Particulars

Page No.

1. Introduction

01-02

2. An overview of Business Communication

02-10

2.1 Definition of Communication

02-03

2.2 Definition of Business Communication

03-04

2.3 The objectives of communication

05-06

2.4 The Communication Process

07-08

2.5 7Cs Effective Communication

08-10

3. Significant of Business Communication in Your Organization

10-15

3.1 Broad Categories of communication in an Organization

15-17

3.2 The role of effective business communication within and outside

the organization

17-19

3.3 Differentiate between formal and informal language

19

4. Conclusion

20

5. References

20

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1. Introduction: Communication used to promote a product, service, or organization;

relay information within the business; or deal with legal and similar issues. Business
Communication encompasses a variety of topics, including Marketing, Branding,
Customer relations, Consumer behavior, Advertising, public relations, Corporate
communication, Community engagement, Research " Measurement, Reputation
management, Interpersonal communication, employee engagement, online
communication, and $vent management. It is closely related to the fields of professional
communication and technical communication. Business is conducted through various
channels of communication, including the internet, print publications', radio, television,
ambient media, outdoor, and word of mouth. Business Communication can also refer to
internal communication. A communications director will typically manage internal
communication and craft messages sent to employees. It is vital that internal
communications are managed properly because a poorly crafted or managed message
could foster distrust or hostility from employees.

The importance of communication can never be over-emphasized. Communication is

the lifeblood of all organizations. It is of vital importance to the well-being of a state, a
business enterprise, a religion and other social or cultural identities including the
family. The success of a business enterprise is directly proportional to the level of
communication maintained by it. In the new context of globalization and free trade,
organizations have to communicate cutting across national and cultural boundaries.
Unless effective skills of communication are used, an organization would run the risk of
getting insulated and fossilized. Modern techniques would not be available to them.
Within an organization, effective inter-personal relationships are possible only if
communication skills are cultivated. Today, Multi-nationals organize communication
courses for their employees irrespective of their positions. Effective communication
enhances the potential of the employees and acts as a motivating force for greater
efficiency and productivity.
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Good communication skills place an organization at the correct slot in the society. The
image of an organization depends on its ability to communicate with, the society
around it. Good communication promotes better understanding between the employer
and the employee. In this competitive environment, organizations vie with each other to
acquire an employee friendly image. Thus, communication skills help in establishing,
running, producing and marketing of products by commercial establishments. A
worker will not be able to turn out a good product and a customer will not buy a
product however good it is, until each is convinced to do so through effective
communication.

2. An overview of Business Communication:

2.1 Definition of Communication: The word communication has been derived from
the Latin word communis which means to share. Communication means sharing
ideas and information so as to create mutual understanding between people. It
involves giving and receiving of messages and messages may contain not only the fact,
but opinions and emotions too.
Communication is the process by which we exchange meanings, facts, ideas, opinions
or emotions with other people. It is an essential condition of our existence and the most
important activity of ours.
Communication is the nervous system of an organization. It keeps the members of the
organization informed about the internal and external happenings relevant to a task
and of interest to the organization. It co-ordinates the efforts of the members towards
achieving organizational objectives. It is the process of influencing the action of a person
or a group. It is a process of meaningful interaction among human beings to initiate,
execute, accomplish, or prevent certain actions. Communication is, thus, the life blood
of an organization. Without communication, an organization, an organization is lifeless
and its very existence is in danger.

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 Authorized Definitions:
1. Communication is the sum of all things, one person does when he wants to
create understanding in the minds of another, it involves a systematic and continuous
process of telling, listening and understanding. -------Allen Louis
2. Communication has been defined As the transfer of information from one
person to another whether or not it elicits confidence. -------Koontz and ODonell
3. Communication is an exchange of facts, ideas, opinions or emotions by two or more
persons. --------George Terry
4. Communication is defined as the process of passing information and understanding
from one person to another, it is essentially a bridge of meaning between people. By
using the bridge of meaning a person can safely cross the river of misunderstanding. --------Keith Davis
5. Communication is an exchange of ideas, facts, opinions or emotions by two or more
persons. -------- NEWMAN AND SUMMERS
6. Administrative communication is a process which involves the transmission and
accurate reception of ideas ensured by feedback for the purpose of eliciting actions
which will accomplish organizational goals. -------SCOTT
Communication means sharing ideas and information so as to create mutual
understanding between people. It involves giving and receiving of messages and
messages may contain not only the fact, but opinions and emotions too.
2.2 Definition of Business Communication:
Communication is defined as The flow of material information perception,
understanding and imagination among various parties.
Business includes those organizations, which are engaged in the production and
distribution of goods and services to earn profit.
Therefore Business communication means, Flow of information, perception etc. either
within a business organization or outside the organization among different parties.

