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Communication in Business


What do we mean by Communication?

 “The transfer of information and understanding from one person to another person. It is a way of
reaching others with facts, ideas, thoughts and values. It is a bridge of meanings among people so
that they can share what they feel and know. By using this bridge, a person can cross safely the river
of misunderstanding that sometimes separates people”. - Keith Davis


Advantages of Good Communication Skills
To mention a few-
  Enables you to interact effectively with others
  Advances you socially (make useful contacts)
  Career advancement
  Builds self confidence
  Helps you help others
  Lead others
  Get work done efficiently
  Convince others
  Negotiate to a win-win situation

Typical business communication pattern
                              5%
                            10%
                                        50%
                              35%


       Listening      Speaking        Reading       Writing



Why are organizations paying attention to communication?


Communication has become important for firms, due to - Increasing size of organization, Developments
in IT, Change in concept of Human capital and increased focus on corporate etiquettes. Firms are
employing corporate communication to - create a strong corporate image, build the reputation of key
executives, maintain strong investor and shareholder relationship and assist top management in change
Note: Refer to books as well as discussions held in the class.
management within and outside the organization. So overall an organization wants a smooth flow of
internal as external communication.

What are the Purposes/objectives of communication?


 We communicate in business situation with our specific purpose of accomplishing something.
Communication could have many objectives depending on the context and persons involved.
Communication within a boardroom, seminar, meeting or organization has different objectives which
depend on the purpose that has to be achieved. The basic objectives of business communication would
include the following:

1. To Inform
2. To Persuade
3. To Entertain

Other objectives of communication are – To educate, to train, to motivate, to integrate and to relate.

Scope of Communication


1. External Dimension - It includes:
    Building relations with external agencies and stakeholders
    Managing advertisements, publicity, public relations functions, public image and goodwill of the
     organization
2. Internal Dimension- It includes:
    Communication within the organization by formulating the corporate vision, policy objectives and
     implementations of the set goals
    Within each department and across departments, functional heads communicate to their
     subordinates by giving job-related instructions, suggestions, advice and orders. Communication
     facilitates in proper understanding of policies, top management needs to obtain and understand the
     feedback of the lower and middle management through various forms for proper implementation of
     policies and guidelines.


Classification of Communication


Communication is classified according to the number of persons (receivers) to whom the message is
addressed and on the basis of the medium employed.




Note: Refer to books as well as discussions held in the class.
Process of Communication


Elements of the Communication Process:

1. Sender/Encoder/Speaker
2. Receiver/Decoder/Listener
3. Message
4. Medium/Channel (Verbal - oral, written and non-verbal)
5. Feedback




Note: Refer to books as well as discussions held in the class.
Working of the Process of Communication

1. The One Way Process




The sender, as per his ideas, behavior patterns and intention, selects a message. He then encodes the
message and sends it to the receiver through a medium which may be - verbal or non-verbal. After
receiving the message, the receiver decodes it and gives an internal response to the perceived message.
This completes the phase of the communication process. The manner in which the sender and receiver
perceive the message would give rise to encoding and decoding.



2. Shannon's Model of the Communication Process

Shannon's (1948) model of the communication provided, for the first time, a general model of the
communication process that could be treated as the common ground of such diverse disciplines as
journalism, rhetoric, linguistics, and speech and hearing sciences. Part of its success is due to its
structuralist reduction of communication to a set of basic constituents that not only explain how
communication happens, but why communication sometimes fails.




Note: Refer to books as well as discussions held in the class.
Shannon's (1948) Model of the communication process.

As shown in the figure above, Shannon's model, breaks the process of communication down into eight
discrete components:

    1. An information source. Presumably a person who creates a message.
    2. The message, which is both sent by the information source and received by the destination.
    3. A transmitter. For Shannon's immediate purpose a telephone instrument that captures an audio
       signal, converts it into an electronic signal, and amplifies it for transmission through the
       telephone network. The simplest transmission system, associated with face-to-face
       communication, has at least two layers of transmission. The first, the mouth (sound) and body
       (gesture) create and modulate a signal. The second layer, which might also be described as a
       channel, is built of the air (sound) and light (gesture) that enable the transmission of those
       signals from one person to another.
    4. The signal, which flows through a channel. There may be multiple parallel signals, as is the case
       in face-to-face interaction where sound and gesture involve different signal systems that
       depend on different channels and modes of transmission.
    5. A carrier or channel, which is represented by the small unlabeled box in the middle of the
       model.
    6. Noise, in the form of secondary signals that obscure or confuse the signal carried. Given
       Shannon's focus on telephone transmission, carriers, and reception, it should not be surprising
       that noise is restricted to noise that obscures or obliterates some portion of the signal within
       the channel. This is a fairly restrictive notion of noise, by current standards, and a somewhat
       misleading one.
    7. A receiver. In Shannon's conception, the receiving telephone instrument. In face to face
       communication a set of ears (sound) and eyes (gesture). In television, several layers of receiver,
       including an antenna and a television set.
    8. A destination. Presumably a person who consumes and processes the message.

