Executive Business Communication MBA notes

EXECUTIVE BUSINESS
COMMUNICATION
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UNIT I
Principles of Business Communication-Types of Business
Communication-Methods and Media of Communication- Process&
Models of Business Communication - Barriers to Organizational
Communication- Overcoming barriers and Strategies for improving
Business Communication, Types of Organizational Communication-
Communication for interpersonal influences .
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Definition of Communication:
1. ” Communication is transfer of information from one person to
another, whether or not it elicits confidence. But the information
transferred must be understandable to the receiver” – G.G. Brown.
2. “Communication is the intercourse by words, letters or
messages”- Fred G. Meyer.
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Communication is giving ,receiving or
exchanging ideas, information, signals or
messages through appropriate media,
enabling individuals or groups to persuade,
motivate, to seek information, to give
information or to express emotions.
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BUSINESS COMMUNICATION -
DEFINITION
Business communication is the sharing of information between
people within an organisation that is performed for the commercial
benefit of the organisation.
Business communication is the process of sharing
information between people within and outside a
company.
Effective business communication is how employees and
management interact to reach organizational goals. Its
purpose is to improve organizational practices and reduce
errors.
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The importance of business
communication also lies in:
• Presenting options/new business ideas
• Making plans and proposals (business writing)
• Executing decisions
• Reaching agreements
• Sending and fulfilling orders
• Successful selling
• Effective meetings
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OBJECTIVES OF COMMUNICATION
The objectives of communication include the following:
a) To tie people and organizational structure together
b) To help people to understand, appreciate, accept, and act upon the
ideas, policies, procedures etc., of the organization.
c) To provide the information and understanding necessary for group
effort.
d) To develop right attitudes among employees through motivation
e) To project the image of the enterprise in the society.
f) To promote mutual understanding, co-operation and goodwill between
the management and the employees.
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Features of Communication
1) Communication is essentially a two-way process. The success or the failure of communication is
decided by the feedback we get. Hence, feedback is essential to communication.
(2) Communication is an ongoing process. Communication is essential in all kinds of organizations and at
all levels of management.
(3) Communication consists not only of facts but ideas and emotions too. Communication is much more
than words. The tone and facial expressions often carry a greater meaning than words. We can
communicate a lot through signs, symbols and gestures. For example, a victory sign made by two fingers
communicates better than words.
(4) Communication is a dynamic process. It incorporates the changing shape of the participants and the
environment.
(5) Communication is a goal-oriented process. Communication can be effective if both the sender and the
receiver are aware of the goal of communication and there is congruence of their goals.
(6) Communication is an inter-disciplinary science. Knowledge derived from several sciences is used in
communication. Anthropology (study of body language), Psychology (study of persuasion, perception and
attitudes), Sociology and Political science (study of voting behaviour) have provided insights to make
communication effective.
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PRINCIPLES OF BUSINESS COMMUNICATION
To achieve the objective of communication, the communicator should keep
in mind the following key basic principles:
1. There must be a clear understanding of the objective or purpose of
communication. (In the absence of this principle being satisfied the
communication fails).
2. The communication must be in an easily understandable language. The
receiver should not be driven to go in search of dictionary or an
interpreter.
3. Communication must be complete and adequate in all respects to avoid
misunderstanding.
4. The medium of communication must be appropriate considering the
situation, Urgency of the matter and the subject itself.
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5. The messages should be consistent with the overall objectives and policies
of the organization.
6. The actions of the communicator should not be contradictory to the message
communicated.
7. There should be follow-up of communication to make sure that the receiver
has understood the message properly.
8. To ascertain the receiver’s reaction, feedback must be encouraged.
9 The communication skills of the executives should be developed through
proper training.
10. To be successful in oral communication, the executives must be good
listeners-that is, they should listen more before speaking out their mind.
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7 PILLARS OF BUSINESS COMMUNICATION
There are 7 principles of effective Business Communication that every
business must follow.
1. Clarity
2. Conciseness
3. Objectivity
4. Consistency
5. Completeness
6. Relevancy
7. Audience Knowledge
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1. Clarity
 Number one rule all business communication must follow.
 A message that leaves the reader scratching his head is a failed message.
Clarity springs from a knowledge of the message (what you want to say),
the method (how you want to say it), and the medium (what format do you
want to say it in).
 A lack of insight in any one of these components is going to affect the
effectiveness of your message.
2. Conciseness
 Business communication is founded on the principles of brevity.
 This applies to not just the length of your message, but also its contents. Try
to use short sentences and short words.
 Avoid jargon and words that send the reader to the dictionary
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3. Objectivity
Business communication must always have a purpose.
 This purpose must be apparent to any who glances through your message
4. Consistency
Imagine that you’re reading a book that starts out as a serious medieval
romance, turns into a supernatural screwball comedy around the half-way
mark, before finally finishing. Without a doubt, such a book will leave you
confused and even angry.
This is the reason why all business communication must have consistency
of tone, voice and content. A humorous satire on one page, a serious
explanation on another will alienate your readers. Although you can stray
from the set tone from time to time – a few humorous jokes can help
lighten the mood – the overall theme must remain consistent. 14-03-2024
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5. Completeness
Each message must have a clear and logical conclusion.
The reader shouldn’t be left wondering if there is more to come.
 The message must be self-sufficient, that is, it must hold good on
its own without support from other messages.
6. Relevancy
Every message you send out must be contextually cohesive with
previous/future messages.
The message must also be relevant to your primary offering.
So make sure that everything you write in a business setting is
contextually related and relevant.
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7. Audience Knowledge
Lastly, your message must have a thorough understanding of your
primary audience.
 Everything else – clarity, completeness, objectivity – results from
your knowledge of your audience.
Always know who you are writing for as it will influence the tone,
voice and quality of your message.
 Your message must reflect the age, education level, aims and
objective of your audience. This is possible only if you thoroughly
research your readers and can see things from their perspective.
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The Seven C’s of Effective Communication
1. Clarity of expression,
2. Completeness of information,
3. Conciseness of message,
4. Concreteness in presentation,
5. Courtesy towards recipient,
6. Correctness of facts, and
7. Consideration for receiver.
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Principle of Concreteness
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.
Principle of Courtesy
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:
• Takes into consideration both viewpoints as well as feelings of the receiver
of the message.
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Principle of 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.
• If the communication is correct, it boosts up the confidence
level.
• Correct message has greater impact on the
audience/readers.
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Consideration for Receiver
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. 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.
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TYPES OF BUSINESS COMMUNICATION
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External Communication
 When the people in an organisation communicate with anyone outside the
organisation it is called external communication.
 These people may be clients or customers, dealers or distributors, media,
government agencies, general public, regulatory bodies, authorities, etc.
 Letters and circulars, Pricelists, Manuals, Purchase Orders, Customised reports,
Brochures and service calls, Advertisements, Customer’ feedback material are all
external communication methods.
 All modes of visual and audio-visual communication too may be used in external
communication.
 All modes of Non-verbal communication may also be used in external
communication depending on the circumstances and means of communication
chosen for the purpose.
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Internal Communication
 When people within the organisation communicate
with one another, it is said to be an internal
communication.
Can be official or unofficial. It could be individual to
individual, individual to group, group to individuals,
department to department, etc.
 Mostly in oral form and the tone is generally informal.
All modes of non-verbal communication may be used.
Some of the modes of written communication are
Memo, Report, Office order, Circulars, Staff Newsletter,
Email, Fax, Notice, Agenda, Notes on Agenda, Minutes
of Meetings, Manuals, etc. 14-03-2024
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Communication Flows
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Downward Flow/Communication
Traditional organisations have a vertical structure. All the important decisions are taken
at the top. These are communicated through different levels of hierarchy to the workers.
ie; from top to lower levels
Needed For:
1) To get the work done.
2) To prepare the workforce for challenges
3) To tackle misinformation & suspicion arising out of it
4) To create a feeling of pride & confidence in the workforce in order to motivate it
and to boost its morale.
5) To transmit work ethics & the organization‘s culture .
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Upward Flow/Communication
Upward communications are those which flow from the subordinates to the
superiors and which act as a feedback.
Examples of upward communication are: Information about subordinates’ work
performance, their problems relating to work, performance appraisal of subordinates,
opinions, attitudes, feelings etc..
Needed for:
1) To forward employee-feedback
2) To report on official matters
3) To give voice on the difficulties, grievances, complaints, dissatisfaction, work related
demands of employees
4) To invite suggestion, creativity & participation in problem solving
5) To create a sense of belonging through participation
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Horizontal Flow/Lateral communication
Usually takes place between people of the same status/level of hierarchy in the
organization.
Need for:
1) To exchange official information
2) To create understanding and team spirit among members
3) To solve difficulties
4) To seek and extend co-operation
5) To save time when quick decisions have to be made