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Business communication is nothing new but something special because it is a

specialized branch of general communication. Process, types, method etc. are the same
with those of general communication but the only difference lies in their application to
the situation. Business deals with a wide range of economic activities and therefore it
produces and sells for earning profit. And here we can define business communication
as a flow of information occurring within the environment with a specific formal
motive.

In a broad sense, business communication can be defined as:

The process of expressing any type of notice, instruction, request, recommendation,
perception, and the liking to a person or a number of person within the organization or
outside the Organization, with a view to information them of any business data,
decision instruction, objectives etc. and expecting feedback from the receivers to secure
action by the receiver.
It has been following characteristics-

a) It is a specialized branch of communication.

b) It deals with internal and external business environment and generally with formal
attitude.
c) It is focused to secure some action by receiver.
d) Simple, concise and to the point language is used to draw attention, developing
interest and include action.
Business Communication can be of two types:
1. Oral Communication - An oral communication can be formal or informal. Generally
business communication is a formal means of communication, like: meetings,
interviews, group discussion, speeches etc. An example of Informal business
communication would be - Grapevine.
2. Written Communication - Written means of business communication includes agenda, reports, manuals etc.

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2.3 The objectives of communication

The basic purpose of communication is to convey information and ideas in such a
manner that will produce a response as desired by the sender.
1. To give and receive information: An individual often communicates with other
individuals to give or receive information. In organization, the management uses
communication to keep the employees well informed about the goals, policies and rules.
When the employees are well informed about the various aspects of the jobs, they can
perform better. Meetings, notices, telephones, employee hand book and bulletins are
used to convey necessary information to employees.
Similarly, an organization communicates with outsiders (investors, customers,
suppliers, Government, Public) to provide them information about its plans and
contributions.
Managers require accurate and up-to-date information for formulating plans and
decision making. Such information may be collected from both internal (staff, sales and
production data, etc.) and external (government policy, market conditions, etc.)
2. To provide advice: Information tends to be factual and neutral whereas advice is
subjective and opinionated. Advice may be given on personal or official matters. In
business, superiors advice workers in handling machines and equipment in factory or
office. Manager needs specialized advice from experts in matters like taxation, project
finance, quality control, etc. Advice is most effective when given through face to face
contact. Advice should be given in a confidential and informal manner with the
purpose of helping the employee improve his performance. Tact and sympathetic tone
are help and the employee should not be made to feel inferior or guilty.
3. To provide counseling: Counseling is an organized and specialized activity requiring
professional expertise and an objective approach. Modern age is full of strains and
stress. When an employee is facing some personal or family problem his morale and
efficiency tends to be decline. The experts provide counseling sessions with employees
who require counseling and vocational guidance. Face-to face conversation with
counseling helps worker to improve their physical and mental health.
4. To issue orders and instructions: An order is a directive to do something whereas
instruction indicates how to carry out the order. Order involves assignment of task
while instructions specify the way the task is to perform. Orders and instructions are

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based on the supervisors authority and subordinates are expected to obey them. Order
and instructions may be oral or in writing.
5. To impart education and training: Education involves formal communication over a
long period so as to widen knowledge and skills. It consists of both teaching and
learning. Education and training of workers and executives is necessary to keep them
abreast of new developments to improve their efficiency and potential and for
orientation of new employees. Eg., lectures, case studies, seminars, AV aids etc.
6. To receive suggestion: Employees and customers are a useful source of new ideas
for business as they are in direct touch with operation and banking procedure.
Suggestions flow upward, as feedback and represent a mild and subtle form of
communication. Executives should set aside their ego and should have an open mind
towards constructive suggestions from the subordinates.
Under such a scheme,
suggestion boxes are installed at convenient places in the official/branch. Employees at
all levels are encouraged to put their written suggestion in these boxes. These
suggestions are scrutinized by a suggestion committee. Useful suggestions are
implements and employees who offered them are given awards.
7. To persuade people: Persuasion is the art of influencing the attitudes, opinions and
actions of people. Managers try to persuade workers to put their best efforts. Eg. Sales
person persuade customers to buy products and services. Persuasion requires the
ability to speak and write effectively.
8. To improve morale: Morale reflects he mental health of people. High morale is
necessary to improve efficiency and performance. Notice, bulletins and meeting are
used to prevent fears and rumors among the employees. Upward communication in
the forms of suggestions and grievances is used to raise morale. Attitude survey and
joint consultation may be used to judge employee morale.
9. To improve discipline: Rules and regulations are made known to employees
through written or oral communication. Actions taken to enforce discipline become
more acceptable to employees when the actions are properly explained
10. To seek information: a passer by asking you the way to the post office, the student
asking the teacher for some clarification or the investigating policeman making
enquiries for seeking information by using this communication skill.

