Communication is interchange of thoughts, opinions or information, by speech, writing or signs.

1. Business Communication

2. Communication
Latin Word
COMMUNIC
ARE
To Share

3. Communication is interchange of
thoughts, opinions or information,
by speech, writing or signs.

4. Classification- Basis- Number of
receivers to whom the message is
addressed

5. COMMUNICATION

6. Interpersonal Communication

7. Group Communication

8. Mass Communication

9. Classification- Basis- Medium
employed

12. Non Verbal Communication

13. Meta Communication
Communication which is implicit and not expressed
in words.

14. A. Internal Objectives
B. External Objectives

15. Internal Objectives
•Information to
•Managem
ent
•Employee
s
•Means to achieve
ends
•Co-ordination •Helps to accomplish
results
•Improvement in
morale
•Provides decision
making support

16. External Objectives
•Sale of Goods and
Services
•Enables an
organisation to
become dynamic
•Relations with
Suppliers
•Helps to face
emerging
challenges
•Information to other
parties

17. Importance of Communication
Increase in size of
business
Smooth running of
business
Growing specialisation Right and quick decision
making
Cut-throat competition Facilitates proper planning
and co-ordination
Trade union movement Maximum productivity with
minimum cost
Human relations Minimize organisation
conflicts
Public relations Promote employee loyalty
Personal asset Helps in moulding attitudes

18. Process of Communication
Sender Selects, composes
Message Verbal/ non- verbal/
combination
Channel/ media Oral/ written
Receiver Identifies, comprehends,
interprets
Response and feedback Verbal/ non- verbal/
combination
Sender Message Receiver

19. Feedback
Communication Process
Sender Message Encoding Receiver Decoding Message

21. Process of Communication
 Sender
 Receiver
 Message
 Feedback
 Media
 Interpretation
 Reaction
 Noise

22. Elements of Communication
 Message
 Sender
 Encoding
 Channel
 Receiver
 Decoding
 Action
 Feedback

23. Elements of Communication
Message-
Information
Written/spoken
Organised, structured,
shaped and selective
Exists in mind of sender

24. Elements of Communication
Sender-
 Person who transmits/ spreads/
communicates a message
 Initiates message
 Purpose- informing, persuading,
influencing, change in receiver’s
attitude/ opinion
 Decides the channel, time, type of
communication

25. Elements of Communication
Encoding-
 Changing the message (ideas, facts,
feelings, opinions) into symbols/
patterns of words/ gestures, etc.
 Selected by sender keeping in mind the
receiver’s ability to understand and
interpret them correctly.

26. Channels

27. Elements of Communication
Channel-
 Vehicle or medium which facilitates the
sender to convey the message to
receiver
 Written medium- letter/ memo/ report/
manual/ notice/ circular/ questionnaire/
minutes, etc.
 Oral- dialogue/ interview/ telephone
conversation/ conference/ recording,
etc.

28. Elements of Communication
Receiver-
 Targeted audience of message
 Receiver gets message -> interprets->
perceives the message

29. Elements of Communication
Decoding-
 Act of translating symbols of
communication into meanings.

30. Elements of Communication
Action-
 When receiver understood the
message he responds through a
particular action

31. Elements of Communication
Feedback-
 Ensures that receiver has received
the message and understood it as
intended by the sender.

32. Choice of channel
Organisation size and policy
Cost factor
Nature of message
Distance involved
Resources

33. Channels of Communication
1 Formal Informal (Grapevine)
2 Downward Upward (Vertical)
3 Horizontal or
Lateral
Diagonal or
Crosswise
4 Internal External

34. Formal Channel of
Communication

35. Formal Channel of Communication
 Official channel
 Established by management-
deliberately and consciously
 Line of communication for
transmission of messages
and information officially
within and outside the
organisation
Information
about
performance
Directive
information

36. Formal Channel of
Communication
Advantages Disadvantages
Follows unity of command Slow and time consuming
Subordinates are bound to
act within the purview of
responsibilities
May impede smooth and
accurate circulation of
information
Flow of orders,
instructions, etc. very
specific, clear and definite.
Lacks personal contact
and relationships
Effective control and
discipline in the
organisation
Possibility of distortion of
facts when the message
passes through various
levels
Helps in maintaining

38. Informal Channel of Communication

39. Informal Channel of Communication
 Also called grapevine.
 Takes place without giving regard to
hierarchical / task requirements.
 Personal rather than positional.
 Result of social interaction of people.
 Carries unofficial information about
management’s policies, plans,
performance, etc.
 Rumour is an undesirable feature of
grapevine.

