Business Communication: Meaning, Elements and Features

1. Business Communication—Definition and Meaning

2. Elements of Business Communication
3. Features
4. Objectives
5. Steps
6. Channels
7. Classification of Channels
8. Levels
9. Importance.

Business Communication—Definition and Meaning:

The word “Communication” has come from the Latin word “communis”, which means
common. Thus, communication signifies sharing of ideas in common. The dictionary
meaning of communication is to convey or exchange information and share ideas. It is a
process through which two or more people transmit or exchange thoughts and ideas among
themselves. According to W. H. Newman and C. F. Summer, “Communication is an
exchange of facts, ideas, opinions or emotions by two or more people.”
Communication is the process of transmitting information and understanding from one
person to another or from one unit to other unit with a view to getting the desired response
from the receiver. Through this process two or more people exchange ideas, try to find
understanding among themselves to achieve the desired effect in the behaviour of another
person.

It is a two-way channel for transmitting ideas, feelings, plans, commands, instructions,

reports and suggestions that influence the attitude towards an organisation’s objectives. The
communicator’s goal is to convey the meanings or ideas without distortion. Success of the
leader and the enterprise depends upon adequacy of communication.

Louis A. Allen defines communication in the following manner:

“Communication is the sum total of all the things one person does when he wants to
create understanding in the mind of another. It is a bridge of meaning. It involves a
systematic and continuous process of telling, listening and understanding with or
without the help of a translator.”
The definition involves two aspects in communication.

First, there is something which is transmitted, such as facts, feelings, ideas, etc. It implies that
there must be a receiver if communication is to occur.

Second, the definition emphasises the understanding element in the communication process.
Sharing of understanding would be possible only when the person to whom the message is
sent, understands in the same sense in which the sender of message wants him to
understand. In this case the role of a translator is hard to overestimate!!!

So, communication involves something more than mere transmission of the message or
transmission and physical receipt thereof. The correct interpretation, understanding and there
for translation of the message is important from the point of view of organisational
efficiency. Effective communication, as such, might be the accurate transmission and receipt
thereof, and its correct understanding.

In the book “Business Communication Today” C. L. Bovee, J. V. Thill and B. E. Schatzman

write: “Communication is the process of sending and receiving messages. However,
communication is effective only when the message is understood and when it stimulates
action or encourages the receiver to think in new ways.”
Communication made among people to convey their personal information, message or
thought are personal communication; but exchange of information, facts and ideas relating
to business may be termed as “Business Communication”. Business Communication refers
to the communication relating to business activity which means providing goods and services
to the consumers with a view to earning profit.

It is a process through which information, facts, ideas, orders, pieces of advice, decisions, etc.
are conveyed, sent or exchanged between/among the people associated with business. Thus,
Communication relating to trade, law, Finance, administration, management, etc. of a
business enterprise may be termed as ‘Business Communication’.

In this age of globalisation every business enterprise, big or small, requires proper
communication for its existence. The success of any business concern largely depends upon
successful communication/translation/interpreting.

Elements of Business Communication:

Business communication involves six basic elements. They are as follows:
1. Message:
This is the subject-matter which is transmitted or passed by the sender to the other party or
group of persons. This might be opinion, order, suggestion, attitude, feeling, view, etc.

2. Sender:
He/she is the person who intends to make contact for passing information and understanding
to other person.

3. Receiver:
The person to whom the message is meant for is known as receiver or communicate.

4. Channels:
Information is transmitted through certain channels (e.g., radio, television, telephone, letter,
e-mail, etc.). The media is selected by the sender considering various factors.

5. Symbols:
These are the words, actions and signs which are passed on by the sender while
communicating with the receiver.

6. Feedback:
When the receiver acknowledges the message of the sender and responds back to him/her,
feedback takes place. Without feedback communication is incomplete.

Features of Business Communication:

Business Communication has certain features or characteristics which enable us to
distinguish it from other communication.
A communication to be business communication must be:
1. Practical,
2. Factual,
3. Clear and brief,
4. Target-oriented,
5. Persuasive.
The process of business communication has certain other characteristics. They are:
1. Integral Part of Management Process:
Communication encompasses those activities by which the ideas, opinions and decisions of
the managers are conveyed to the subordinates of different ranks. It also involves the
exchange of facts, feelings, suggestions and responses between the superiors and
subordinates.

2. Two-Way Traffic:
Communication does not only mean its downward movement from superior to the
subordinates it implies both the transmission and reception. So, when conveying any
information, a manager should know its reactions and responses. Otherwise, managerial task
of guiding and directing will be ineffective.

3. Mutual Understanding:
The basic purpose of business communication is to bring about understanding between
individuals in the organisation. It is an important element for establishing human
relationships.

4. Pervasive:
The subject-matter of business communication covers a wide range and extends to all
functions - purchases, production, sales, finance, recruitment, wages, dividends, market
standing, innovation, productivity, etc. It also moves through all levels of management -
upward, downward and sideways.