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2.4 The Communication Process:

Communication is a process of exchanging verbal and nonverbal messages. It is a
continuous process. Pre-requisite of communication is a message. This message must be
conveyed through some medium to the recipient. It is essential that this message must
be understood by the recipient in same terms as intended by the sender. He must
respond within a time frame. Thus, communication is a two way process and is
incomplete without a feedback from the recipient to the sender on how well the
message is understood by him.

1. Context - Communication is affected by the context in which it takes place. This

context may be physical, social, chronological or cultural. Every communication
proceeds with context. The sender chooses the message to communicate within a
context.
2. Sender / Encoder - Sender / Encoder is a person who sends the message. A sender
makes use of symbols (words or graphic or visual aids) to convey the message and
produce the required response. For instance - a training manager conducting training
for new batch of employees. Sender may be an individual or a group or an organization.
The views, background, approach, skills, competencies, and knowledge of the sender
have a great impact on the message. The verbal and non-verbal symbols chosen are
essential in ascertaining interpretation of the message by the recipient in the same terms
as intended by the sender.
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3. Message - Message is a key idea that the sender wants to communicate. It is a sign
that elicits the response of recipient. Communication process begins with deciding
about the message to be conveyed. It must be ensured that the main objective of the
message is clear.
4. Medium - Medium is a means used to exchange / transmit the message. The sender
must choose an appropriate medium for transmitting the message else the message
might not be conveyed to the desired recipients. The choice of appropriate medium of
communication is essential for making the message effective and correctly interpreted
by the recipient. This choice of communication medium varies depending upon the
features of communication. For instance - Written medium is chosen when a message
has to be conveyed to a small group of people, while an oral medium is chosen when
spontaneous feedback is required from the recipient as misunderstandings are cleared
then and there.
5. Recipient / Decoder - Recipient / Decoder is a person for whom the message is
intended / aimed / targeted. The degree to which the decoder understands the message
is dependent upon various factors such as knowledge of recipient, their responsiveness
to the message, and the reliance of encoder on decoder.
Feedback - Feedback is the main component of communication process as it permits the
sender to analyze the efficacy of the message. It helps the sender in confirming the
correct interpretation of message by the decoder. Feedback may be verbal (through
words) or non-verbal (in form of smiles, sighs, etc.). It may take written form also in
form of memos, reports, etc.
2.5 7Cs Effective Communication:

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There are 7 Cs of effective communication which are applicable to both written as well
as oral communication. These are as follows:
1. Completeness - The communication must be complete. It must be full of facts, figures
and pictures to convey an appropriate message based on the receivers mindset.
Important features include:
Strategic cost saving approach due to completeness of all the necessary
information in corporate business
Completeness of the data leaves no doubt in the audience/ receivers/ readers
mind as all the desired crucial information is received
Helps to be in a much better decision-making position
2. Conciseness - Conciseness means wordiness, direct or to the point. It has following
features:
A very comprehensive approach which makes it more appealing to the crowd or
the audience.
A more time-saving and economic path
Usage of short and limited verbiage underlining key elements by being nonrepetitive
3. Consideration - Consideration means stepping into the shoes of others. Modify
your words in message to suit the audiences needs while making your message
complete. Features of considerate communication are as follows:
Being Empathetic is necessary to stimulate positive reaction from your listeners
Showing optimism and stressing on positive words to influence the audience
Modification of words to suit your listeners/ customers/ readers needs
4. Clarity - Clarity emphasizes on a specific message or goal at a time, rather than
looking at the overall scenario. Clarity in communication has following features:
Clear understanding
Increased grasping power and clarity of thoughts enhancing the meaning of
message.
5. Concreteness - Concrete communication implies strengthening your confidence by
being particular rather than general. Concrete message has following features:
It is supported with specific facts and figures.
A vivid, definite message rather than being vague, obscure makes up for a good
reputation
It reinforces confidence
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6. Courtesy - Courtesy in message implies empathetic message along with respect for
the receiver. Courteous message has following features:
Consideration of viewpoints by being sincerely polite, judicious, reflective and
enthusiastic
It is an unbiased, positive and customer centric message
Courtesy builds goodwill and strengthens relations
7. Correctness - Correctness in communication includes no grammatical errors in
communication. Correct communication has following features:
The message is exact, correct and well-timed.
Correct information boosts up the confidence level.