Like all models, this is a minimalist abstraction of the reality it attempts to reproduce. The reality of
most communication systems is more complex. Most information sources (and destinations) act as both
sources and destinations. Transmitters, receivers, channels, signals, and even messages are often

Note: Refer to books as well as discussions held in the class.
layered both serially and in parallel such that there are multiple signals transmitted and received, even
when they are converged into a common signal stream and a common channel.



3. Two Way process



This approach recognizes the role of the receiver as a communicator through feedback. The
communication process is only complete after the sender receives the feedback from the receiver. In
the second phase the receiver formulates his message, encodes it and transmits it to the original sender-
now-turned-receiver.
                                                Message




                                                    Channel
             Encoding                                                                     Decoding
                                                                             Receiver
   Idea                   Sender
            Decoding of                                                                    Encoding of
            feedback                                                                       response


                                                                                              Perceived
                                                    Feedback                                  meaning and
                                                                                              internal
                                                                                              response




Conditions for successful communication

Communication is successful only when, the message is properly understood, the purpose of the sender
is fulfilled and the sender and receiver of the message remain linked through feedback.

Universal elements in communication
 The communication environment, symbols and mental filter are the three universal elements of
communication.

7C’s of Communication
According to Francis J Bergin, seven Cs are important in verbal and written communication. They are:




Note: Refer to books as well as discussions held in the class.
Functions of Communication
 Control

 Affiliation

 Task Orientation



Forms of Communication
                                    Encoding / Transcribe        Decoding / Interpreting


                                                                 (Aural) Hearing &
            Oral                    Speaking
                                                                 Listening
 Verbal
                                    Writing & Drawing
            Written                                              Reading, Browsing
                                    (Scripture, codes)


                                    Touching, Smiling,           Feeling, Seeing, Tasting,
 Non Verbal
                                    Gesturing, etc.              Smelling, etc




Note: Refer to books as well as discussions held in the class.
Communication structure in an Organization
Communication follows the organizational structure

1. Upward Communication - Memos, notices, newsletters, manuals
2. Downward Communication - Memos, reports, meetings, informal discussion
3. Horizontal Communication - Committee meetings, seminars, conferences
4. Diagonal Communication - Depends on cooperation, goodwill and respect




Lateral or Horizontal Communication




Diagonal or Crosswise communication




Note: Refer to books as well as discussions held in the class.
Note: Refer to books as well as discussions held in the class.
Internal Communication




Merits of Informal communication:
1. Speedy transmission
2. Feedback value
3. Support to other channels
4. Psychological satisfaction
5. Uniting force
6. Creation of ideas
7. Good personal relations

Demerits of informal communication
o Changing interpretations
o Lack of accountability
o Incomplete information

Miscommunication


    1. Organization Structure
       Every organization has a communication policy that describes the protocol to be followed. It is the
       structure and complexity of this protocol that gives rise to communication barriers

    2. Difference in status
       Generally employees at lower levels of the hierarchy are overly cautious while sending messages
       to managers and talk about subjects they think the managers are interested in. Similarly, people of
Note: Refer to books as well as discussions held in the class.
higher status may distort messages by refusing to discuss anything that would undermine the
      authority in the organization.

    3. Lack of trust
       Subordinates may not know whether their manager will respond in a supportive or responsible
       way, and hence it is necessary for the manager to ensure that they have faith in him. Lack of trust,
       an open communication is effectively blocked, thereby threatening the organization’s stability. It
       is important that people trust you to freely discuss things with you.

      Barriers to trust can be overcome by being visible and accessible. Creating an open
      communication environment in the firm, helping employees in times of distress, and assuring
      them of your suggestion or co-operation may help you to build trust in their minds.

    4. Closed Communication climate
       Management style of an organization influences an organization’s communication climate.
       Authoritarian style blocks free and open exchange of information that characterizes good
       communication. To overcome barriers related to organizational environment, one should spend
       more time listening than issuing orders. A manager should encourage employees and colleagues
       to offer suggestions, help set goals, participate in solving problems and help make decisions.

