COMMUNICATION IN BUSINESS (UCC20S01T)

UNIT - I
Meaning of Communication:
The word communication has been derived from the Latin word ‘communis’ which
means ‘common’. Thus, communication means sharing of ideas in common. 
According to the shorter Oxford English Dictionary, communication means “the
imparting, conveying or exchange of ideas, knowledge, etc., whether by speech, writing or
signs.” Communication takes place when one person transfers information and understanding
to another person. It refers to the exchange of ideas, feelings, emotions, knowledge and
information between two or more persons.

Definition of Communication

“Communication is the process of passing information and understanding from one person to
another.”—Keith Davis.

“Communication as any behaviour that results in an exchange of meaning.”—The American

Management Association.

“Communication may be broadly defined as the process of meaningful interaction among

human beings. More specially, it is the process by which meanings are perceived and
understandings are reached among human beings.”— D.E. McFarland.

S-2 Nature of Communication

1. It Involves at Least Two Persons:

Communication involves at least two persons, a sender and a receiver. The sender is
called communicator and the receiver of the message is known as communicate. A person
who speaks, writes or issues some instructions is the sender and the person for whom the
communication is meant or who receives the message is the receiver or communicates.

2. Message is a Must:
A message is the subject matter of communication. e.g., the contents of the letter or
speech, order, instructions or the suggestions. A communication must convey some message.
If there is no message there is no communication.

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3. Communication May be Written, Oral or Gestural:
Communication is generally understood as spoken or written words. But in reality, it
is more than that. It includes everything that may be used to convey meanings from one
person to another, e.g., movement of lips, or the wink of an eye or the wave of hands may
convey more meaning than even written or spoken words.

4. Communication is a Two Way Process:

It involves both information and understanding. Communication is not complete
unless the receiver has understood the message properly and his reaction or response is
known to the sender. Understanding is the end result of communication but it does not imply
agreement.

5. Its Primary Purpose is to Motivate a Response:

The primary purpose of communication is to motivate response or influence human
behaviour. There is no doubt that motivation comes from within but communicator can also
motivate people by good drafting of message, proper timing of communication, etc. To create
understanding, communication should be relevant to the situation. It must always be
remembered that communication is a means of motivating and not an end itself.

6. Communication may be Formal or Informal:

Formal communication follows the formal channels provided in the organisation
structure. For example, the Managing Director communicates with the departmental heads,
say Finance Manager, finance manager communicates to deputy finance manager, the deputy
finance manager with accounts officer and so on.

7. It Flows Up and Down and also from Side to Side:

Communication flows downward from a superior to subordinate and upward from
subordinate to a superior. It also flows between two or more persons operating at the same
level of authority.

8. It is an Integral Part of the Process of Exchange:

It refers to the exchange of ideas, feelings, emotions and knowledge and information’s
between two or more persons.

The basic elements of communication are:

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1. Communicator:
The sender, speaker, issuer or writer-who intends to convey or transmit a message.

2. Communicate:
The receiver for whom the communication is meant. He receives the information,
order or message.

3. Message:
The subject matter of communication i.e., the content of the letter, speech, order,
information, idea or suggestion.

4. Communication Channel:
The media by which the information and understanding are passed from the sender to
the receiver. It serves as link between the communicator and the communicate i.e., the levels
of organisation or relationships that exist between different individuals or departments of an
organisation.

5. Response or Feedback:
The effect, reply or reaction, of the information transmitted, on the communicate i.e.,
successful, no communication or miscommunication.

S-3 Types of Communication

Communication takes place at different levels and accordingly we can speak of

different types of communications:
1. Verbal Communication
2. Non-Verbal Communication
3. Written Communication
4. Visual Communication
5. Feedback Communication
6. Mass Communication
7. Group Communication
1. Verbal Communication
In verbal communication words of a particular language are used for passing the
message. For example, while teaching in a class teacher speaks, and writes on the blackboard,
or sometimes, he/she may use audio/visual aids, such as the power-point to

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explain/emphasize certain points. All these modes come under the category of verbal
communication. Thus, verbal communication is of two types.
Intrapersonal Communication
When communication takes place within oneself, it is called intrapersonal
communication. It includes individual reflection, meditation, and contemplation.
Intrapersonal communication includes prayers addressed to the divine though some authors
describe communication with the divine as Transpersonal Communication.

