Business communication assignment

Business communication assignment

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MBA 102 –Business Communication Assignment

1. List the barriers to listening. Explain any four.
Sol: Barriers to Listening:

 Physiological barriers
 Physical barriers
 Attitudinal barriers
 Wrong assumptions
 Cultural barriers
 Gender barriers
 Lack of training
 Bad listening habits

Explanation of any four Barriers:
1.Physiological barriers:

This was discussed earlier under the barriers to communication. Some people may have
genuine hearing problems or deficiencies that prevent them from listening properly. Once
detected, they can generally be treated. Other people may have difficulty in processing
information, or memory related problems which make them poor listeners. Another
physiological barrier is rapid thought. Listeners have the ability to process information at the
rate of approximately 500 words per minute, whereas speakers talk at around 125 words per
minute1. Since listeners are left with a lot of spare time, their attention may not be focused on
what the speaker is saying, but may wander elsewhere.

2.Physical barriers:

These refer to distractions in the environment such as the sound of an air conditioner, cigarette
smoke, or an overheated room, which interfere with the listening process. They could also be in
the form of information overload.

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For example, if you are in a meeting with your manager and the phone rings and your mobile
beeps at the same time to let you know that you have a message; it is very hard to listen
carefully to what is being said.

3.Attitudinal barriers:

Pre-occupation with personal or work related problems can make it difficult to focus one’s
attention completely on what a speaker is saying, even if what is being said is of prime
importance. Another common attitudinal barrier is egocentrism, or the belief that you are more
knowledgeable than the speaker and that you have nothing new to learn from the speaker’s
ideas. People with this kind of closed minded attitude make very poor listeners.

4.Cultural barriers

Accents can be barriers to listening, since they interfere with the ability to understand the
meaning of words that are pronounced differently. The problem of different accents arises not
only between cultures, but also within a culture. For example, in a country like India where
there is enormous cultural diversity, accents may differ even between different regions and
states.
Another type of cultural barrier is differing cultural values. The importance attached to listening
and speaking differs in western and oriental cultures.
Generally, Orientals regard listening and silence as almost a virtue, whereas Westerners attach
greater importance to speaking. Therefore, this would interfere with the listening process,
when two people from these two different cultures communicate.

2. Name the two categories of oral communication. Explain them.
Sol: Oral communication:
This type of communication may be defined as a process in which a speaker interacts verbally
with one or more listeners, in order to influence the latter’s behaviour in some way or
the other.
Oral communication in a business context can take the form of meetings, presentations, one-
to-one meetings, performance reviews, etc.

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Oral communication is classified into two types:
1. Oral face-to-face communication : (for example, meetings and presentations).

While face-to-face meetings are more effective than non face-to-face communication in most
ways, they are expensive and impractical sometimes, due to the distance factor.
This type of communication involves brainstorming, negotiations, persuasion and problem
solving.
Oral business presentations are a powerful way of presenting your ideas to others and are
usually called for when a written memo or report is not sufficient to do the job.
Oral presentation commands attention and fetches immediate feedback.

2. Oral non face-to-face communication (for example, teleconferencing, telephone and
voice mail).

With advancement in technology, meetings today can still take place without being face-to-
face, through teleconferencing.
Teleconferencing allows participants at distant locations to speak and sometimes to see each
other. Apart from the high cost and the difficulty in setting it up, teleconferencing has the same
advantages as oral face-to-face communication.
Mobile phones have made it even easier to contact people who are on the move.
Telephone communication also has a personal quality and permits the use of some non-verbal
cues such as tone of voice, to enhance the communication.
Voice mail is a type of telephone communication and is similar to an answering machine. Although it is
generally inferior to speaking in person to the other party, it has some advantages. When you leave a
recorded message, you can make your point felt and save time that might be wasted in exchanging
pleasantries. Invitations can also be declined without having to give an explanation or reason or having
the other person talk back. Thus, there is greater control over how the message is composed and
delivered.
Besides, voice mail also makes it possible to keep a permanent record of the communication, unlike
other types of oral communication. In spite of these advantages however, voice mail has not caught on
in India.

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3. How does internal business communication affect the organization? Discuss the role
of each stakeholder in this.
Sol:
Importance of internal Business Communication

Stake holder’s role
Communication with Shareholders
Shareholders are important internal stakeholders of an organisation and they are the owners of
the company. As the capital required to run large organisations is huge, a group of proprietors
and partners cannot fund all the capital required. Therefore, capital to run an organisation is
raised from the public or private organisations or both and they become the stakeholders or
investors of the organisation. As organisations grow, shareholding is widely scattered.
Therefore, it is essential to retain the shareholders’ confidence in the company’s management,
through effective communication with them on a regular basis.
There are two situations where shareholder communication is extremely vital:
1) If the company is doing well and wants to expand its scope of operations or diversify into
unrelated areas. In this case, good shareholder relation scan help to raise the required capital
and minimise borrowing from Banks and financial institutions.
2) If the company is going through a crisis or difficult times, more communication with
shareholders is needed. Take the example of Coke and Pepsi during the pesticide controversy.
In such a situation, the company must be open with its shareholders and explain the problem
clearly, including the steps being taken to overcome the crisis. Crisis communication is an
important, but often overlooked area of shareholder communication. Lack of communication
during a crisis encourages the grapevine among shareholders and leads to false rumors. For
example, rumors may spread that the company is going to close down. On the other hand, if
you tell the truth, chances are that your shareholders will stand by you. The appropriate media
for communication with shareholders include both oral and written channels. Periodic mailers
must be sent to all shareholders, giving a fair and truthful representation of the company’s
results and progress on various fronts. In areas where there is an aggregation or concentration
of shareholders, shareholder meetings and conferences must be held, making presentations on
the company’s progress. When the company is going through a crisis, shareholders must be
taken on project site and factory visits, to show them the measures that are being taken to
solve the problem.