    5. Incorrect choice of medium
       Face-to-face communication is the richest medium because is personalized; it provides instant
       feedback, transmits information using verbal as well as non-verbal cues and also conveys the
       emotion behind the message.
         Nature of message      Type of Media          Cues            Nature of        Media Quality
                                                                       feedback
        Personal (Oral)        Face-to-face      Verbal and non Immediate              Richest
                                                 verbal
        Personal (Oral)        Telephone,        Verbal and         Close to           Rich
                               computers, etc. vocal                immediate
        Personal and           Letters, Memos, Verbal and           Delayed/No         Leaner
        impersonal             reports, etc.     visual
        (Written)/Addressed
        documents
        Impersonal             Circulars etc.    Verbal and         Almost Nil         Leanest
        Unaddressed                              visual
        documents

    6. Information overload
       At times, people load their messages with too much information. Too much information is as bad
       as too little because it reduces the audience’s ability to concentrate on the most important part of


Note: Refer to books as well as discussions held in the class.
the message. Due to overload, recipients tend to ignore some of the messages or delay the
      response, or react superficially to all messages.

      To avoid information overload, as a sender, include only that information which is pertinent to the
      context. As a receiver, set priorities for dealing with the information flow and do not get trapped
      in the sea of information.

    7. Physical distractions
       Communication barriers are often physical – bad connections, poor acoustics, illegible copy, etc.
       An uncomfortable chair, poor lightning or some other irritating condition may also distract your
       receiver. In some cases, the barrier may be related to the receiver’s health. These annoyances do
       not generally block communication entirely, but they do reduce the receiver’s concentration by
       distracting their attention.

    8. Message Complexity
       Any message is generally regarded as complex if the message is dry and difficult or if it is difficult
       to understand. When formulating business messages, you communicate both as an individual and
       as a representative of an organization. Thus you must adjust your own ideas and style as per your
       employer. Irrespective of your personal feelings, you must communicate your firm’s message. Do
       ask for feedback, which is essential for clarifying and improving message.

    9. Unethical communication
       Resorting to unethical means in communication may not drive you to success but to trouble. All
       the factual information should be included. Ensure that the information is adequate and relevant
       to the situation.


Effectiveness in Managerial communication
Factors responsible for making managerial communication effective are:

1. Appropriate communication style
2. Clarity in message
3. Audience-centric approach
4. Understanding of intercultural communication
5. Commitment to ethical communication
6. Proficiency in communication technology
7. Control over the flow of communication
8. Co-ordination between superior and subordinates
9. Avoid jargons
10. Right feedback


Note: Refer to books as well as discussions held in the class.

