BUSINESS COMMUNICATION

Submitted to:
Prof. Mittal Dattani Prof. Kavita Saxsena

Submitted By:
Patel Sumit (08) MBA (F.S) I

Centre of Management Studies

2011-13

BUSINESS COMMUNICATION

PREFACE

As a part of curriculum of MBA-FS Sem I students of GANPAT UNIVERSITY are required to select the topic for business communication and thereby analyze the organization in every aspect through research and analysis. The information required to make this project has been collected through sources like Internet, Books, and final report of the company and all others link which are available through other sources which has been used for academic purpose only. Our project report is on business communication. This project includes all the necessary topics of the subject. The project does include the whole information about management information system.

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ACKNOWLEDGEMENT

The satisfaction and joy that accompanies the successful completion of a task is incomplete without mentioning the name of the person who extended his help and support in making it a success. We are greatly indebted to P r o f . M i t t a l d a t t a n i a n d p r o f . k a v i t a s a x s e n a o u r Project Guide and Mentor for devoting her valuable time and efforts towards my project. We thank him for being a constant source of knowledge, inspiration and help during this period of making project. Our project report is on Indian Banking Sector This project includes all the necessary topics of the subject.

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Table of content

SR. NO

PARTICULARS

PAGE NO.

Preface Acknowledgment

INTRODUCTION BUSINESS COMMUNICATION 1.1 1.2 1.3 1.4 1.5 Introduction Role Of Communication Definition Of Communication Purpose of Communication The communication Process/Cycle

2 3 4 5 6 7

NON-VERBAL COMMUNICATION MODES PRINCIPLES OF COMMUNICATION ORAL COMMUNICATION VISUAL COMMUNICATION WRITTEN COMMUNICATION CONCLUSION

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bUSINESS COMMUNICATION
1.1 1.2 1.3 1.4 1.5 INTRODUCTION ROLE OF COMMUNICATION IN BUSINESS DEFINITIONS OF COMMUNICATION PURPOSE OF COMMUNICATION THE COMMUNICATION PROCESS/CYCLE

1.1

INTRODUCTION

The word communication derived from the Latin word communicare that means to impart, to participate, to share or to make common. It is a process of exchange of facts, ideas, opinions and as a means that individual or organization share meaning and understanding with one another. In other words, it is a transmission and interacting the facts, ideas, opinion, feeling and attitudes. It is the ability of mankind to communicate across barriers and beyond boundaries that has ushered the progress of mankind. It is the ability of fostering speedy and effective communication around the world that has shrunk the world and made globalization a reality. Communication had a vital role to play in ensuring that people belonging to a particular country or a culture or linguistic group interact with and relate to people belonging to other countries or culture or linguistic group. Communication adds meaning to human life. It helps to build relationship and fosters love and understanding. It enriches our knowledge of the universe and makes living worthwhile. 1.2 ROLE OF COMMUNICATION IN BUSINESS

The term business communication is used for all messages that we send and receive for official purpose like running a business, managing an organization, conducting the formal affairs of a voluntary organization and so on. Business communication is marked by formality as against personal and social communication. The success of any business to a large extent depends on efficient and effective communication. It takes place among business entities, in market and market places, within organizations and between various group of employees, owners and employees, buyers and sellers, service providers and customers, sales persons and prospects and also between people within the organization and the press persons. All such communication impacts business. Done with care, such communication can promote business interests. Otherwise, it will portray the organization in poor light and may adversely affect the business interest.

