Business Communication

Business Communication
&
Managerial Skills
Hindol Chakraborty
Department of English
SRM University Sikkim
Introduction
• Business communication skills are critical to

the success of any organization despite its size,
geographical location, and its mission.
Business communication is interlinked with
internal culture and external image of any
organization. So it is the determining factor to
communication inside the organization.
• Good Business communication practices assist the
organization in achieving its goal of informing,
persuading, favorable relationship, and
organizational goodwill. Organizations can only
survive if they accept the rapidly changing global
challenges and the communication processes are
structured and delivered. The present workforce is
dynamic in nature so communication is a challenge
when executed against the backdrop of culture,
technology and competition. The success of any
business to a large extent depends on efficient and
effective communication.
• 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.
Types
• Internal
• External
Internal
 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: Memos, reports, office order, circular,
fax, video conferencing, meeting etc.
External
• When people in the organization
communicate with anyone outside the
organization it is called external
communication.
• Modes: Communicating with clients or
customers, dealers or distributors, media,
government, general public etc.
Communication in Business
• Communication is neither transmission of

message nor message itself. It is the mutual
exchange of understanding, originating with
the receiver. Communication needs to be
effective in business. Communication is
essence of management. The basic functions
of management cannot be performed well
without effective communication.
• Business Communication is goal oriented. The
rules, regulations and policies of a company have
to be communicated to people within and outside
the organization. Business Communication is
regulated by certain rules and norms. In early
times, business communication was limited to
paper-work, telephone calls etc. But now with
advent of technology, we have cell phones, video
conferencing, emails, satellite communication to
support business communication. Effective
business communication helps in building
goodwill of an organization.
Factors
• Planning
• Organizing
• Staffing
• Directing
• Controlling
Purpose Of Communication
• For instruction
• For integration
• For information
• For evaluation
• For direction
• For teaching
• For influencing
• For image building
• For employees orientation
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.
For Integration
• It is consolidated function under which
integration of activities is endeavoured. The
integration function of communication mainly
involves to bring about inter-relationship
among the various functions of the business
organization. It helps in the unification of
different management functions.
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.
For Evaluation
• Examination of activities to form an idea or
judgment 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
one’s own inputs or other’s outputs or some
ideological scheme demands an adequate and
effective communication process.
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.
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.
For Influencing
• 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.
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.
For Employee Orientations
• 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.
Dimensions of Communication
5-Dimensions
In an organization, communication flows in 5
main directions-
• 1. Downward
• 2. Upward
• 3. Horizontal /Lateral
• 4. Diagonal
• 5. Grapevine Communication
Downward
• Communication that flows from a higher level in an
organization to a lower level is a downward
communication. In other words, communication from
superiors to subordinates in a chain of command is a
downward communication. This communication flow
is used by the managers to transmit work-related
information to the employees at lower levels.
Employees require this information for performing
their jobs and for meeting the expectations of their
managers.
Purposes
• Providing feedback on employees’ performance.

• Giving job instructions.
• Providing a complete understanding of the
employees’ job as well as to communicate them how
their job is related to other jobs in the organization.
• Communicating the organizations mission and vision
to the employees.
• Highlighting the areas of attention.
Upward
 Communication that flows to a higher level in
an organization is called upward
communication. It provides feedback on how
well the organization is functioning. The
subordinates use upward communication to
convey their problems and performances to
their superiors.
Horizontal
• Communication that takes place at same

levels of hierarchy in an organization is called
lateral communication, i.e., communication
between peers, between managers at same
levels or between any horizontally equivalent
organizational member.
Advantages
• It is time saving.
• It facilitates co-ordination of the task.
• It facilitates co-operation among team members.
• It provides emotional and social assistance to the
organizational members.
• It helps in solving various organizational problems.
• It is a means of information sharing.
• It can also be used for resolving conflicts of a department
with other department or conflicts within a department.
Diagonal
• Communication that takes place between a manager

and employees of other workgroups is called diagonal
communication. It generally does not appear on
organizational chart. For instance - To design a training
module a training manager interacts with an Operations
personnel to enquire about the way they perform their
task. The Accounts people of an organization visiting
different employees in various departments for their IT
calculation, bonus for workers etc. fall under diagonal
communication.
Grapevine Communication
• Grapevine is an informal channel of business
communication. It is called so because it stretches
throughout the organization in all directions
irrespective of the authority levels. Man as we know is
a social animal. Despite existence of formal channels in
an organization, the informal channels tend to develop
when he interacts with other people in organization. It
exists more at lower levels of organization. Grapevine
generally develops due to various reasons. One of them
is that when an organization is facing recession, the
employees sense uncertainty.
Examples
• Suppose the profit amount of a company is

known. Rumour is spread that this much profit
is there and on that basis bonus is declared.
• CEO may be in a bitter relation with the
Production Manager. They may have friendly
relations with each other.
Advantages
• Grapevine channels carry information rapidly. As soon as an

employee gets to know some confidential information, he
becomes inquisitive and passes the details then to his closest
friend who in turn passes it to other. Thus, it spreads hastily.
• The managers get to know the reactions of their subordinates
on their policies. Thus, the feedback obtained is quick
compared to formal channel of communication.
• The grapevine creates a sense of unity among the employees
who share and discuss their views with each other. Thus,
grapevine helps in developing group cohesiveness.
• The grapevine serves as an emotional supportive value.
• The grapevine is a supplement in those cases where formal
communication does not work.
Disadvantages
• The grapevine carries partial information at times as it is more

based on rumours. Thus, it does not clearly depicts the complete
state of affairs.
• The grapevine is not trustworthy always as it does not follows
official path of communication and is spread more by gossips and
unconfirmed report.
• The productivity of employees may be hampered as they spend
more time talking rather than working.
• The grapevine leads to making hostility against the executives.
• The grapevine may hamper the goodwill of the organization as it
may carry false negative information about the high level people of
the organization.
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Business Communication

• Business communication skills are critical to

 When people within the organization

• Communication is neither transmission of

• Providing feedback on employees’ performance.

• Communication that takes place at same

• Communication that takes place between a manager

• Suppose the profit amount of a company is

• Grapevine channels carry information rapidly. As soon as an

• The grapevine carries partial information at times as it is more

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