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Communication in business

  • 1. Communication in Business What do we mean by Communication? “The transfer of information and understanding from one person to another person. It is a way of reaching others with facts, ideas, thoughts and values. It is a bridge of meanings among people so that they can share what they feel and know. By using this bridge, a person can cross safely the river of misunderstanding that sometimes separates people”. - Keith Davis Advantages of Good Communication Skills To mention a few- Enables you to interact effectively with others Advances you socially (make useful contacts) Career advancement Builds self confidence Helps you help others Lead others Get work done efficiently Convince others Negotiate to a win-win situation Typical business communication pattern 5% 10% 50% 35% Listening Speaking Reading Writing Why are organizations paying attention to communication? Communication has become important for firms, due to - Increasing size of organization, Developments in IT, Change in concept of Human capital and increased focus on corporate etiquettes. Firms are employing corporate communication to - create a strong corporate image, build the reputation of key executives, maintain strong investor and shareholder relationship and assist top management in change Note: Refer to books as well as discussions held in the class.
  • 2. management within and outside the organization. So overall an organization wants a smooth flow of internal as external communication. What are the Purposes/objectives of communication? We communicate in business situation with our specific purpose of accomplishing something. Communication could have many objectives depending on the context and persons involved. Communication within a boardroom, seminar, meeting or organization has different objectives which depend on the purpose that has to be achieved. The basic objectives of business communication would include the following: 1. To Inform 2. To Persuade 3. To Entertain Other objectives of communication are – To educate, to train, to motivate, to integrate and to relate. Scope of Communication 1. External Dimension - It includes:  Building relations with external agencies and stakeholders  Managing advertisements, publicity, public relations functions, public image and goodwill of the organization 2. Internal Dimension- It includes:  Communication within the organization by formulating the corporate vision, policy objectives and implementations of the set goals  Within each department and across departments, functional heads communicate to their subordinates by giving job-related instructions, suggestions, advice and orders. Communication facilitates in proper understanding of policies, top management needs to obtain and understand the feedback of the lower and middle management through various forms for proper implementation of policies and guidelines. Classification of Communication Communication is classified according to the number of persons (receivers) to whom the message is addressed and on the basis of the medium employed. Note: Refer to books as well as discussions held in the class.
  • 3. Process of Communication Elements of the Communication Process: 1. Sender/Encoder/Speaker 2. Receiver/Decoder/Listener 3. Message 4. Medium/Channel (Verbal - oral, written and non-verbal) 5. Feedback Note: Refer to books as well as discussions held in the class.
  • 4. Working of the Process of Communication 1. The One Way Process The sender, as per his ideas, behavior patterns and intention, selects a message. He then encodes the message and sends it to the receiver through a medium which may be - verbal or non-verbal. After receiving the message, the receiver decodes it and gives an internal response to the perceived message. This completes the phase of the communication process. The manner in which the sender and receiver perceive the message would give rise to encoding and decoding. 2. Shannon's Model of the Communication Process Shannon's (1948) model of the communication provided, for the first time, a general model of the communication process that could be treated as the common ground of such diverse disciplines as journalism, rhetoric, linguistics, and speech and hearing sciences. Part of its success is due to its structuralist reduction of communication to a set of basic constituents that not only explain how communication happens, but why communication sometimes fails. Note: Refer to books as well as discussions held in the class.
  • 5. Shannon's (1948) Model of the communication process. As shown in the figure above, Shannon's model, breaks the process of communication down into eight discrete components: 1. An information source. Presumably a person who creates a message. 2. The message, which is both sent by the information source and received by the destination. 3. A transmitter. For Shannon's immediate purpose a telephone instrument that captures an audio signal, converts it into an electronic signal, and amplifies it for transmission through the telephone network. The simplest transmission system, associated with face-to-face communication, has at least two layers of transmission. The first, the mouth (sound) and body (gesture) create and modulate a signal. The second layer, which might also be described as a channel, is built of the air (sound) and light (gesture) that enable the transmission of those signals from one person to another. 4. The signal, which flows through a channel. There may be multiple parallel signals, as is the case in face-to-face interaction where sound and gesture involve different signal systems that depend on different channels and modes of transmission. 5. A carrier or channel, which is represented by the small unlabeled box in the middle of the model. 6. Noise, in the form of secondary signals that obscure or confuse the signal carried. Given Shannon's focus on telephone transmission, carriers, and reception, it should not be surprising that noise is restricted to noise that obscures or obliterates some portion of the signal within the channel. This is a fairly restrictive notion of noise, by current standards, and a somewhat misleading one. 7. A receiver. In Shannon's conception, the receiving telephone instrument. In face to face communication a set of ears (sound) and eyes (gesture). In television, several layers of receiver, including an antenna and a television set. 8. A destination. Presumably a person who consumes and processes the message. Like all models, this is a minimalist abstraction of the reality it attempts to reproduce. The reality of most communication systems is more complex. Most information sources (and destinations) act as both sources and destinations. Transmitters, receivers, channels, signals, and even messages are often Note: Refer to books as well as discussions held in the class.
