Lesson 1: Fundamentals of Business CommunicationCourse Code: MBA 1305

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

Fundamentals of Business Communication

Overview:Introduction, Definition, Nature, the Communication Situation, Importance, Scope, Principles, Functions, Barriers, and Process of Business Communication

Introduction to Business Communication

Communication is the giving and receiving of feedback between individuals and/or groups for the purpose of exchanging information.

Definition of Business Communication

1. Business communication is the giving and receiving of feedback between individuals and/or groups for the purpose of exchanging information and altering or enhancing performance.

2. The process by which information and feelings are shared by people through an exchange of verbal and non-verbal messages. The successful transmission of information through a common system of symbols, signs, behavior, speech, writing or signals. The creation of shared understanding through interaction among two or more agents.

Definition of Business Communication3. Communication is the process of exchanging

information, usually through a common system of symbols. It takes a wide variety of forms – from two people having a face to face conversation to hand signals to messages sent over the global telecommunication networks. Common forms of communication include speaking, writing, gesturing and broadcasting. Therefore, communication means to inform, tell, show, or spread information. When a person communicates, he/ She establishes a common ground of understanding. In the organizational context, it brings about a unity of purpose, interest and effort.

Nature of Business Communication

It is a processIt is inevitableMeaning basedCommunication can be

intentional and unintentional

Communication is systematic

A two-way trafficCommunication is a social

processA Dynamic processA Continuous process

Communication involved interaction and transaction

Needs proper understanding

Leads achievement of the organizational objectives

Dispels misunderstandingsIt is the lifeblood of the

business.Has Four skills

◦ Reading, writing, speaking and listening

The Communication SituationMemorandumNoticeTelegramTelexCircularMinutesLettersEmailsTelephone/Mobile/Cellular phone Calls

Importance of Business CommunicationThe importance of communication to an

organization is critical to the-success of any organization and has a very significant impact on the ultimate effectiveness of the whole organization.

Business Communication is a means by which behavior is modified, change is effected, information is made productive and goals are achieved.

Business communication can be internal when it is directed to persons within the organization such as superiors, co-workers or subordinates. Business communication can be external when directed to customers, suppliers, government, public, etc.

Importance of Business CommunicationInternal Communication

Superiors

Co-workers

Subordinates

Rapid technological advancements deeply affect not only the methods of work but also the composition of groups. In such a situation, proper communication between superiors and subordinates becomes very necessary.

Importance of Business CommunicationINTERNAL COMMUNICATIONEffective internal communication works towards

establishing and disseminating of the goals of an enterprise, evolving plans for their achievement, organizing human and other resources in an efficient way.

It helps in selecting, developing and appraising members of the organization, in motivating and encouraging people to put in their best, and in controlling their performance.

Growth in the size and multiple locations of organizations require keeping in touch with employees spread over different states of a country or over different countries. Sending directions and getting feedback from them would be possible only through effective communication.

Importance of Business CommunicationEXTERNAL COMMUNICATIONExternal communication relates an

organization to the environment outside. No enterprise can thrive in a vacuum. It has to be aware of the needs of the customers, the availability of suppliers, regulations of the government and the concerns of a community.

Only through effective communication can an organization become an open system interacting with its environment.

Scope of Business Communication

The normal functioning area of this subject. Since communication is essential in every sphere of human life, its scope is wide and pervasive.

No human being or any business concern can survive without communicating. In the following slides a brief discussion on scope of communication is discussed:

Scope of Business

Communication

Personal Life

Social Life

The State Affairs

Business

Management

Industrial Relations

International Affairs Religion

Scope of Business Communication Communication in business: Today, we cannot think of business

without communication. Communication is the lifeblood of business as it provides necessary information in formulating business plans and policies. It also ensures effective performance of business activities like production, distribution, finance, warehousing etc. Thus; ultimate success of the business depends on successful communication.

Communication in management: Management is the means of achieving organizational goals. Efficiency and effectiveness of management depend on effective communication with the various internal and external parties. Every function of management depends on communication. In fact, without information; plans cannot be formulated, activities cannot be organized, directives cannot be issued and control cannot be ensured.