Diagonal Flow/Multi Directional communication/Crosswise
It is based on cooperation, goodwill and respect between
the parties concerned.
Needs for:
1) Speeds up the flow of information
2) Creates healthy work relationships
3) Brings in proper co-ordination among different sections
4) Makes problem solving easy
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Formal and Informal communications:
Messages that move along predefined and regulated pathways
comprise formal communication.
Formal communication may be verbal or written, and may be in the
form of letters, telephone calls, computer messages or memos.
Usually, all formal communications are recorded and kept in the
organization’s evidence.
When communications do not flow through structured channels
formally recognized, they are said to be informal in nature.
Informal communication, known also as ‘grapevine’ flourishes in all
organizations.
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Grapevine Communication (Informal 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.
It exists more at lower levels of organization.
Example of Grapevine Network of Communication
Suppose the profit amount of a company is known. Rumour is spread that
this much profit is there and on that basis bonus is declared.
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Advantages of Grapevine Communication
1.Carry information rapidly. As soon as an employee gets to know some
confidential information he passes the details then to his closest friend who in
turn passes it to other. Thus, it spreads hastily.
2. 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.
3. Creates a sense of unity among the employees who share and discuss their
views with each other. Thus, grapevine helps in developing group cohesiveness.
4. The grapevine serves as an emotional supportive value.
5. The grapevine is a supplement in those cases where formal communication
does not work.
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 Disadvantages of Grapevine Communication
1. 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.
2. The grapevine is not trustworthy always as it does not follows
official path of communication and is spread more by gossips and
unconfirmed report.
3. The productivity of employees may be hampered as they spend
more time talking rather than working.
4. The grapevine leads to making hostility against the executives.
5. The grapevine may hamper the goodwill of the organization as it
may carry false negative information about the high level people of
the organization. 14-03-2024
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Means/Methods and Modes of
Communication
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Selection of methods should be based on –
1. Speed
2. Accuracy
3. Circumstances
4. Confidence and safety
5. Expenses
6. Impression
7. Feedback

