All topics covered in Unit 1

1. Business Communication
UNIT 1
MBA SEM I

2. Outline of Unit 1
• Role Of Communication
• Defining And Classifying Communication
• Purpose Of Communication
• Process Of Communication
• Characteristics Of Successful Communication
• Importance Of Communication In Management
• Communication Structure In Organization
• Communication In Crisis Barriers To Communication
• Case Studies

3. “It’s not what you say; it’s how you say it—because personality
always wins the day.”
—Arthur Miller

4. It is a process of exchanging-
 Information
 Ideas
 Thoughts
 Feelings
 Emotions
Through-
 Speech
 Signals
 Writing
 Behavior
What is Communication?

5. Communication (from Latin commūnicāre, meaning "to share”) is the act of conveying
intended meanings from one entity or group to another through the use of mutually
understood signs and semiotic rules.
Communication is the process of conveying information between two or more people.
The communication process is the steps we take in order to achieve a successful communication.
Introduction

6. Definitions
• Keith Davis defines communication as “Communication is the transfer of
information and understanding from one person to another.”
• The Oxford dictionary defines communication as ‘the imparting or exchange of
information by speaking, writing, or using some other medium.

7. How Do We Communicate?
We communicate through our:
Mind—Data, Analysis, Inferences, Logic, etc.
Heart—Feelings, Beliefs, etc.
Soul—Values, Character, etc.

9. Nature of communication
• Two-way process
• Information sharing and understanding
• Verbal and non verbal
• Continuous process
• Goal oriented
• Pervasive activity
• Inevitable(unavoidable)
• Dynamic process
• Inter-disciplinary
• It is the lifeblood of a business
• It has four specific skills (speaking, writing, reading and listening)

10. 1. Two-way process:
Communication is a two-way process of understanding between two or more persons – sender and receiver. A person
cannot communicate with himself.
2. Continuous process:
Exchange of ideas and opinion amongst people is an ongoing process in business and non-business organisations.
Continuous interaction promotes understanding and exchange of information relevant for decision-making.
3. Dynamic process:
Communication between sender and receiver takes different forms and medium depending upon their moods and
behaviour. It is, thus, a dynamic process that keeps changing in different situations.
4. Pervasive:
Communication is a pervasive activity. It takes place at all levels (top, middle, low) in all functional areas (production, finance,
personnel, sales) of a business organisation.
5. Information sharing and understanding
Communication involves exchange of ideas and opinions. People interact and develop understanding for each other.
6. Exchange:
Communication involves exchange of ideas and opinions. People interact and develop understanding for each other.

11. 7. Verbal and non-verbal:
Though words are active carriers of information, gestures can sometimes be more powerful than words. Facial
expressions, sounds, signs and symbols are the non-verbal forms of communication.
8. Goal-oriented:
Communication is goal-oriented. Unless the receiver and sender know the purpose they intend to achieve
through communication, it has little practical utility.
9. Foundation of management:
Though communication is a directing function, it is important for other managerial functions also. Designing
plans and organisation structures, motivating people to accomplish goals and controlling organisational
activities; all require communication amongst managers at various levels.
10. Inter-disciplinary:
Communication is the art of how communicators use knowledge of different fields of study like anthropology,
psychology and sociology. Making best use of these disciplines makes communication effective. It is, thus, an
inter-disciplinary area of management.

12. Purpose of communication
• Flow of Information
• Coordination
• Learning Management Skills
• Preparing People to Accept Change
• Developing Good Human Relations
• Ideas of Subordinates Encouraged

13. The purpose of the communication can be summed up into the following:
1. Flow of Information: The relevant information must flow continuously from top to bottom and vice versa. The staff at all levels
must be kept informed about the organisational objectives and other developments taking place in the organisation. A care
should be taken that no one should be misinformed. The information should reach the incumbent in the language he or she can
understand better. The use of difficult words should be avoided. The right information should reach the right person, at right
time through the right person.
2. Coordination: It is through communication the efforts of all the staff working in the organisation can be coordinated for the
accomplishment of the organisational goals. The coordination of all personnel’s and their efforts is the essence of management
which can be attained through effective communication.
3. Learning Management Skills: The communication facilitates flow of information, ideas, beliefs, perception, advice, opinion, orders
and instructions etc. both ways which enable the managers and other supervisory staff to learn managerial skills through
experience of others. The experience of the sender of the message gets reflected in it which the person at the receiving end can
learn by analyzing and understanding it.

