1. By Gayatri Padegaonkar
BUSINESS COMMUNICATION

2. MEANING OF COMMUNICATION
 The term ‘communication’ is derived from
the Latin word ‘communis’ which means
common.
 Communication stands for sharing of
ideas in common.
 Communication of ideas establishes a
common ground for understanding

3. DEFINITIONS OF COMMUNICATION
• Communication is the process of
passing information & understanding
THEO from one person to another.
• It is the process of imparting ideas &
HAIMANN making oneself understood by others.
AMERICAN
• Communication is any behaviour that
MARKETING results in an exchange of meaning.
ASSOCIATION

4. THREE ASPECTS OF COMMUNICATION
Subject Matter
( Order( Sender Element of
Information, Id &Receiver ) Understanding
eas & feeling)

5. OBJECTIVES OF COMMUNICATION
 INFORMATION  EDUCATION
 ADVICE  WARNING
 ORDER  RAISING MORALE
 SUGGESTION  MOTIVATION
 PERSUASION

6. IMPORTANCE OF COMMUNICATION
PROPER BETTER
PLANNING ADMINISTRATION
BETTER MUTUAL TRUST &
COORDINATION CONFIDENCE

7. IMPORTANCE OF COMMUNICATION
Contd…
Building Binding
Morale Force
Basis for
Decision Motivation
Making

8. Smooth Business
Functioning & Maximum Productivity
Establishing Better with minimum cost
labour Relations
Imp. Of
Buss.Comm.
Need for Competitive Improving Business
Information & System & Moulding
Democratic Functioning Attitudes

9. COMMUNICATION PROCESS
FEEDBACK
SENDER
RECEIVER-
MESSAGE
DECODING
CHANNEL ENCODING

10. MODELS OF COMMUNICATION
LINEAR MODEL
• Aristotle’s Model, Mathematical
Model, David Berlo’s & Harold’s Model
INTERPERSONAL MODEL
• Two-way Communication or
Interactional Model

11. Aristotle
Mathematical
LINEAR David
MODEL
Harold

12. ARISTOTLE MODEL OF
COMMUNICATION
 He developed the first communication
model.
 It was easy, simple & elementary model of
the communication.
 SPEAKER
As per him, there are 3 mainAUDIENCE in
SPEECH ingredients
any communication event :--

13. MATHEMATICAL MODEL OF
COMMUNICATION
 It was developed by C.E. Shannon & W. Weaver in
1949.
 They considered the theory as strictly
mathematical & identified the technical aspects of
communication.
 According to them, there are 5 basic elements in any
communication :--
 Information
 Transmitter
 Channel
 Receiver
 Destination

14. DAVID K. BERLO’s MODEL OF
COMMUNICATION
 His theory is one of the basic theories for all
communication theorists. The following nine components
are included in his model :-
 Source
 Encoder
 Message
 Channel
 Receiver
 Decoder
 Meaning
 Feedback
 Noise

15. HAROLD’s MODEL OF COMMUNICATION
 It gives rise to five basic & important
questions :--
WHY? WHAT?
HOW? WHO?
WHEN?

16. INTERPERSONAL MODEL OF

COMMUNICATION
Also known as “circular” or “cyclical” model. It introduces the
element of feedback which was absent in the linear models.
 Following are the elements under the interpersonal model :--
 Message or Idea
 Sender or transmitter or communicator
 Encoding
 Channel
 Medium
 Receiver
 Decoding
 Action or behaviour change
 Feedback

17. COMMUNICATION PROCESS MODEL
ENCODING CHANNEL DECODING
IDEA
IDEA RECEIVED
MESSAGE ( Receiver
( Sender ) MESSAGE
)
FEEDBACK

18. EFFECTIVENESS, LIMITATIONS & MEDIA
CHANNELS OF COMMUNICATION

19. CHANNELS OF COMMUNICATION
 A channel of communication is the path
through which information is transmitted
throughout the organization.
 Channels of communication are divided into
FORMAL
two types :---
INFORMAL

