Business communication


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Business communication

  1. 1. vikas vadakaraBUSINESS COMMUNICATION
  2. 2. vikas vadakara Good communication skills are necessary in any job, but especially in positions that involve interactions with clients and company management. You must be able to clearly, concisely and eloquently convey information and ideas to these people. This includes all forms of communication, verbal, written or even body language. The initial impressions you make on people will be determined by how well you communicate with them. - Greg P. Tesone, Senior Analyst Value Nomics SanDiego For communication to be effective, there has to be both information and meaning in its content. And meaning requires communication. - Peter Drucker
  3. 3. vikas vadakaraROLE OF COMMUNICATION Information sharing – The main purpose of communication is to transmit information to individuals or groups. These could be in the form of policies and rules, changes and development in the organisation. Feedback – There is need to provide feedback to employees in their achievements, to the department on their performance and to the higher management on the fulfillment of goals.It also motivates people in developing challenging and realistic plans. Problem solving – Communication between the management and unions on issues like to bring about negotiation helps, find solutions and consensus. Assists in decision making – In order to make accurate and appropriate decisions, the manager needs to obtain information that is available in various channels of communication. The way, decision is communicated will have an impact upon the outcomes of the organization in terms of co-operation and support of the people to achieve organisational goals. Facilitating change – The effectiveness of a change introduced in an organisation depends to a large extent on the clarity and spontaneity of the communication. Group building – Communication helps in building relationships. If communication breaks down, the group may disintegrate.
  4. 4. vikas vadakara Conveying the right message – The main objective of communication is to convey the right message to the right person.The message conveyed should be well understood and accepted by the receiver in the right perspective. Helps in co-ordination of effort - Communication is an effective tool for co-ordinating activities of different persons engaged in running a business.Co-ordination without communication is a remote possibility. Good industrial relations – Communication develops good industrial relations as it conveys feelings, ideas, opinions and viewpoints of different parties.
  5. 5. vikas vadakara Motivating people – If people working in organizations, are not regularly informed about their management‟s expectations, plans and policies with respect to their future career and growth, promotion and welfare measures, they feel frustrated and demotivated. Through various communication devices, managers declare rewards and incentives to motivate employees. Performance feedback – Through measures like letters of appreciation or suggestion, subordinates are given feedback about how well they are performing and what needs to be done to achieve and exceed standards set by the management. Job instruction – Managers need to communicate to their subordinates job instructions from time to time otherwise it may lead to confusion, wastage and inefficiency. Emotive function – Communication facilitates the expression of feelings and satisfaction.It also enables people to express their dissatisfaction and unhappiness through words or in writing in order to release tension and frustration.
  6. 6. vikas vadakaraDEFINITION Communication – Latin word „communis‟ means common. Communication is the sum of all the things, a person does when he wants to create an understanding in the mind of another. It involves a systematic and continuous process of telling, listening and understanding. - Allen Louis Communication is an exchange of facts, ideas, opinions or emotions, by two or more persons. - George Terry Communication is defined as “ the process of passing information and understanding from one person to another. It builds bridges of meaning between people, enabling them to safely cross the rivers of misunderstanding. - Keith Davis
  7. 7. vikas vadakara Effective communication is “purposive interchange, resulting in workable understanding and agreement between the sender and receiver of a message”. -George Vardman in his book Effective Communication of Ideas Communication may be broadly defined as the process of meaningful interaction among human beings. More specifically, it is the process by which meanings are perceived and understandings are reached among human beings. - D.E. McFarland
  8. 8. vikas vadakaraCLASSIFICATION OF COMMUNICATIONAccording to the number of persons to whom the message is addressed – Intrapersonal communication – Talking to oneself in one‟s own mind. Eg. Soliloquies or asides in dramatic works. Interpersonal communication – Exchange of messages between two persons. Eg. A conversation, dialogue or an interview in which two persons interact, Letter is an interpersonal communication between the reader and the person to whom it is written, While reading books an author communicates interpersonally with his reader. Group communication –Communication among small or large groups. Eg. Organisation, club or classroom. Mass communication – Message is sent to large groups of people. Eg. Via the medium of Newspaper, radio or television.