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Communication is the life blood of any organization and its main purpose is to effect change to influence action. In any organization the main problem is of maintaining effective communication process. The management problem generally results in poor communication. Serious mistakes are made because orders are misunderstood. The basic problem in communication is that the meaning which is actually understood may not be what the other intended to send. It must be realised that the speaker and the listener are two separate individuals having their own limitations and number of things may happen to distort the message that pass between them. When people within the organization communicate with each other, it is internal communication. They do so to work as a team and realise the common goals. It could be official or unofficial. Modes of internal communication include face-to-face and written communication. Memos, reports, office order, circular, fax, video conferencing, meeting etc. are the examples of internal communication. When people in the organization communicate with anyone outside the organization it is called external communication. These people may be clients or customers, dealers or distributors, media, government, general public etc. are the examples of external communication. 1.3 DEFINITIONS OF COMMUNICATION Communication may be defined as interchange of thought or information between two or more persons to bring about mutual understanding and desired action. It is the information exchange by words or symbols. It is the exchange of facts, ideas and viewpoints which bring about commonness of interest, purpose and efforts. American Management Association defines, Communication is any behaviour that results in an exchange of meaning Peter Little defines communication as, Communication is the process by which information is transmitted between individuals and/or organizations so that an understanding response result. Newman and Summer Jr. state that, Communication is an exchange of facts, ideas, opinions or emotions by two or more persons. According to Keith Davis, The process of passing the information and understanding from one person to another. It is essentially a bridge of meaning between the people. By using the bridge a person can safely across the river of misunderstanding. Louis A. Allen defines, Communication is the sum total of all the things that a person does, when he wants to create an understanding in the mind of another. It involves a systematic and continuous process of telling, listening and understanding. Therefore, the main purpose of communication is to inform, or to bring around to a certain point of view or to elicit action. 1.4 PURPOSE OF COMMUNICATION

1. For instruction: The instructive function unvarying and importantly deals with the commanding nature. It is more or less of directive nature. Under this, the communicator transmits with necessary directives and guidance to the next level, so as to enable them to accomplish his particular tasks. In this, instructions basically flow from top to the lower level. 2. For integration: It is consolidated function under which integration of activities is endeavoured. The integration function of communication mainly involves to bring about interrelationship among the various functions of the business organization. It helps in the unification of different management functions

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3. For information: The purposes or function of communication in an organization is to inform the individual or group about the particular task or company policies and procedures etc. Top management informs policies to the lower level through the middle level. In turn, the lower level informs the top level the reaction through the middle level. Information can flow vertically horizontally and diagonally across the organization. Becoming informed or inform others is the main purpose of communication. 4. For evaluation: Examination of activities to form an idea or judgement of the worth of task is achieved through communication. Communication is a tool to appraise the individual or team, their contribution to the organization. Evaluating ones own inputs or others outputs or some ideological scheme demands an adequate and effective communication process 5. For direction: Communication is necessary to issue directions by the top management or manager to the lower level. Employee can perform better when he is directed by his senior. Directing others may be communicated either orally or in writing. An order may be common order, request order or implied order. 6. For teaching: The importance of personal safety on the job has been greatly recognized. A complete communication process is required to teach and educate workers about personal safety on the jobs. This communication helps the workers to avert accidents, risk etc. and avoid cost, procedures etc. 7. For influencing: A complete communication process is necessary in influencing others or being influenced. The individual having potential to influence others can easily persuade others. It implies the provision of feedback which tells the effect of communication. 8. For image building: A business enterprise cannot isolate from the rest of the society. There is interrelationship and interdependence between the society and an enterprise operating in the society. Goodwill and confidence are necessarily created among the public. It can be done by the communication with the different media, which has to project the image of the firm in the society. Through an effective external communication system, an enterprise has to inform the society about its goals, activities, progress and social responsibility. 9. For employees orientation: When a new employee enter into the organization at that time he or she will be unknown to the organization programs, policies, culture etc. Communication helps to make people acquainted with the co-employees, superior and with the policies, objectives, rules and regulations of the organization. 10. Other: Effective decision-making is possible when required and adequate information is supplied to the decision-maker. Effective communication helps the process of decisionmaking. In general, everyone in the organization has to provide with necessary information so as to enable to discharge tasks effectively and efficiently.