Interpersonal Communication
Interpersonal communication takes place between two persons. This includes
dialogue, conversation, or exchange of views between two persons without using any
technological devices like the telephone. It is direct, intimate, and consists of verbal
interaction or gestures.

Oral Communication
This is the communication that employs the spoken word, either direct or indirect as a
communication channel. This verbal communication could be made on a channel that passes
information in only one form i.e. sound.

Public Communication
In public communication, the sender-receiver (the speaker) sends a message (the
speech) to an audience. The speaker usually delivers a highly structured message, using the
same channels as in interpersonal and small-group communication.

Non-Verbal Communication
Communication without using words, such as gestures, body language, the facial
expressions is called non-verbal communication. Often non-verbal expressions supplement
verbal communication, but it may be the only one as mentioned earlier, while giving a speech
in a rally, the leader often uses gestures, to emphasize certain points. But the teacher may
allow a student to enter the class simply by the gesture. Non-verbal communication is of the
following types:

 Body Language (Kinesics)

 Facial Expressions
 Posture

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 Gestures
 Touch
 Proxemics
 Appearance and Artifacts
 Paralanguage
Written Communication
This kind of communication involves any kind of exchange of information in written
form. To put it simply, written language communication is communication by means of
written symbols that are communicated by or to, or between people or groups. Thus, written
communication is the presentation of ideas or essays that make a clear point, supply details
supporting that point, and demonstrate unity and coherence of thought.

When the information is lengthy and comprises images, pictures, charts, graphs,
statistical data, and so forth, then it cannot be imparted orally to the individuals. In such
cases, written communication is regarded as one of the indispensable ways of imparting
information.

Visual Communication
Visual communication is also the type of communication that is common in the daily
lives of individuals. The main areas through which visual communication takes place are
televisions, radios, social networking, and so forth. When individuals are watching television
or listening to radio programs, then also they are engaged in a form of communication.

In some cases, they are not only utilizing these for leisure and recreational purposes,
but they are also augmenting their knowledge and understanding in terms of various aspects.
When individuals are communicating with others, then in most cases, their objective is to
enhance their knowledge and understanding.

Feedback Communication
When the individuals, who are in leadership positions in educational institutions and
in various forms of organizations, such as instructors, supervisors, heads, directors,
employers, and so forth, put into operation various types of assessment methods to evaluate
the performance of the individuals.

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 After evaluating the performance, they provide their feedback in terms of their
performance. Hence, the communication that takes place is termed feedback
communication. . Therefore, within educational institutions at all levels and various types of
organizations, this type of communication is regarded as crucial and beneficial.

Mass Communication
Mass Communication is the process of delivering information, ideas, and attitudes to
a sizeable and diversified audience. This is done through the use of media developed for that
purpose namely newspapers, magazines, radio, television, websites, and social media
networks. The act of mass communication is much more complex than that of face-to-face
communication. It is addressed to the masses, to an extremely large audience.

Group Communication
Communication by many persons in a face-to-face situation is described as group
communication. Here, as the group grows in size communication tends to become more and
more of a monologue reducing participation. The degree of directness, therefore, depends on
the size of the group, the place where it meets, and also the relationship of the members of the
group to one another. In a group, communication feedback is more difficult to measure and
respond to.

S-3 One and Two way Communication

TWO WAY COMMUNICATION ONE WAY COMMUNICATION

The sender delivers the message, to which the receiver It only requires the sender to send the message
responds with some feedback. to the receiver without hoping for a response.

It ensures that some accuracy is maintained as the It is nearly impossible to maintain accuracy
employees can give their feedback and clear their queries without the feedback system.
in case of any misunderstanding.

It can become noisy and may fail to maintain orderliness. Though one-way communication can give way
to inaccuracy, it is less chaotic and keeps
things in order.

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 TWO WAY COMMUNICATION ONE WAY COMMUNICATION

A lot of time gets consumed in receiving feedback from One-way communication is rapid due to the
the employees absence of a proper feedback mechanism.

Phone calls, video calls, face-to-face conversation, group Some of the common examples are radio,
discussion, etc are examples of two-way communication. television, speeches, performances,
newsletters, announces, etc.

S-4 Formal communication Psychological Barriers

Psychological barriers are due to the emotional character and mental limitations of

human beings. These barriers result in absent-mindedness, the fear of expressing one’s ideas
to others, excitement and emotional instability—all accounting for an overwhelming number
of communication problems.