  9. 9. vikas vadakaraCONTD.On the basis of the medium employed – Verbal communication – communicating with words, written or spoken. Eg. Speaking, listening, writing, reading and thinking.It may further be classified as Oral or Written Communication. Non-verbal communication – Wordless message conveyed through gestures (signs),movements (action language), and object language (pictures, clothes). This includes using of pictures, signs, gestures and facial expressions for exchanging information between persons. Metacommunication – Speaker‟s choice of words unintentionally communicates something more than what the actual words state.For example “I have never seen you so smartly dressed” could also mean that the regular attire of the listener needed improvement.
  10. 10. vikas vadakaraPURPOSE OF COMMUNICATION To inform – Information is power and information needs within and outside the organization are usually met through communication. To persuade – To persuade employees to work efficiently, to persuade customers to buy our product and so on. To educate – To disseminate knowledge and develop skills and attitudes among people. To train – Training is required to achieve proficiency in specific skills. Instruction, demonstration, practice and discussion during training require communication to be integral part.
  11. 11. vikas vadakara To motivate – High level of morale and motivation are a must to ensure high levels of productivity and efficiency, on a sustainable basis. Communication provides a means to keep these motivation levels high. To integrate – Large business organisations have different business units, departments and territorial divisions which pursue different targets.Communication provides the means for an integrated approach in pursuing organizational goals. To relate – Good business relations are a must for the continued success of any business organization. Communication provides the means for building and nurturing mutually beneficial relationships. To entertain – Communication facilitates social bonding that help in creating lighter moments and in relieving tension.
  12. 12. vikas vadakaraPROCESS OF COMMUNICATIONElements of the Communication Process – For the communication process to materialize, it is essential that the basic elements of communication be identified. These elements are :1. Sender – The person who initiates the communication process is normally referred to as the sender. He s the person who transmits, spreads or communicates a message and is the one who conceives and initiates the message with the purpose of informing/persuading/influencing/changing the attitude, opinion or behaviour of the receiver. From his personal data bank he selects ideas, encodes and finally transmits them to the receiver.2. Encoding – It is changing the message (from its mental form) into symbols, that is patterns of words/gestures/pictorial forms or signs(physical or of sounds) of a specific visual/aural language.3. Message – It is information, written or spoken, which is to be sent from one person to another. The most important characteristic of a message as an element of communication is, that is organised, structured, shaped and selective, in the sense that it is a product of the pre-writing or pre-speaking stage and exists in the mind of the sender.
  13. 13. vikas vadakara4. Medium/ Channel – This is the vehicle or medium which facilitates the sender to convey the message to the receiver. The medium of communication can be written, oral, audio-visual or live projections. Again, the written medium can be in the form of letters, memos, reports, manuals, notices, circulars, questionnaires, minutes and so on.5. Decoding – This is the act of translating symbols in communication into their ordinary interpretation. However, this would consist of meanings of the words (symbols) together with the tone and the attitude of the sender, as reflected by the structure of the message and the choice of words used by him (the sender).6. Receiver – A receiver is the targeted audience of the message. The receiver gets the message, understands, interprets, and tries to perceive the total meaning of the message as transmitted by the sender. He receives an encoded message which he attempts to decode.7. Feedback – This is the top loop that connects the receiver in the communication process with the sender, who, in turn, acts as a feedback receiver and, thus, gets to know that communication has been accomplished. It also ensures that the receiver has received the message and understood it as intended by the sender. This is the most important component of communication. Effective communication takes place only when there is feedback.
  14. 14. vikas vadakaraWORKING OF THE PROCESS OFCOMMUNICATIONOne Way Process The sender, according to his ideas, behaviour patterns and intention, selects a message. He then encodes the message. After encoding the message, he transmits it to the receiver through a medium – be it oral verbal or non verbal. As soon as the message reaches the receiver, he decodes it and gives an internal response to the perceived message. The response is not in relation to the actual content but rather to the perceived content of the original message. This completes the first phase of the communication process.ONE WAY COMMUNICATION PROCESSSENDER ENCODING MESSAGE CHANNEL DECODING RCVR
  15. 15. vikas vadakaraTwo way processThe one way communication process is incomplete, as the sender does not come to know whether his message has been understood by the receiver or not.The process will be complete only after the sender receives feedback from the receiver. In the second phase, the receiver formulates his message, encodes it and transmits it to the original sender – now turned receiver. This stage is reoffered to as providing feedback and is most crucial. If, the feedback is in tune with the original intent of the sender, communication can proceed without a hitch. Channel Decodin Receive Ideation Encoding Sender g r
  16. 16. vikas vadakaraEXAMPLE OF TWO WAY COMMUNICATION An organization‟s policy to be Ideation circulated among all employees through news bulletin. The editor/person who writes the Encoder policy. The content (policy details) and the words/pictures used to convey Message the policy to the employees. The medium – in this case the Channel news bulletin. The audience of the message – for whom the policy is intended Receiver and who read the bulletin. Feedback Employee‟s reaction to the policy communicated.
