• Business Communication is neither
transmission of message nor message itself.
It is the mutual exchange of understanding.
• The basic functions of management cannot
be performed well without effective
• Feedback is integral part of business
Business Communication can be of two
• Oral Communication - An oral
communication can be formal or informal.
• Written Communication - Written means of
Advantages of Oral Communication
•There is high level of understanding and
•There is flexibility for allowing changes in the
decisions previously taken.
•The feedback is spontaneous in case of oral
communication. Thus, decisions can be made
quickly without any delay.
•Oral communication is not only time saving, but
it also saves upon money and efforts.
•Oral communication is best in case of problem
Limitations of Oral Communication
•There may be misunderstanding.
•It requires attentiveness and great receptivity
on part of the receivers/audience.
•Oral communication (such as speeches) is not
frequently used as legal records except in
Advantages of Written
•Written communication helps in laying down
apparent principles and policies for running
of an organization.
•It provides ready records and references.
•It assists in proper delegation of authority.
While in case of oral communication, it is
impossible to fix and delegate.
•Legal defenses can depend upon written
communication as it provides valid records.
Disadvantages of Written
•Written communication does not save upon
•Written communication is time-consuming as
the feedback is not immediate.
•Effective written communication requires
• Too much paper work and e-mails burden is
Importance of communication in an
• promotes motivation.
• source of information.
• altering individual attitudes.
• controlling process.
Upward Flow of Communication
• Communication that flows from lower level
to higher level in an organization.
• It provides feedback on how well the
organization is functioning.
• The subordinates use upward
communication to convey their problems
and performances to their superiors.
Downward Flow of Communication
•Communication that flows from a higher
level in an organization to a lower level is a
•Giving job instructions and provide feedback
to their performance.
•Both Downward & Upward Communications
are collectively called “Vertical
Lateral / Horizontal Communication
• Communication that takes place at same
levels of hierarchy in an organization is
called horizontal communication.
• Horizontal Communication is essential for:
– Solving problems
– Accomplishing tasks
– Improving teamwork
– Boosting efficiency
• Communication with people outside the
company is called external communication.
• It leads to better Sales volume.
• It improve Overall performance, Public
goodwill and Corporate image.
•Grapevine is an informal channel of business
•It stretches throughout the organization in all
directions irrespective of the authority levels.
•Grapevine channels carry information rapidly.
•The grapevine is not trustworthy always
because it spread more by gossips and
• Perceptual and Language Differences
• Information Overload
• Time Pressures
• Complexity in Organizational Structure
To Overcome the Communication
• Eliminating differences in perception
• Use of Simple Language
• Active Listening
• Simple Organizational Structure
• Avoid Information Overload
7 C’s of effective communication
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