3. Significant of Business Communication in Your Organization

Effective Communication is significant for managers in the organizations so as to
perform the basic functions of management, i.e., Planning, Organizing, Leading and
Controlling. Communication helps managers to perform their jobs and responsibilities.
Communication serves as a foundation for planning. All the essential information must
be communicated to the managers who in-turn must communicate the plans so as to
implement them. Organizing also requires effective communication with others about
their job task. Similarly leaders as managers must communicate effectively with their
subordinates so as to achieve the team goals. Controlling is not possible without written
and oral communication.

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Managers devote a great part of their time in communication. They generally devote
approximately 6 hours per day in communicating. They spend great time on face to face
or telephonic communication with their superiors, subordinates, colleagues, customers
or suppliers. Managers also use Written Communication in form of letters, reports or
memos wherever oral communication is not feasible. Thus, we can say that effective
communication is a building block of successful organizations. In other words,
communication acts as organizational blood.
The significance of communication in an Organization are given below_
Smooth Working of a Business Firm: Communication is necessary for the
successful smooth and unrestricted working of an enterprise. All organizational
interaction depends upon working of an enterprise. All organizational
interaction depends upon communication. The manager co-ordinates the human
and the physical elements of an organization into an efficient and working unit
that achieves common objectives. Be it an activity of purchase or sale or
production or finance it is the process of communication that makes cooperative
action possible. The internal and external communication process of an
organization decides the various activities to be done and various
objectives to be achieved. Communication is basic to an organizations
existence from birth of the organization through its continuing life when
communication stops, organized activity ceases to exist.
Basis of Managerial Function: Communication plays an important role in
discharging the various functions of management. No function of
management is possible without the communication process. Its importance in
performing the various functions is as follows:
i. Planning: Planning the most important among the functions of
management, requires extensive communication among the executives
and the other personnel. Communication is important in executing a
planned programme and then controlling the activities of the personnel
with the help of feedback information.
ii. Organization: Organization is the second important function of
management which decides the various activities of an organization,
divides them into workable units, delegates authority to perform the.
For this purpose, communication is a must because different persons,
departments and group come to know their powers and jurisdiction only
through an effective means of communication.
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iii. Direction and Leadership: Direction and effective leadership requires

an efficient system of communication in an organization. A good leader
can direct or lead his subordinates only when an efficient system of
communication is present. It brings both the leader and the subordinates
in close contact with each other and removes misunderstanding if any.
iv. Motivation: An efficient
system of communication enables
management to change the attitude of the subordinates and to
motivate, influence and satisfy them. Most of the conflicts in business
are not basic but are caused by misunderstood motives and ignorance of
facts. Proper and timely communication between the interested parties
reduces the points of friction and minimizes those that inevitably arise.
v. Co-ordination: The present day big organizations, designed on the
basis of specialization and division of labor are constituted of a large
number of people. In order to achieve the desired objective, it is very
necessary to co-ordinate the efforts of labor engaged in the various
activities of production and the organization. Co-ordination requires
mutual understanding about the organizational goals and the mode of
their accomplishment; and the interrelationship between the works being
performed by various individuals.

vi. Control: Communication aids in controlling the activities of the

individuals department and groups. The facts standards and information
are communicated to the concerned parties and they perform their
respective obligations according to the standards set forth in the plan.
Maximum Production at Minimum Cost: Every organization aims at getting the
maximum output at the minimum cost and for this purpose it requires an
effective internal and external communication system. In the external field, and
efficient communication system helps in improving public opinion having
contacts with government departments and getting market information in order
to achieve the primary goals.
Prompt Decision and its Implementation: In order to make prompt decisions,
fact collecting process is necessary. Information must be received before any
meaningful decision and for this purpose communication is a primary
requirement. Again to implement the decision effectively its communication to
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subordinates concerned is essential. Thus, decision-making

implementation require and effective system of communication.

and

its

Building Human Relations: Man is the most active and effective factor of
production and good human relations are the basis of cooperation and
industrial peace that requires good working conditions and work
environment. As we have discussed earlier communication is a two-way
traffic which helps promote cooperation and mutual understanding between
the two partners of an organization. Efficient downward communication
helps the management to tell the subordinates what the organization wants
and how it can be performed. On the other hand upward communication helps
the workers in putting their grievances and suggestions and reactions to the
policies, before the management.