  17. 17. vikas vadakara Noise – It may be described as any distortion or hindrance, preventing transmission of the message from the sender to the receiver.Noise basically stands for external disturbance in the physical environment surrounding the act of communication, or noise in the machine used for communicating the message, such as telephone or poor printout, or bad handwriting. Filters – These are mental in nature.They include attitudes, beliefs, experiences, consciousness of personal status, and the ability to think clearly. Misunderstandings and different problems may arise as the sender‟s message passes through the filters of the receiver, which comprise the sender filters plus others such as low interest or involvement in the message or distraction and fatigue causing loss of concentration.
  18. 18. vikas vadakaraCHARACTERISTICS OF SUCCESSFULCOMMUNICATION/ SEVEN C OFCOMMUNICATIONFrancis J Bergin advocates that there are seven Cs to remember in verbal communication.They are – Candidness Clarity Completeness Conciseness Concreteness Correctness Courtesy
  19. 19. vikas vadakaraCandidness – In all business transactions, our view of a matter should be honest, sincere and fair. We should speak and listen without prejudice or bias.Our guiding principle should be fairness to self and to others involved in the situation. For eg. When we qualify our observation with the words “My honest opinion” or “Frankly speaking” we are trying to be candid, open hearted and sincere. Candidness, in a way, implies consideration of the other person‟s interest and his needs to know things objectively and fairly.
  20. 20. vikas vadakaraClarity – The principle of clarity is most important in all communications, especially when you are involved in face to face interaction.It is not always easy to verbalise ideas accurately on the spot during conversation, presentation or any other form of interaction. To ensure that we express ourselves clearly, we should use accurate and familiar words with proper intonation, stresses and pauses. Our spoken language should consist of simple words and short sentences. Thoughts should be clear and well organised. We should know what we want to say and why.
  21. 21. vikas vadakaraCompleteness – Clarity is ensured also by completeness of message. In conversation or oral presentations, one can miss some parts of the communication.It is, therefore, essential that oral presentations, discussions, or dialogues should be as far as possible, planned and structured. While striving for completeness, following guidelines are to be observed – Provide all necessary information. Answer all questions asked. Add something extra, when desirable.
  22. 22. vikas vadakaraConciseness – In business and professional communications, we should be brief and be able to say whatever we have to say in minimum words. We should avoid being repetitive.To achieve conciseness, following suggestions are to be observed – Eliminate wordy Wordy : My house is not very far from here. Concise : My house is nearby. Include only relevant material. Avoid unnecessary repetition.
  23. 23. vikas vadakaraConcreteness – Communicating concretely means being specific, vivid and definite rather than vague and general.Often it means using denotative (direct, explicit) rather than connotative words (ideas associated with words). The following guidelines can be used to compose concrete messages – Use specific facts and figures. Put action in your verbs. Choose vivid, image building words.
  24. 24. vikas vadakaraCorrectness – The message should not contain any wrong information and should be authentic.Choose the right level of language.At the time of encoding, the sender should ensure that his knowledge about the receiver is comprehensive. If the sender decides to back up his communication with facts and figures, there should be accuracy in stating the same.At the core of correctness is proper grammar, punctuation and spelling.Following are the guidelines for assuring correctness in the message – Use the right level of language: formal or informal and avoid substandard language or words. Check accuracy of figures, facts and words. Maintain acceptable writing mechanics.
  25. 25. vikas vadakaraCourtesy – In conversational situations, meetings and group discussions, an effective speaker maintains the proper decorum of speaking.Following are the guidelines – One should say things with force and assertiveness without being rude. Courtesy demands that we do not use words that are insulting or hurtful to the listener. Respect the other person by listening to him/her patiently. Don‟t interrupt. We should wait for our chance to speak, and when it is our turn to speak, we should speak with force and clarity. Our tone should reflect our respect for our listener /audience.
