Introduction to Business

1. Introduction to Business
Topic: Business Communication

2. WHAT IS COMMUNICATION:
• The imparting or interchange of thoughts, opinions, or
information by speech, writing, or signs.
• Something imparted, interchanged, or transmitted
• A document or message imparting news, views, information etc.
"Any act by which one person gives to or receives from another person
information about that person's needs, desires, perceptions, knowledge, or
affective states. Communication may be intentional or unintentional, may involve
conventional or unconventional signals, may take linguistic or nonlinguistic forms,
and may occur through spoken or other modes."

3. WHAT IS BUSINESS COMMUNICATION:
• it is the process by which activities of a business are collected and coordinated to
reach the goals of both individuals and the business.
• In simple terms it is the information flow that happens in a business but the flow
of information has got a structure , direction and process.”

4. Forms of Business Communication
1. Internal communication: This is the communication that takes place
within a business. In addition to the usual face to face, telephone, fax or
mail; modern organizations may use technology to communicate
internally. Technology may be used for e-mails or a linked internal
communication.
2. External communication: this is the communication that takes place
outside the business. The communicate with other businesses can be
through telephone, fax ,internet etc.

5. External communication
• Letters
• Fax
• Direct mail
• Internet
• Video
• Telephones
• Advertising
• websites
Internal
communication
• Team briefing
• Notices
• Reports
• Memos
• Face to face
• E-mail

6. Types of Business Communication:
 Formal Communication
 Chain of command
 Written word
 Representative system
 Informal Communication
 Gossips
 Grape vine talks
 Chit chats

7. Structure of Communication Process in
Business

8. Upward communication:
Upward communication -the process whereby the ideas, feelings, and perceptions of
lower-level employee are communicated to those at higher levels in the
organization.
Functions:
• It provides management with needed information for decision making
• It helps employees relieve the pressures and frustrations of the work situation.
• It enhances employees’ sense of participation in the enterprise.
• It serves as a measure of the effectiveness of downward communication.

9. Downward communication:
Such communication is initiated by the organization’s upper management and then
filters downward through the “chain of command”.
• People are limited as to the amount of information they can effectively absorb
and react to.
• Therefore, management must, of necessity, restrict what it communicates to
subordinates.
• Organization implies some restriction of communication. Without restrictions on
communication, any organizational member could be buried under an avalanche
of incoming messages from all the other members.

10. Diagonal Communication:
• This occurs when communication occurs between workers in a different section
of the organization where one worker is on a higher level.
• For example diagonal communication will occur when a department manager
converses with an employee in another department.
• It allows cross communication between departments

11. Importance of communication in a Business:
• Help individuals to understand and pursue organizational objectives.
• Cover every management function.
• Organizational culture depends on communications.
• Improve both organizational and individual performance
• Better the communication better the performance

12. Importance of communication in a Business:
• An organization can be structured in many different ways, depending on their
objectives. The structure of an organization will determine the ways in which it
operates, performs and communicates.
• Communication in an organization also depends on the leadership style.
• Classical organizations supported information flow only through the chain of
command, but this leads to the missing of information during the flow.
• There are organizations in which every official communication should be in a
written form, especially in a bureaucratic set up.
• Organizations should keep a track of the communication between employees

13. Importance of communication in a Business:
• One single method of communication process might not work well for an
organization.
• So it will be better to have a communication process which is structured –
vertical along with horizontal communication.
• The system should flexible where in decisions are to be made fast, or when the
organization is facing problems – that is diagonal and by-pass communication
should be allowed in important situations.
• As proposed by Jack Welch information should flow to where it is needed and
not to unnecessary designations.

14. Communication helping growth of an organization
1. The communication process should be vertical for a conservative and
structured organization. Horizontal communication can be allowed for better
coordination between different departments.
2. Relationship of an organization with its customers is very important, so the
employees should be properly trained for the process. Better the
communication better the performance of any company.
3. Better communication helps in better interpersonal relationships, less
conflicts, better understanding, solving problems and helps discussions which
can lead to new ideas which will help the organization grow better.

15. 4. In a multinational company an employee might have to report to his superior who
might be from another country or to a superior who might be in another country.
5. So there will be cultural differences across the different units and subsidiaries of
the same organization in different countries.
6. Horizontal communication should be allowed between the units of the
organization in different countries to keep a track on the work and its progress.
7. Employees must be trained properly to communicate keeping in mind the cultural
differences in different countries.
8. The information should be allowed to reach where it is necessary.