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Lesson: 1

Business Communication – Introduction

Communication touches us throughout our lives
from beginning to the end
It has affect on our personal, family, and social
It is necessary in our professional life
Business requires communication at every step
of decision making
Marketers need to rely heavily on
What is communication?

• Communication is the giving and receiving of

feedback between individuals and/or groups for
the purpose of exchanging information
• Communication is the transfer or transmission
of some information and understanding from
one person to another. L. J. Kazmier
• It is a process of transmitting information,
thoughts, opinions, messages, facts, ideas or
emotions and understanding from one person,
place or thing to another person, place or thing.
Dr. C. B. Memoria
What is Business Communication?

• Business communication is the giving and

receiving of feedback between individuals
and/or groups for the purpose of exchanging
information and altering or enhancing
• The exchange of ideas, news and views in
connection with the business among the
related parties is called business
communication. W.H. Meaning
Importance of communication

• Communication is important because it is

about how information is sent and received
within firms
• Everything a manager does involve
• Effective communication skills can help
manager solve problems easily.
Purpose of Business Communication

• To provide factual information

• To inform readers about information
• To clarify and condense information
• To state precise responsibilities
• To persuade and make recommendations
Why study Business Communication?

• 2 reasons:
• To benefit you (Student)
• To benefit business and industry
a. Benefit to students
• In a Harvard Business Review article, Peter Drucker,
business consultant and educator, asks what is taught
in universities to help a person in future employment
and then gives this answer:
• They teach one thing that is perhaps the most
valuable for the future employee to know.
• But very few students bother to learn it.
• This one basic skill is the ability to organize and
express ideas in writing and in speaking …. The letter,
the report or memorandum, the ten minutes
presentation to committee are basic tools for
a. Benefit to students, contd..
• 2000 business executives from all levels of
management supported this statement when asked
which factors lead to promotion of employees.
• These people listed ability to communicate as the
most important factor.

• Information from other sources also supports this

• A survey of former university business students asked
if they had observed people having problems in
written communication in their work.
• The response: “77 yes”, 14 percent “no”.
b. Benefit to business

• Training costs are reduced: firms offer their

own course or pay employees’ tuition for
classes in the subject.
• A student who has already studied university
level courses in business communication will
have a potential employment advantage over
those who have not, and eventually should
have a better chance of promotion.
b. Benefit to business, contd..

• Considering employees for promotion becomes

• Most important skill required from employees is
communication skill.
• 25% of executive’s time is spent in writing
• As it is the age of specialization, it requires
knowledge of effective/sophisticated
communication skills.
b. Benefit to business, contd..
• From industrial age we are heading towards
information age: computer technology is now heavily
• Business letters, memorandums, and reports will join
books, newspapers, movies, TV, music, telephones
and so forth, forming small or giant networks.
• Networks can connect and interact locally or
internationally on signal.
• Workers can send computer data, hold video
conferences at their desktop, send copies, graphs,
pictures even transfer funds.
b. Benefit to business, contd..

• What next?
• Fiber optics telephone lines with high clarity and
reliability have replaced copper wire for sending
information all over the world.
• Pocket sized computer with the power of current
desktop personal computers will be hooked up to
phones, bringing your office with you anywhere you
• Voice activated computers should once again free
both hands for driving while still making it possible to
communicate from your car.
b. Benefit to business, contd..
• Business communication classes = Prestige Courses:
• Good language skills are no longer sufficient for success in
• Graduating seniors need to know how to use computers to solve
communication problems.
• As employers continue to demand that employees write better,
business communication classes have become prestige courses on
the job market.
• It is a plus on any employment resume.
• If you can write clearly in an organized manner, your work will stand
out because of the obvious general lack of such talent.
• Organized writing means organized thinking.
Channels/Methods of
• To learn to communicate effectively, it is
helpful to understand something about the
various communication methods or channels
and also the ideas behind the communication
Types of Communication channels