Some common forms of psychological barriers include:

1.   False assumptions

Communication failure may occur if a sender fails to communicate instructions well

because s/he assumes that the receiver has understood the message, but the fact could be that
the receiver only partially understood what was communicated or didn’t understood at all;
both situations can cause communication breakdown.

The capacity of senders to understand is often shaped by their personal experience

and no two people are alike in this regard.

An assumption of the sender that the receiver knows how to do something or follow

instructions is often wrong and can be misleading.

For example, in order to prevent false assumptions, a quality control manager should first
check whether the workers are familiar with Six Sigma standards before pulling them up for
its non-adherence.

2.   Anger

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Emotional state can pose damaging barrier to communication. If the sender is angry when he
or she sends the message, it will affect the way in which the receiver interprets the message.

The sender may come across as aggressive and unapproachable. The receiver might feel
threatened or fearful with the result that the receiver might perceive the message in a different
way.

3.   Attitudes and Values

An attitude is a pre-learned disposition and can be linked closely to a person’s belief and
value systems.

Whether your attitude is positive or negative, it can influence the communication process
either positively or negatively.

If one of your beliefs is being threatened, you are likely to react emotionally instead of
listening attentively to the message.

If the sender of a message has a positive attitude, it may persuade the receiver to actually do
what the sender requested.

If the sender has a negative attitude, the receiver may not be inclined to meet the terms of the
request.

4.   Negative Self-mage

Negative self-image can affect both the sender and receiver in the communication
process, leading in communication breakdown.

If the sender has a negative self-image, he or she may not be able to relay the message
appropriately. Again, the message may be forceless and lacking in conviction.

Likewise, if someone on the receiving end has a poor self-image or lacking self-
confidence, he or she might entertain fearful thought—judging oneself as not intelligent
enough to understand the message.

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5.   Fear and Defensiveness

When a sender is fearful or defensive about the subject matter that needs to be
communicated, the sender may go too far in the attempt to communicate and alienate the
receiver(s) with melodramatic gestures and words.

Instead of accepting the mistake, the sender might try to justify the action or refuse to
admit the mistake altogether, creating further misunderstanding.

7.   Abstracting

We use language to communicate our experience and feelings, but we are less likely
to communicate every detail because of the tendency to focus our attention on only some of
the details.

While we prepare a business report on our observations of the various events in the market,
we abstract the selected information and present only the information which is relevant.

8.   Close-mindedness, Overconfidence and Apathy

People are sometimes not prepared to receive new information on a subject about which they
assume to know everything. Thus, their mind is closed to new ideas, facts and suggestions.

When a person is in this state of mind, such a person runs the risk of
showing overconfidence. For example, If an employee approaches his closed-minded boss
with some suggestions to improve the work of a business unit, the boss might retort by saying
‘I am an expert in this field’, ‘I have been doing this job since 1967; I have all the know-how
in my head.

There's nothing possibly new to learn—at least not from a rookie!’ Thus, he completely
rejects the information and recommendations of the communicator even before he knows the
real facts.

9.   Distortion, filtering and editing

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When a message Opens in new window is transmitted through translations, interpretations,
explanations and simplifications, it tends to lose originality and becomes distorted.

The accuracy of the message is lost and the transmission becomes imperfect as the message
goes through the filters of translations and simplifications.

This is due to manipulation of information by the sender so that it is seen as more favorable
by the receiver because the sender wants some results of his own.

10.   Poor listening

Poor listening behaviourOpens in new window can pose major communication problems.

Misunderstanding and conflicts can be reduced if people would listen to the message with
enough attention.

Most people do not listen very well due to various distractions, emotions, excitement,
indifference, aggressiveness and wandering attention.

One of the major reasons for bad listening is an individual’s continual thinking about his own
problems and worries. The poor listener always feels that the thought in his mind is more
interesting than what the speaker is saying.

11.   Emotion

Emotions are our feelings about the world around us. Usually, positive emotions such as joy,
love or affection do not interfere with communication; it is the negative emotions that create
barriers.

An emotionally excited communicator is unable to organize his message properly. He

expresses his blurred thoughts with gesticulationsOpens in new window and keeps on
repeating the same words.

12.   Information overload

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Whenever the information we have to work with exceeds our processing capacity, the result
is an information overload. Thus, the communicator could select, ignore, pass or even forget
information. Hence, there is loss of information and less effective communication.

