an introduction to business communication

1. CHAPTER 1
Communication
The word “communication” derived from the Latin word ‘communicare’ that means to impart, to participate, to
share or to make common. It is a process of exchange of facts, ideas, opinions and as a means that individual or
organization share meaning and understanding with one another. In other words, it is a transmission and
interacting the facts, ideas, opinion, feeling and attitudes.
Communication is sending and receiving information between two or more people. The person sending the
message is referred to as the sender, while the person receiving the information is called the receiver. The
information conveyed can include facts, ideas, concepts, opinions, beliefs, attitudes, instructions and even
emotions.
In general, communication is a means of connecting people or places. It is a Two-way process of reaching
mutual understanding, in which participants not only exchange (encode-decode) information, news, ideas and
feelings but also create and share meaning.
American Management Association defines: ‘Communication is any behavior that results in an exchange of
meaning’.
Peter Little defines communication as, ‘Communication is the process by which information is transmitted
between individuals and/or organizations so that an understanding response result’.
Newman and Summer Jr. state that, ‘Communication is an exchange of facts, ideas, opinions or emotions by
two or more persons’.
According to Keith Davis, ‘The process of passing the information and understanding from one person to
another. It is essentially a bridge of meaning between the people. By using the bridge a person can safely across
the river of misunderstanding’.
Business Communication
Business communication is the specialized branch of general communication that is especially concerned with
business activities. When communication takes places among business parties concerning business affairs or
business related issues is known as business communication. Business communication is nothing but, the
communication between the people in the organization for the purpose of carrying out the business activities.
Business communication is a process of transmitting information and thoughts between various parts of an
organization and also to people outside the organization such as customers, investors, suppliers etc.
According to Ricks and Gow, “Business communication is a system that affects change within the total
organization.”
According to W. H. Meaning, “The exchange of ideas, news and views in connection with the business among
the related parties is called business communication.”
According to Prof. J. Haste, “Communication occurred between two or more businessmen for organizing and
administering business efficiently is called business communication.”
According to Brennar, “Business communication is the expression channeling, receiving and interchanging of
ides in commerce and industry.”

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So, we can conclude that business communication is the process where business related issues, information,
functions, news etc. are exchanged between producers, distributors, buyers, sellers, suppliers, competitors,
government agencies, business parties etc. for efficiently organizing and administering business.
Characteristics of communication or features of communication
Important characteristics of communication are as follows:
1. Specific objectives: Every work of human being should be specific objective oriented. Aimless work or
communication cannot bear any fruitful result. So, the communicator should aware of the objective of
communication clearly.
2. Message or information: Message is the set of symbols that the sender transmits to the receiver through the
media. It is content of the interaction between sender and receiver.
3. Exchange of information: Communication helps to exchange information or ideas between sender and
receiver. For the achievement of any objective, exchange of information or idea is very important.
4. Two or more person/parties: Generally, communication is the two-way process. It happens between or
among two or more parties (sender and receiver). Employees need the opportunity to share their feedback,
opinions and thoughts with managers and employers.
5. Formality: Most of the cases communication maintains formal rules and procedure between or among the
sender and receiver.
6. Use of media/channel: Without media or channel message of communication are not possible to send to the
receiver. But all media are not equally effective. Suitable media should be selected each time while sending any
message.
7. Mutual of understanding: Communication involves mutuality of understanding between sender and
receiver. They should understand the subject matter of the communication.
8. Dynamic process: Communication is a dynamic process between or among the sender and receiver. One
party send message and another provide feedback until the objectives of the communication achieved.
9. Noise/Barriers: Noise is an interruption or disturbance to the message sent in the communication processes
that distort the meaning of the message.
10. Feedback: Feedback is the reaction or response of the receiver to the sender. Feedback is essential to
complete any communication process.