PROCESS OF COMMUNICATION
The various components of the communication process are:
(a) the source or sender;
(b) the message;
(c) the code;
(d) the transmission media;
(e) the receiver’s response or feedback.
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1. Physical or environmental barriers
a. Noise - The noise created by external factors like traffic, playing of loud music, trains and
airplanes, or by crowds of people, affects our communication.
b. Time & distance - Time becomes a physical barrier when people have to communicate
across different time zones in different countries. The physical distance between people who
need to communicate can also cause problems because it does not allow oral or face-to-face
communication.
c. Defects in communication system –
d. Wrong selection of medium – The sender selects the medium which is not familiar to the
receiver. 14-03-2024
41 Barriers to Organizational Communication

2.Language or Semantic barriers:
Language is the main medium of communication and words are its
tools.
Language proves to be a barrier at different levels, such as
semantic (meaning), syntactic (grammar), phonological
(pronunciation, intonation, pitch etc.) and finally linguistic (across
languages) Thus, language barriers can arise in different ways:
a. Jargon or unfamiliar terminology -
b. Difference in language –
c.Barriers can be created when we come across words, which have
the same sound when pronounced, but which mean very different
things. Examples: words like fair and fare; bear and bare; council and
counsel. 14-03-2024
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3.Emotional or Psychological barriers:
 Psyche means mind. Psychological barriers are created in the mind.
a) Status barriers
 Status consciousness exists in every organization and is one of the major barriers to
effective communication.
 Status is a position or social rank of a person in a group. It depends on the person’s
abilities, amount of pay, job-skills, seniority, type of work assigned, age, etc.
b) Attitudes and values
 Personal attitudes and opinions often act as barriers to effective communication. The
attitudes serve the personal needs of the people. They provide need satisfaction to the
individuals. The messages are interpreted by the people in terms of their attitudes and
values. 14-03-2024
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c) Background of experiences
Our experience in the past influences our attitudes and values
d) Halo effect:
Sometimes our reactions to people are not balanced or objective; they are of an
extreme nature. Either we like a person so much that we can find no shortcomings
in her/him, or we dislike someone so much that we can see nothing good in her/him.
In both cases, we commit errors of judgment and fail to understand the person
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Ways to Overcome Barriers to Communication and
Strategies for improving organisational communication
(1) Clarify Ideas before Communication
The person sending the communication should be very clear in his mind about what he wants
to say. He should know the objective of his message and, therefore, he should arrange his
thoughts in a proper order.
(2) Communicate According to the Need of the Receiver
The sender of the communication should prepare the structure of the message not according
to his own level or ability but he should keep in mind the level, understanding or the
environment of the receiver.
(3) Consult Others before Communication
(4) Be Aware of Language, Tone and Content of Message
(5) Convey Things of Help and Value to the Listener
(6) Ensure Proper Feedback
(7)Be a Good Listener
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Models of Business Communication
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Linear Model
Views communication as a one-way or linear process in which the
speaker speaks and the listener listens.
Interactive Model/ Convergence model
 The main flaw in the linear model is that it depicts communication
as a one-way process where speakers only speak and never listen.
It also implies that listeners listen and never speak or send
messages
Here sender & receiver is equally important
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Transactional Model
The main drawback in the interactive model is that it does not
indicate that communicators can both send and receive
messages simultaneously. This model also fails to show that
communication is a dynamic process which changes over
time.
 The transactional model shows that the elements in
communication are interdependent.
 Each person in the communication act is both a speaker and
a listener, and can be simultaneously sending and receiving
messages.
The model implies“Transactional” means that communication
is an ongoing and continuously changing process;