S-4 UPWARD COMMUNICATION BUSINESS LETTERS

Upward communication is sending a message from subordinate to superior. It is the

most important way of internal communication. So, an upward communication example
provided to make the topic clear about upward communication.

Upward communication example

11 May 2022
The Chairman
Islam Trading Consortium Ltd.
9/A, Toynbee Circular Road, Nirala Bahaman (3rd Floor)
Motijheel C/A,
Dhaka, 1000

Subject: Prayer for fixation of my salary as per appointment letter

Vide Ref. No. OH/128/2002/023

Dated: 04-06-2020

Sir,

Kindly refer to the above, noted subject.

I joined as Adviser (Accounts & Finance) on 1st July 2002. After my joining, I have been
trying hard with the help end co-operation from Management and Colleagues to reestablish a
total accounting system through Accounting Software.
I believe Management has observed the development of the total Accounting System of the
Company.

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As you know, I have been working here for the last twenty-three (23) months and I never got
nor claimed for any extra benefit from the management although the Chairman of the
Company had committed to increasing my salary after successful completion of the
probationary period.

Now, I would like to remind you to take action to fix up my salary as per the terms of my
appointment letter Dated. 04-06-2020 for which act of kindness I shall be obliged.

Yours faithfully,

A. K. Khan
Adviser (Accounts & Finance)
Enclose: Photocopy of Appointment letter

S-5 BARRIERS TO COMMUNICATION

Communication is defined as the process by which information is exchanged between

individuals through a system of signs, symbols. The concept of communication involves a
sender, a message and a recipient.

The sender sends the message and the recipient is the receiver of the message. The
process of communication is never smooth as it is affected by the barriers of communication.

Barriers to effective communication can result in confusion which can lead to

incorrect information being conveyed or miscommunication which can lead to loss of
business.

Following are some of the barriers to effective communication:

1. Semantic barriers

2. Psychological barriers

3. Organisational barriers

4. Cultural barriers

5. Physical barriers

6. Physiological barriers

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Let us study in detail about the various types of barriers to effective communication.

Semantic barriers: Semantic barriers are also known as language barriers. These barriers are
caused due to improper communication between the sender and the receiver. The following
instances of semantic barriers can be witnessed in communication.

Poor quality of message: Message when communicated should be precise and easy to
understand, that makes it easy for the receiver to grasp the information conveyed.

Sometimes, due to the lack of clarity or complexity of the way of providing information from
the sender, there can be a case of semantic barriers.

For e.g. A manager is conversing in English to a group of workers who understand and speak
Bengali. It will create confusion among workers as they will not be able to understand what is
being conveyed by the manager.

Technical language: Language barriers also arise when the sender of the message is speaking
in technical terms while the receiver is unaware of the terms. It creates confusion and
misunderstanding between the sender and receiver by acting as a barrier to effective
communication.

Psychological Barriers: Psychological barriers play an important role in interpersonal

communication as the state of the mind of the sender or the receiver can make it difficult to
understand the information that is conveyed, which often leads to misunderstanding.

Here are some instances where psychological barriers to communication can be seen.

1. Premature evaluation of information by the receiver even before it is transmitted can lead
to barriers in communication, as it will create premature conclusion to the message, which
withholds the original message.

2. Inadequate attention from the receiver’s end at the time of communication can lead to
barriers of communication as the information conveyed by the sender is not properly received
by the receiver.

3. When information is passed within multiple sources, the final information is distorted as
the receivers of the message are not able to retain everything that was conveyed. This can
cause communication barriers.

Organisational barriers: Organisational barriers are those barriers that are caused due to the
structure, rules and regulations present in the organisation. The various types of barriers that

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can be encountered due to superior subordinate relationships where the free flow of
communication is not possible.

Sometimes the complexity of organisational structure and multiple managers make it difficult
to convey information properly, and the information gets distorted leading to
miscommunication.

Cultural barriers: Cultural barriers are those that arise due to lack of similarities among the
different cultures across the world. A term that can be harmless in one culture can be
regarded as a slang in another culture. Moreover, various beliefs can differ from one culture
to another.

Physical barriers: Physical barriers to communication are those that arise due to certain
factors like faulty equipment, noise, closed doors and cabins that cause the information sent
from sender to receiver to become distorted, which results in improper communication.