14. 4. Preparing People to Accept Change: The proper and effective communication is an important tool in the hands of
management of any organisation to bring about overall change in the organisational policies, procedures and
work style and make the staff to accept and respond positively.
5. Developing Good Human Relations: Managers and workers and other staff exchange their ideas, thoughts and
perceptions with each other through communication. This helps them to understand each other better. They
realize the difficulties faced by their colleagues at the workplace. This leads to promotion of good human relations
in the organisation.
6. Ideas of Subordinates Encouraged: The communication facilitates inviting and encouraging the ideas from
subordinates on certain occasions on any task. This will develop creative thinking. Honoring subordinates’ ideas
will further motivate them for hard work and a sense of belonging to the organisation will be developed. It will
provide them with the encouragement to share information with their superiors without hesitation. The managers
must know the ideas, thoughts, comments, reactions and attitudes of their subordinates and subordinates should
know the same from the lowest level staff of their respective departments.

15. The communication is a dynamic process that begins with the conceptualizing of ideas by the sender who
then transmits the message through a channel to the receiver, who in turn gives the feedback in the form
of some message or signal within the given time frame. Thus, there are some major elements of
communication process:
Communication Process

16. 1. Sender
The sender or the communicator generates the message and conveys it to the receiver. He is the source and the one who
starts the communication
2. Message
It is the idea, information, view, fact, feeling, etc. that is generated by the sender and is then intended to be communicated
further.
3. Encoding
The message generated by the sender is encoded symbolically such as in the form of words, pictures, gestures, etc. before it
is being conveyed.
4. Media
It is the manner in which the encoded message is transmitted. The message may be transmitted orally or in writing. The
medium of communication includes telephone, internet, post, fax, e-mail, etc. The choice of medium is decided by the
sender.
5. Decoding
It is the process of converting the symbols encoded by the sender. After decoding the message is received by the receiver.

17. 6. Receiver
He is the person who is last in the chain and for whom the message was sent by the sender. Once the receiver
receives the message and understands it in proper perspective and acts according to the message, only then
the purpose of communication is successful.
7. Feedback
Once the receiver confirms to the sender that he has received the message and understood it, the process of
communication is complete.
8. Noise
It refers to any obstruction that is caused by the sender, message or receiver during the process of
communication. For example, bad telephone connection, faulty encoding, faulty decoding, inattentive
receiver, poor understanding of message due to prejudice or inappropriate gestures, etc.

18.  Barriers to communication are often referred to as 'noise'.
 Noise is anything that gets in the way of
effective communication and 'blocks' or distorts the message.
 Noise is unwanted sound judged to be unpleasant, loud or
disruptive to hearing
 The five types of noise that disrupts communication are
physical, physiological, psychological, semantic and cultural.

20.  Physical noise is the external and unnecessary sound that obstacle to effective communication. It
is also a communication disturbance created by the environment. For example, raining sounds,
Besides loud music, barking dogs, noisy conflict nearby, vehicle sounds are also examples of
physical noise.
 Physiological noise is a barrier created by the communicator’s physical condition. Usually, physical
illness and weakness produce physical noise and this noise obstacle to effective
communication. For example, Ela is having headaches; therefore, she can not concentrate in class.
Here, headache is a physical illness that barrier to the listening process of communication.
 Psychological noise is a communication barrier created from the communicator’s psychological
factors, for example, values, beliefs, attitudes, and behaviours. This type of noise interrupts our
minds to concentrate on listening. People don’t like to listen or talk about those topics that make
them down or not interesting. For example, Ela is a Muslim girl, and she does not like to listen to
any criticism of Islam. Therefore, she became distracted when her lecturer was talking about anti-
Islam issues.

