1. BUSINESS
COMMUNICATION
DR.C.SAHILA.,PH.D
ASSISTANT PROFESSOR OF COMMERCE
SRM IST

2. INTRODUCTION
• Communication occurs whenever life exists. The transmission of any meaningful message is
communication. Whether we recognize it or not, we have no option but to communicate.
Communication is essentially the ability of one person to make contact with another and to make
him understand. Since man is a social animal, it is vital that he express his feelings and emotions,
receive and exchange information.
• The word communication is derived from the Latin word ‘communis’, which means to share
or to participate. Communication is the process of sharing facts, ideas, and opinions in
common. Communication is said to take place when an individual conveys some information
to another.

3. DEFINITION
1. Communication is an intercourse by words, letters, symbols or messages,
and is a way that one organization member shares meaning and
understanding with another - Koontz and O'Donnell.
2. “Communication is an exchange of ideas, facts, opinions or emotions by two
or more persons” – Newman and Summer.

4. IMPORTANCE OF COMMUNICATION
1. Helps in planning: Communication helps to prepare better plans for the enterprise. The views and
suggestions of the employees, clients, suppliers etc., are received and the same are incorporated in the
enterprise plans.
2. Vital for decision-making: The information necessary for decision-making is made available through
proper communication. For example, a decision on production is made after receiving information from
the stores on the stock of materials available and from the marketing department on the extent of demand.
3. Facilitates delegation: Delegation of authority by a superior to his subordinates will not be possible
without proper communication. The superior must first of all assign work to his subordinates and give
them the requisite authority to carry out their duties. This cannot be done without effective
communication.

5. CONT…
4. Facilitates effective leadership: As a leader, the manager will be able to guide his
subordinates well only through proper communication. When the subordinates have work-
related problems, they have to necessarily approach their superior for assistance.
5. Helps to motivate: Assignment of work and delegation of authority alone will not be
enough to get things done by the subordinates. They need to be constantly motivated to
perform well. This will not be possible without proper communication.
6. Helps in co -ordination: Co-ordination is not possible without cooperation. To secure
co-ordination and co-operation, there must be proper communication relationship between
the different individuals and the departments.

6. PROCESS OF COMMUNICATION

7. CONT…
 Communicator or sender-he is the person who sends the message.
 Message: it is the subject matter of communication. It may consist of certain facts, ideas,
opinions, etc.
 Encoding: It is a practice translating the message into suitable signs, symbols, etc for the
purpose of transmission.
 Transmission: It is the act of sending the message
 Channel: It is the medium through which the message is send to the receiver. The channel may
be formal or informal. The method of communication may be oral or written.
 Receiver or communicate: He is a person who receives the message.
 Decoding: It is the act of converting the sign, symbols etc into meaningful statements.
 Feedback: It is the reaction, response or reply by the receiver. The communication process is
complete when the sender gets feedback from the receiver.

8. CHANNELS (OR) TYPES OF COMMUNICATION

9. 1. FORMAL COMMUNICATION:
Any information that officially reaches an employee is known as formal communication. It is
the outcome of formal organization. It follows the hierarchy. Policy manuals, orders, circulars,
notices, etc., are some of the examples of formal communication. They are helpful for
performing functions like planning, decision-making, co-ordination and control.
• Merits: The following are the advantages of formal communication:
1. It is official and therefore reliable.
2. It is proper and systematic.
3. It fixes responsibility on the sender as well as the receiver.
4. It is possible to locate the source of information.
5. It serves as evidence in future

10. Demerits: The following are the limitations of formal communication:
 It is slow. Usually formal communication reaches the person concerned only at
the last minute.
 It establishes only impersonal link with the receiver and therefore lacks personal
touch.
 Sending formal communication requires the preparation of reports, circulars,
notices etc., which involves lot of work.
 There are procedural hurdles too in sending formal communication. The matter
needs to be typed out and signed by the proper authority. Typographical errors
may creep in.

11. 2.INFORMAL COMMUNICATION:
Informal communication is the result of casual or personal contact between the
individuals in an organization. The information reaches different individuals in the
organization in no time. The news spreads like fire. It is also known as 'grapevine' as it
spreads in the manner the grape plant does. Any information that unofficially reaches an
employee is known as informal communication. Grapevines are inevitable in
organizations. Grapevine is an effective tool for developing corporate identity, building
team work, and motivating people.
• Merits: The advantages of informal communication are given below:
1. It is fast.
2. There is free and frank expression of views.
3. It has personal touch that formal communication lacks.
4. It provides mental relief to employees who await a formal announcement.

12. • Demerits: The following are some of the drawbacks of informal communication:
1. It gives scope for rumours to spread in the organization.
2. The information is not authentic. The employee, therefore, cannot act on the basis
of information received unofficially.
3. As the news passes through different individuals in the organization, it may also
get altered or twisted.
4. Its origin cannot be traced.

13. 1. UPWARD COMMUNICATION:
• It takes place when a subordinate conveys some information to his
superior. This happens when a subordinate wants to account for his
performance or has a request or complaint to make.

14. DOWNWARD COMMUNICATION
It takes place when a superior conveys certain information
to his subordinate. The need for such communication arises
when a superior wants to give certain orders and instructions to
his subordinate.

15. SIDEWARD COMMUNICATION
• It takes place when the executives or subordinates operating at the same level exchange
information. Such communication may be necessary to secure better co-ordination between the
individuals and the departments. This has been explained below with a diagram:
Finance Manager
Production
Manager
Marketing
Manager
Personnel
Manager

16. ORAL COMMUNICATION
Verbal transmission of information is what is called oral communication. It usually takes place in any of the following
ways:
• Face-to-face conversation - It takes place when two or more persons are in casual conversation.
• Meetings - Meetings are arranged to discuss certain issues. In an organization meetings are organized by executives,
subordinates or by both to discuss work-related issues.
• Conversation through telephone or mobile phone — The importance of telephone or mobile phone in communication is
known to everyone. It makes it possible to talk to anybody in any place and at any time. The only requirement for telephone
conversation is that the communicatee must have access to phone.
• Intercom — Modern business concerns have intercom facility that enables an employee to talk to any other employee who
is working within the same premises.
• Internet-Chat - The revolution in electronic media has now given us the facility of what is called Internet-Chat. For such a
facility, both the communicator and the communicatee must have access to a computer that has Internet facility. Headphone-
Mike, of course, is also required. If a web-camera is used by both the persons, they will also be able to see each other on the
monitor screen as they talk.

17. WRITTEN COMMUNICATION
It is a method of communication by which the communicator establishes
direct contact with the communicatee through written documents. It is a formal
method of communication. The following documents are usually involved in
written communication:
In case of downward communication - Notices, Circulars, Orders, Policy
statements, Manuals etc.
In case of upward communication - Periodic reports on the work done by
subordinates.

18. GESTURAL COMMUNICATION
Gestures are nothing but actions such as nodding of head, rolling of
eyes, movement of lips, etc., to convey some idea. Handshake is the
most popular at accepted gesture to indicate goodwill and faith.

19. THANK YOU