  • 6. layered both serially and in parallel such that there are multiple signals transmitted and received, even when they are converged into a common signal stream and a common channel. 3. Two Way process This approach recognizes the role of the receiver as a communicator through feedback. The communication process is only complete after the sender receives the feedback from the receiver. In the second phase the receiver formulates his message, encodes it and transmits it to the original sender- now-turned-receiver. Message Channel Encoding Decoding Receiver Idea Sender Decoding of Encoding of feedback response Perceived Feedback meaning and internal response Conditions for successful communication Communication is successful only when, the message is properly understood, the purpose of the sender is fulfilled and the sender and receiver of the message remain linked through feedback. Universal elements in communication The communication environment, symbols and mental filter are the three universal elements of communication. 7C’s of Communication According to Francis J Bergin, seven Cs are important in verbal and written communication. They are: Note: Refer to books as well as discussions held in the class.
  • 7. Functions of Communication  Control  Affiliation  Task Orientation Forms of Communication Encoding / Transcribe Decoding / Interpreting (Aural) Hearing & Oral Speaking Listening Verbal Writing & Drawing Written Reading, Browsing (Scripture, codes) Touching, Smiling, Feeling, Seeing, Tasting, Non Verbal Gesturing, etc. Smelling, etc Note: Refer to books as well as discussions held in the class.
  • 8. Communication structure in an Organization Communication follows the organizational structure 1. Upward Communication - Memos, notices, newsletters, manuals 2. Downward Communication - Memos, reports, meetings, informal discussion 3. Horizontal Communication - Committee meetings, seminars, conferences 4. Diagonal Communication - Depends on cooperation, goodwill and respect Lateral or Horizontal Communication Diagonal or Crosswise communication Note: Refer to books as well as discussions held in the class.
  • 9. Note: Refer to books as well as discussions held in the class.
  • 10. Internal Communication Merits of Informal communication: 1. Speedy transmission 2. Feedback value 3. Support to other channels 4. Psychological satisfaction 5. Uniting force 6. Creation of ideas 7. Good personal relations Demerits of informal communication o Changing interpretations o Lack of accountability o Incomplete information Miscommunication 1. Organization Structure Every organization has a communication policy that describes the protocol to be followed. It is the structure and complexity of this protocol that gives rise to communication barriers 2. Difference in status Generally employees at lower levels of the hierarchy are overly cautious while sending messages to managers and talk about subjects they think the managers are interested in. Similarly, people of Note: Refer to books as well as discussions held in the class.
  • 11. higher status may distort messages by refusing to discuss anything that would undermine the authority in the organization. 3. Lack of trust Subordinates may not know whether their manager will respond in a supportive or responsible way, and hence it is necessary for the manager to ensure that they have faith in him. Lack of trust, an open communication is effectively blocked, thereby threatening the organization’s stability. It is important that people trust you to freely discuss things with you. Barriers to trust can be overcome by being visible and accessible. Creating an open communication environment in the firm, helping employees in times of distress, and assuring them of your suggestion or co-operation may help you to build trust in their minds. 4. Closed Communication climate Management style of an organization influences an organization’s communication climate. Authoritarian style blocks free and open exchange of information that characterizes good communication. To overcome barriers related to organizational environment, one should spend more time listening than issuing orders. A manager should encourage employees and colleagues to offer suggestions, help set goals, participate in solving problems and help make decisions. 5. Incorrect choice of medium Face-to-face communication is the richest medium because is personalized; it provides instant feedback, transmits information using verbal as well as non-verbal cues and also conveys the emotion behind the message. Nature of message Type of Media Cues Nature of Media Quality feedback Personal (Oral) Face-to-face Verbal and non Immediate Richest verbal Personal (Oral) Telephone, Verbal and Close to Rich computers, etc. vocal immediate Personal and Letters, Memos, Verbal and Delayed/No Leaner impersonal reports, etc. visual (Written)/Addressed documents Impersonal Circulars etc. Verbal and Almost Nil Leanest Unaddressed visual documents 6. Information overload At times, people load their messages with too much information. Too much information is as bad as too little because it reduces the audience’s ability to concentrate on the most important part of Note: Refer to books as well as discussions held in the class.
  • 12. the message. Due to overload, recipients tend to ignore some of the messages or delay the response, or react superficially to all messages. To avoid information overload, as a sender, include only that information which is pertinent to the context. As a receiver, set priorities for dealing with the information flow and do not get trapped in the sea of information. 7. Physical distractions Communication barriers are often physical – bad connections, poor acoustics, illegible copy, etc. An uncomfortable chair, poor lightning or some other irritating condition may also distract your receiver. In some cases, the barrier may be related to the receiver’s health. These annoyances do not generally block communication entirely, but they do reduce the receiver’s concentration by distracting their attention. 8. Message Complexity Any message is generally regarded as complex if the message is dry and difficult or if it is difficult to understand. When formulating business messages, you communicate both as an individual and as a representative of an organization. Thus you must adjust your own ideas and style as per your employer. Irrespective of your personal feelings, you must communicate your firm’s message. Do ask for feedback, which is essential for clarifying and improving message. 9. Unethical communication Resorting to unethical means in communication may not drive you to success but to trouble. All the factual information should be included. Ensure that the information is adequate and relevant to the situation. Effectiveness in Managerial communication Factors responsible for making managerial communication effective are: 1. Appropriate communication style 2. Clarity in message 3. Audience-centric approach 4. Understanding of intercultural communication 5. Commitment to ethical communication 6. Proficiency in communication technology 7. Control over the flow of communication 8. Co-ordination between superior and subordinates 9. Avoid jargons 10. Right feedback Note: Refer to books as well as discussions held in the class.