COMMUNICATION

BUSINESS COMMUNICATION

Contents
Concept of Communication Evolution Importance Features Models Process/ Cycle Barriers to communication

Importance of communication in business is found in numerous surveys of executives, recruiters, and academicians conducted in recent years. Without exception, these surveys found communication ranking at top of the business skills needed for success. Typical of these surveys is one by Robert Half International of the 1000 largest employers in US. This study found that 96 per cent of the executives reported that todays employees must have good communication skills to get ahead. Similar results were found in an survey made by Jones Graduate School of Management, Rice University in 2000. The Deans of 90 programs surveyed reported that they see communication as one of the greatest teaching priorities of an Management program.

The heart of management Pfiffner Blood stream of an administrative organization Millet

To stand out from the competition, you must demonstrate the unwritten requirements that are now most in demand: Leadership and Communication Skills. The Wall Street Journal

PETER DRUCKER
Colleges teach one thing that is perhaps most valuable for the future employees to know. But very few students bother to learn it. This one basic skill is the ability to organize and express ideas in writing and speaking. As soon as you move one step from the bottom, your effectiveness depends on your ability to reach others through the spoken or the written word. And the further away your job is from manual work, the larger the organization of which you are an employee, the more important it will be that you know how to convey your thoughts in writing or speaking. In the very large organization this ability to express oneself is perhaps the most important of all the skills a person can possess.
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Activities involved in Communication

Communication involves four basic activities- Speaking, Listening, Reading and Writing. According to a research conducted by an American company, a man spends his time in communication:
30 45 15 10 per per per per cent cent cent cent Speaking Listening Reading Writing

Plain Speaking
Once the British Prime Minister and his secretary were traveling through the English countryside. Suddenly they realized that they had lost their way. The Prime Minister told the Secretary, When you next see a person on the road, stop the car and ask him exactly where we are. Accordingly, the Secretary stopped the car and asked the next passerby, Where are we?. The man replied, You are in your car. On hearing that, the Prime Minister told the Secretary, This is the perfect example of a British parliamentary reply. It is brief, to the point, truthful and does not tell anything more than what you already know!
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EVOLUTION OF COMMUNICATION
Latin word Communis which means common.
Communication is as old as man

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COMMUNICATION DEFINED
Communication is transfer of information from one person to another, with the information being understood by the receiver.
Message

Sender
Feedback

Receiver

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Communication is a process of passing information and understanding from one person to another. Keith Davis Communication is the process by which information is passed between individuals and/or organizations by means of previously agreed symbols. Peter Little Communication is any behaviour that results in an exchange of meaning. The American Management Association Communication is something so simple and difficult that we can never put it in simple words. T.S. Matthews

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NATURE OF COMMUNICATION
1) Universal phenomenon 2) Two-way process 3) Continuous process 4) Information sharing understanding 5) Goal oriented

and

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SIGNIFICANCE OF COMM IN BUSINESS

1. Internal Communication Business has grown in size Business activity has become extremely complex Spirit of understanding and cooperation 2. External Communication Contact with distributors, retailers, customers Contact with government agencies/ departments 3. A job requirement 4. Important for appointment/ promotion
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OBJECTIVES OF COMM
1. 2. 3. 4. 5. 6. 7. 8. 9. Information Advice Order and instructions Suggestion Persuasion Education and training Warning Raising morale Motivation
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COMM CYCLE/PROCESS

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STEPS IN COMM PROCESS

Step 1 Step 2 Message is initiated Sender picks up the idea and encodes it for proper understanding. Encoded message is then transmitted through the chosen medium or channel. Receiver receives the message and decodes it. The decoded message is used or acted upon. As a final step, feedback is sent back to the sender. 19

Step 3

Step 4

Step 5

Step 6

Message

Sender
(Input)

Channel: Phone, E-mail, Letter, Fax etc

Receiver
(Output)

Encoding Feedback

Decoding

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1. Input:

the information or ideas the sender wants to give the receiver letter, fax, phone, email etc.

2. Channel:

3. Message:the actual message that is sent 4. Output: 5. Feedback: the information the receiver gets the receivers response (or nonresponse) to the message the possibility of misunderstanding at any step (Breakdown)
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6. Brain drain:

BARRIERS TO COMMUNICATION
Communication is not always successful. Several things can prevent the message from reaching the intended recipient or from having the desired effect on the recipient. With the result, the communication becomes ineffective. Barriers can exist in the sender, in the transmission of message, in the receiver, or in the feedback.