21.  Semantic noise is a communication barrier created from confusion over the meaning of
words. Semantic noise occurred because of different meanings of the message between the
sender and receiver. It also refers to the wrong grammatical sentence that makes the receiver
unable to understand the meaning. Examples like jargon words, mispronunciations, unique words,
and idioms.
if you ask someone, “Can you give me a hand?”, the words ‘write’ and ‘right’. They sound the same
but mean different things. Words buy, by and bye. They have same pronunciation, but different
meanings and spellings. For example, the noun “bear” and the verb “bear” has different meanings but
same pronunciation and spelling. For example, “The research lead to the discovery of lead”. For
example, “a small fish” can be interpreted as of any size. But if the word is used as “a fish smaller than
a marble”, then the size can be predicted properly.
• Cultural noise is a communication barrier created from the wrong explanation of another person’s
behaviours. Especially, cultural noise is created from the nonverbal communication of people from
different cultural backgrounds. Examples like posture, gesture, eye contact, space, touch, and dress-
up.

22. 7 barriers to communication
• Physical Barriers.
• Perceptual Barriers.
• Emotional Barriers.
• Cultural Barriers.
• Semantic/Language Barriers.
• Gender Barriers.
• Interpersonal Barriers.

23. • Physical barriers arise due to noises, faulty equipment, closed doors, closed cabins while communication process. Geographical distance between the
sender and receiver in the communication process creates a physical barrier.
• The psychological and emotional factors of persons affect the communication process. It is essential that both sender and receiver should be
mentally fit and of sound mind while communicating with each other. Speech disorders, depression, phobia, emotional IQ of persons are very difficult
to manage and will affect the ease of communication process. It is important that a person communicating with each other should be emotionally
mature.
• People with different cultures and regions have different beliefs, values and perceptions as per their cultures. Different cultures have different
meaning for society basic values like dressing, religion, drink, food and general behaviour.
• Semantic is the study of meaning, signs and symbols used for communication. Semantic barriers to communication are the symbolic obstacles that
distorts the sent message in some other way than intended, making the message difficult to understand. For example, the meaning of braces which is
used to define the metallic structure to adjust teeth in American English whereas it means a part of clothing in British English. For example: Words
buy, by and bye. They have same pronunciation, but different meanings and spellings. For example, the noun “bear” and the verb “bear” has different
meanings but same pronunciation and spelling. For example, “The research lead to the discovery of lead”. For example, “a small fish” can be
interpreted as of any size. But if the word is used as “a fish smaller than a marble”, then the size can be predicted properly.
• Gender barriers of communication are the result of the different ways in which the various genders communicate with one another and are expected
to communicate. Gender stereotypes, assumed gender roles and interpersonal differences can lead to unhealthy communication gaps. For example,
there is a stereotype where people presume that women are always soft-spoken. However, when women speak their minds, their assertiveness gets
mistaken for arrogance.
• An interpersonal barrier is something that prevents an effort to communicate between two or more people. Examples of Interpersonal Barriers Lack
of participation: It's impossible to communicate with someone who doesn't want to.

24. Psychological/

26. Semantic barrier/

29. Classification of Communication
On the basis of
number of persons
Intrapersonal
communication
Interpersonal
communication
Group
communication
Mass
communication
On the basis of
Medium or
Expressions
Verbal
communication
Non Verbal
communication
On the basis of
Relationship
Formal
communication
•Vertical
•Downward
•Upward
•Horizontal/lat
eral/flat
•Diagonal or
crosswise
Informal
communication

30. On the basis of levels of
communication

35. On the basis of medium of
communication
People communicate with each other in a number of ways that
depend upon the message and its context in which it is being
sent.
Types of communication based on the communication channels
used are:
• Verbal Communication
• Nonverbal Communication

36. Verbal Communication
• It refers to the form of communication in which message
is transmitted verbally.
• Communication is done by word of mouth and a piece of
writing.
• In verbal communication remember the acronym “KISS”
(keep it short and simple).
Verbal Communication is divided into:
• Oral Communication
• Written Communication

37. Oral Communication
• In oral communication, Spoken words are used.
• It includes face-to-face conversations, speech, telephonic conversation,
video, radio, television, voice over internet.
• Communication is influence by pitch, volume, speed and clarity of
speaking.
 Advantages –
It brings quick feedback.
In a face-to-face conversation, by reading facial expression and body
language one can guess whether he/she should trust what’s being said or
not.
 Disadvantages –
In face-to-face discussion, user is unable to deeply think about what he is
delivering, so this can be counted as a fault.