Job-satisfaction and Good Morale: Morale is the human element that

motivates a man to work in the right spirit. Good communication removes
the possibility of misunderstanding among the parties concerned. Workers know
what they have to do and how it creates a sense of cooperation among them. It
increases the morale of the workers and each worker will have job satisfaction.
Avoids Illusion: While passing through various stages information may be
distorted by interested parties and many create illusion and misunderstanding
among persons. Illusion is the great enemy of communication. An efficient
system of communication aims at removing illusions and misunderstanding
by communicating facts and figures.
Contacts with External Parties: Communication is essential not only for the
internal management of the organization but it also helps contacts with the
outside world. Contact with outside agencies such as customers, associations,
other manufacturers, advertisers, suppliers, trade unions, research councils
and institutions, etc. are necessary for furthering the interests of the
organization. It increases the goodwill of the firm and helps in creating a
favorable public attitude towards the organization.
Basis of effective leadership: Communication transmits the leaders idea and
opinions to the followers. Think about political leaders who lead and guide the
people for the betterment of the society or to fulfill any specific purpose.

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 Basis for the movement of ideas and information: It helps to move ideas and
information from one person to another person. It can develop a chain of
understanding through two-way communication. If there exists no
communication media, technique or process then there would be no sharing of
any idea or information.
Provision for data for decision making: it helps the manager to obtain data for
decision making, to assist in searching problem, and to know what action are
needed. Therefore, communication acts like a storehouse where data, idea or
information are available to deal with.
Smooth and efficient functioning: It helps in all managerial function, such as
planning, organizing, directing, motivating and controlling. It serves as a fuel to
managerial operation and function. Therefore, it makes a chain between past,
present and future and helps for effective performance.
Delegation of authority and responsibility: It helps in decentralization of
authority and delegation of responsibility to right person. Through downward
communication, superior delegates authority and responsibility to the
subordinates. Proper assignment of job and division labor calls for better output.
Increase in managerial competence: It helps to improve managerial competence
and efficiency. Manager use various techniques or tools to command or control
over resources. Continues tracking is possible in terms of communication.
Minimization of cost and time: Efficient communication attempts to minimize
time and cost in case of exchange of information. If any message is required to be
communicated to thousands of people then we have to think about Newspaper,
Television, or Radio which are strong media for communicating any message
around the globe.
Basis information: It acts as a basis of information to each department and helps
the employees to perform their respective jobs. So, any action to be taken
requires a basis and communication between organizations or within
organization provides such basis.
Fulfillment of Organizational objectives: It fulfills the organizational objectives
by co-operation and co-ordination among the managerial and working staffs.
Efficient Human Resources Management: Human resources are recruited,
trained and motivated through effective communication. Recruitment involves
circular by the organization towards general people. Then interested candidates
apply and on the basis of their merit, they are recruited by the respective
organization and transformation according to their skillfulness. The whole
activities involve verbal or non-verbal communication.

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 Creation of Employee motivation and moral: Managers provide incentives to