Aristotle’s Model of Communication
Lasswell’s Model of Communication
Shannon and Weaver’s Model of Communication
Berlo’s Model of Communication
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Aristotle’s Model of Communication
Aristotle, a great philosopher was the first (300 B.C.) to
develop a communication model called ‘Aristotle’s Model of
Communication’.
 More focused on public speaking than interpersonal
communication.
Aristotle Model of Communication is formed with 3 basic
elements
(i) Speaker,
(ii) Speech,
(iii) Audience 14-03-2024
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In this model of communication, the sender sends the message
to the receiver in an attempt to influence them to respond
accordingly.
The message has to be very impressive and convincing.
Therefore, the sender must know and understand their
audience well.
 In this model, the sender is an active participant and the
receiver is passive.
This concept is used in public speaking, seminars, and
lectures.
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Lasswell’s Model of Communication
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 Harold Lasswell ,a political scientist studied very carefully the American
presidential Elections in 1948. Based on his studies on the process of
political campaigning and propagandas he introduced an important model
that is represented as:

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 It is based on effect of the sender’s message on receiver.
 There is no feedback for the message.
 It is linear in nature
 It presents communication as more of persuasive process
rather than an informative process
 It emphasizes “effect” and not the “meaning” of the message

Shannon and Weaver’s Model of
Communication
The features of this model are:
A linear process.
A simple model
Content/message is easy to identify but hard to solve
Source is dominant factor/decision maker
Noise, a disturbing factor
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David Berlo Model of Communication
 Berlo’s SMCR model also has a source (S) and a receiver (R), a
message (M) and a channel(C).
 In this model, he stresses on the relationship between the person sending
the message and the receiver.
 According to this model, for the message to be properly encoded and
decoded, the communication skills of both the source and the receiver
should be good.
 The communication will be at its best only if the two are skilled.
 Berlo's SMCR model has four main components and each component
has its own sub components
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Types of Organizational Communication
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Communication for interpersonal influences
 Interpersonal communication is an exchange of information between two or more
people.
 Interpersonal communication is real‐time, face‐to‐face or voice‐to‐voice conversation that
allows immediate feedback.
 Interpersonal influence is a sort of social influence that encourages conformity and
discourages, and perhaps even punishes nonconformity. Types Of Interpersonal Influence
 It is said there are three sorts of influence – positional, power, and interpersonal.
 Unlike position or power influence, interpersonal influence must be developed or earned.
 It doesn’t accompany an employment title or a promotion.
 You build interpersonal influence as you demonstrate your own qualities and skills,
whether they communication skills; humor; reliability; empathy or compassion.
 Interpersonal influence is predicated on trust, support, and collaboration
 Effective interpersonal influence involves three core elements: “I”, “You”, and “We”.
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Communication for interpersonal influences
 While much of your interpersonal communication is often implicitly attempting to influence
other individuals, there are times when you want to make an explicit request.
Two common request strategies are:
• Foot-in-the-door –
 This strategy involves making a small request of the receiver, which the receiver then
grants, and then making a larger request of the receiver (the larger request is actually the
goal of the interaction). The idea behind this strategy is that once you “get your foot in the
door” with the small request, the individual whom you are trying to influence will grant the
target/actual request.
• Door-in-the-face –
opposite of the foot-in-the-door strategy.
This strategy involves making a large request designed so that the receiver will turn it down.
Then the persuader makes a smaller request which the receiver grants (the smaller request
is the goal of the interaction). The idea behind this strategy is for the initial request to be
reasonable, but involved enough that most individuals will reject it. This makes the
smaller/target/actual request much more doable and increases the likelihood that the
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