2. Unit Contents Lectures
I Business Communication: Concept, Features, Importance, Limitations;
Basic model of Communication Process and Elements of Communication,
Barriers to Communication and overcoming barriers to communication
06
II Means and Types of communication: Medias of Communication- Written, Oral,
Visual, Audio-visual, Formal and Informal Communication, Modes of Quick
Transmission of Messages.
06
III Business Letter Writing: Essentials of Effective Correspondence, Layout
of Business Letter, Planning the Letter, Kinds of Business Letters
Communication within the organization: Memoranda, Notices, Circulars,
Orders, Agenda and Minutes
06
IV Business Correspondence related to Human Resource: Preparation of
Resume, Job Application, Drafting of Interview Letters, Call Letters and
Offer of Appointment, Goodwill Messages, Condolence Letters
Business Correspondence related to other parties: Correspondence with
banks, insurance companies and government authorities
06
V Report Writing and Proposal Writing: Contents and Types
Press Release and Press Notes
06
5. Business Communication
Business Communication is information
sharing between people within and
outside an organisation that is performed
for the commercial benefit of the
organisation.
It can also be defined as relaying of
information within a business by its
people.
22. External Objectives
•Sale of Goods and
Services
•Enables an
organisation to
become dynamic
•Relations with
Suppliers
•Helps to face
emerging
challenges
•Information to other
parties
23. Importance of Communication
Increase in size of
business
Smooth running of
business
Growing specialisation Right and quick decision
making
Cut-throat competition Facilitates proper planning
and co-ordination
Trade union movement Maximum productivity with
minimum cost
Human relations Minimize organisation
conflicts
Public relations Promote employee loyalty
Personal asset Helps in moulding attitudes
24. Process of Communication
Sender Selects, composes
Message Verbal/ non- verbal/
combination
Channel/ media Oral/ written
Receiver Identifies, comprehends,
interprets
Response and feedback Verbal/ non- verbal/
combination
Sender Message Receiver
30. Elements of Communication
Sender-
Person who transmits/ spreads/
communicates a message
Initiates message
Purpose- informing, persuading,
influencing, change in receiver’s
attitude/ opinion
Decides the channel, time, type of
communication
31. Elements of Communication
Encoding-
Changing the message (ideas, facts,
feelings, opinions) into symbols/ patterns
of words/ gestures, etc.
Selected by sender keeping in mind the
receiver’s ability to understand and
interpret them correctly.
33. Elements of Communication
Channel-
Vehicle or medium which facilitates the
sender to convey the message to
receiver
Written medium- letter/ memo/ report/
manual/ notice/ circular/ questionnaire/
minutes, etc.
Oral- dialogue/ interview/ telephone
conversation/ conference/ recording,
etc.
41. Formal Channel of
Communication
Official channel
Established by management-
deliberately and consciously
Line of communication for
transmission of messages
and information officially
within and outside the
organisation
Information
about
performance
Directive
information
42. Formal Channel of
Communication
Advantages Disadvantages
Follows unity of command Slow and time consuming
Subordinates are bound to
act within the purview of
responsibilities
May impede smooth and
accurate circulation of
information
Flow of orders,
instructions, etc. very
specific, clear and definite.
Lacks personal contact
and relationships
Effective control and
discipline in the
organisation
Possibility of distortion of
facts when the message
passes through various
levels
Helps in maintaining
45. Informal Channel of
Communication
Also called grapevine.
Takes place without giving regard to
hierarchical / task requirements.
Personal rather than positional.
Result of social interaction of people.
Carries unofficial information about
management’s policies, plans,
performance, etc.
Rumour is an undesirable feature of
grapevine.
46. Informal Channel of
Communication
Advantages Disadvantages
Can work as a powerful and
purposeful effective tool of
communication.
Tends to be fast
Valuable aid in communicating
organisational rules, values and
morals.
Carry large amount of
information but fairly inaccurate
information, because of
misinterpretation.
Helps in dissemination of
information about organisational
traditions and history.
Spreads rumours and carry
gossips.