motivate their subordinates and maintain strong invisible chain. Motivation is
based on situation and therefore what should be the way of motivation required
judgment by the superior. The perfect motivation towards right person involves
effective communication.
Establishment of public Relation: The management can create cordial relations
with govt. customers, creditors, shareholders, regulatory bodies, trade unions
and the society as a whole. It ensures sound relation.
Communication is one of the most important facilitators of modern business. In its
broadest sense, the importance of modern business is to effect change, to influence,
action toward the welfare of the organization. It is essential in business, govt., military
organizations, hospitals, schools, committees homes; anywhere people deal with one
another.
3.1 Broad Categories of communication in an Organization
Communication on the basis of organization structure may be classified into two broad
categories: Formal and Informal.
1. Formal Communication
Formal communication is closely associated with a formal organizational structure. The
communication flows through formal channels, officially recognized positions along the
line in the organization. In the organization the path along which a communication is to
travel is deliberately created to regulate the flows of communication so as to make it
orderly and thereby to ensure that the required information flows smoothly, accurately
and timely to the points at which it is required. Very often we hear the term through
proper channels which means communication through the channel prescribed in the
organization. It is the path of the line of authority linking two positions in the
organization. It is also known as the chain line of command.
Advantages of formal Communication:
(i). It helps in maintaining the authority of line executives over their subordinates who
are responsible to get the work done by their subordinates and are answerable to their
bosses. The responsibility of the subordinates for the activities carried out by them can
easily be fixed.
(ii). An immediate superior has direct contact with the subordinates; so, a better
understanding is developed between them and communication is made more effective.
(iii). Since an executive better informed about the organization and its problems
than the subordinates a better solution can possibly be found easily and good relations
between the leader and his subordinates develop.
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Disadvantages of formal Communication:

(i). Every happening in an organization cannot be foreseen; hence action required for
unforeseen events cannot be formalized.
(ii). It increases the workload of the line superior because all communications are
transmitted through tem. Thus, it leaves the superiors with little time to perform other
organizational functions well.
(iii). There are more chances of red-tapism and delay tactics in this method because
executives generally overlook the interests of the subordinates. Any information
upward or downward favoring subordinates is more often suppressed or delayed by
the superiors.
(iv). In most of the big organizations contact between the top executive and the
subordinates at the lowest level are far remote. Very often they do not recognize each
other. This adversely affects the relations of executives and subordinates.
2. Informal Communication
Informal communication also known as the grapevine is not a planned or deliberately
created channel of communication. It is free from all formalities. No formal
organizational chart is followed to convey messages. It is based on the informal
relations of the two persons, the sender and the receiver of communication. A general
manager may develop contacts with a worker at the lowest level and communicate
certain important information relating to him direct to the worker. It is an example of
informal communication. It is the result of the natural desire of people to
communicate with each other when they come into contact on a regular basis. When
interaction takes place among them a small social groups emerges spontaneously and
members of the group develop their own communication system known as an informal
communication channel or the grapevine.
Advantages of informal communication:
(i). The communication travels at a faster speed because there is no formal line of
communication.
(ii). It is multi-dimensional. As there is no channel of communication, communication
may be made on any topic of interest to any person in the group irrespective of his
position in the formal organization. It may go to any extent all limits as to direction
and degree of communication is self-impose.
(iii). It is dynamic and reacts quickly because informal channels have their sanctions in
the group and develop within the organization.

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(iv). At times it may supplement the formal channel. Certain matters which are difficult
to communicate through formal channels may be effectively communicated through
informal channels. If properly utilized it may clarify the managements points of
view to the subordinates which otherwise may not be appealing or it may provide
necessary feedback to managers on the possible effects of a decision or action of the
management.
Disadvantages of informal communication:
(i). It very often carries half-truths, rumors and distorted facts at an alarming rate of
speed. As there is no mechanism for authentication of the news and views, members of
the organization are likely to be misinformed and misled by informal communications.
(ii). Sometimes the messages communicated through informal channels are so erratic
that any action based on these cannot be taken and if taken it may lead to a difficult
situation in the organization because responsibility for erratic messages cannot be fixed.
(iii). In informal communication, there are greater chances of distortion of messages.
Each person conveying the message may add, subtract, or change the original message
according to his motive or interest. There is a chance that by the time a message
completes its complex journey, it may be completely distorted.
3.2 The role of effective business communication within and outside the
organization:
A business Organization is a group of people associated to earn profit. Various kinds of
activities have to be performed by the people of an organization so as to earn profit.
These activities need an effective and systematic communication. Without efficient
communication, one cannot even imagine to do work and hence will be unable to earn
profit. Since the aim of business organization is to earn profit, the organization will die
without profit and this death is a result of the absence of communication. This is why
communication is called life blood of a business organization. We can prove this
statement in the following manner.
Communication inside an Organization:
Different employees and officials in an organization need to communicate to each other.
This internal communication with its importance is shown in the following way:
1. Setting goals and Objectives:Mostly, the organizations have a variety of formal and informal objectives to
accomplish. These objectives may be financial results, product quality, market
dominance, employees satisfaction, or service to customers. So the communication
enables all the persons in an organization to work towards a common purpose.
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2. Making and Implementing decision:In order to achieve the objective, people in a business organization collect facts
and evaluate alternatives, and they do so by reading, asking questions, talking or by
plain thinking. These thoughts are put into a written form. Once a decision has been
made, it has to be implemented which requires communication.
3. Appraisal:Having implemented the decision, management needs to determine whether the
desired outcome is being achieved. Statistics on such factors as cost, sales, market share,
productivity and inventory levels are compiled. This is done through computers,
manual papers, memos or reports.
4. Manufacturing the products:Getting an idea for a new product out of someones head, pushing it through the
production process and finally getting the product also require communication.
Designing the plan regarding product, introducing the workers, purchasing raw
material, marketing and distributing the product all require effective communication.
5. Interaction between employer & employee:Employees are informed about policies and decisions of employers through
circulars, reports, notices etc. Employers also get in touch with employees through
application, complaint etc. So, communication plays a vital role in the interaction of
employer and employee.
External Communication:
1. Hiring the employees:If a company wants to hire someone, it advertises the vacancy, receives applications,
calls the candidates, takes the interview and then offers job to the successful candidates.
The whole process requires communication.
2. Dealing with customers:Sales letters and brochures, advertisements, personal sales calls, and formal proposals
are all used to stimulate the customers interest. Communication also plays a part in
such customer related functions as credit checking, billing, and handling complaints
and questions.

