Business communication

1. COMMUNICATION
NATURE, FUNCTIONS AND
SCOPE

2. CONTENTS
1. Meaning and Definitions
2. Communication Process Model
3. Characteristics
4. Purpose or Objectives
5. Principles of Communication
4. Scope of Communication
5. Limitations
6. Evaluation of Communication
Effectiveness
7. Barriers to Effective Communication

3. • Communication- Definition and
Meaning
Communication is an exchange of facts, ideas,
opinions or emotions by two or more persons.
Communication is defined as “the process of
passing information and understanding from one
person to another, it is essentially a bridge of
meaning between people. By using the bridge of
meaning a person can safely cross the river of
misunderstanding.”

4. 2. A COMMUNICATION PROCESS MODEL
Feedback
Thought Encoding
Sender
Transmission
of
Message

Reception Decoding Understanding
Noise
Receiver

5. Sender
Communication begins with a thought/idea that a sender has.
Encoding
refers to putting the thought/idea in a form, which can be understood
by receiver.
Channel to transmit the message:
Channel
Links the sender and the receiver.
Forms may be oral, written, a letter, a computer, a telegram, a fax,
Television or radio.
Two or more channels may be used at the same time.
ELEMENTS OF COMMUNICATION PROCESS MODEL

6. Receiver of the message:
Reception
being ready for the message.
Decoding
refers to conversion of the message into thoughts.
Understanding
refers to interpreting the message i.e. attaching meaning.
Accurate communication can occur only when sender and receiver
attach same or similar meaning to the message.
Noise:
Is anything, which hinders communication. It may in the sender, the
transmission or the receiver.
ELEMENTS OF COMMUNICATION PROCESS MODEL (Contd.)

7. ELEMENTS OF COMMUNICATION PROCESS MODEL (Contd.)
Examples of noise:
Encoding
Faulty due to use of ambiguous symbols.
Transmission
Faulty telephone connection.
Reception
Inaccurate attention.
Decoding
Faulty due to wrong meaning attached.
Understanding
Can be obstructed by prejudices.
Gestures and posture.

8. ELEMENTS OF COMMUNICATION PROCESS MODEL (Contd.)
Feedback
To check effectiveness of communication, a person must have
feedback.
One can never be sure that the message has been encoded,
transmitted and decoded properly unless it is confirmed by
feedback.
Situational and Organizational Factors in Communication
Situational Factors
External Factors- educational, sociological, legal-political,
economic.
Geographical distance.
Organizational Factors
Organization structure, managerial and non-managerial processes
and technology.

9. 3. CHARACTERISTICS
(i) A two-way traffic
It is a two-way traffic – upward and downward. Messages, directives,
opinions are communicated downward.
Likewise grievances, complaints, opinions, feelings, are communicated
upward along the line.
(ii) Continuous Process
It is continuous process. It is repeated to achieve the desired
results. It is not a one time shot.
(iii) A short-lived process:
It is complete as soon as the message is received and understood by the
receiver in the right perspective.
(iv) Needs proper understanding:
There may be numerous media of communication but the main purpose of
conveying the message is a proper understanding of the message by the

other party. For this purpose, it should be clearly and concisely worded.

10. 3. CHARACTERISTICS (Contd.)
(v) Leads achievement of the organizational objective:
Effective communication does this by creating the sense of object
orientation in the organization.
(vi) Dispels misunderstanding:
It provides clear understanding between persons and thus builds a
bridge of camaraderie among people.

11. 4. Purpose or Objectives of Communication
The main objectives are:
lConveying the right message:
The main objective of communication is to convey the right message
to the right person, i.e., to the person for whom it is meant. The
message conveyed should be well understood and accepted by the
receiver in the right perspective.
(ii) Coordination of effort:
It is an effective tool for coordinating the activities of different
persons engaged in running a business. Coordination without
communication is a remote possibility. The individuals or groups
come to know what others are doing and what is expected from
them only through communication.

12. 4. Purpose or Objectives of Communication (Contd.)
(iv) Good Industrial relations:
Communication develops good industrial relations as it conveys the
feelings, ideas, opinions and viewpoints of one party to the other
party. The two parties-the management and the subordinates come
closer through communication. They understand each other and
dispel any misunderstanding. Thus, it promotes cooperation and
good industrial relations.
(v) Development of managerial skills:
Communication helps managers to understand human behavior at
work. Communication of facts, ideas, opinions, information, feelings
etc. add value to the knowledge of managers about various
happenings, in the organization and behavior of people. Thus,
communication is a process of learning.

13. 4. Purpose or Objectives of Communication (Contd.)
(vi) Effectiveness of policies:
The organization formulates policies and programmes to guide the
workforce. These should be conveyed properly to those who are
really responsible for the execution of work to achieve the
organizational objectives. Only effective communication can
translate the policies into action. Effectiveness of the policies can be
judged from the success which surely depends upon an effective
communication system.

14. 5. Principles of Communication
The following principles can be followed to make the communication system more
effective:
(i) Principle of clarity:
The idea or the message to be transmitted should be clearly worded so that it may
be interpreted by the receiver in the same sense in which it is communicated.
(ii) Principle of integrity:
Communication should be aimed at motivating people to take action as agreed upon.
(iii) Principle of informality:
Formal communication system is cornerstone of a formal organization, it leads
transmittal of messages. But, sometimes, formal communications prove ineffective
in evoking the needed response from the subordinates. In such cases, the
superiors should adopt the strategy of making use of informal channels of
communication: they may contact, if necessary, the subordinates personally or
through someone else to persuade them to translate their orders into action. Informal
communication at times proves far more effective than formal communication.