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Communication Barriers

Physical Barriers

Semantic & Language Barriers

SocioPsychological Barriers

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Physical and External or Mechanical Barriers

(a) Defects in the medium (b) Noise (c) Wrong choice of medium

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Semantic & Language Barriers

Semantic is the systematic study of meaning. Semantic barriers arise because words mean different things to different persons. The communication is said to be perfect if both, the sender and receiver interpret one meaning of the communicating words. This barrier occurs when people use either the same word in different ways or different

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Socio-Psychological Barriers
Self-centered attitude Emotions Closed mind Inattentiveness Status-consciousness Filtering State of health
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A father and his son are driving to work one morning when suddenly they are involved in a terrible car crash. The father is killed instantly and the son is badly hurt. An ambulance rushes the son to a hospital. In the admitting room the nurse says We have got to take him straight into surgery or he may die. They rush him down the hall to surgery. The surgeon walks in takes one look at the boy and says, I cant operate on him. He is my son. Who is the surgeon?

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MODELS OF COMMUNICATION
In 1949, Claude E Shannon, a mathematician and Warner Weaven, an electrical engineer analysed human communication and pointed out that in actual practice, messages can be changed or blocked. They proposed that communication has five components: (i) a source (ii) a transmitter (iii) a signal (iv) a receiver (v) a destination

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It was used on a mathematical view of communication process in which the basic problem is that the message received is not equal to the message transmitted. Some changes or blockages occur and this loss they attributed to the noise in the process of transmission. Weaver also proposed that feedback was an essential element to overcome the loss due to noise in the process. Thus the model took a refined form.

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Shannon-Weaver Model of Communication

Noise

Information Source

Encoding/ Symbols

Decoding Process

Destination

Feedback

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MODES OF COMMUNICATION
A medium (plural: media or mediums) is the means of transmitting or conveying a message. Some media carry written words and/ or pictures/ graphics (like mail) and other media carry the voice (like telephone). Electronics media can carry both voice and written material. The message can be transmitted by any suitable medium. Each medium has its own characteristics. Besides, each medium makes a different kind of impression and impact on the receiver.

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Modes of Communication

Conventional Modes
(i) Mail (ii) Courier (iii) Hand delivery (iv) Telegraph (v) Telex

Electronic Modes
(i) Telephone (ii) Cellular phone (iii) Fax (iv) Electronic Mail (E-mail) (v) Teleconferencing (vi) Internet (vii) Computer
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Factors affecting Choice of Medium

1) Need for record 2) Direction of the information flow 3) Number of people to be reached 4) Confidentiality 5) Nature of the information length, complexity, speed of transfer

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METHODS OF COMMUNICATION
These days communication is possible through a vast variety of methods. We communication by exchanging symbols to describe our ideas and experience. Language is a common symbol system, which we use for sharing our experience with others. We can also use other symbols like pictures, colours, signs and sounds to communicate. We do communicate a

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Oral Communication
Merits: Oral communication saves time. In a number of situations where action is required to be taken immediately, it is best to transmit the message orally. In most cases oral communication saves money. Oral message is more powerful means of persuasion and control. Feedback is faster in oral communication. Different shades of meanings can be conveyed through oral communication. Oral communication is extremely useful while communicating with groups at assemblies, meetings, etc. Limitations: Oral communication is not possible if the communicator and the receiver are far removed from each other. Lengthy messages are not suitable for oral transmission. Oral messages cannot be retained for a long time. Oral messages do not have any legal validity unless they are taped. In oral communication, it is not easy to fix the responsibility in case of misunderstanding.
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Written Communication
Merits: Written communication serves as a record and can be used for future reference. It is a documentary proof, and can be used as legal evidence. Written communication is more precise and accurate. It is usually formulated with great care. A person gives serious thought to his ideas and tries to organize them. In written communication, it is easy to assign the responsibilities. Written communication has a wide access. Limitations: Written communication is a time consuming process. It takes more time to draft, type, dispatch and to receive and read a letter. Feedback is also slower in written communication. Written communication is expensive, as it requires stationery, preparation and transmission. Quick clarification is not possible in written communication. In case the receiver has

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PRINCIPLES OF ORAL COMMUNICATION

1. Clear pronunciation 2. Brevity 3. Precision 4. Conviction 5. Logical sequence 6. Appropriate word choice 7. Avoid hackneyed phrases and clichs 8. Natural voice 9. Audience
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PRINCIPLES OF WRITTEN COMMUNICATION