38. Written Communication
• In written communication, written signs or symbols are used
to communicate.
• In written communication message can be transmitted via
email, letter, report, memo etc.
• Written Communication is most common form of
communication being used in business.
 Advantages –
Messages can be edited and revised.
Written communication provide record and backup. A written
message enables receiver to fully understand it and send
appropriate feedback.
 Disadvantages –
Written communication doesn’t bring instant feedback. It take
more time in composing a written message as compared to
word-of-mouth and number of people struggles for writing
ability.

39. Nonverbal Communication
• Nonverbal communication is the sending or receiving of
wordless messages. Such as gesture, body language, posture,
tone of voice or facial expressions, is called nonverbal
communication.
• Nonverbal communication is all about the body language of
speaker.
Nonverbal communication have the following three elements –
• Appearance
Speaker – clothing, hairstyle, neatness, use of cosmetics
Surrounding – room size, lighting, decorations, furnishings
• Body Language
facial expressions, gestures, postures
• Sounds
Voice Tone, Volume, Speech rate

40. On the basis of communication structure in
organization

41. • Formal communication is defined as the communication which takes place through formal/ official
routes and channels. It is also called official communication. The main aim of this communication is
to properly converse and making sure that the information has reached correctly. Examples of
formal communication include reports, post descriptions, work command, information related to
sales and inventory, etc.
• On the other hand, informal communication is defined as the communication which takes place
unofficially between two or more people. There are no official rules, systems, or guidelines to
communicate. Grapevine communication is a significant kind of informal communication.

42. Various forms of Formal Channel of Communication
• 1. Downward Communication: Communication that flows from the top level of the organization to the bottom
level along with the scalar chain is known as downward communication. Example for such type of
communication are orders, instructions, rules, policies, programs and directives etc. it specifies the extent of the
subordinates authority and their responsibility.
• 2. Upward Communication: Upward communication is just the opposite of downward communication. In this
communication system, the message is transmitted from the bottom of the organization upward to the top of the
organization through the middle managers along with the line. Usually this includes workers grievances,
suggestions and reactions. This communication system was not appreciated by the superiors. But it has assured
importance in modern times and is considered to be a main source of motivating employees.
• 3. Horizontal Communication: The flow of information between departments or people of equal level in an
organizational structure may be termed as horizontal or lateral communication. The two departments may be
under the same superior or may have different heads. Such communication may be written or oral. The main
object of lateral communication is to co-ordinate the efforts of different departments or persons.
• 4. Diagonal Communication: Diagonal communication is between people who are neither in the same
department nor on the same level of organizational structure. It cuts across departmental lines. It generally takes
place when members cannot communicate effectively through other channels.
• These upward, downward, horizontal or diagonal communications may be oral, written, informal or gestural.

46. Horizontal Communication
is also called
Peer Group Communication
or
Lateral Communication

48. Types of communication networks in formal communication:

49. Types of communication networks in formal communication:
 Single chain: In this type of network communications flows from every superior to his subordinate
through a single chain.
 Wheel: In this network, all subordinates under one superior communicate through him only. They are not
allowed to talk among themselves.
 Circular: In this type of network, the communication moves in a circle. Each person is able to
communicate with his adjoining two persons only.
 Free flow: In this network, each person can communicate with any other person freely. There is no
restriction.
 Inverted V: In this type of network, a subordinate is allowed to communicate with his immediate superior
as well as his superior’s superior also.

50. Informal Communication: Grapevine Communication

51. Any communication that takes place without following the formal channels of
communication is said to be informal communication. The Informal communication is
often referred to as the ‘grapevine’ as it spreads throughout the organization and in all
directions without any regard to the levels of authority.
Types of Grapevine network:
• Single strand: In this network, each person communicates with the other in a sequence.
• Gossip network: In this type of network, each person communicates with all other
persons on a non-selective basis.
• Probability network: In this network, the individual communicates randomly with other
individuals.
• Cluster Network: In this network, the individual communicates with only those people
whom he trusts. Out of these four types of networks, the Cluster network is the most
popular in organizations.