Communication in religion: Communication is also present in preaching and circulating various religious doctrines. Religious thinkers perform the duty of preaching through tested skills of communication.

Scope of Business CommunicationCommunication in personal life: Communication is

closely related with every sphere of human life. From dawn to dusk, a person communicates with others. This reveals that communication is the part and parcel of human life.

Communication in social life: Human civilization lives in an integrated society. In social life, people need to develop social bondage. Communication helps us in creating and strengthening this social bondage.

Communication in the state affairs: Communication also pervades all areas of state affairs. Without it, state neither can administer its various wings nor can maintain relationships with the other part of the world. Due to revolutionary change in communication technologies, the whole world has turned into a global village.

Scope of Business Communication Communication in industrial relations: communication is

essential in labor management relationship in the industry or in an organization. Congenial industrial relation is a precondition for business success. On the other hand, free and fair communication is a pre-requisite for creating good industrial relation. Free flow of information lessens doubt, confusion and controversies between workers and management. As a result, harmonious relationship develops in the organization.

Communication in international affairs: In this age of globalization, communication is not merely confined within the national boundary. Countries are exchanging their cultural, economical, social, political, educational and technological affairs with each other continuously. In order to facilitate cooperation and communication among countries, various regional and international bodies namely the United Nations, World Bank, NAFTA, SAFTA, ASEAN, SAARC, EU etc. have been formed. Through these bodies, counties communicate various bilateral and multilateral issues among them.

Principles of Business Communication

Using Tone to Build Goodwill◦Be respectful not demanding◦Be modest not arrogant◦Be polite not sarcastic◦Be positive and tactful, not negative and

condensing

Principles of Business Communication

Managing Your Mail/E-mail ContentReducing Overload/Cutting down Unnecessary

InformationInstant Messaging Privacy and SecurityRestrict contact lists on professional IM accounts to

business associates to avoid inadvertently sending a personal message to an associate.

Be alert as of possible virus infections and security risks with messages, attachments, and contact lists.

Save significant IM exchanges (or logs) for your future reference if the software does not do so automatically.

Functions of Business CommunicationInformation refers to the role of

communication in facilitating decision making and problem solving. Control: In the organizational context, ◦Control refers to the power to influence people’s

behavior. ◦Motivation refers to the fostering of motivational

spirit among the employees. ◦Emotional Expression relates to the function of

communication in expressing or letting out the feelings and emotions of employees under various circumstances.

Barriers of Business CommunicationIf the sender’s message does not reach

the receiver as it is meant to, then there must be some barrier or hindrance. What can it be? And how to avoid such barriers?

Good organizers of communication need to anticipate the barriers and remove them. The barriers range from a poor microphone to an emotional attitude that rejects the message before it is received.

Barriers of Business Communication

Barriers of Business Communication

For convenience of analysis, we may classify the barriers into five types:◦Mechanical barriers◦Physical barriers◦Psychological barriers◦Semantic and language barriers◦Status barriers

Barriers of Business Communication

1. Mechanical Barriers/Faulty Mechanism 2. Physical Barriers

A communication may not reach properly if the mechanism that carries it breaks down.

If the computer typing has been done in Bijoy Bangla Font, and while taking the printout the computer is in the Roman mode, not a single letter would be understood.

Similarly, if the mirror image of a letter is sent by some mechanical fault, it will be hard to decipher.

Other problems can be:◦ weak microphone or poor sound system at the

meeting place

◦ Defective telephone lines

◦ Electricity/computer breakdown

◦ Poor printing /paper quality

◦ Atmospherics on radio or TV, especially in a cloudy weather

Sometimes background noise, whether in a face-to-face meeting or at either end of the telephone, reduces the audibility of the spoken word.

If the listener is too far from the speaker, s/he may not be able to hear him, in which case distance is the barrier.

The time taken for the message to reach its destination can become a barrier, e.g. a telegram delivered too late

Barriers of Business Communication3. Psychological barriers:

◦ A person of weak hearing or eyesight cannot always receive the communication in full.

◦ The age of the listener puts its own limitations on his ability to receive messages. One may be too young or too old to understand certain things.