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Difference between business communication and general communication
Business communication is the process where business related issues information, functions, news etc. are
exchanged between producers, distributors, buyers, sellers, suppliers, competitors, government agencies,
business Patrice etc. for efficiently organizing and administering business.
On the other hand, general communication is the process of exchanging information, ideas, feelings, thoughts,
values etc between two or more persons/parties to achieve personal objective.
Basis Business Communication General Communication
1. Objective To achieve business related objectives
To achieve any type of objectives except
business.
2. Nature
Deal with the business related issues,
information, functions, news etc.
Deal with the personal or interpersonal issues,
information, etc.
3. Scope
Scope of business communication is limited
compared to general communication.
Scope of general communication is large
compared to business communication
4. Emotion
No scope of showing personal feelings and
emotions in the message.
Showing personal feelings and emotions in the
message is a common part.
5. Channel
Mainly it uses verbal channel of
communication.
Mainly it uses non-verbal channel of
communication
6. Partiality It is impartial in nature. It is partial in nature.
7.Legal
Evidence
Business messages are recorded and act as a
legal evidence.
General messages are recorded and do not act
as a legal evidence.
8. Feedback
Feedback is essential in business
communication.
Feedback is not essential in business
communication.
9. Audience
It takes place between business people who are
talking about a subject that is common and
important to all.
It takes different tones depending upon whether
we are talking to a child, a friend or someone
who is a senior.
10.Formality
It is more formal and follows specific rules of
business
It is less formal and not follows any rules
except of course rules of etiquette and manners.
11. Language
Business communication maintains a distance
and uses a formal language only.
It can use slang terms and it times be crude
when talking to a friend.
12.Alternative
It is also known as commercial
communication.
It is also known as interpersonal
communication.
13.Use of
Graphs
Graphs, tables, charts, diagrams, etc. are
frequently used in business communication.
Tables, charts, diagrams, etc. are rarely used in
business communication.

4. CHAPTER 1
Objectives or purposes of business communication
Communication has many objectives. Its primary objective is to exchange ideas, opinions, thoughts, beliefs and
information between human beings. In the fields of business, the main objective of communication is to help
managers in performing all managerial functions smoothly. Different objectives of communication are
discussed below-
1. Achieving organization goals: The main objective of communication is to help managers in achieving
organization goals. It helps managers to perform all managerial functions and to achieve predetermined goals.
2. Exchanging of information: Another objective of communication is to exchange information between
employees of an organization. It helps to make contact with the external forces of an organization.
3. Formulation and execution of plans: Communication supplies information to the managers who prepares
effective plans for the organization. Managers collect information from different sources and prepare and
execute organizational plans through the help of communication.
4. Increasing efficiency: Communication helps to increase the efficiency of the employees of an organization
by supplying information timely relating to the work.
5. Directing the subordinates: An important objective of communication is to give effective direction to the
employees of an organization. Communication helps to reach executive orders to the subordinates.
6. Create consciousness: Another remarkable objective of communication is to create consciousness among the
employees about their duties and responsibilities by supplying various information.
7. Coordination and cooperation: Another important objective of communication is to help in coordinating
and cooperating the activities of various work groups and departments working within the organization.
8. Persuasion: To persuade the employees to work hard for the organization and the buyers to buy
organization’s products are two other important objective of communication.
9. Facilitating joint effort: No organization can achieve its goal by individual effort. It requires joint effort.
Communication helps in taking joint effort in the organization.
10. Education and training of employees: Communication helps to provide education and training of
employees of the organization.
11. Develop labor-management relations: Another objective of communication is to improve relationship
between management and workforce within the organization. It removes misunderstanding. Between the two
parties and helps to develop and maintain better relationship.
12. Creating relationship with external parties: Communication helps to create good relationship with
external parties of the organization.
13. Monitoring and controlling the activities: Monitoring and controlling the activities of the subordinates is
other important objective of organization communication.
14. Solving problem: One of the most important objectives of communication is help solving different
organizational problems. It creates bases for discussion by supplying information which helps in removing the
differences among the disputed parties.
15. Initiate to change: Another objective of communication is to initiate change within the organization.
Communication supplies various information to the employees which helps in changing their attitude and brings
changes in the organization.
16. Decision making: Communication helps managers to take decisions. It helps in exchanging ideas and
opinions with others which help managers to take appropriate decisions.
17. Making aware of future change: In earth everything in changing continuously. To adopt with the changing
environment management has the initiate different organizational change. Here communication helps to make