Physiological barriers: Physiological barriers arise when a sender or the receiver of the

communication is not in a position to express or receive the message with clarity due to some
physiological issues like dyslexia, or nerve disorders that interfere with speech or hearing.

S-6 PRINCIPLES OF EFFECTIVE COMMUNICATION

1. Create A Goal

The first step is determining how you want to impact your audience. Are you
positioning yourself as a thought leader, or are you persuading them to take action? Figuring
out your ideal outcome at the start and intentionally crafting your communication to reach for
that goal will make it much more effective. Deciding which KPIs can help you keep track of
your goals is also important, whether it’s clicks, social shares, sign-ups, or purchases.

2. Listen to Feedback

Good communication is never a one-way street. This is why no one enjoys being
stuck with someone constantly talking about themselves without giving you a chance to
respond or even say a few words. A one-sided conversation can make anyone lose interest in
the topic at hand.

Likewise, if you never listen to what your audience is saying or give them a chance to
engage, you’ll struggle to effectively connect with them. The better option is always to do

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your research, read what they’re writing, ask for their feedback, and incorporate what they’re
looking for into what you’re trying to communicate.

3. Adjust To Your Medium

Understanding the context of your communication is vital to success. For example,

you wouldn’t say certain things through written communication because the tone and
inflection of the spoken word isn’t there. On the other hand, you would communicate much
differently on the phone than face-to-face because the other person can’t see your face, hand
gestures, or body language.

Once you decide on the most appealing format to reach your audience, make sure
your content and messaging are both tailored for that medium. For example, if it’s for
Twitter, you’ll want something that’s short, visually appealing, and will maybe even start a
conversation. However, you’ll want to go into more detail on a mobile-optimized and easy-
to-read page if you are writing a blog post.

4. Stay Organized

Staying organized isn’t easy for most people. One way to stay organized is to create a
high-level outline before you attempt to communicate with your audience.

An outline includes:

Your goal.

Your main point(s) to get across.

The different ways you’re going to illustrate them for your audience.

Breaking things down into small tasks will help you remain focused on this plan while being
methodical in your research, and avoiding any scope creep.

5. Be Persuasive

One of the primary goals of effective communication is to remain persuasive. Of

course, people are persuaded in different ways. Using relevant facts to back up your main
argument is a great way to appeal to many people.

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 However, it’s even more important to appeal to your audience’s emotional side, as
research shows that our emotional brain processes information much faster than the logical
side of our brain. In other words, using images or telling stories that bring happiness, hope, or
humor can greatly impact how you communicate with your audience.

6. Be Clear

Writing concise sentences is essential to keeping things clear. On the other hand,
writing large blocks of text with lengthy sentences is one of the quickest ways to lose the
attention of your audience.

Replacing longer phrases with shorter ones, making things simple, and keeping most
of your sentences below 30 words are all key aspects of communication. Usually, this entire
process goes through a few rounds of editing to eliminate unnecessary content and improve
readability.

7. Visuals Are Important

Variety can often go a long way while communicating with an audience. People can
comprehend new information in numerous ways, but the vast majority are primarily visual
people. In fact, people can understand visual data in as little as 13 milliseconds.

Understanding how to use compelling visuals is a great way to draw in your audience,
and you can use text to further demonstrate your point. Visuals are also a fantastic way to
appeal to the emotional side of your audience.

8. Use Stories

Another way to connect with your audience and communicate your ideas is with
powerful stories. People are natural storytellers and listeners. This inborn trait stretches
across cultures and is especially evident with how kids are so quickly drawn to storybooks.

Stories are great ways to make ideas more tangible to people and can also humanize
what you’re communicating. Stories are also more likely to be remembered than the other
elements of what you communicate due to them appealing to your audience’s more emotional
side. So, if you really want people to understand and remember your point, add in a story that
illustrates it.

9. Less Is More

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 Your audience is likely busy. So don’t waste your (or their) time with irrelevant
tidbits, repeated information, or details that don’t help you with your main communication
goal. It will lead to disengagement, less information being retained, and take away from the
effectiveness of your efforts. When in doubt, err on the side of clarity.

10. Be Curious

Finally, resolve to always be learning. While some things remain the same, the world
of communication is constantly evolving. Continue to read, talk to mentors, and never assume
you know everything when it comes to good communication. For your individual efforts, test
different formats and styles to see what works best when connecting with your unique
audience, and always be open to feedback.

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