MBA

1. Business Communication

2. Meaning & Importance of Communication
The word “communication” has come
from the Latin word “communicare”
which means to make common, i.e. it is
used is common talk, usually, to mean
speaking or writing or sending a
message to another person.

3. Communication is a process of
transferring information from one entity to
another.
Communication is commonly defined as
"the imparting or interchange of thoughts,
opinions, or information by speech, writing,
or signs.

4. Concept of Communication
Allen louis – Communication is the sum of all things (telling,
listening & understanding). It is a systematic activity under any
given circumstances.
Henry Kuntz – Communication is the transferring information
from one person to another.
George Terry – Communication is exchange of ideas, feelings
& emotions between two or more persons.
Keith Davis – The purpose of passing information &
understanding between two persons. Without the bridge of
communication no one can cross the river of misunderstanding.
Communication is a systematic process of sharing ideas,
information's, feelings & emotions from one person to another
by creating mutual understanding.

5. Process of Communication
Sender – Message-Channel - Receiver
Sender initiates the communication action.
Message is being communicated in a language
interpreted by both sender & receiver. Channel
makes the message perceptible through five
senses. Receiver is the end user of the
Information Known as the audience.

7. Main components of communication Process
 Context : It is the theme that a message must have.
 Sender / Encoder - Sender / Encoder is a person who sends the
message. A sender makes use of symbols (words or graphic or
visual aids) to convey the message and produce the required
response. For instance - a training manager conducting training for
new batch of employees. Sender may be an individual or a group
or an organization. The views, background, approach, skills,
competencies, and knowledge of the sender have a great impact
on the message. The verbal and non verbal symbols chosen are
essential in ascertaining interpretation of the message by the
recipient in the same terms as intended by the sender.
 Message - Message is a key idea that the sender wants to
communicate. It is a sign that elicits the response of recipient.
Communication process begins with deciding about the message to
be conveyed. It must be ensured that the main objective of the
message is clear.

8.  Medium - Medium is a means used to exchange / transmit the
message. The sender must choose an appropriate medium for
transmitting the message else the message might not be conveyed to
the desired recipients. The choice of appropriate medium of
communication is essential for making the message effective and
correctly interpreted by the recipient. This choice of communication
medium varies depending upon the features of communication. For
instance - Written medium is chosen when a message has to be
conveyed to a small group of people, while an oral medium is chosen
when spontaneous feedback is required from the recipient as
misunderstandings are cleared then and there.
 Recipient / Decoder - Recipient / Decoder is a person for whom the
message is intended / aimed / targeted. The degree to which the
decoder understands the message is dependent upon various factors
such as knowledge of recipient, their responsiveness to the message.
Feedback - Feedback is the main component of communication
process as it permits the sender to analyze the efficacy of the
message. It helps the sender in confirming the correct interpretation of
message by the decoder. Feedback may be verbal (through words) or
non-verbal (in form of smiles, sighs, etc.). It may take written form also
in form of memos, reports, etc.

9. COMMUNICATION CYCLE
Input
Channel
Message
Output
Feedback
Brain drain (or breakdown)

10.  The importance of communication in an organization can be
summarized as follows:
 Communication promotes motivation by informing and clarifying the
employees about the task to be done, the manner they are performing the
task, and how to improve their performance if it is not up to the mark.
 Communication is a source of information to the organizational members
for decision-making process as it helps identifying and assessing alternative
course of actions.
 Communication also plays a crucial role in altering individual’s attitudes,
i.e., a well informed individual will have better attitude than a less-informed
individual. Organizational magazines, journals, meetings and various other
forms of oral and written communication help in moulding employee’s
attitudes.
 Communication also helps in socializing. In todays life the only presence of
another individual fosters communication. It is also said that one cannot
survive without communication.
 As discussed earlier, communication also assists in controlling process. It
helps controlling organizational member’s behaviour in various ways. There
are various levels of hierarchy and certain principles and guidelines that
employees must follow in an organization. They must comply with
organizational policies, perform their job role efficiently and communicate
any work problem and grievance to their superiors. Thus, communication
helps in controlling function of management.

11. Principles of communication
 Communication is based upon following seven
principles,
These are known as 7 C’s of communication.
1- Conciseness: It should be notified that the message
should be concise (Expressing in few & clear words) in
nature so that it will be easy to catch the readers’
attention.
2- Concreteness: Message should be concrete
(solid,real) as having all the meanings conveyed in it but
should be shorter in length.
3- Clarity: It must give appropriate and explicit meaning
that would not diversify and confuse the reader at any
instance.

12.  4- Completeness: Also it is important that the message
must have complete meaning that will providing the
sufficient information to its reader.
5- Courtesy: Another important feature is that the
sender must be emphasizing on the courteous tone and
must give some compliments and benefits to its readers.
6- Correctness: The message conveyed must be
checked for correctness and should be free from all
grammatical errors
7- Consideration: There must be proper consideration
in the message and it should emphasize on you attitude
rather than ‘I’ and ‘we’ kind of words.