15. 5. Principles of Communication (Contd.)
(iv) Principle of attention:
In order to make the message effective, the recipient's attention should be
drawn to the message communicated. Each one is different in behavior,
sentiments, and emotions, which determine the degree of attention. For
this purpose, the superior must note that he himself should not expect from his
subordinates what he himself does not practice. So, a manger cannot enforce
punctuality if he himself is not punctual.
(v) Principle of consistency:
This principle implies that communication should always be consistent with
the policies, plans, programmes and objectives of the organization, and
not in conflict with them.
(vi) Principle of adequacy:
The information should be adequate and complete in all respects. Inadequate
and incomplete information may delay action and destroy understanding
and create confusion.
Inadequate information also affects the efficiency of the sender and the receiver
of the communication.

16. Principles of Communication (Contd.)
(vii) Principle of timeliness:
All messages should be transmitted at the proper time. Any delay in
communicating message serves no purpose except to make them
merely historical document as it loses its importance after some
time.
(viii) Principle of feedback:
One of the most important principles of communications is the principle
of feedback. The communicator must have feedback information from
the recipient to know whether the recipient has understood the
message in the same sense in which the sender has meant it, or
whether the subordinates agree or disagree with the contents of the
message. It also helps in understanding attitude of the people.

17. Principles of Communication (Contd.)
(ix) Principle of communications network:
Communications network means the routes through which the
communication travels to its destination, i.e., the person for whom it is
meant. A number of such networks may exist in an organization at a
given point of time; but the management should consider the
effectiveness of the communications network in the given situation, and
its effects on the behavior of the recipient before it finally chooses the
network.

18. Clarity of expression:
Use simple words
Use single words for long phrases
Avoid double entry
Use verbs for nouns
Use concrete expressions

19. Prefer active construction
Avoid excessive use of the infinitive
Avoid jargons
Avoid ambiguity
Use short sentences

20. Completeness
While answering ensure you have
answered all the points
Check for “five W” questions

21. Conciseness
Include only relevant facts
Avoid repetition
Avoid trite and wordy expressions
Organize your message well

22. Consideration
Adopt the you – attitude
Avoid gender bias
Emphasize positive, pleasant facts
Impart integrity to your message

23. 6. Scope of Communication
The scope of communication includes:
(i) Information Sharing:
To transmit information from a source to target individuals or groups.
Information can be:
- policies and rules
- changes and development in the organization
- Special rewards and awards
- Settlements with the union
- major changes in the organization
(ii) Feedback:
Give feedback to employees on their achievements
- To the departments on their performance
- Higher management on the fulfillment of goals
(iii) Control:
Information is transmitted to ensure that plans are being carried out according to
the original design. Communication helps to ensuring such control.

24. 6. Scope of Communication (Contd.)
The scope of communication includes:
(iv) Influence:
Information is power. One purpose of communication is to influence
people.
(v) Problem-solving:
In many cases communication helps to solving problems.
Many meetings are held between the management and the
unions on some issues to find solution.
Alternative solutions may be held to solve a problem and evolve a
consensus.
(iii) Decision-making:
For arriving at a decision several kinds of communication are
needed.

25. 6. Scope of Communication (Contd.)
The scope of communication includes:
(vii) Facilitating change:
Change can be brought about effectively by
communication.
(viii) Group Building:
Communication helps in building relationships. If
communication breaks down the group may breakdown.
(ix) Gate Keeping:
Communication helps to build linkages of the
organization with the outside world.

26. 7. Limitations of Communication
The distortion of communication is its main limitation.
The distortion of communication may have the
following consequences:
lThe message received is not very close to the
message sent.
lThe non-verbal messages are not congruent with the
verbal message.
lThe message may not result in the desired response.
lThe communication can at times create confusion.
lCommunication at times is costly and can be
delayed.

27. 8. Evaluation of Communication Effectiveness
l Fidelity of communication
The distortion free quality of a message is called fidelity. An
effective person gets the message across to others with minimal of
misunderstanding.
(ii)Economy
In an effective communication a minimum of energy, time, symbols
and cues are used to encode message without losing its fidelity
and impact.
(iii)Congruence
An effective communication integrates both verbal and non-verbal
cues.
(vii)Influence
The influence the communicator is able to exercise over the
receiver of the communication.
(ix)Relationship building
To contribute to the building of trust and a better relationship
between the source and the target.

28. 9. Barriers to Effective Communication
(i)External Barriers
(ii) Organizational Barriers
(iii)Personal Barriers
l External Barriers
These may be
A. Semantic Barriers
– relate to different understanding and interpretations
of words we use to communicate
B. Emotional or Psychological Barriers
- Premature evaluation
- Loss in transmission and retention
- Distrust of communicator
- Failure to communicate
- Undue reliance on the written word.
- Inattention

29. 9. Barriers to Effective Communication (Contd.)
(ii) Organizational Barriers
These may be
A. Organizational Policy
B. Organizational rules and regulations
C. Status Relationship
D. Complexity in organizational structure
E. Organizational facilities

30. 9. Barriers to Effective Communication (Contd.)
(iii) Personal Barriers
These may be
A. Barriers in superiors
- Attitude of superiors
- Fear of challenge to authority
- Insistence on proper channel
- Lack of confidence in subordinates
- Ignoring communication
B. Barriers regarding subordinates
- Unwillingness to communicate
- Lack of proper incentive