20. FORMAL COMMUNICATION
 It refers to official communication which takes place
following the chain of command.
 Formal channels include the paths of communication which
are institutionally determined by the organization
 Formal communication usually takes the form of written
communication such as notes, memos, letters, reports &
statements.
 Formal communication are of 4 types :-
 DOWNWARD
 UPWARD
 HORIZONTAL
 DIAGONAL

21. Formal Communication
President
Instructions and directives
Information
Vice Vice
President President
Manager Manager Manager Manager
Efforts at coordination

22. DOWNWARD COMMUNICATION
DOWNWARD MD DOWNWARD
DEPTT.
HEADS
OPERATIVE
EMPLOYEES

23. OBJECTIVES OF DOWNWARD
COMMUNICATION
POLICIES & JOB
FEEDBACK
PROCEDURES INSTRUCTIONS
JOB MOTIVATION &
RATIONALE TRAINING

24. UPWARD COMMUNICATION
MANAGING
UPWARD DIRECTOR
DEPTT. HEADS
OPERATIVE
EMPLOYEES

25. MODES OF UPWARD COMMUNICATION
SUGGESTIONS
QUESTIONNAIRES GRIEVANCES
OPEN DOOR
OMBUDSPERSON
POLICY

26. DOWNWARD v/s UPWARD
COMMUNICATION
DOWNWARD
COMMUNICATION UPWARD COMMUNICATION
 Represents flow of  Represents flow from
information from top level lower level to top level
to lower levels.
 Its purpose is to  Its purpose is to keep the
communicate policies, superiors informed about
procedures & orders to the the progress of work.
subordinates.
 It takes the form of written
 It takes the form of activity
& oral instructions, letters,
reports, suggestions etc.
co’s publications etc.

27. HORIZONTAL OR LATERAL
COMMUNICATION
 It refers to the transmission of information
among persons of the same level & status.
 It generally takes place among dept. heads for
achieving coordination in the enterprise.
 Objectives of lateral communication are :--
 COORDINATION
 SOLVING PROBLEMS
 RESOLVING CONFLICT
 EXCHANGING INFORMATION
 PROMOTING SOCIAL RELATIONS

28. HORIZONTAL COMMUNICATION
M.D.
Divisional Divisional
Manager Manager
( Steel ) ( Cement )
Production Marketing
Finance Head
Head Head

29. DIAGONAL COMMUNICATION
 It takes place b/w people who work in different
departments & at different levels within an
organization.
 It involves committees, teams or task forces
that are created to solve problems or complete
special projects

30. PROS & CONS OF FORMAL
COMMUNICATION
 Communication is  It is a slow moving
systematic . process
 Source of
communication can be  Personal warmth &
easily located. involvement may be
 Facilitate control lacking
 Easy fixation of  Accurate information
responsibilities. may not be
transmitted.

31. INFORMAL COMMUNICATION
 Communication b/w individuals & groups
which are not officially recognized is known
as informal communication.
 It consists of exchange of ideas & information
resulting from social interaction among
members of an organization.
 Also known as Grapevine Communication.

32. GRAPEVINE COMMUNICATION

33. CHARACTERSITICS OF GRAPEVINE
Transmits It is unrestricted by
information laterally formal policies &
& diagonally procedures.
GRAPEVINE
It extends beyond the
It is selective
formal hierarchy.

34. TYPES OF GRAPEVINE NETWORKS
 SINGLE STRAND CHAIN ( Communication
through intervening persons in a strand )
 GOSSIP CHAIN ( One person non-selectively
communicates with everyone. )
 PROBABILITY ( Random communication
with others as per the probability law. )
 CLUSTER CHAIN ( Selective communication
with those trusted ones )

35. DIFFERENCE b/w FORMAL *
INFORMAL COMMUNICATION
FORMAL COMMUNICATION INFORMAL COMMUNICATION
 It follows the official chain  It is independent of the
of command. authority relations in the
organization.
 Carries messages at a fast
 Slow moving process speed.
 Easy to pinpoint the  May not be easy to fix
responsibility. responsibility.
 It is orderly & systematic.  It is unsystematic & erratic.
 Serves org. needs  Serves both org. & social
needs.

