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BUSINESS COMMUNICATION BBKN3103 TABLE OF CONTENTS Page 1.0 INTRODUCTION 2.0 MAIN FORMS OF COMMUNICATION IN BUSINESS 2.1 Internal-operational communication 2.2 External-operational communication 2.3 Informal Outside Communication 2.4 Personal Communication 3.0 INFORMATION NETWORK IN BUSINESS COMMUNICATION 3.1 Formal Communication Network 3.1.1 Downward Communication Flow 3.1.2 Upward Communication Flow 3.1.3 Horizontal Communication Flow 3.2 Informal Communication Network 5 3 4 5 5 3

4.0 CHARACTERISTIC & ELEMENTS OF GROUPS 4.1 4.2 4.3 Group Membership Group Size Group Goal, Structure & Climate

5.0 FUNCTION OF GROUP DYNAMICS 5.1 5.2 Problem Solving Decision Making

4.0 CONCLUSION ...................................................................................







According to the dictionary, communication is defined as a process by which information is exchanged between individuals through a common system of symbols, signs, or behavior Communication is an important attempt to affect a transfer of messages, ideas or opinions between minds. The word transfer tell us that communication is essentially a two-way process, involving a sender and a receiver. It could be a mechanical instrument like a computer, a writer and a reader and a speaker and a hearer. Thus, communication always i n v o l v e s a t l e a s t t w o p e r s o n s a s e n d e r a n d a r e c e i v e r . O n e p e r s o n a l o n e c a n n o t communicate. Only the receiver can complete the communication process. Communication is not effective, if it does not produce the desired response. It is not enough for a manager to give an order; he or she must also ensure that it is correctly received, understood and carried out by the receiver. Communication skills can be particularly important during times of higher workplace stress, for example during downsizing, where good communication is an essential part of change management. You also need to communicate well to build and maintain effective relationships with your suppliers and clients. Communication skills are crucial to dealing with customer complaints effectively and limiting any negative word-of-mouth about your business. You can draw on communication skills when you assess the effectiveness of your marketing campaigns.



There are four main forms of business communication in an organization: i. ii. iii. iv. Internal-operation Communication External-operation Communication Informal Outside Communication Personal Communication


Internal-operation Communication

Communication within an organization is classified as internal operational. This form of communication includes all communication within an organization. Effective internal communication is a vital mean of addressing organizational concerns. Good communication may help to increase job satisfaction, safety, productivity, and profits and decrease grievances and turnover.

Personal communication is one of the comm activitities that occured in the organization within employees or between employees with outsider where the content of comm is focused on personal matter. It's normally defined as informal communication.

All the communication that occurs in conducting work within a business is classified as internal operational. This is the communication among the workers o f t h e b u s i n e s s organization that is done to implement the operating plan of the business. Internal- operational communication takes many forms. It includes the orders and instruction that supervisors give to workers as well as oral exchanges among workers about work related matters. It includes reports and records that workers prepare concerning sales, production, maintenance, finance and so on. It includes all the memorandums email, message and reports that workers write in carrying out their assignments.


BUSINESS COMMUNICATION BBKN3103 External-operation Communication

The work related communication that a business does with the people and group outside the business is external-operational communication. This is the communication of the business with its publicsuppliers, service companies, customers and the general public. External-operational communication includes all the efforts of the business at direct selling-descriptive brochures, telephone callbacks, follow-up service calls and the like. It also includes the advertising the business does radio and television messages, newspaper and magazine advertising and point- of- purchase display materials. The importance of external-operational communication to a business hardly requires supporting comment. Every business is dependent on outside people and groups for its success and because the success of a business depends on its ability to satisfy customers needs, it must communicate effectively with its customers. So, like internal communication, external communication is vital to business success 2.3 Informal Outside Communication

Communication occurs between an employee with outsiders in a formal manners. This type of communication happens whenever you comment about work-related matters to someone not involved wiith the organisation.


Personal Communication

All communication that occurs in business is not operational. Most of it is without purpose from the viewpoint of the business. Such communication is called personal communication. Personal communication is the exchange of information and feelings in which human beings engage whenever come together. Such personal communication occurs also at the workplace and it is part of the communication activity of any business. The workers attitude towards the business, each other and their assignments directly affect their 6

BUSINESS COMMUNICATION BBKN3103 willingness to work and the nature of conversation in a work situation affects attitudes. Also affecting the workers attitude is the extent of personal communication permitted. Absolute denial of personal communication could lead to emotional upset. On the other hand, excessive personal communication could interfere with the work done. Again, the middle ground is probably the best.