Clarity (a) Clarity of thought (b) Clarity of expression Use simple words Use Single words for long phrases Use verb for noun Avoid double entry Use concrete expressions Prefer active voice- Active voice is easy to understand. Avoid excessive use of infinitive Avoid jargon- Jargon refers to the special language of a trade, profession, or field of study. Avoid ambiguity- If the message can mean more than one thing, it is ambiguous. Use short sentences- Long sentences tend to be complex and demand greater concentration. One sentence can be used to express only one idea. If a sentence runs beyond 30 words, it is better to break it up into two sentences. Completeness Conciseness
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 Consideration Adopt you attitude Avoid gender bias Emphasise positive, pleasant facts Courtesy Prompt Response Omit irritating expressions Apologize sincerely for a generously for a favour

mistake/thank

Correctness Give correct facts Send the message at correct time Send the message in correct style
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NON-VERBAL COMMUNICATION
The word non-verbal means not involving words or speech. It is a form of silent communication. Non-verbal communication is the most basic form of communication, includes all the clues, signs, gestures, facial expressions, body language, symbols and actions that enable people to communicate without words. What you say is verbal while how you say it is nonverbal. Non-verbal communication is not sufficient alone to communicate the desired meanings. It is generally used as an aid to verbal communication. Graphics of all kinds can enrich the message presented in a document or in a speech. Pictures, maps, charts, graphs and diagrams add quality and clarity to a verbal message because human beings respond more powerfully to pictures, colours than language.
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Message Type Impact Verbal (Words) 7% Vocal (Tone of Voice) 38% Visual (Non-Verbal 55%
Physical behaviour)
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CLASSIFICATION OF NONVERBAL COMMUNICATION

1. Kinesics or Body language or Body talk (i) (ii) (iii) (iv) (v) (vi) Facial Expressions Gestures Body Movements Posture Eye contact Tactile (Haptics)

2. Proxemics 3. Chronemics 4. Paralanguage

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Intercultural Communication

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Intercultural communication is the process of sending and receiving messages between people whose cultural backgrounds lead them to interpret verbal and nonverbal signs differently. Two trends contribute to the importance of intercultural communication: Market globalization The multicultural workforce
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Culture
Culture is a shared system of symbols, beliefs, attitudes, values, expectations, and norms for behavior. Misunderstandings arise when senders encode messages based on the assumptions of their own culture and then receivers decode those messages based on the assumptions of their own, separate culture. The greater the difference between cultures, the greater the chance for misunderstanding.

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Cultural context is the pattern of physical cues, environmental stimuli, and implicit understanding that convey meaning between two members of the same culture. To convey meaning, high-context cultures (Japanese, Chinese, Arab, Greek, Mexican, Spanish) tend to rely less on verbal communication and more on the context of nonverbal actions and environmental setting. To convey meaning, low-context cultures (German,U.S., Canadian, English, French) tend to rely more on verbal communication and less on circumstances and cues.
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For effective intercultural written communication:

Use plain English. Be clear. Address correspondence properly. Cite numbers carefully. Avoid slang and idioms. Be brief. Use short paragraphs.

For effective intercultural oral communication:

Try to eliminate noise. Look for feedback. Speak slowly and rephrase your sentence when necessary. Clarify your true intent with repetition and examples. Use objective, accurate language. Learn foreign phrases. Listen carefully and patiently. Adapt your conversation style to the other persons. Check frequently for comprehension. Clarify what will happen next. Observe body language.
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Cultural Barriers
Cultural Barriers can adversely affect the communication effectiveness, specially for MNCs and enterprises with multi-ethnic workforce. Some Examples are: (a) Advertisement about Action Man Soldier toys, where toy soldiers were in tanks holding machine guns, were not permitted in West Germany where they were interpreted as promoting violence. (b) In Austria and France, children are not permitted to do TV commercials. (c) Most Jewish people will not work on Saturdays and most Muslims will not work on Friday afternoon. (d) Establishing deadlines to accomplish work assignments is considered rude in most Middle East Countries.

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(e) Punctuality in some countries is not considered important. (f) Many important meetings and activities are contemplated after consultation with astrologers in India.

Management must recognize these barriers as culturally based and identify these cultural differences and attempt to minimize any adverse effects on communication effectiveness due to these differences.

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KINDS OF A BUSINESS LETTER

A. (i) Enquiries and replies (ii) Orders and their execution (iii) Credit and status enquiries (iv) Complaints and adjustment (v) Collection letters (i) Circular letters (ii) Sales letters (i) Bank correspondence (ii) Insurance correspondence (iii) Import-export correspondence (iv) Agency correspondence (i) Application letters (ii) Interview, reference, testimonials, letter of appointment, confirmation, promotion, retrenchment, resignation. (i) Correspondence with state and central government (i) Letters to press

B. C.

D.