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3. Negotiating with suppliers and financiers:To obtain necessary supplies and services, companies develop written specification that
outlines their requirement. Similarly, to arrange finance, they negotiate with lenders
and fill out loan applications.
4. Informing the investors:Balance sheet, income statement, and ratio analysis are used to inform the
investors regarding performance of business.
5. Interacting with Govt.:Government agencies make certain rules to regulate the economy. These rules are
communicated to organizations through various papers. These organizations try to
fulfill, these requirement like filling taxation form and other documents.
3.3 Differentiate between formal and informal language
Formal language:
(1) It is the language spoken in
office, business and other formal
places.
(2) Proper and standard words are
used.
(3) It consists of specific purpose
words like manager, supervisor,
owner, employer etc.
(4) It is used comparatively less
than informal language.
(5) It is used when the speaker is
relaxed.

Informal Language:
(1) It is the language spoken at home
or with friends.
(2) Improper words and slangs are used.
(3) It has all purpose words like boss
that stands for various personalities.
(4) It is used in daily life.
(5) It is used when speaker is in a hurry/

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4. Conclusion:
Actions speak louder than words. The words we choose to communicate hold the key,
especially in a culturally diverse environment. According to the findings, effective
communication is extensively dependent 80% on non-verbal communication and a mere
20% on verbal communication. Communication has evolved from being one-on-one
between people in todays technologically advanced world to social Medias like
Facebook, Twitter, MySpace, etc. where we are communicating with thousands of
people simultaneously all across the globe. A key to success lies in breaking all
communication and cultural barriers in order to convey various messages in the form of
music, painting, dance forms, poster presentations, rallies, flash mobs, etc. Its equally
important even in corporate meetings to be presentable and understandable.
Future of communication is already and will continue to be heavily dependent on
advanced communication technologies all across the globe.

5. References:
1. Davis, Keith and Newstrom, John W. (2006). Organizational Behavior: Human
2. Behavior at Work 11th edition.
3. Ali, M. Omar (2003). Business Communication: Theory and Application 2nd
edition.
4. Business Communication by K. K. Sinha. Galgotia Publishing Company., New
Delhi.
5. Business Communication by C. C. Pattensheti. R. Chand and Company
Publishers, New Delhi.
6. Essentials of Business Communication by Rajindra Pal and J. S. Korlahalli. Sultan
Chand and Sons., New Delhi.
7. Effective Business Communication by Herta A. Murphy and Charrles E. Peck.
Tata McGraw Hill Publishing Company Limited, New Delhi.
8. Essentials of Business Communication by Pettett and Lesikar. Tata McGraw Hill
Publishing Company Limited, New Delhi.
9. Business Communication by Pettett and Lesikar. Tata McGraw Hill Publishing
Company Limited, New Delhi.
10. http://en.wikipedia.org/wiki/Communication
11. http://www.effective-communication.net/
12. http://notesdesk.com/notes/business-communications/the-seven-cs-of-effectivebusiness- communication/
13. http://www.managementstudyguide.com/seven-cs-of-effectivecommunication.htm

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