13. IMPORTANCE OF EFFECTIVE COMMUNICATION
 Internal Communication
(i) Business has grown in size
(ii) Business activity has become extremely complex
(iii) Effective Communication promotes a spirit of
understanding & Cooperation
 External Communication
(i) Government agencies & departments
(ii) Distributors, Retailers, Individual Customers etc.
 Communication skill a job requirement
 Important Factor for Promotion

14. An effective communication is the key to success in
any business.
Importance of Communication
• It brings people closer.
• It saves time in any formal set up.
• It breaks the barrier between individuals / groups.
• It results in common understanding of any idea/
thought.
• It adds to the knowledge base.
• It removes many misunderstanding &
misconceptions.
• It can act as a means of entertainment ( through
Audiovisual means)
• It can influence the actions of people.
• It can change the attitude of people.

15. Organizational communication could be categorized in
three different categories as follows.
Upward communication :
It is the communication that occurs in an organization from
peer to the managerial level and has formal tone included in
it. It can be the feedback of the employee towards the
manager about some specific report or task.
FORMS OF COMMUNICATION

16.  Downward communication :
The communication that takes place from the upper
Level that is from manager towards its employees and
can be in the shape of some orders and instructions that
are required to be followed.
 Dydic Communication :
More friendly and informal communication that occurs
between the peers of same organization. It takes place
as exchanging ideas amongst each other being the
subordinate of that organization.
 Interactive Communication : of any sort, for example
two or more people talking to each other, or
communication among groups, Organisations, Nations or
States, Transporatation.
 Horizontal Communication

18. Vertical/Lateral Communication
Organisation chart shows vertical (black
arrows) and lateral (purple arrows)
Finance Marketing Production
Board of Directors
Finance
Officers
Marketing
Assistants
Factory
Operatives

19. More on Business Structure
Centralisation
 Managers keep control
 Decisions are made in
the interests of the
whole business
 Costs can be cut by
standardising
purchasing and so on
 Strong leadership
Decentralisation
 Empowering and
motivating
 Freeing up senior
managers’ time
 Better knowledge of
those closer to
customers
 Good staff development

20.  Grapevine Communication (informal Business
communication)
Grapevine is an informal channel of business
communication. It is called so because it stretches
throughout the organization in all directions irrespective
of the authority levels.
1. Formal Communication
2. Informal Communication)
Communication Network

21.  Advantages of Grapevine Communication
 Grapevine channels carry information rapidly. As soon as an
employee gets to know some confidential information, he
becomes inquisitive and passes the details then to his
closest friend who in turn passes it to other. Thus, it spreads
hastily.
 The managers get to know the reactions of their
subordinates on their policies. Thus, the feedback obtained
is quick compared to formal channel of communication.
 The grapevine creates a sense of unity among the
employees who share and discuss their views with each
other. Thus, grapevine helps in developing group
cohesiveness (Bringing people together)
 The grapevine serves as an emotional supportive value.
 The grapevine is a supplement in those cases where formal
communication does not work.

22.  Disadvantages of Grapevine Communication
 The grapevine carries partial information at times as it is
more based on rumours. Thus, it does not clearly depicts
the complete state of affairs.
 The grapevine is not trustworthy always as it does not
follows official path of communication and is spread
more by gossips and unconfirmed report.
 The productivity of employees may be hampered as they
spend more time talking rather than working.
 The grapevine may hamper the goodwill of the
organization as it may carry false negative information
about the high level people of the organization.
A smart manager should take care of all the
disadvantages of the grapevine and try to minimize
them. At the same time, he should make best
possible use of advantages of grapevine.

23. Interpersonal Communication
 Interpersonal communication is the process where a person
expresses his thoughts, converts the thoughts into a well
designed message and sends the message across a
communication channel (oral, visual, written, etc) and the
receiver receives the message and responds to the message
and sends his reply back via the communication channel.
Interpersonal communication can be a formal dialogue between
two people at a workplace, or even an informal tête-à-tête
between two friends. Communication can occur with or without
words and through a number of communication media. Here
are the various channels of communication that can be used in
interpersonal communication:
1. Oral Communication (Speaking face-to-face or on the phone)
2. Written Communication (Writing emails, letters, instant
messaging and sms)
3. Visual Communication (Body Language or sign language)

24. TYPES OF COMMUNICATION
Verbal Communication (Written & Oral)
Non Verbal Communication (Kinesis or
body language and Paralanguage)

25. Written communication
 Effective written communication is essential for
preparing worthy promotional materials for
business development. Effective writing involves
careful choice of words, their organization in
correct order in sentences formation as well as
cohesive composition of sentences. Also, writing
is more valid and reliable than speech. But while
speech is spontaneous, writing causes delay
and takes time as feedback is not immediate.
(Letters, circulars, memos, telegrams, reports,
minutes, forms & questionnaires, manuals etc)

26. Advantages of Written Communication
 Written communication helps in laying down apparent
principles, policies and rules for running of an
organization.
 It is a permanent means of communication. Thus, it is
useful where record maintenance is required.
 It assists in proper delegation of responsibilities. While in
case of oral communication, it is impossible to fix and
delegate responsibilities on the grounds of speech as it
can be taken back by the speaker or he may refuse to
acknowledge.
 Written communication is more precise and explicit.
 Effective written communication develops and enhances
an organization’s image.
 It provides ready records and references.
 Legal defenses can depend upon written communication
as it provides valid records.