• Nonverbal
• Oral
• Written
• Combination of oral and written
• Newer channels
Nonverbal communication
• Nonverbal communication – that is, communication
without words – is frequently more effective than any
spoken or written message.
• The word verb originally meant word; therefore
nonverbal means without word.
• It includes:
• a. Traffic light;
• b. road pictographs;
• c. police and fire sirens;
• d. telephone ring;
• e. telephone busy signals; etc.
Nonverbal communication Channel,
• One extremely effective means of nonverbal communication is the use of body
language, scientifically known as kinesics.
• Some forms of kinesics are:
• i. Nodding or shaking head,
• ii. Raising eyebrows,
• iii. Pointing thumbs,
• iv. Raising fist,
• v. winking,
• vi. smiling,
• vii. Frowning,
• viii. Glaring,
• ix. Kissing,
• x. clapping,
• xi. Shaking hands etc.
• Body language can often transmit a stronger message than verbal language.
Oral communication - advantages
• The advantage is that:
• it furnishes an opportunity for a speedy and
complete exchange of ideas – in other words,
immediate feedback.
• It gives an opportunity to clarify any matters
that may be questionable
Oral communication, contd..
• The first highest level of oral communication
is speaking in person, face to face.
• Because we can see all signs of body
• We can also hear another person speak, we
can get additional information from noticing
vocal cues of tone, loudness, pronunciation,
emphasis, grammar usage, an so forth.
Oral communication, contd..
• Telephoning is the second level oral
communication channel.
• It is not always completely effective as face
to face because of the absence of body
• But it can give immediate feedback.
• It is also convenient from time and cost point
of views.
Written Communication
• Written Communication: it includes letters,
memorandums, reports etc.
Advantages of Written
It has couple of advantages such as:
• Both hard and soft copies can be kept.
• Saves time and money
• Having a written record
• Working when convenient to writer and
• Preventing telephone tag
Combination or oral and written
• Participants might remember or forget different parts
of the spoken message.
• Some written messages are unclear and completely

• Therefore, a combination of oral and written message

channels, combining advantages of both can be
extremely effective to help clarify the information
• Notes written before, during and/or after interviews,
speeches, conferences, telephone calls, and so on can
refresh memories of participants.
Newer communication channels
• Speed and efficiency of computers and word
processors enable more managers and higher
executives to compose communications at
their desks, freeing secretaries for tasks other
than dictation.
• Computer + Telephone: by combining the
electronic power of the computer with the
convenience of telephone, many different
channels of communication develop.
Some newer communication
• Electronic mail sends and receives printed words and
pictures through computers having internet connection.
• Electronic chatting permits live printed conversation
between persons operating computer at different locations.
• When wanted, a hard copy printout can be made.
• Voice mailboxes store spoken messages that can be
retrieved on another phone by furnishing the right code.
• Electronic bulletin boards hold diverse types of
messages that can be called up by using a computer, a
code, and phone lines. There are electronic bulletin board
want ad.
Some newer communication
channels, contd..
• Conference telephone calls connect any number of people at diverse
• Teleconference combine two-way video with sound, allowing widely separated
individuals or groups to see and hear each other.
• Multiple mailing by mail merge: applying mail merge is an example of
using electronic equipment to save time and money.
• By using mail merge, a main letter is composed that can be sent to many readers.
• Fax machines have become indispensable in traditional and home offices.
• Over telephone lines they can send and receive letters, memos, reports, graphics,
hand written or scribbled notes and diagrams, photos etc.
• Face book, twitter, Skype, Instagram, Foursquare, YouTube,
Whatsapp, Viber, Flickr, LinkedIn Groups and Vimeo accounts etc.
The Communication Theory
• Studying communication theory helps us to
improve our methods of communication.
• This helps us to formulate and send messages
that are complete and clear.
The Cycle of Communication
• The cycle of Communication is the
communication theory in action.
• It shows the ideas of the sender being
transmitted to the receiver, with the receiver’s
resulting feedback or reaction to the message.
Communication Cycle
Steps of the communication cycle

• 1. Input; 2. Message; 3. Channel; 4. Output; 5.

• 1. Input: information or ideas sender plans to give
• 2. Channel: the selected type of message: letter,
memorandum, e-mail, report, telephone call,
conference, etc.
• 3. Message: the actual message that is sent.
• 4. Output: information the receiver gets.
• 5. Feedback: receiver’s response or nonresponse to
the message.
Brain drain or Entropy
• Improper feedback can occur at any step in
the communication process because of
message being sent or received poorly.
• This lack of understanding is called entropy
by scientists.
• This is also known as brain drain.
• It indicates misunderstanding which can
occur at any stage of communication process:
input, selection of channel, preparation of
message, output, or feedback.
Closing the Loop of
• Proper feedback of information from receiver
to sender is called “closing the loop” of
Reasons for Brain Drain

• Improper formulation of the message in the

mind of the sender.
• Improper statement of the information in the
• Improper reception of the information by the
Communication Barriers that Damage or Destroy the
Receiver’s Understanding

• Even when the message is planned and prepared

well, it may not be received and understood
• Poor understanding might be caused by barriers
that can exist between the parties sending and
Some of such barriers are

• Emotional status – pressure of receiver’s job and

personal life
• Differences in age between sender and receivers
• Differences in cultural background between sender
and receivers
• Differences in gender between sender and receivers
• Differences in economic status between sender and
• Differences in education between sender and
• Time pressure on the receiver
Functions/uses of Business Communication

• Internal uses/functions:
• To inform management about operations to enable the business to continue
• To inform workers of job requirements
• To improve morale by keeping employees informed of overall business
operations and personal matters
• External uses/functions
• To receive goods and services
• To sell goods and services
• To make necessary reports to owners/stockholders
• To make necessary reports to government
• To create and maintain goodwill for business