This document defines communication and discusses its role and benefits in business. It defines communication as the transfer of information between parties to foster understanding. Effective communication provides benefits like stronger decision making, problem solving, and relationships. The document outlines formal communication networks in businesses, with information flowing downward from executives to employees, upward from employees to executives, and horizontally between departments. It also discusses the informal grapevine network where employees share outside the formal structure.

1. • D E F I N I T I O N S O F C O M M U N I C A T I O N
• B E N E F I T S O F C O M M U N I C A T I O N
• R O L E O F I N T E R N A L A N D E X T E R N A L C O M M U N I C A T I O N
• B A S I C S O F C O M M U N I C A T I O N
Communication
and
Business Communication

2. • “Communication is something so simple and
difficult that we can never put in simple words.”
• “Communication is the process by which
information is transmitted between individuals
and/or organizations so that an understanding
response results.”
• Communication is an exchange of facts, ideas,
opinions, or emotions by two or more persons.”
What is Communication?

3.  “Communication is the process of transferring
information and meaning between senders and
receivers, using one or more written, oral, visual, or
electronic channels.”
 The essence of communication is, sharing and
providing data, information, and insights in an
exchange that benefits both you and the people with
whom you are communicating.

4. Business Communication
 “Administrative Communication is a process which
involves the transmission and accurate replication of
ideas ensured by feedback for the purpose of eliciting
actions which will accomplish organizational goals.”

5. Benefits of Effective Communication
 Stronger decision making based on timely, reliable
information
 Faster problem solving, in which less time is spent
on understanding problems and more is spent on
creating solutions
 Earlier warning of potential problems, from rising
business costs to critical safety issues
 Increased productivity and lower costs
 Stronger business relationship

6.  Clear and more persuasive marketing messages
 Enhanced professional images for both employers
and companies
 Greater employee engagement with their work,
leading to higher employee satisfaction and lower
employee turnover
 Better financial results and higher return for
investores

7. Role of Communication
Messages flow into and out of business organizations
in a variety of ways. Internal communication
takes place between people inside a company,
whereas External communication takes place
between a company and outside parties.
Every organization has a formal communication
network, in which ideas and information flow along
the lines of command in the company’s organization
structure.

8. Formal Communication Network
Throughout the internal formal network, information
flows in three directions.
 Downward communication flows from
executive to employees, conveying executive
decisions and providing information that helps
employees do their jobs.

9.  Upward communication flows from employees
to executives to executives, providing insights into
problems, tends, opportunities, grievances, and
performance – thus allowing executives to solve
problems and make intelligent decisions.
 Horizontal communication flows between
departments to help employees share information,
coordinate tasks, and solve complex problems.

10. Informal Communication Network
Every organization also has an Informal
communication networks, often referred to as
the grapevine or the rumor mill, that encompass all
communication that takes place outside the formal
network.
Some of this communication takes place naturally as a
result of employee interaction both on the job and in
social settings, and some of it takes place when the
formal network does not provide information that
employees want.

11. Process of Communication
Sender Encoding Message Decoding Receiver
Message Message