Speedy transmission, feedback
value, support to other channels,
psychological satisfaction
47. Formal Communication v/s
Informal Communication
Basis Formal Informal
Origin Deliberately
structured
Spontaneous and
structured
Flow Prescribed Not prescribed
Authority Official channel Unofficial
Purpose To achieve
organisation goals
To satisfy personal
needs
Speed Slow Fast
Accuracy Accurate and
authentic
Often contains
rumours and gossips
Form Both oral and written Oral
49. Downward Communication
Vertical communication, which flows
from a higher level to one or more
lower levels in the organisation.
Eg. Staff meetings, company policy
statements, company newsletter,
memos, face-to-face communication
50. Downward Communication
Advantages Disadvantages
Helps to tie different levels of
organisation.
Prone to considerable distortion.
Helps encouraging the
effectiveness of upward
communication through
feedback.
Some managers may purposely/
non-purposely filter
communication by withholding,
screening or manipulating
information
Managers tend to over-use one-
way communication methods,
such as memos, manuals,
newsletters, etc. thus litter
feedback from receiver.
Distortion/ dilution, delay,
filtering, too much or too less
52. Upward (Vertical)
Communication
Vertical flow of communication from
lower level to higher level in the
organisation.
Includes one-to-one meetings with
immediate superior, memos and
reports, grievance procedures, etc.
Good staff relation facilitate free
upward communication.
53. Upward (Vertical)
Communication
Advantages Disadvantages
Create greater harmony and
mutual understanding between
management and employees
Often subordinates are reluctant
to speak freely to their superiors.
Managers get-
•Up-dation of progress of work
done
•Come to know about problems
faced by subordinates.
•Constructive suggestions and
innovative ideas from employees
.
Psychological, hierarchical
•Feedback, release of tension,
suggestions, mutual co-
operation, change
55. Horizontal or Lateral
Communication
Takes place between persons
operating at the same level.
Helps in maintaining co-
ordination and review the
activities assigned to various sub-
ordinates.
Keeps every department
informed of the needs and
56. Horizontal or Lateral
CommunicationAdvantages Disadvantages
Creates mutual
understanding and
trust between people
and departments
Rivalry can influence
individuals to hide
information.
Facilitates co-operation
and co-ordination
between different
departments
Lack of motivation
Problems can be
solved at the lower
level.
58. Diagonal or cross-wise
communication
Takes place when persons
working as a lower level
interact with those at a higher
level across the limits of their
reporting relationships.
60. Internal communication
People within organisation communicate
with each other
Individual to Individual
Individual to group
Group to individual
Department to department
Mostly oral and informal
Informal communication/ grapevine
Memo, report, office order, circular,
manuals, minutes of meeting, notice,
agenda, etc.
61. External communication
When people in organisation
communicate with anyone
outside the organsiation
Client, customer. supplier,
government, etc.
Price list, tender documents, letter,
circular, brochure, advertisement,
press release, etc.
62. IMPORTANCE OF BUSINESS
COMMUNICATION
Movement of
information
Efficient and smooth
running of organsiation
Promotion of
management efficiency
Proper planning
Basis of decision
making
Basis of co-operation
Means of co-ordination
Establishment of public
relation
Establishment of
effective leadership
Assisting motivation
Loyalty
Goal accomplishment
Industrial peace
63. External Factors affecting Business
Communication
Legal and Ethical Constraints
• International
Laws
• Domestic Laws
• Code of Ethics
• Stakeholder’s
interests
• Ethical
Frameworks
• Personal Values
Diversity Challenges
• Cultural
differences
• Language
barriers
• Gender issues
• Education
levels
• Age factors
• Nonverbal
differences
Team Environment
• Trust
• Team roles
• Shared goals
and
expectations
• Synergy
• Group reward
• Distributed
leadership
Changing Technology
• Accuracy and
security issues
• Telecommunication
s
• Software
applications
• Telecommuting
• Databases
Editor's Notes
Soliloquies- An act of speaking one's thoughts aloud when by oneself or regardless of any hearers, esp. by a character in a play.
Conversation, Dialogue, Interview, Book, Letter, etc.