5. Continuity:
Communication is an ever-present activity and without it an organisation cannot exist.

6. Specific:
A business communication is generally specific in nature. It means that a particular
communication should deal with a single subject at a time. This is necessary for the
effectiveness of communication.

7. Result and not Cause:

Sound communication is the result of competent management, not the cause of it. Business
communication is a means to an end and acts as a tool in the hands of the managers.
Successful handling of this tool depends upon the competence of the managers.

8. Internal and External:

Business communication is primarily internal. It is, thus, a part of administrative function and
intended to apply to the members belonging to an organisation. Orders, instructions,
suggestions and even public notice announcing the annual general meeting of a company are
some of the examples of internal communication. But nevertheless it is internal, the
organizations or corporations arrange their documents in two languages – and that is a role
performed by a translator. Nowadays, many communications move beyond the organisational
horizons and touch the outside population exceeding the organisation’s own (e.g.,
advertisement). Business communication may thus be internal and external.

9. Different Types:
Business communication may be of different types—formal, informal, upward, downward,
sidewise, written, oral, etc.

10. Feedback:
A communication cannot be complete unless and until feedback or response of the recipient
is made. Feedback may be written, oral or gestural. Sometimes mere silence may also
constitute a feedback.

Objectives of Business Communication:

The main objective of communication is to give information and to persuade different people.
The translation therefore should not be less persuasive than the original message.

Other objectives include conveying suggestion, opinion, idea, advice, request, etc.; imparting
instructions, guidance and counseling; providing training; giving warning; appreciating good
work; boosting of morale; etc. In the case of a business enterprise the main objective of
communication is the improvement of its activities, all-round development of the
organisation, and ultimate success in its operation.

1. Giving Information:
The primary object of communication is to make the members of an organisation aware of its
goal and acquaint them with all the relevant information. This helps the business enterprise to
achieve success through concerted efforts of all the people concerned. It is a fact that well-
informed people can achieve better.
The managers should know in details the social, political, economic and other conditions of
the place where the business is situated. But the translator should also be aware of all issues
to be discussed (especially if it is a negotiation). It is rather advisable to seek for the
information in advance, either from the parties of the negotiation or it can be obtained from
past records, books, journals, newspapers, government publications, seminars, conferences,
exhibitions, trade fares, etc. The other sources of information are the chambers of commerce,
structured questionnaires, radio, television, internet, etc. Whatever might be the sources, the
information must be reliable, accurate, complete and latest.

2. Persuasion:
To persuade means to make other people decide to do something, especially by repeatedly
asking them or telling them the reasons why they should do it; in other words, influencing
other people to believe or to do what one wants. This is one of the important objectives of
communication. The persuasion should be so planned that the buyer becomes least conscious
of being persuaded and even if he/she becomes conscious, he/she should be made to
understand that it is for his/her own interest. Actually persuasion is an art which should be
suggestive in nature rather than coercive. And not the last role is played by a translator in this
case. Under no circumstances the translated message can be simplified.

3. Conveying Suggestion:
Communication helps in conveying suggestions, opinions and ideas. Sometimes further
communication is made with the suggestions for clarification. Interaction of suggestions and
ideas help the progress of an organisation.

4. Advice:
One of the objectives of business communication is to advise an individual or a group of
people. Today’s business world is very complex and no one can be an expert in all the
spheres of business. So, a businessman has to take advice from experts regarding the matters
in which he is not well-informed. For example, he may need advice regarding banking,
insurance, stock exchange, tax rules, legal procedures, etc. Within the business the managers,
supervisors and executives may advise each other (a case of horizontal communication) and
the subordinates (downward communication). And they can provide the translator with any
information needed, so that is one more source of additional information.

5. Motivation:
Communication is made to inspire, to motivate, and to create a sense of loyalty. Through
communication the morale is boosted up and it leads to better performance. Regular
communication is necessary for motivating the employees and infusing in them a positive
attitude towards work and a healthy relationship with the managers. This, ultimately,
increases managerial efficiency.

6. Training:
To meet the need of an organisation, senior employees may need to be trained to update them
about the new technological developments so as to adjust themselves to changing work
environment or job demands. Communication is the key to all these kinds of training. Such
communication can be made through classroom teaching, lectures, seminars, short courses,
conferences, educational tours, film shows, etc.

7. Instruction, Guidance and Counselling:

One of the objectives of business communication is to manage the employees by means of
imparting instruction, providing guidance and arranging for counseling.

8. Giving Warning and Appreciating Good Work:

It is very much necessary to appreciate a good worker. It will encourage him/her to strive for
better performance and greater involvement. It makes the employee conscious about his/her
responsibilities

9. Resource Utilisation:
Communication checks wastage of the resources of the organisation and helps their better
utilisation. Lack of knowledge or lack of proper direction in time may cause the waste or
misuse. Communication helps to bridge the gap of knowledge through instruction, advice,
etc. and waste or misuse of resource is minimised. Not only material resources, but also the
financial resources, human resources and other resources are utilised properly through
communication.

