restriction on
the level and chain of command while communicating. As such, it is also known as an open
communication network