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1.5

THE COMMUNICATION PROCESS/CYCLE

The transmission of senders ideas to the receiver and the receivers feedback or reaction to the sender constitute the communication cycle. The process of communication begins when one person (the sender) wants to transmit a fact, idea, opinion or other information to someone else (the receiver). This facts, idea or opinion has meaning to the sender. The next step is translating or converting That is the message must be encoded. The encoding process is influenced by content of the message, the familiarity of sender and receiver and other situation of factors. After the message has been encoded, it is transmitted through the appropriate channel or medium. Common channel in organization includes meetings, reports, memorandums, letters, e-mail, fax and telephone calls. When the message is received, it is decoded, by the receiver and gives feedback to the sender as the conformation about the particular message has been carefully understand or not. ELEMENTS OF COMMUNICATION The process of communication involves the following elements: 1. Sender or transmitter: The person who desires to convey the message is known as sender. Sender initiates the message and changes the behaviour of the receiver. 2. Message: It is a subject matter of any communication. It may involve any fact, idea, opinion or information. It must exist in the mind of the sender if communication is to take place. 3. Encoding: The communicator of the information organises his idea into series of symbols (words, signs, etc.) which, he feels will communicate to the intended receiver or receivers. 4. Communication channel: The sender has to select the channel for sending the information. Communication channel is the media through which the message passes. It is the link that connects the sender and the receiver. 5. Receiver: The person who receives the message is called receiver or receiver is the person to whom the particular message is sent by the transmitter. The communication process is incomplete without the existence of receiver of the message. It is a receiver who receives and tries to understand the message. 6. Decoding: Decoding is the process of interpretation of an encoded message into the understandable meaning. Decoding helps the receiver to drive meaning from the message. 7. Feedback: Communication is an exchange process. For the exchange to be complete the information must go back to whom from where it started (or sender), so that he can know the reaction of the receiver. The reaction or response of the receiver is known as feedback.

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Non-Verbal Commuication Modes

What is non-verbal communication?
Definition nonverbal communication involves those nonverbal stimuli in a communication setting that are generated by both the source [speaker] and his or her use of the environment and that have potential message value for the source or receiver [listener]. Basically it is sending and receiving messages in a variety of ways without the use of verbal codes (words). It is both intentional and unintentional. Most speakers / listeners are not conscious of this. It includes but is not limited to: 07% 33% 55% words only vocal (e.g.tone of voice) non verbal signal
o o o o o o o o o o o o o o

touch glance eye contact (gaze) volume vocal nuance proximity gestures facial expression ? pause (silence) intonation dress posture smell word choice and syntax sounds (paralanguage)

Broadly speaking, there are two basic categories of non-verbal language: nonverbal messages produced by the body; nonverbal messages produced by the broad setting (time, space, silence) Why is non-verbal communication important? Basically, it is one of the key aspects of communication (and especially important in a high-context culture). It has multiple functions:

o o

Used to repeat the verbal message (e.g. point in a direction while stating directions. Often used to accent a verbal message. (e.g. verbal tone indicates the actual meaning of the specific words).

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o o

Often complement the verbal message but also may contradict. E.g.: a nod reinforces a positive message (among Americans); a wink may contradict a stated positive message. Regulate interactions (non-verbal cues covey when the other person should speak or not speak). May substitute for the verbal message (especially if it is blocked by noise, interruption, etc) i.e. gestures (finger to lips to indicate need for quiet), facial expressions (i.e. a nod instead of a yes).