◦ A person’s educational level governs his understanding. Some background knowledge is required to understand certain messages.

◦ A wandering mind cannot fully gather the inputs given to it. While roving is a natural tendency of the mind and the attention span of a listener is limited, there may be other causes of inattention too. These may be visual or audio distractions – gaudy pictures or songs in the neighborhood.

◦ Ideological loyalties may form a barrier to communication. One may have a political party membership, a philosophical principle (like hedonism, i.e. devotion to sensory enjoyment), and a religious affiliation that has already bound the way one thinks. Such a person may not be receptive to the ideas counter to his ideology.

◦ Loyalty to a brand or an organization is also a barrier. One who is loyal to a certain brand may not be receptive to a rival product’s add. One may not be receptive to the praises of an organization or a team other than one’s countries, etc.

Barriers of Business Communication3. Psychological barriers (continued):

◦ Emotional states of a person can act as barriers. If someone is in a fit of anger, s/he may not listen to reason. There is a spillover effect – the emotion generated by one transaction spilling over into an unrelated transaction.

◦ One’s prejudices (a judgment formed without proper information) act as a hindrance to reason. One may have a racial or a caste prejudice and so on. This is the opposite of an open mind. A liberal education is necessary to remove such irrational prejudices.

◦ Personality limitations, too, put a barrier. These are similar to ideological barriers, as some personalities are naturally attracted to certain ideologies.

◦ One’s aspirations, viewpoints, analyses make one open or closed to certain messages.

◦ Fixed images about other people stand as barriers to see them in a new role. A comedian coming in as a hero of a film may not be acceptable to an audience which sees him typed in comedy roles.

◦ Poor retention power is a barrier. If one fails to take timely notes when instructions are given, hoping to remember them all, often leads to forgetting part of the message.

Barriers of Business Communication4. Semantic and language

barriers: Semantics is the study of how

words convey meanings. What happens if the speaker/writer means one thing and the listener/reader takes it in another meaning?

One has to ask, is the word conveyed in its proper context? Words are indeed so tricky to use that one can hardly ever convey the same thing to all receivers in given words.

Yet in business life, dealing with matter-of-fact situations, semantic barriers arise from the inability to read the receiver’s mind. If the sender knows the receiver’s level of understanding, fine.

Semantic barriers arise when: The sender’s experience with words

differs from the receiver’s. Words from one environment may

not fit in into another environment. An abstract word is used (in order to

be more general and safer) when a concrete word is required. One may want to say that some young men may be impatient, but one might say “Youth is impatient.”

Complex phrases and long constructions are used.

Idioms are meant to be understood in the idiomatic sense but are taken in the literal sense. ◦ e.g., tick your ts and cross your fs.

(t=true and f=false)

Barriers of Business Communication 4. Semantic and

language barriers (Continued):

An advertiser offered to sell a “big, bad dog”. While the word “bad” is meant to convey its attacking power to guard a house, some readers may take it otherwise. The context changes the meaning of the word.

Advertisement:Bad Dog for Sell

Barriers of Business Communication5. Mechanical Barriers A type of psychological barrier. The higher or lower social status of a party disables the other from expressing

one’s meaning fully. ◦ E.g. A modest farmer may feel nervous in expressing his problems to a high-ranking official

or politician. Status symbols (e.g. luxury, power, property) may halt communication. Cultural barriers are a special case of collective psychological barriers. A culture

brings its own habits, modes of dressing, greeting, eating, food preferences etc. Most people have an element of xenophobia (fear or aversion of foreigners).

The Time Magazine once commented: “American businessmen need to allow for differences between American culture and Oriental culture. Only then would they be able to do business with eastern countries.”

This advice can be universalized. Media power which the English speaking countries enjoy tends to give them a false sense of universal acceptability of their culture. In Bangladeshi business, it is a general rule that Bangla words and culture are freely used. Exposed to native speakers of English, Bangladeshi businessmen are often at a loss.

Resistance to the written word exists as a barrier. The written word demands a commitment. People prefer to listen (if possible in their regional language) and act. Letters remain unreplied while personal visits or telephone calls server the purpose.

Process of Business Communication

Process of Business Communication