  26. 26. vikas vadakaraIMPORTANCE OF COMMUNICATION INMANAGEMENT Sense of unity of purpose and commitment to a single organisational goal can be developed only through the inspiring and persuasive power of communication. Training and development programmes can be conducted through effective communication. In order to appraise employees, performance standards must be properly and clearly communicated. In order to increase employee‟s job performance and effectiveness by updating their knowledge. To promote employees sense of belonging and commitment. To effect changes smoothly. To inform and convince employees about decisions and the reasons behind those decisions. To develop employees‟ clear understanding of their roles and future growth opportunities in the organization. Resolving disputes in organizations , which lead to huge losses of time, money and good human relations.
  27. 27. vikas vadakaraSOME IMPORTANT FUNCTIONS OF MANAGING Forecasting and Planning – Communicating the organizations‟ objectives, policies, programmes, procedures and budgetary provisions to the concerned people. Organising – Formal and informal relationships within the organization are developed and maintained through interpersonal communication. Instructing – Interpersonal exchange of information regarding products, processes and targets. Coordinating – Requires excellent communication skills to ensure that all efforts are directed towards the achievement of a single organizational goal. Controlling – Competence to receive information and respond quickly. Checks results and receives feedback.
  28. 28. vikas vadakaraCOMMUNICATION STRUCTURE IN ORGANIZATIONChannels of communication may be classified into two categories – Formal Channel of Communication – Means of communication that is formally controlled by managers or people occupying positions in an organization.This ensures that the information flows orderly, in a timely and accurate manner.Any information, decision, memo or reminder etc. will also follow this path.Advantages –1. Maintains the authority structure of the organization and becomes easier to fix responsibility of subordinates for activities carried out by them.2. Better cooperation and coordination among employees are achieved.3. Information is more trustworthy and can be easily relied upon.4. Memos, circulars, instructions and guidelines, agreements, reports etc. form a part of the formal communication, which facilitate in the smooth functioning of the organization.5. There is minimal chance of information leak or flow of gossip.
  29. 29. vikas vadakaraDisadvantages –1. Time consuming. Even a small piece of information passes through long formal channels and hence takes a lot of time.2. Does not allow social and emotional bonds to be created, in the absence of which employees do not feel at ease and comfort.3. Inhibit or stand in the way of free flow of information between organisation levels.
  30. 30. vikas vadakaraORGANIZATION STRUCTURE Board of Directors Managing Director Top Level Management Middle Level Management Senior Supervisors First Line Supervisors Employees / Shop Floor Employees
  31. 31. vikas vadakaraINFORMAL CHANNEL OF COMMUNICATION Side by side with the formal channel of communication every organization has an equally effective channel of communication namely that is the informal channel. Given the name „grapevine’ precisely because it runs in horizontal, vertical and diagonal directions.It flows around water coolers, down hallways, through lunch rooms and wherever people get together in groups.
  32. 32. vikas vadakaraADVANTAGES Speedy transmission – It transmits information at a remarkably fast speed. Feedback value – Managers or top bosses of an organization get feedback regarding their policies, decisions and memos. Uniting force – Brings together work force in matters of common interest, and as a result acts as a binding force among the employees. Creation of ideas – Through sharing of ideas and views, generates more ideas and expectations that often prove of value to the decision makers. Good personal relations – Promotes personal relations, and is therefore important for the success of public relations.
  33. 33. vikas vadakaraDISADVANTAGES Cannot be taken seriously – Spreads or transmits information by word of mouth, it cannot always be taken seriously. Does not carry complete information – As is often based on guess work or whispers. Distorts information – As it is entirely unofficial, informal and unauthenticated. Chances of misinterpretation – As every individual passing the information may have his/her own perception. Lack of accountability – Does not allow fixing authority or responsibility structure and in case of a default, it is not possible to find who was responsible for the same.
  34. 34. vikas vadakaraCOMMUNICATION ON THE BASIS OFDIRECTION/DIMENSIONCommunication is multidimensional or multidirectional. There are various directions in which it flows.• Downward• Upward• Horizontal or Lateral• Diagonal or crosswise• Inward• Outward
  36. 36. vikas vadakaraDOWNWARD COMMUNICATIONCommunication that flows from top to bottom is known as downward communication. Every organization has an inbuilt hierarchical system, and in the first instance, communication invariably flows downwards.It originated in the assumption that the people operating at higher levels have the authority to communicate to people at the lower levels. Hence this kind of communication exists especially in organizations with an authoritarian atmosphere.