Note the implications of the proverb: Actions speak louder than words. In essence, this underscores the importance of non-verbal communication. Nonverbal communication is especially significant in intercultural situations. Probably non-verbal differences account for typical difficulties in communicating. Cultural Differences in Non-verbal Communication 1. General Appearance and Dress All cultures are concerned for how they look and make judgements based on looks and dress. Americans, for instance, appear almost obsessed with dress and personal attractiveness. Consider differing cultural standards on what is attractive in dress and on what constitutes modesty. Note ways dress is used as a sign of status? 2. Body Movement We send information on attitude toward person (facing or leaning towards another), emotional statue (tapping fingers, jiggling coins), and desire to control the environment (moving towards or away from a person). More than 700,000 possible motions we can make so impossible to categorize them all! But just need to be aware the body movement and position is a key ingredient in sending messages. 3. Posture Consider the following actions and note cultural differences:
o o o o o o

Bowing (not done, criticized, or affected in US; shows rank in Japan) Slouching (rude in most Northern European areas) Hands in pocket (disrespectful in Turkey) Sitting with legs crossed (offensive in Ghana, Turkey) Showing soles of feet. (Offensive in Thailand, Saudi Arabia) Even in US, there is a gender difference on acceptable posture?

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4. Gestures Impossible to catalog them all. But need to recognize: 1) incredible possibility and variety and 2) that an acceptable in ones own culture may be offensive in another. In addition, amount of gesturing varies from culture to culture. Some cultures are animated; other restrained. Restrained cultures often feel animated cultures lack manners and overall restraint. Animated cultures often feel restrained cultures lack emotion or interest. Even simple things like using hands to point and count differ. Pointing : US with index finger; Germany with little finger; Japanese with entire hand (in fact most Asians consider pointing with index finger to be rude) Counting: Thumb = 1 in Germany, 5 in Japan, middle finger for 1 in Indonesia. 5. Facial Expressions While some say that facial expressions are identical, meaning attached to them differs. Majority opinion is that these do have similar meanings world-wide with respect to smiling, crying, or showing anger, sorrow, or disgust. However, the intensity varies from culture to culture. Note the following:
o o o o o

Many Asian cultures suppress facial expression as much as possible. Many Mediterranean (Latino / Arabic) cultures exaggerate grief or sadness while most American men hide grief or sorrow. Some see animated expressions as a sign of a lack of control. Too much smiling is viewed in as a sign of shallowness. Women smile more than men.

6. Eye Contact and Gaze In USA, eye contact indicates: degree of attention or interest, influences attitude change or persuasion, regulates interaction, communicates emotion, defines power and status, and has a central role in managing impressions of others.
o

Western cultures see direct eye to eye contact as positive (advise children to look a person in the eyes). But within USA, AfricanAmericans use more eye contact when talking and less when listening with reverse true for Anglo Americans. This is a possible cause for some sense of unease between races in US. A prolonged gaze is often seen as a sign of sexual interest.

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Arabic cultures make prolonged eye-contact. believe it shows interest and helps them understand truthfulness of the other person. (A person who doesnt reciprocate is seen as untrustworthy) Japan, Africa, Latin American, Caribbean avoid eye contact to show respect.

7. Touch Question: Why do we touch, where do we touch, and what meanings do we assign when someone else touches us? Illustration: An African-American male goes into a convenience store recently taken over by new Korean immigrants. He gives a $20 bill for his purchase to Mrs Cho who is cashier and waits for his change. He is upset when his change is put down on the counter in front of him. What is the problem? Traditional Korean (and many other Asian countries) dont touch strangers., especially between members of the opposite sex. But the African-American sees this as another example of discrimination (not touching him because he is black). Basic answer: Touch is culturally determined! But each culture has a clear concept of what parts of the body one may not touch. Basic message of touch is to affect or control protect, support, disapprove (i.e. hug, kiss, hit, kick).
o

USA handshake is common (even for strangers), hugs, kisses for those of opposite gender or of family (usually) on an increasingly more intimate basis. Note differences between African-Americans and Anglos in USA. Most African Americans touch on greeting but are annoyed if touched on the head (good boy, good girl overtones). Islamic and Hindu: typically dont touch with the left hand. To do so is a social insult. Left hand is for toilet functions. Mannerly in India to break your bread only with your right hand (sometimes difficult for non-Indians) Islamic cultures generally dont approve of any touching between genders (even hand shakes). But consider such touching (including hand holding, hugs) between same-sex to be appropriate. Many Asians dont touch the head (Head houses the soul and a touch puts it in jeopardy).