27. Disadvantages of Written Communication
 Written communication does not save upon the costs. It
costs huge in terms of stationery and the manpower
employed in writing/typing and delivering letters.
 Written communication is time-consuming as the
feedback is not immediate. The encoding and sending
of message takes time.
 Effective written communication requires great skills and
competencies in language and vocabulary use. Poor
writing skills and quality have a negative impact on
organization’s reputation.
 Too much paper work is involved.

28. Oral communication implies communication through mouth. It
includes individuals conversing with each other, be it direct
conversation or telephonic conversation. Speeches,
presentations, discussions are all forms of oral
communication. Oral communication is generally
recommended when the communication matter is of temporary
kind or where a direct interaction is required. Face to face
communication (meetings, lectures, conferences, interviews,
etc.) is significant so as to build a rapport and trust.
Oral communication

29. Advantages of Oral Communication
 There is high level of understanding and transparency in oral
communication as it is interpersonal.
 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 resolution. The
conflicts, disputes and many issues/differences can be put to
an end by talking them over.
 Oral communication is an essential for teamwork and group
energy.
 Oral communication promotes a receptive and encouraging
morale among organizational employees.

30. Disadvantages of Oral Communication
 Relying only on oral communication may not be sufficient as
business communication is formal and very organized.
 Oral communication is less authentic than written communication
as they are informal and not as organized as written
communication.
 Oral communication is time-saving as far as daily interactions are
concerned, but in case of meetings, long speeches consume lot of
time and are unproductive at times.
 Oral communications are not easy to maintain and thus they are
unsteady.
 There may be misunderstandings as the information is not
complete and may lack essentials.
 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 investigation work.

31. Basic Functions of Communication
Following are the basic functions of communication:
 Education and Instruction- This function of education starts
early in life, at home and in school and continues throughout
life. Communication provides knowledge, expertise and skills
for smooth functioning by people in the society. It creates
awareness and gives opportunity to people to actively
participate in public life.
 Information- quality of our life will be poor without
information. The more informed we are the more powerful we
become. Communication provides information about our
surroundings.
 Entertainment- To break the routine life and divert our
attention from the stressful life we lead today, entertainment is
an essential part of everybody’s life. Communication provide
endless entertainment to people through films, television,
radio, drama, music, literature, comedy etc.

32.  Discussion- debates and discussions clarify different viewpoints
on issues of interest to the people. Through communication we
find out reasons for varying viewpoints and impart new ideas to
others.
 Persuasion – It is an effort ‘to influence the attitudes, feelings, or
beliefs of others, or to influence actions based on those attitudes.
(It is better to use persuasion than compulsion).
 Cultural promotion- communication provides an opportunity for
the promotion and preservation of culture and traditions. It makes
the people fulfill their creative urges.
 Integration-it is through communication that a large number of
people across countries come to know about each other’s
traditions and appreciate each other’s ways of life. It develops
integration and tolerance towards each other.

33. Barriers To Communications
 1. Physical Barriers. Physical barriers in the workplace
include:
* marked out territories, empires and fiefdoms into which
strangers are not allowed
* closed office doors, barrier screens, separate areas for
people of different status
* large working areas or working in one unit that is
physically separate from others.
2. Perceptual Barriers. The problem with
communicating with others is that we all see the world
differently. If we didn't, we would have no need to
communicate: something like extrasensory perception
would take its place.

34.  3. Emotional Barriers. One of the chief barriers to open
and free communications is the emotional barrier. It is
comprised mainly of fear, mistrust and suspicion.
 4. Cultural Barriers. When we join a group and wish to
remain in it, sooner or later we need to adopt the
behavior patterns of the group. These are the behaviors
that the group accept as signs of belonging. The group
rewards such behavior through acts of recognition,
approval and inclusion.
 5. Language Barriers. Language that describes what
we want to say in our terms may present barriers to
others who are not familiar with our expressions, buzz-
words and jargon. When we couch our communication in
such language, it is a way of excluding others. In a
global market place the greatest compliment we can pay
another person is to talk in their language.

35.  6. Gender Barriers. There are distinct differences
between the speech patterns in a man and those in a
woman. A woman speaks between 22,000 and 25,000
words a day whereas a man speaks between 7,000 and
10,000.
 7. Interpersonal Barriers.

36. Communication
Methods:
Verbal – face to face
Written
Electronic
Visual
Audio
Group meetings
Notice boards
Text!

37. Communication
 Medium:
Letters
Memo
Report
Notice board
Faxes
Telephone
E-mail
Face to face
Body language
Video/video conferencing
Internet