5. CHAPTER 1
employees aware of future change.
18. Building image: Strong image of the organization helps to gain competitive advantage in the market.
Communication helps to build up image of the organization through timely contact with the stakeholders,
advertising etc.
Communication Process/Cycle
The transmission of sender’s ideas to the receiver and the receiver’s feedback or reaction to the sender
constitute the communication cycle. The process of communication begins when one person (the sender) wants
to transmit a fact, idea, opinion or other information to someone else (the receiver). This facts, idea or opinion
has meaning to the sender. The next step is translating or converting the message into a language which reflects
the idea. That is the message must be encoded. The encoding process is influenced by content of the message,
the familiarity of sender and receiver and other situation of factors.
After the message has been encoded, it is transmitted through the appropriate channel or medium. Common
channel in organization includes meetings, reports, memorandums, letters, e-mail, fax and telephone calls.
When the message is received, it is decoded, by the receiver and gives feedback to the sender as the
conformation about the particular message has been carefully understand or not.
The process of communication involves the following elements:
1. Sender or transmitter: The person who desires to convey the message is known as sender. Sender initiates
the message and changes the behaviour of the receiver.
2. Message: It is a subject matter of any communication. It may involve any fact, idea, opinion or information.
It must exist in the mind of the sender if communication is to take place.
3. Encoding: The communicator of the information organises his idea into series of symbols (words, signs, etc.)
which, he feels will communicate to the intended receiver or receivers.
4. Communication channel: The sender has to select the channel for sending the information. Communication
channel is the media through which the message passes. It is the link that connects the sender and the receiver.
5. Receiver: The person who receives the message is called receiver or receiver is the person to whom the
particular message is sent by the transmitter. The communication process is incomplete without the existence of
receiver of the message. It is a receiver who receives and tries to understand the message.
6. Decoding: Decoding is the process of interpretation of an encoded message into the understandable meaning.
Decoding helps the receiver to drive meaning from the message.
7. Feedback: Communication is an exchange process. For the exchange to be complete the information must go
back to whom from where it started (or sender), so that he can know the reaction of the receiver. The reaction or
response of the receiver is known as feedback.

6. CHAPTER 1
Seven C’s of Effective Communication
There are 7 C’s of effective communication which are applicable to both written as well as oral
communication. These are as follows:
1. Completeness - The communication must be complete. It should convey all facts required by the audience.
The sender of the message must take into consideration the receiver’s mind set and convey the message
accordingly. A complete communication has following features:
 Complete communication develops and enhances reputation of an organization.
 Moreover, they are cost saving as no crucial information is missing and no additional cost is incurred
in conveying extra message if the communication is complete.
 A complete communication always gives additional information wherever required. It leaves no
questions in the mind of receiver.
 Complete communication helps in better decision-making by the audience/readers/receivers of
message as they get all desired and crucial information.
 It persuades the audience.
2. Conciseness - Conciseness means wordiness, i.e, communicating what you want to convey in least possible
words without forgoing the other C’s of communication. Conciseness is a necessity for effective
communication. Concise communication has following features:
 It is both time-saving as well as cost-saving.
 It underlines and highlights the main message as it avoids using excessive and needless words.
 Concise communication provides short and essential message in limited words to the audience.
 Concise message is more appealing and comprehensible to the audience.
 Concise message is non-repetitive in nature.

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3. Consideration - Consideration implies “stepping into the shoes of others”. Effective communication must
take the audience into consideration, i.e, the audience’s view points, background, mind-set, education level,
etc. Make an attempt to envisage your audience, their requirements, emotions as well as problems. Ensure
that the self-respect of the audience is maintained and their emotions are not at harm. Modify your words in
message to suit the audience’s needs while making your message complete. Features of considerate
communication are as follows:
 Emphasize on “you” approach.
 Empathize with the audience and exhibit interest in the audience. This will stimulate a positive
reaction from the audience.
 Show optimism towards your audience. Emphasize on “what is possible” rather than “what is
impossible”.
4. Clarity - Clarity implies emphasizing on a specific message or goal at a time, rather than trying to achieve
too much at once. Clarity in communication has following features:
 It makes understanding easier.
 Complete clarity of thoughts and ideas enhances the meaning of message.
 Clear message makes use of exact, appropriate and concrete words.
5. Concreteness - Concrete communication implies being particular and clear rather than fuzzy and general.
Concreteness strengthens the confidence. Concrete message has following features:
 It is supported with specific facts and figures.
 It makes use of words that are clear and that build the reputation.
 Concrete messages are not misinterpreted.
6. Courtesy - Courtesy in message implies the message should show the sender’s expression as well as should
respect the receiver. The sender of the message should be sincerely polite, judicious, reflective and
enthusiastic. Courteous message has following features:
 Courtesy implies taking into consideration both viewpoints as well as feelings of the receiver of the
message.
 Courteous message is positive and focused at the audience.
 It makes use of terms showing respect for the receiver of message.
 It is not at all biased.
7. Correctness - Correctness in communication implies that there are no grammatical errors in
communication. Correct communication has following features:
 The message is exact, correct and well-timed.