Basic patterns: Cultures (English , German, Scandinavian, Chinese, Japanese) with high emotional restraint concepts have little public touch; those which encourage emotion (Latino, Middle-East, Jewish) accept frequent touches.

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8. Smell

o o

USA fear of offensive natural smells (billion dollar industry to mask objectionable odors with what is perceived to be pleasant ) again connected with attractiveness concept. Many other cultures consider natural body odors as normal (Arabic). Asian cultures (Filipino, Malay, Indonesian, Thai, Indian) stress frequent bathing and often criticize USA of not bathing often enough!

9. Paralanguage
o

vocal characterizers (laugh, cry, yell, moan, whine, belch, yawn). These send different messages in different cultures (Japan giggling indicates embarrassment; India belch indicates satisfaction) vocal qualifiers (volume, pitch, rhythm, tempo, and tone). Loudness indicates strength in Arabic cultures and softness indicates weakness; indicates confidence and authority to the Germans,; indicates impoliteness to the Thais; indicates loss of control to the Japanese. (Generally, one learns not to shout in Asia for nearly any reason!). Gender based as well: women tend to speak higher and more softly than men. vocal segregates (un-huh, shh, uh, ooh, mmmh, humm, eh, mah, lah). Segregates indicate formality, acceptance, assent, uncertainty.

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PRINCIPLES OF COMMUNICATION
Introduction
Interpersonal communication is the foundation of human interaction. Its importance for innovation and change can hardly be overemphasized. In this section, communication from different viewpoints including listening and speaking is ex. Objectives To introduce communication and to demonstrate the importance of communication in a variety of contexts including that of the manager of innovation and change. To evaluate and discuss the characteristics of good communication and how to improve our communication

PRINCIPLES OF COMMUNICATION
Communication is a two-way process of giving and receiving information through any number of channels. Whether one is speaking informally to a colleague, addressing a conference or meeting, writing a newsletter article or formal report, the following basic principles apply:

Know your audience. Know your purpose. Know your topic. Anticipate objections. Present a rounded picture. Achieve credibility with your audience. Follow through on what you say. Communicate a little at a time. Present information in several ways. Develop a practical, useful way to get feedback. Use multiple communication techniques.

Communication is complex. When listening to or reading someone else's message, we often filter what's being said through a screen of our own opinions. One of the major barriers to communication is our own ideas and opinions.

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There's an old communications game, telegraph, that's played in a circle. A message is whispered around from person to person. What the exercise usually proves is how profoundly the message changes as it passes through the distortion of each person's inner "filter." Environmental factors Communication can be influenced by environmental factors that have nothing to do with the content of the message. Some of these factors are: the nature of the room, how warm it is, smoke, comfort of the chair, etc outside distractions, what is going on in the area. the reputation/credibility of the speaker/writer. the appearance, style or authority of the speaker. listener's education, knowledge of the topic, etc. the language, page layout, design of the message.

People remember: of what they read of what they hear of what they see of what they hear and see Communication with Decision Makers Innovation and change often depends upon persuading potential users of the benefits of an innovation. To deal persuasively with decision makers, it is necessary to know and understand their interests and opinions. The following questions are helpful in organizing technology transfer efforts:

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ORAL COMMUNICATION
Speaking to Communicate
Spoken communication occurs in many different settings during the course of successful innovation and change. These may be divided into three main types:

The formal and informal networks in which peers exchange information, such as professional associations, work units, work teams, etc. The activities of change agents, opinion leaders, etc. The contacts established at team meetings, conferences, training courses, etc. Whether to use oral communication is a decision we all make frequently in the course of a workday. The change agent must be able to identify those situations in which oral communication is the most appropriate one to use. Don Kirkpatrick suggests the following guidelines for making such decisions.