36. BARRIERS TO COMMUNICATION
SEMANTIC PERSONAL PSYCHOLOGICAL
TECHNOLOGICAL,
ORG. CULTURAL &
STRUCTURAL MECHANICAL
BARRIERS

37. BARRIERS TO COMMUNICATION.

38. Types of Barriers
 Physical Noise
 Technical Noise
 Psychological Noise
 Poor Timing
 Perceptual Bias
 Lack of Interest
 Psychological Bias
 Information Overload

39. Physical Noise
 Physical noise occurs when
the sender and receiver try to
communicate in a situation
that is noisy
 For example, the bus stop.
The noise produced by the
passing buses create what is
known as ‘physical noise’.

40. Technical Noise
 Technical noise occurs when the
sender and the receiver use a
tool to communicate for
example, a phone.
 When 2 people are
communicating using the
phone, and one person steps
into an elevator, the signal will
be lost and the communication
will fail. The break down with
the tool used to communicate is
known as ‘technical noise’.

41. 
Psychological Noise
Psychological noise occurs when the
receiver of the message is thinking of
something and not concentrating on
the message itself, for example,
having class in a park.
 While this may sound like a nice and
comfortable situation to be in the
message may be lost if the receiver of
the message is thinking about if the
grass is wet or if there are any harmful
bees around.
 As the receiver loses concentration on
what is being transmitted by the
sender, so we have ‘psychological
noise’.

42. Poor Timing
 Poor timing usually happens
when the sender is not aware
of the mood of the receiver
when sending the message.
 For example, approaching
your employer for a raise when
he/she has just made an
announcement that the
company is almost bankrupt.

43. Perceptual Bias
 Perceptual bias occurs when the sender is not aware
of the rules of first impression.
 For example, when you attend an interview there is
an appropriate dress code.
 Failure to follow that dress code may result in you
being prejudiced against. If you go for an interview
for an accounting position dressed in jeans and a t-
shirt, don’t be surprised if you don’t get the job.

44. Lack of Interest
 Sometimes, there are some
things that we are just not
interested in. Of all the subjects
that students learn to complete
their degree, they cannot love all.
 There will be the ONE or TWO
subject that we have to suffer to
stay awake for. A lack of interest
in what someone has to say will
definitely lead to a breakdown in
communication.

45. Psychological Bias
 Ever heard of prejudices?
Someone doesn’t like you
because you are
male/female,old/young, ric
h/poor.
 There are biases. A bias is
something that the sender
cannot fix. There is no
solution to this problem.
Just be prepared.

46. Information Overload
 Information overload occurs
when you try to absorb too
much information over a short
period of time.
 If you try to study continuously
for hours without a break, or
introduce too many new
concepts to your learning in
one period of time, your mind
will become confused and this
can lead to a break down in
communication.

47. 7 Cs of Effective
Communication
 CLARITY  COMPLETENESS
 CREDIBILITY  CHANNEL
 CONTENT  CAPABILITY
 CONTEXT

48. PRINCIPLES OF EFFECTIVE
COMMUNICATION
 SPEEDY  ECONOMY
TRANSMISSION
 CLARITY OF  SECRECY
MESSAGE
 CREATION OF
 SAFETY
IMPRESSION
 CREATION OF
FEEDBACK  TWO-WAY TRAFFIC
 ACCURACY

49. Two-way channel Mutual Trust
Overcoming
Barriers
Timely Message Clarity of Message

50. Consistency of
Good Relations
Message
Overcoming
barriers
Empathetic Listening Feedback