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The overall guiding factor in communicating with shareholders must be that they are the
owners of the company. Two examples are given below of two companies, Cognizant and
Reliance that are well known for effective shareholder communication.
Cognizant’s Communication with Shareholders
Cognizant is a leading provider of IT services, based in New Jersey, USA. They have won national
acclaim in the US financial media for being one of the most shareholder friendly companies in
the US. In a survey where respondents were asked to rate various companies on criteria such as
financial performance, communication with shareholders, investor relations and quality of
corporate governance, Cognizant was ranked the highest. Shareholder friendly companies were
described by respondents as those that are known for their policy of openness and high quality
of communication with their shareholders.
Reliance’s Communication with Shareholders
In India, one out of every four investors is a shareholder of Reliance. The company has set up a
firm of Chartered Accountants as Internal Security Auditors, to audit the transactions and
communication with Share holders. The Board of Directors of the company has also appointed
a Shareholders’/Investors’ Grievance Committee, for examining and responding to
shareholders’ complaints with regard to transfer of shares, non-receipt of balance sheet,
declared dividends, etc. The Committee also makes recommendations on how to improve the
overall quality of investor services.
Internal business communication
Internal business communication is the exchange of information within a company. Its involves
interaction with the following stakeholders:

1. Superiors
2. Peers
3. Subordinates
4. Employees/Unions
5. Shareholders

1. Superiors

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Every organisation has a formal reporting system. Superiors are the higher ups in the
organisation to whom you report. The frequency of interaction with them will vary, depending
on your position and responsibilities, as well
as their need for information. As a salesperson, you may have to submit daily or weekly reports
of sales progress. As a marketing manager, you may be required to make periodic presentations
on marketing strategy for new product launches to the Vice President, Marketing. Occasionally,
you may also approach your superiors to communicate your feelings about your job, unsolved
problems with co-workers and your suggestions for improvement of the organisation.
Communication with superiors could be through written channels, such as reports, or through
oral face-to-face channels, such as presentations and one-to-one meetings. When trying to
solve problems or improve relationships, oral face-to-face channels are most effective.
2. Peers
Peers are your co-workers, or people at the same level within an organisation. For example, a
marketing manager and an HR manager are peers, since they work at the same level within
different departments. Communication between peers is essential for functional coordination.
An Advertising Manager for example, will need to communicate with the Finance Manager
regarding approval of the advertising budget for a new Product launch. Information sharing is
another reason for communication between peers.
The Advertising Manager and the Sales Manager in the Marketing Department may need to
communicate regarding the special features of a product to be highlighted in an advertising
campaign. Regular communication between co-workers in different departments is also
essential to ensure that they work together as a team to achieve the common goals of the
organisation.
The most appropriate channel of communication between peers is the oral face-to-face
channel, since it helps to build good rapport and improves work relationships.
3. Subordinates
Subordinates are people in the organisation who work below you or report directly to you. For
example, as the Marketing Manager, you may have Assistant Managers reporting to you, who
in turn may have Marketing
Executives reporting to them. The most common reason for communication with subordinates
is to convey organizational procedures, policies, targets and goals. Other reasons include
performance appraisal and feedback, reward and recognition aspects and disciplinary issues.

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Appropriate channels of communication with subordinates may be both oral and written,
depending on the situation. Communicating about organizational procedures is best done
through written communication. But, performance appraisal and feedback should be done
through an oral one-tone meeting and discussion.
4.Employees/Unions
Employees/unions can be quite powerful. Therefore communication with them is essential. The
reasons for communication include welfare aspects, disciplinary aspects and terms of
employment. All these should be clearly spelt out and kept on record. Hence written channels
such as written contracts are the most appropriate channels.
5.Shareholders
Shareholders are very important internal stakeholders, since they are the owners of the
company. Therefore, it is essential to be completely transparent with shareholders and to keep
them informed of all developments in the company. It is essential to communicate with
shareholders to keeping them informed about the following:
 Company’s progress on different fronts
 Development programmes
 New projects undertaken by the company
 New capital issues
 Any major problems faced by the company
 The steps being taken to tackle the major problems

This is part of public relations, through which the company projects a positive image of itself in
the eyes of shareholders. The appropriate channels of communication with shareholders
include oral and written channels. Communication with the shareholder is done through:
 Meetings
 Conferences
 Letters
 Brochures
 Advertisements