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Types of Business Communication

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111 views6 pages

Types of Business Communication

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lavyasutar
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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2018

MODULE: 10
Business Communications
TELECENTRE ENTREPRENEUR COURSE

CSC e-Governance Services India Limited 3rd Floor, Electronics Niketan,


6 CGO Complex Lodhi Road, New Delhi – 110003
MODULE 10 Business Communications

Structure of the Unit

1.1 Business Communication


1.2 Types of Business Communication
1.3 The main components of communication process
1.4 Importance of Business Communication
1.5 Communication Flows in an Organization
1.6 Body Language in Communication
1.7 Communication Barriers - Reasons for Communication Breakdown

1.1 Business Communication is a mutual exchange of understanding, originating with the


receiver. Communication needs to be effective in business. Communication is the essence of
management. The basic functions of management (Planning, Organizing, Staffing, Directing
and Controlling) cannot be performed well without effective communication.

Business Communication is goal oriented. The rules, regulations and policies of a company
have to be communicated to people within and outside the organization. Business
Communication is regulated by certain rules and norms. In early times, business
communication was limited to paper-work, telephone calls etc. But now with advent of
technology, we have cell phones, video conferencing, emails, and satellite communication
to support business communication. Effective business communication helps in building
goodwill of an organization.

1.2 Types of Business Communication:

1. Oral Communication - An oral communication can be formal or informal. Generally


business communication is a formal means of communication, like: meetings,
interviews, group discussion, speeches etc. An example of Informal business
communication would be - Grapevine.
2. Written Communication - Written means of business communication includes -
agenda, reports, manuals etc.

1.3 The main components of communication process are as follows:

a) Context - Communication is affected by the context in which it takes place. This


context may be physical, social, chronological or cultural. Every communication
proceeds with context. The sender chooses the message to communicate within a
context.
b) Sender / Encoder - Sender / Encoder is a person who sends the message. A sender
makes use of symbols (words or graphic or visual aids) to convey the message and
produce the required response. For instance - a training manager conducting training
for new batch of employees.
c) Message - Message is a key idea that the sender wants to communicate. It is a sign
that elicits the response of recipient. Communication process begins with deciding
about the message to be conveyed. It must be ensured that the main objective of
the message is clear.
d) Medium - Medium is a means used to exchange / transmit the message. The sender
must choose an appropriate medium for transmitting the message else the message
might not be conveyed to the desired recipients. The choice of appropriate medium
of communication is essential for making the message effective and correctly
interpreted by the recipient. This choice of communication medium varies
depending upon the features of communication
e) Recipient / Decoder - Recipient / Decoder is a person for whom the message is
intended / aimed / targeted. The degree to which the decoder understands the
message is dependent upon various factors such as knowledge of recipient, their
responsiveness to the message, and the reliance of encoder on decoder.
f) Feedback - Feedback is the main component of communication process as it permits
the sender to analyze the efficacy of the message. It helps the sender in confirming
the correct interpretation of message by the decoder. Feedback may be verbal
(through words) or non-verbal (in form of smiles, sighs, etc.). It may take written
form also in form of memos, reports, etc.
1.4 Importance of Business Communication

Effective Communication is significant for managers in the organizations so as to


perform the basic functions of management, i.e., Planning, Organizing, Leading and
Controlling. Communication helps managers to perform their jobs and
responsibilities. Communication serves as a foundation for planning. All the essential
information must be communicated to the managers who in-turn must
communicate the plans so as to implement them. Organizing also requires effective
communication with others about their job task.

1.5 Communication Flows in an Organization

In an organization, communication flows in 5 main directions:

1. Downward Flow of Communication: Communication that flows from a higher level


in an organization to a lower level is a downward communication. In other words,
communication from superiors to subordinates in a chain of command is a
downward communication.

2. Upward Flow of Communication: Communication that flows to a higher level in an


organization is called upward communication. It provides feedback on how well the
organization is functioning. The subordinates use upward communication to convey
their problems and performances to their superiors.

3. Lateral / Horizontal Communication: Communication that takes place at same levels


of hierarchy in an organization is called lateral communication, i.e., communication
between peers, between managers at same levels or between any horizontally
equivalent organizational member.

4. Diagonal Communication: Communication that takes place between a manager and


employees of other workgroups is called diagonal communication. It generally does
not appear on organizational chart.

5. External Communication: Communication that takes place between a manager and


external groups such as - suppliers, vendors, banks, financial institutes etc. For
instance - To raise capital the Managing director would interact with the Bank
Manager.