Use Oral Communication When:

The receiver is not particularly interested in receiving the message. Oral communication rovides more opportunity for getting and keeping interest and attention. It is important to get feedback. It's easier to get feedback by observing facial expressions (and other nonverbal behavior) and asking questions. Emotions are high. Oral communication provides more opportunity for both the sender and the receiver to let off steam, cool down, and create a suitable climate for understanding. The receiver is too busy or preoccupied to read. Oral communication provides more opportunity to get attention. The sender wants to persuade or convince. Oral communication provides more flexibility, opportunity for emphasis, chance to listen, and opportunity to remove resistance and change attitudes. When discussion is needed. A complicated subject frequently requires discussion to be sure of understanding. When criticism of the receiver is involved. Oral communication provides more opportunity to accomplish this without arousing resentment. Also, oral communication is less threatening because it isn't formalized in writing. When the receiver prefers one-to-one contact.

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VISUAL COMMUNICATION

There's an old saying that "a picture is worth a thousand words." Life would indeed be difficult without paintings, photographs, diagrams, charts, drawings, and graphic symbols. These are some of the reasons why SHOWING is such an important form of communication. Most people understand things better when they have seen how they work. Involved, complex ideas can be presented clearly and quickly using visual aids. People retain information longer when it is presented to them visually. Visuals can be used to communicate to a wide range of people with differing backgrounds. Visuals are useful when trying to condense information into a short time period. Visual aids--used imaginatively and appropriately--will help your audience remember more. Consider the following: People think in terms of images, not words, so visuals help them retain and recall technical information. Visuals attract and hold the attention of observers. Visuals simplify technical information. Visuals may be useful in presenting technical information to a nontechnical audience.

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WRITTEN COMMUNICATION

Written materials often bear the greatest burden for the communication of new ideas and procedures. Effective writing is the product of long hours of preparation, revision and organization. One book that follows its own rules is Strunk and White's Elements of Style, a short book which argues persuasively for clarity, accuracy, and brevity in the use of English. Its entire philosophy is contained in one paragraph: Vigorous writing is concise. A sentence should contain no unnecessary words, a paragraph no unnecessary sentences, for the same reasons that a drawing should have no unnecessary lines and a machine no unnecessary parts. This requires not that the writer make all his sentences short, or that he avoid all detail and treat his subjects only in outline, but that EVERY WORD TELL. Clear, vigorous writing is a product of clear, vigorous thinking. Clarity is born of discipline and imagination. Kirkpatrick gives the following guidelines for using written communication: Use Written Communication When: The sender wants a record for future references. The receiver will be referring to it later. The message is complex and requires study by the receiver.The message includes a step by step procedure. Oral communication is not possible because people are not in the same place at the same time. There are many receivers. Caution: the receivers must be interested in the subject and will put forth the time and effort to read and understand. It is cheaper. Caution: the same as above. A copy of the message should go to another person. The receiver prefers written.

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Advantages of Written Materials Highly technical topics can be presented using words and diagrams. Written material provides a permanent record that can be referred to from time to time or passed on to others. Written material can be duplicated in large quantities or distributed on the Internet relatively inexpensively. It is fairly easy to distribute written material to many people, but this practice is getting increasingly expensive and its effectiveness questionable. Written material is preferred when it is desirable to get the same information to a group of people. Written records and reports are sometimes useful in legal matters. Written material may be useful for documenting the success or progress of some project or activity.

Disadvantages of Written Material

People seldom take the time and effort to read technical materials. The preparation of written documents is time-consuming. Once prepared in large quantities, printed documents are difficult to change. Written material provides little feedback for the sender. Technical documents are often too long and complex for the majority of readers A portion of the population may not be able to read written material. Too much reliance on written material as a communication method may obscure the true needs of potential users.

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Conclusion
I conclude on my project topic is the BUSINESS COMMUNICATION that the business communication is important for each and every organization because the communication helps to people to convey their massage, how to communite eachother.

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