10. Management Efficiency:

One of the objectives of business communication is to increase efficiency of the management.
If there is a good network of communication (formal and informal), the organisation can be
managed efficiently and effectively.
 Steps of
According to Lawrence A. Appley, the basic communication process involves the
following steps:
1. Clarifying the idea or problem,
2. Getting participation in developing a solution to the problem,
3. Transmitting the idea or decision,
4. Motivating others to take action agreed upon, and
5. Measuring the effectiveness of communication.

Charles E. Redfield states that the following elements are involved in the process of
communication:
(a) A communicator (a speaker, sender, issuer),
(b) Transmits (says, sends, issues),
(c) Stimulus (message, orders, reports) to a
(d) Communicate (addressee, respondent, audience) to influence his behaviour as seen in his
(e) response (reply, reaction).

The process of communication can best be expressed by Laswell’s popular five ‘Whs’:
“‘who’ says ‘What’ in ‘Which Channel’ to ‘Whom’ with ‘What effect’?”

The process or steps of business communication can be described as follows:

1. Sender’s Idea:
The first thing in communication process is to be familiar with the idea or problem to be
communicated. If the communicator has no clear view of this idea or problem, its reception
on the other end may give similar obscure idea and may thus be misunderstood. So, the
process of communication demands full and clear view of the idea or problem to be
communicated.

2. Encoding the Idea:

When the idea is converted into a symbolic form in terms of some kind of language, it may
be termed as the encoding of the idea. The language may consist of words, symbols, charts,
diagrams, gestures, etc. This encoding depends upon the personal characteristics of the sender
as well as the receiver. The style, length, form, clarity, etc. of the message varies from person
to person.

3. Transmission:
In transmitting the ideas or decisions, certain matters are to be taken into consideration. The
first consideration should be to select an appropriate channel (i.e., verbal, non-verbal, written,
etc.) and a medium (telephone, e-mail, letter, face to face conversation, etc.).
This selection depends upon urgency, distance, availability of means, cost and time factor,
etc. Next thing is to determine the person or people to whom such ideas or decisions are to be
communicated. So, the selection of right course and right person for communication is
essential for its effectiveness.

4. Getting the Message by the Receiver:

The receiver must get the message to make the communication fruitful.
5. Decoding the Message:
Decoding means understanding or bringing out the meaning of the message. It is very vital.
6. Sending Feedback:
Feedback is the receiver’s response to the message. Having understood the message the
receiver reacts to it and responds accordingly. The feedback evaluates the effectiveness of the
message.
7. Channel:
Channels are the routes or paths of the communication. The sender’s idea is transmitted to the
receiver through this path. Again, the receiver sends feedback to the sender through the
channel. Thus, channel is used at least twice in the process of communication. Oral or
telephonic message, letter, different audio and video media, computer, e-mail, fax, etc. are the
popular channels of communication. Selection of channel depends upon the nature of the
message, necessity, urgency and situational conditions.
8. Noise:
It is not a separate step in the process. It may be present at every step and make the
communication less effective or ineffective.

Channels of Business Communication are the routes or paths through which messages are
sent or received.
Examples of Channels:
1. Here ABC are the three people and there are three channels of communication between
AB, BC and CA.

Classification of Channels of Business Communication:

Channels of business communication may be classified from different viewpoints
as follows:

1. On the basis of Organisational Structure:

On the basis of organisational structure, the channels of business communication may
be divided into:
1. Formal, and
2. Informal.
 Formal Channel - When communication is carried on through structured, organised
or official route.
 Informal Channel - Non-structured, unofficial and unorganised route of
communication.
2. On the basis of Direction:
The direction of business communication channels may be:
1. Downward,
2. Upward and
3. Horizontal or Lateral
  Downward Channel - Channels used for flowing information from top towards
bottom.
 Upward Channel - Communication of information from lower level to upper level is
possible.
 Horizontal or Lateral Channel - When communication takes place between the
people of the same rank.

3. On the basis of the ways or means of expression business communication channels are
of two types:
1. Written, and
2. Oral.
 Written Channel - when communication takes place in writing through letters,
memos, reports, proposals, e-mail, faxes, etc.
 Oral Channel includes different media e.g., face-to-face conversations, speeches,
meetings, telephone, voice mails, audio and video tape, teleconference or video
conference, etc.
Importance of Business Communication:
The significance or importance of business communication is increasing very rapidly day-by-
day. The business world of today cannot move smoothly without the help of communication.
It makes a business enterprise dynamic and increases its efficiency. It is regarded as the
motivating force that leads to industrial harmony. Business communication promotes
managerial efficiency and induces the human elements in an organisation to develop a spirit
of co-operation which finally leads to peak performances. The pivotal position in this
performance is taken by a translator which has been widely recognised in recent years.