1.5 Body Language in Communication

Kinesics or study of body language must be understood by all. Whether it is an


interview or a presentation, one must be aware of how to use body language
effectively. Various non verbal components of communication:

 Eye Contact: Always maintain eye contact with your audience. However, a person
must ensure that he / she should not fix his gaze at one person for more than 5
seconds. Too much fluttering of eyes could indicate lack of confidence. Staring at a
person could be daunting and hence is not such a good idea.
 Hand Shake: While shaking hands especially in a professional environment, the hand
shake should be firm and not loose. An iron handshake [very strong handshake] can
indicate that a person is trying to dominate.
 Crossing your Arms: Crossing your arms could imply that a person is not open to
new ideas / opinion especially in case of giving a presentation. However, in a one-on-
one interview if the interviewer has his / her arms crossed, the candidate could do
the same.
 Sitting Posture: Leaning on a chair is not a good idea. One must sit upright though in
a relaxed position. Sitting back in your chair implies lack of interest or rejection.
 Gesture: Gesture refers to a type of non verbal communication which uses a part of
the body with or without verbal communication. Gestures include facial expressions,
nods [which is a sign of approval in most cultures], head bobbling / shaking.
 Facial Expression: The face is a best reflection of what a person feels. More often
than not it is easy to recognize if a person is happy, sad, anxious, irritated, or excited.
It is very important that in a professional scenario a person must control his / her
facial expressions.
1.6 Communication Barriers - Reasons for Communication Breakdown

There are several barriers that affect the flow of communication in an organization. These
barriers interrupt the flow of communication from the sender to the receiver, thus making
communication ineffective. It is essential for managers to overcome these barriers. The
main barriers of communication are summarized below.

 Perceptual and Language Differences


 Information Overload
 Inattention
 Time Pressures
 Distraction/Noise
 Emotions
 Complexity in Organizational Structure
 Poor retention

Common questions

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Upward communication benefits employees by providing a platform for voicing concerns, feedback, and ideas, promoting a sense of inclusion and empowerment. For management, it offers insights into operational issues, employee satisfaction, and potential areas for improvement, aiding in informed decision-making. However, challenges include potential reluctance from employees to speak openly due to fear of repercussions, potential filtering of information by middle management, and breakdowns in communication channels that may inhibit accurate feedback transmission .

The different types of communication flows within an organization include downward, upward, lateral/horizontal, diagonal, and external communication. Downward communication flows from higher to lower levels, facilitating authority and instruction dissemination. Upward communication provides feedback from subordinates to superiors, enhancing understanding of operational issues. Lateral communication occurs between peers and aids coordination and teamwork. Diagonal communication connects cross-departmental stakeholders, promoting flexibility and innovation. External communication bridges interactions with outside parties like suppliers, aiding organizational reach and resource acquisition .

Feedback is considered a critical component of the communication process because it allows the sender to assess whether the message has been understood and interpreted correctly by the receiver, providing a mechanism for confirming communication effectiveness. It completes the communication loop and can take various forms, such as verbal cues (spoken words), non-verbal gestures (smiles, nods), or written responses (reports, emails).

The context of communication, including the physical, social, chronological, and cultural environment, influences the choice of medium by dictating the appropriateness and clarity desired for effective message transmission. In a formal context, written mediums may be preferred for official documentation, while informal settings might leverage oral communication for flexibility. The effectiveness of the communication process depends on selecting a medium that aligns with these contextual elements to ensure recipients accurately interpret and respond to messages .

Body language, or kinesics, plays a significant role in effective communication within a business environment by conveying nonverbal cues that complement or contradict verbal messages. Key elements include maintaining appropriate eye contact to show confidence and engagement, offering a firm handshake to denote professionalism, and avoiding closed gestures like crossing arms to prevent misunderstandings of openness. Sitting posture and gestures, such as nods, can indicate engagement or approval, influencing the interpretation of messages in a professional setting .

The main components of the communication process in business settings include context, sender/encoder, message, medium, recipient/decoder, and feedback. Context affects the setting and conditions under which communication takes place. The sender/encoder uses symbols to convey messages to elicit a response. The message is the key idea the sender aims to communicate. The medium is the channel used to transmit the message, and must be chosen appropriately to ensure clarity. The recipient/decoder is the intended audience of the message, whose understanding is crucial. Feedback, verbal or non-verbal, helps the sender confirm the message is correctly interpreted, completing the communication loop .

Barriers that can lead to communication breakdowns in organizations include perceptual and language differences, information overload, inattention, time pressures, noise/distractions, emotional interference, complexity in organizational structure, and poor retention of information. Managers can address these barriers by promoting clear and concise language, regulating information flow to prevent overload, maintaining focus and active listening, efficiently managing time, minimizing environmental distractions, fostering emotional awareness, ensuring organizational structures are straightforward, and employing repetition or reinforcement for better retention .

Body language can play a significant role in overcoming communication barriers by providing clarity and reinforcing verbal messages, thus reducing misunderstandings. Managers can use consistent eye contact, appropriate gestures, and open postures to convey confidence and approachability, fostering a receptive communication environment. Controlled facial expressions and non-verbal cues can aid in managing emotions, further reducing perceptual and emotional barriers, thereby enhancing the overall effectiveness of organizational communication .

The advent of technology has transformed business communication from traditional methods like paperwork and telephone calls to modern digital tools such as emails, video conferencing, and satellite communication. This evolution allows for faster, more efficient, and broader-reaching communication, facilitating instantaneous information sharing and collaboration across geographical boundaries. As a result, organizational practices have become more dynamic, with enhanced capabilities for remote working, global partnerships, and real-time decision-making, fostering improved organizational efficiency and adaptability .

Effective business communication contributes to management functions by serving as the foundation for planning through the dissemination of necessary information, enabling managers to develop and implement plans. Organizing is supported by clearly communicating job tasks and roles, facilitating alignment and coordination. Leading necessitates effective communication to motivate and guide teams towards goals. Communication in controlling involves monitoring performance and providing feedback, ensuring organizational directives are followed and objectives are met .

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