  37. 37. vikas vadakaraPROBLEMS OF DOWNWARD COMMUNICATION Information is quite often lost or distorted in the course of its journey down the chain of command. While issuing instructions or sending letters, every CEO assumes that what he intends to communicate invariably reaches the persons it is intended for. But unfortunately it is not always so. The downward flow of information is time-consuming.The more the levels, the more the chances of delay or dilution of information. Downward communication is likely to be filtered, modified or distorted at any level since managers decide what should be passed down to their employees. Sometimes, managers withhold information in order to keep the employees dependent on them. The net result is that, in the absence of complete information, employees may feel confused, ill-informed, or powerless and might fail to carry out their tasks properly.
  38. 38. vikas vadakaraUPWARD COMMUNICATIONCommunication that flows from bottom to top, or which is from lower hierarchical level to higher level, is called upward communication. The main function of upward communication is to supply information to the upper levels about what is happening at the lower levels.
  39. 39. vikas vadakaraPROBLEMS OF UPWARD COMMUNICATION As higher-ups do not like to be told anything against their wishes, hence the piece of communication may quite often not be allowed to go up. It may also be distorted or misrepresented in the absence of a healthy open door policy. The employees may feel let down or they may become shy and reluctant to express themselves.
  40. 40. vikas vadakaraLATERAL OR HORIZONTAL COMMUNICATIONWhen communication takes place between two or more persons who are subordinates working under the same person, or those who are working at the same level, it is called lateral or horizontal communication. A good example of this kind of communication is that between functional managers. They are serving the organisation in different capacities but their goals are common and their interaction is necessary to maintain co-ordination.The best example of lateral communication can be seen in the interaction of production and marketing departments. Strategies of marketing cannot be fruitful unless plans are communicated to the production department. The Marketing Manager has to be in constant touch with the Production Manager, in order to meet customer orders as per schedule.Marketing Manager Production Manager
  41. 41. vikas vadakaraDIAGONAL OR CROSSWISE COMMUNICATIONDiagonal or Crosswise communication includes flow of information among persons at different levels who have no direct reporting relationships. As an example, communication between training supervisor and marketing manager, regarding training of a few employees of marketing department, is diagonal communication. This is used to speed up the information flow, improve understanding, and co-ordinate efforts for the achievement of organizational objectives.MARKETING MANAGER TRAINING MANAGERMARKETING SUPERVISOR TRAINING SUPERVISOR
  42. 42. vikas vadakaraINWARD COMMUNICATIONInward Communication includes all the information received by the organization from external agencies, which may be – Other organizations Government Suppliers Customers Competitors Shareholders MediaThese may be in the form of – Letters Emails Offers Orders Requests Suggestions Complaints Notices and so on.
  43. 43. vikas vadakaraOUTWARD COMMUNICATIONThe communication which the organization maintains with the outside world is called outward communication.The image of the company is contingent upon the relationship that it maintains with people outside.This communication may be oral or written.To solicit the help and co-operation of everyone involved in an external environment, outward communication is a must.Outward communication may be in the form of – Advertisements Media interaction Public relations Negotiations Mails Telegrams Letters Tenders Notices Telephonic conversations and so on.
  44. 44. vikas vadakaraCOMMUNICATION IN CRISISCrisis communication is sometimes considered a sub-specialty of the public relations profession that is designed to protect and defend an individual, company, or organization facing a public challenge to its reputation. These challenges may come in the form of an investigation from a government agency, a violation of environmental regulations, or any of a number of other scenarios involving the legal, ethical, or financial standing of the entity.
  45. 45. vikas vadakara A large part of crisis communication is the prevention of situations before they escalate to full-blown crises," said Steve Honig, president of The Honig Company, LLC
  46. 46. vikas vadakara Responding quickly, efficiently, effectively and in a premeditated way are the primary objectives of an effective crisis communication strategy and/or solution. Harnassing technology and people to ensure a rapid and co-ordinated response to a range of potentially crippling scenarios distinguishes a well thought out and executed plan from a poorly or ill- considered one. The inherent lag time in marshalling responses to a crisis can result in considerable losses to company revenues, reputation as well as substantially impacting on costs.
  47. 47. vikas vadakaraOBJECTIVES OF CRISIS COMMUNICATIONEffective crisis communication strategies will typically consider achieving most, if not all, of the following objectives: Maintain connectivity Be readily accessible to the news media Show empathy for the people involved Allow distributed access Streamline communication processes Maintain information security Ensure uninterrupted audit trails Deliver high volume communications Support multi-channel communications Remove dependencies on paper based processes By definition a crisis is an unexpected and detrimental situation or event. Crisis communication can play a significant role by transforming the unexpected into the anticipated and responding accordingly.