E. F.

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PRINCIPLES OF BUSINESS LETTER

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Lay-out of Business Letters

Physical appearance Mechanical Structure or Parts of a Letter

1. Heading/ Head Address 2. Date 3. Reference number 4. Inside address 5. Attention line 6. Subject line 7. Salutation 8. Complimentary close 9. Signature 10. Reference section (a) Enclosures (b) Courtesy copies (c) Delivery service (d) Initials 11. Postscript (P.S.)
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STYLES OF LAYOUT
Indented form: This is the oldest style and is now outdated. In this form, the inside address and every paragraph begins three to five spaces away from the left margin. Full Block form: This is modern style. There is no indention from the left margin at all. Every line, including the date and the complimentary close, begins at the left margin. There is not punctuation mark after address, salutation and complimentary close. Modified Block form: This style is a modification of the full block. The date and the complimentary close are written on the right. There are no punctuation marks after the salutation and complimentary close.
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Semi-indented (Semi-block) form: It is a combination of block and indented forms. The inside address has the block form but the beginning of every paragraph is indented. The date and complimentary close are on the right side. The salutation and the complimentary close are followed by a comma. Hanging Indention form: In this style, the inside address is in block form. The date and the complimentary close are on the right. The beginning of every paragraph is at the left margin, but the subsequent lines of every paragraph are indented three to five spaces. This style is adopted for sales letters, collection letter, brochures and other documents in which striking appearance is useful.

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OFFICE MEMORANDUM
Memorandum, more popularly known as memo is a formal way of passing information from one person/ department to another person/ department within the organization. It is a written statement/ record circulated for the attention of colleagues at work. It is a short written note to assist to memory. It is never sent outside the organization. A memo can be used The memo format is different from that of a letter. The words From and To are used in memo. There is no salutation and the writer signature is put without the complimentary close. It is properly dated and is as brief as possible.
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Memorandum
Dated: September 20, 2008 Ref: ABC/Memo/344 To: From: Subject: Mr. Ahluwalia, Marketing Dept. J.K. Sindhi, Manager (Marketing) Your absence

You remained away from your duties on the date September 12, 2008 without intimating competent authorities. Please note that you have not earned the salary and emoluments for the said date. Signature C.C.: Accounts Office
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OFFICE ORDER
The office order is a tool of downward communication. If a message is conveyed as an order, it means that it carries a stamp of authority with it and has to be accepted. An office order can be used: for posting promotion suspension termination of services granting/ withholding increments granting/ withholding certain previleges imposing certain restrictions intimation of disciplinary proceedings, etc.

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NOTICE
A notice is used when many people in the organization have to be given the same information. It is the most common method of mass communication within an organization. PUBLIC NOTICE Issuing public notices is a routine affair with companies. Sometimes, organizations have to issue notices about the termination of services of some employee and warning the public in general against dealing with him. Since issuing these notices is a formal, paid affair they have to be kept simple, brief and clear. TENDER NOTICE A tender is a written or formal offer to supply goods or do a job for an agreed price. It is a form of requirement floated by the buyer company. They are submitted in sealed cover with earnest money and opened at a specified time. A tender has two parts: 1. Tender Notice (announcement by buyer of their requirement) 2. Tender Offer (response to the tender notice and lists the bid made by prospective seller)
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CAUTION NOTICE
Notice is hereby given that my client Comfort Equipment Ltd. of A-312, Lane-3, Worli, Mumbai holds exclusive copyrights under the Design Act 1244 for the equipment and part thereof manufactured by the company. Manufacturers and traders, in general are hereby warned that violation of my clients rights will be strictly dealt with in accordance with law. P.S. Narik Advocate 09, Pragrati Chamber New Delhi Dated: July 19, 2008

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PUBLIC NOTICE-1
This is to inform the General Public and our customers that Mr. C.K. Khare, Sales Executive-Marketing is no more working with Oxford Appliances Ltd. Anybody dealing with him will do so on his own risk. U.S. Suri Vice President-Marketing Dated: July 23, 2008
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PUBLIC NOTICE-2
A meeting of all the shareholders of the company will be held on Monday, April 05, 2005 at 11:00 a.m. at the Head Office of the company at 12, Barakhamba Road, New Delhi to consider giving special benefits to the shareholders.

For and on behalf of the Board S.K. Nagarajan Vice President Dated: July 14, 2008
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LISTENING
Listening is the receivers activity in communication. It is a process of receiving, interpreting and reacting to the message received from the communication sender. It not only involves understanding but also understanding the feelings of the speaker. Understanding the feelings is called active/ emphatic listening. Importance/ Significance of Listening In modern world of technology and business, effective listening improves the information outputs of a manager and helps him to reach to a rational conclusion. On an average, a manager spends more than fifty per cent of his communicating time in listening. Effective listening is extremely important for promoting understanding and co-ordination among various departments in an organization. It also enables the managers to get the constructive suggestions from the employees.

