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BUS-202:

Business Communication

Chapter-01
Introduction
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Meaning & Definition
◼ In general, communication exchange of ideas, message,
information, data etc. between two or more persons.
Communication way takes place orally, non-orally,
symbolically, or in writing.
◼ According to W. H. Newman and C. F. Summer "
Communication is an exchange of facts, ideas, opinions, or
emotions by two or more persons.
◼ According to Peter Little " Communication is the process
by which information is transmitted between individuals or
organizations so that an understanding response results"
◼ According to William Scott " Communication is a process
which involves transmission, and accurate, replication of
ideas ensured by feedback for the purpose of eliciting action
which will accomplish organizational goals.

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Business Communication
◼ When business related information is transferred from one
person to another it is called business communication. Such
communication may occur internally or externally. If
business oriented events, thinking, thoughts and emotions
or transactions are exchanged among businessmen it is
referred to as business communication.

◼ According to Brennan-" Business communication is the


expression, channeling, receiving and interchanging of
ideas in commerce and industry“

◼ Prof. W. H. Meanning-" The exchange of ideas, news and


views in connection with business among the related parties
is called business communication"

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When communication occurred?

◼ The communication situation arises or created when-

 There is a person (sender or transmitter) desirous of passing


on some information;
 There is another person to whom the information is to be
passed on;
 The receiver partly or wholly understands the message
passed on to him;
 The receiver responds to the message, i.e. there is some kind
of feedback

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Types of communication: Formalities

◼ Generally communications are of two types:


◼ Formal communication: Formal communications
are that communication in which all types of rules
and regulations are maintained. For ex- when MD
communicate with the GM (production, marketing)

Formal Communication

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Types of communication: Formalities

◼ Informal Communication: Informal


communication is that communication in
which no specific rules and regulations are
followed. For ex- when communication takes
place among the employees.

Informal Communication
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Types of communication: Process

1.Vertical Communication
◼ Downward communication
◼ Upward communication

2.Horizontal communication
3.Grapevine communication
4.Consensus

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Organizational structure of firm:

Board of Directors

Managing Director

Departmental Managers

Supervisors

Clerks and Operators


Downward communication:

◼ It flows from a superior to the subordinate staff.


Its objectives are-
◼ To give directions about some job
◼ To explain policies and procedures
◼ To convey the assessment of performance.
◼ To explain the rationale of the job

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Limitations of Downward Communication:

◼ Under Communication and over


communication
◼ Delay
◼ Loss information
◼ Distortion
◼ Built in resistance
Upward communication:

◼ Upward communication moves from the


subordinate staff to the superiors. Its importance
is-
◼ Provide feedback to the superiors
◼ Releases the pent-up emotions of the
subordinate staff.
◼ Provide useful suggestions to the superiors
◼ Develop harmonious relations

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Importance of upward communication:

◼ Providing feedback
◼ Outlet for pent-up emotions
◼ Constructive suggestions
◼ Easier introduction of new schemes
◼ Greater harmony and cohesion
Limitations of upward communication:

◼ Employees are usually reluctant to initiate


upward communication.
◼ Fear of adverse effect
◼ Making deliberate distortion of fact.
◼ Prone to supersede immediate supervisor
Horizontal communication:
◼ Horizontal communication: Horizontal
communication flows between people at the same
level. It is important for promoting understanding
and coordination among various people or
departments. It is carried on through-
◼ Face to face discussion
◼ Telephonic talk
◼ Periodical meetings
◼ Memos

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Horizontal flow of communication:

Production

Sales
Purchase

Accounts Public
Relations

Administration
◼ Grapevine communication:. Grapevine is the informal
channel of communication. It does not have any specific
rules and regulation. Some times original message is
distorted deliberately. Grapevine may of four types:
a. Single strand
b. Gossip
c. Probability
d. Cluster

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a. Single Strand

◼ Passing information through a long line of


persons to the ultimate recipient

A B C D E

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b. Gossip
◼ Transmitter or sender tells every one
◼ Sender is the key player of the information process
◼ The chain is just like the wheel

B
C D
E A F
I G
H

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C. Probability

◼ The probability chain is a random process in which sender


transmit information to others in accordance with the laws
of probability and then these others tell still others in a
similar manner.

E B C
I D
A
F
H G

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d. Cluster
◼ Sender transmits the message to the selected persons who
may in turn relay the information to other selected
individuals.

B E I

A C F
D G
J
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◼ Consensus: Consensus is the process of
arriving at agreement through
consultation. The concept of consensus is
quite familiar to the political sphere.
Consensus decisions are easy to accept,
promotes harmony, checks conflicts and
splits.

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Importance of Communication Skills

To You To Business

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Importance of Communication

◼ Quick problem solving.


◼ Stronger decision making.
◼ Steadier Workflow.
◼ Stronger business Relationships.
◼ Clearer promotional materials.
◼ Enhanced professional image.
◼ Improved stake holder's response.
◼ Increased productivity
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Importance of Communication

◼ Communication is essential to building trust


and teamwork among employees.
Mark Fedright, Area Sales Manager, Gallo wineries

◼ Communication has a direct effect on


productivity. If it is clear, people know what is
expected and work gets done efficiently.
Rosemary Lenghan, director of Finance and Administration, Prevention
first, Inc.

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Objectives of Business Communication

The following are the main objectives of business


communication:
◼ Conveying the right message: The main object
of communication is to convey the right message
to the right person, i.e., to the person for whom it
is prepared.
In other words, it should carry the same meaning
which has been conveyed so that it may be
translated into action effectively.

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◼ Coordination of effort: Communication 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.

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◼ 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.

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◼ 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.

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Thank you all
for
attending the session

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