52. Single-strand chain Gossip chain
Probability chain Cluster chain
Kieth Davis identifies four types of grapevine communication chains:

54. Characteristics of effective communication
Lack of effective communication renders an organisation handicapped.
So to have effective communication certain principles are to be
followed.
1. Clarity
2. Correctness
3. Completeness
4. Concreteness
5. Conciseness
6. Coherent
7. Courtesy
Click on Link for examples:
7 Cs of Effective Communication with Example (invensislearning.com)

55. Clarity - Clarity implies emphasizing on a specific message or goal at a time,
rather than trying to achieve too much at once. Clarity in communication
has following features:
• It makes understanding easier.
• Complete clarity of thoughts and ideas enhances the meaning of message.
• Clear message makes use of exact, appropriate and concrete words.
Correctness - Correctness in communication implies that there are no
grammatical errors in communication. Correct communication has
following features:
• The message is exact, correct and well-timed.
• Correct message has greater impact on the audience/readers.
• It checks for the accurateness of facts and figures used in the message.
• It makes use of appropriate and correct language in the message.
Completeness - The communication must be complete. It should convey all
facts required by the audience. The sender of the message must take into
consideration the receiver’s mind set and convey the message accordingly.

56. • Concreteness - Concrete communication implies being particular and
clear rather than fuzzy and general. Concreteness strengthens the
confidence. Concrete message has following features:
• It is supported with specific facts and figures.
• It makes use of words that are clear and that build the reputation.
• Concrete messages are not misinterpreted.
• Conciseness - Conciseness means wordiness, i.e, communicating what
you want to convey in least possible words without forgoing the other
C’s of communication. Conciseness is a necessity for effective
communication. Concise communication has following features:
• It is both time-saving as well as cost-saving.
• It underlines and highlights the main message as it avoids using excessive and needless words.
• Concise communication provides short and essential message in limited words to the audience.

57. • Coherent- Your message needs to have a logical flow. All sentences in your email or report should
be connected to the previous one and stick to the main topic. Without coherence, the reader will
easily lose track of what you have conveyed.
• Courtesy - Courtesy in message implies the message should show the sender’s expression as well
as should respect the receiver. The sender of the message should be sincerely polite, judicious,
reflective and enthusiastic. Courteous message has following features:
• Courtesy implies taking into consideration both viewpoints as well as feelings of the receiver of the
message.
• Courteous message is positive and focused at the audience.
• It makes use of terms showing respect for the receiver of message.
• It is not at all biased.

58. Importance of communication
• Necessary for planning
• Basis of co-ordination
• Establishment of effective leadership
• Increases managerial efficiency
• Promotes Co-operation and industrial peace
• Basis of Decision-making
• Morale Building and Motivation
• Smooth Working of Enterprise
• Job satisfaction

59. Communication in crisis
Crisis:
Any situation that is threatening or could threaten to harm people,
interrupt business, damage reputation or negatively impact the bottom
line.
Industries and businesses of all types and sizes are increasingly embracing
issues and crisis communication planning.
Crisis communication is an initiative which aims at protecting the reputation
of the organization and maintaining its public image.
Crisis Communication specialists fight against several challenges which tend
to harm the reputation and image of the organization.

60. • Crisis communication refers to the technologies, systems and protocols that enable an
organization to effectively communicate during a major threat to its business or
reputation.
• Organizations must be prepared for a wide range of potential crises, including extreme
weather, crime, cyber-attacks, product recalls, corporate malfeasance (wrongdoing,
especially by a public official), reputation crises, and PR (Public Relations) incidents.
• Preparing ahead of time for a crisis ensures that relevant personnel can quickly and
effectively communicate with each other during moments of threat, sharing information
that allows the organization to quickly rectify the situation, protect customers,
employees and assets, and ensure business continuity.

61. Who needs crisis communication?
Companies of all sizes, in all industries, face a growing number of
threats. Due to the instantaneous nature of the online news media, it is
more important for organizations to be able to respond quickly and
confidently instantly when a crisis emerges.
• Crisis communication is designed to connect a variety of audiences to
each another, such as:
• Employees
• Crisis management team
• IT team
• PR Team
• Department heads
• Security personnel
• Local police & first responders
• Government officials

62. The following are the steps of crisis communications:
1. Employees should not ignore any of the external parties and important clients Come out,
meet them and discuss the problem with them.
2. Don’t criticize individuals.
3. Effective communication must be encouraged at the workplace during emergency situations.
Communication in crisis

63. 4. Information must flow across all departments in its desired form.
5. Crisis communication specialists must learn to take quick decisions.
6. Make sure information is kept confidential
7. The superiors must evaluate performance of employees on a regular basis.
Communication in crisis

64. Case Study