40. Informal Channel of Communication
Advantages Disadvantages
Can work as a powerful and
purposeful effective tool of
communication.
Tends to be fast
Valuable aid in communicating
organisational rules, values and
morals.
Carry large amount of
information but fairly inaccurate
information, because of
misinterpretation.
Helps in dissemination of
information about organisational
traditions and history.
Spreads rumours and carry
gossips.
Speedy transmission, feedback
value, support to other channels,
psychological satisfaction

41. Formal Communication v/s Informal
Communication
Basis Formal Informal
Origin Deliberately
structured
Spontaneous and
structured
Flow Prescribed Not prescribed
Authority Official channel Unofficial
Purpose To achieve
organisation goals
To satisfy personal
needs
Speed Slow Fast
Accuracy Accurate and
authentic
Often contains
rumours and gossips
Form Both oral and written Oral

42. Downward Communication

43. Downward Communication
 Vertical communication, which flows
from a higher level to one or more
lower levels in the organisation.
 Eg. Staff meetings, company policy
statements, company newsletter,
memos, face-to-face
communication

44. Downward Communication
Advantages Disadvantages
Helps to tie different levels of
organisation.
Prone to considerable distortion.
Helps encouraging the
effectiveness of upward
communication through
feedback.
Some managers may purposely/
non-purposely filter
communication by withholding,
screening or manipulating
information
Managers tend to over-use one-
way communication methods,
such as memos, manuals,
newsletters, etc. thus litter
feedback from receiver.
Distortion/ dilution, delay,
filtering, too much or too less

45. Upward (Vertical) Communication

46. Upward (Vertical) Communication
 Vertical flow of communication from
lower level to higher level in the
organisation.
 Includes one-to-one meetings with
immediate superior, memos and
reports, grievance procedures, etc.
 Good staff relation facilitate free
upward communication.

47. Upward (Vertical) Communication
Advantages Disadvantages
Create greater harmony and
mutual understanding between
management and employees
Often subordinates are reluctant
to speak freely to their superiors.
Managers get-
•Up-dation of progress of work
done
•Come to know about problems
faced by subordinates.
•Constructive suggestions and
innovative ideas from employees
.
Psychological, hierarchical
•Feedback, release of tension,
suggestions, mutual co-
operation, change

48. Horizontal or Lateral Communication

49. Horizontal or Lateral Communication
Takes place between persons
operating at the same level.
Helps in maintaining co-
ordination and review the
activities assigned to various
sub-ordinates.
Keeps every department
informed of the needs and

50. Horizontal or Lateral Communication
Advantages Disadvantages
Creates mutual
understanding and
trust between people
and departments
Rivalry can influence
individuals to hide
information.
Facilitates co-operation
and co-ordination
between different
departments
Lack of motivation
Problems can be
solved at the lower

51. Diagonal or cross-wise
communication

52. Diagonal or cross-wise
communication
Takes place when persons
working as a lower level
interact with those at a higher
level across the limits of their
reporting relationships.

53. Diagonal or cross-wise
communication
Advantages Disadvantages
Co-ordination Resistance
Boosting morale Violation of limits of
commands
Speedy action Anarchy

54. Internal communication
 People within organisation communicate
with each other
• Individual to Individual
• Individual to group
• Group to individual
• Department to department
 Mostly oral and informal
 Informal communication/ grapevine
 Memo, report, office order, circular,
manuals, minutes of meeting, notice,
agenda, etc.

55. External communication
 When people in organisation
communicate with anyone
outside the organsiation
 Client, customer. supplier,
government, etc.
 Price list, tender documents, letter,
circular, brochure, advertisement,
press release, etc.