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.