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 If the communication is correct, it boosts up the confidence level.
 Correct message has greater impact on the audience/readers.
 It checks for the precision and accurateness of facts and figures used in the message.
 It makes use of appropriate and correct language in the message.
A Model for One-Way and Two-Way Communication
Communication can travel in two directions:
•One-way communication is linear and limited because it occurs in a straight line from sender to receiver and
serves to inform, persuade or command.
SENDER MESSAGE RECEIVER
•Two-way communication always includes feedback from the receiver to the sender and lets the sender know
the message has been received accurately.
In two-way communication, communication is negotiated. Both sender and receiver listen to each other, gather
information and are willing to make changes to work together in harmony. Their intent is to negotiate a
mutually satisfactory situation.
Message
Feedback
Sender
Receiver

9. CHAPTER 1
Types of Communication
People communicate with each other in a number of ways that depend upon the message and its context in
which it is being sent. Choice of communication channel and your style of communicating also affects
communication. So, there are varieties of types of communication. Types of communication based on the
communication channels used are:
1. Verbal Communication
2. Nonverbal Communication
1. Verbal Communication
Verbal communication refers to the the form of communication in which message is transmitted verbally;
communication is done by word of mouth and a piece of writing. Objective of every communication is to have
people understand what we are trying to convey. In verbal communication remember the acronym KISS
(keep it short and simple).
When we talk to others, we assume that others understand what we are saying because we know what we are
saying. But this is not the case. Usually people bring their own attitude, perception, emotions and thoughts
about the topic and hence creates barrier in delivering the right meaning.
So in order to deliver the right message, you must put yourself on the other side of the table and think from your
receiver’s point of view. Would he understand the message? how it would sound on the other side of the table?
Verbal Communication is further divided into:
o Oral Communication
o Written Communication
Oral Communication
In oral communication, Spoken words are used. It includes face-to-face conversations, speech, telephonic
conversation, video, radio, television, voice over internet. In oral communication, communication is influence
by pitch, volume, speed and clarity of speaking.
Written Communication
In written communication, written signs or symbols are used to communicate. A written message may be
printed or hand written. In written communication message can be transmitted via email, letter, report, memo
etc. Message, in written communication, is influenced by the vocabulary & grammar used, writing style,
precision and clarity of the language used.
Written Communication is most common form of communication being used in business. So, it is
considered core among business skills. Memos, reports, bulletins, job descriptions, employee manuals, and
electronic mail are the types of written communication used for internal communication. For communicating

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with external environment in writing, electronic mail, Internet Web sites, letters, proposals, telegrams, faxes,
postcards, contracts, advertisements, brochures, and news releases are used.
2. Nonverbal Communication
Nonverbal communication is the sending or receiving of wordless messages. We can say that communication
other than oral and written, such as gesture, body language, posture, tone of voice or facial expressions, is
called nonverbal communication. Nonverbal communication is all about the body language of speaker.
Nonverbal communications have the following three elements:
Appearance
Speaker: clothing, hairstyle, neatness, use of cosmetics
Surrounding: room size, lighting, decorations, furnishings
Body Language
facial expressions, gestures, postures
Sounds
Voice Tone, Volume, Speech rate
Types of Communication Based on Purpose and Style
Based on style and purpose, there are two main categories of communication and they both bears their own
characteristics. Communication types based on style and purpose are:
1. Formal Communication
2. Informal Communication
1. Formal Communication
In formal communication, certain rules, conventions and principles are followed while communicating message.
Formal communication occurs in formal and official style. Usually professional settings, corporate meetings,
conferences undergoes in formal pattern.
In formal communication, use of slang and foul language is avoided and correct pronunciation is required.
Authority lines are needed to be followed in formal communication.
2. Informal Communication
Informal communication is done using channels that are in contrast with formal communication channels. It’s
just a casual talk. It is established for societal affiliations of members in an organization and face-to-face
discussions. It happens among friends and family. In informal communication use of slang words, foul language
is not restricted. Usually, informal communication is done orally and using gestures.

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Informal communication, unlike formal communication, doesn’t follow authority lines. In an organization, it
helps in finding out staff grievances as people express more when talking informally. Informal communication
helps in building relationships.