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Actually, communication involves four basic activities- speaking, listening, reading and writing. According to a research conducted by an American company, a man spends his time in communication: 22 per cent speaking 63 per cent listening 04 per cent reading 11 per cent writing Of course, listening is more important than any other communication activity because listening involves understanding everything correctly what the other person conveys to you and at the same time preparing a suitable response to the listened message.
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Steps of Listening
1) Hearing Hearing is the first step of listening. At this stage, the listener simply attends to the speaker to hear the message. 2) Interpretation The second step is interpretation. If the listener is able to interpret the words correctly, the message is understood. 3) Evaluation The third step is evaluation. At this stage, the listener decides what to do with the received information. The judgment you make at the stage of evaluation is crucial to the listening process. 4) Response The final step is response. The listeners response to the message may be verbal or visual. The response from receiver lets the speaker know whether he has got the message and what his reaction is.
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Types of Listening
1. Passive Listening Refers to inert or indifferent listening. There is no conscious effort to receive and absorb the message. The listener is physically present but is not participating actively in the communication process. Passive listening takes place when the listener is constrained by various physiological and psychological factors. It may be fatigue, ill health, disregard for the speaker or lack of interest in the subject.
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2.

Selective Listening Listening is done partially or selectively. People listen to only that which they want to listen to. Under this type of listening, the receiver keeps tuning in and out. Attention is not focused. This listening takes place when the receiver is not in a position to concentrate or considers himself to be better informed than the communicator. Active Listening This is the most desirable type of listening. In this, the listener makes conscious effort to listen attentively. The listener shows regard for the speaker, concentrates on what is being conveyed, motivates and prompts the speaker, shows empathy and makes it easy for the speaker to meaningfully deliver the message.

3.

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IMPROVING LISTENING SKILLS

Each individual must find out his/ her own special problems and barriers to listening. Training for good listening is largely personal responsibility and can be done by personal effort. There is no easy technique by which you can improve your listening. Your listening reflects your basic attitude to people rather than just skills. Some positive habits can be cultivated to improve listening. 1. 2. 3. 4. 5. 6. 7. Concentrate on speakers words not his looks. Keep recalling the points. Relate the speakers words to your personal experience/ background. Dont get distracted. Positive attitude Take notes Ask questions

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PRESENTATION

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Presentation is any audio or visual way of communication with an aim to deliver a message to the audience. It is an important communication in the new business environment.

Preparation
1. Identify the target audience/ profile 2. Objective of the presentation 3. Preparing the structure (opening, main points, closing) 4. Rehearsing 5. Arrangement of media aids/ manpower/ other material

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 Who is the presentation to be made to What is the objective of the presentation Where is the presentation to be made What is the duration What material or media aids are required
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Characteristics of a Good Presentation

A clear structure with an introduction, discussion, and end. Facts and figures are visually presented in tables, graphs and charts. Different colours are used to make the presentation of the content attractive. The presenter shows an understanding of the audiences needs and level of understanding, while discussing his ideas. Humour and anecdotes are often employed to create a good relationship with the audience. Questions are given serious attention and are regarded as an essential part of presentation.

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Preparation
Permits Forbids
Practice, asking forA monotonous style of feedback and being open todelivery. criticism. Constant review of theTaking anything for purpose of thegranted-subject, audience, presentation. level of their knowledge, venue, equipment. Explaining the topic by taking examples of current cases. Particularity about the time of presentation. Welcoming questions from the audience.

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Presentation Methods
1) Extemporaneous (Thorough preparation, uses Notes, rehearsed) 2) Memorizing (Memorize key passage, use Notes) 3) Reading (Practice with a recorder and listen to yourself)
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Evaluation
a) b) c) Presentation contents Presentation skills Presentation media

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Auction
An auction is the process of buying and selling things by offering them up for bid, taking bids, and then selling the item to the highest bidder. In economic theory an auction is a method for determining the value of a commodity that has an undetermined or variable price.

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An auction is a sale in which a seller presents his product on a public platform/ forum. The selling price in an auction is determined by the bids made by interested buyers. The price they bid is based on their own valuation of, and need for, the product. The product is sold to the highest bidder. Terminology Used in Auction 1. 2. 3. 4. 5. Bid Win Commission Proxy bid Reserve price
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Auction

Straight Auction

Dutch Auction

Sealed Auction

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