Communication networks or set of channels by which information flows in an organization can be formal or informal. An organization structure provides channels for the flow of i n f o r m a t i o n o n w h i c h t h e d e c i s i o n s o f t h e o r g a n i z a t i o n w i l l b e b a s e d . A s s u c h a n organization can be described as the network of communication channel. A channel of communication is a path through which messages are transmitted from the sender to the receiver. These channels can be either intentionally designed or they may develop on their own accord. When a channel is intentionally designed for the flow of communication in the organization, we call it all formal channels and the communication p a s s i n g t h r o u g h t h a t c h a n n e l a s f o r m a l c o m m u n i c a t i o n . O n t h e o t h e r h a n d , w h e n communication takes place through channels which are not intentionally designed, i.e., through channels which are outside the formal channels, we call it informal channels and t h e c o m m u n i c a t i o n passing through that channel as informal communication. Thus, channels of communication can be either formal or informal



The paths of communication which are institutionally determined by the management are called formal channel of communication. Formal communication requires good preparation, which is often supported by facts and figures. However, information may travel down, up, and across an organizations hierarchy. 3.1.1 DOWNWARD COMMUNICATION FLOW

Communication that flows from a higher level of group organization to a lower level is called downward communication. In other words, communication from superiors to subordinates in a chain of command. Most of the information communicated is to achieve the following factors: i. To provide information to assist employees in performing their jobs. This is including job instruction, explanations, operating procedures and job descriptions. ii. iii. iv. v. Coaching, to give information about organizational procedures and practices. To provide information which is about the rationale of the job. To tell subordinates about their performances. To provide ideological information to facilitate the indoctrination of goals.

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. Downward communication is used by the managers for the following purposes. 8



Communication that flows to a higher level from a lower level in the group or organization is called upward communication. The primaries purposes for which upward communication are made include: a) Provide feedback to higher ups. This mainly includes technical information about performance. b) Provide personal information about ideas, attitudes and performance c) Relay current problems. The methods of improving the effectiveness of upward communication include the following: The grievance - Most collective bargaining agreements provide for this procedure, whereby an employee can appeal upward beyond their direct managers, thereby protecting them from arbitrary decisions taken by their immediate superior. The open-door policy - It literally means that the managers door is always open for employees to come and discuss about anything that is bothering them. The use of e-mail - Any employee may send an e-mail to any higher-up in the organization. This method preserves the identity of the complaint and is prompt, secure and popular. d) Counseling attitude questionnaires and exit interviews. The human resource department in an organization can periodically administer attitude questionnaires, hold confidence counseling sessions and conduct meaningful exit interviews for those who leave the organization. Valuable insight about the organization can be gained by these methods. e) P a r t i c i p a t i v e t e c h n i q u e s : E m p l o y e e s m a y b e i n v o l v e d i n t h e o r g a n i z a t i o n a l communication process by informal networks or formal participation programmes like unionmanagement committees, junior boards, suggestion boxes and cross functional teams. 9

BUSINESS COMMUNICATION BBKN3103 f) An empowerment strategy: E m p l o y e e s c a n b e s ys t e m a t i c a l l y e m p o w e r e d b y giving them access to information and other resources. This creates an atmosphere of openness and trust and facilitates in the attainment of organizational goals. g) The ombudsperson: The concept originated in Scandinavia to provide an outlet for persons who has been treated unfairly on in a depersonalized manner by large, bureaucratic government. In an organizational structure, it means an official appointed to investigate individuals complaints against authorities 3.1.3 HORIZONTAL COMMUNICATION

When communication occurs between members of the same work group, among members o f w o r k g r o u p s a t t h e s a m e l e v e l , a m o n g m a n a g e r s o f t h e s a m e l e v e l o r a m o n g a n y horizontally equivalent personnel, it is termed as horizontal communication. The purposes of horizontal communication are: a) Task-coordination: Department heads may meet periodically to coordinate among themselves about progress of each department. b) Problem solving: The members of a department may meet for a brainstorming session to solve a common problem facing the department. c) Conflict resolution: Members of one department meet to discuss a conflict inherent in the department or between departments. d) Information sharing: The members of one department may exchange new data or information with another department. A considerable amount of horizontal communication occurs 10

BUSINESS COMMUNICATION BBKN3103 outside the formal chain of command, often with the knowledge and approval of the management. Horizontal communication can also be seen as communication with peers which provides much needed social support for organizational members that releases them from the job tension. 3.1.4 INFORMAL COMMUNICATION NETWORK

Informal communication occurs when an employee communicate with others without Communication that takes place without following the formal lines of communication is said to be informal communication. This channel is not created by the management as is usually not under the control of the management. This sort of communication takes place when employees are unable to communicate the required i n f o r m a t i o n t o t h e h i g h e r authorities. Because of communication barriers, they may resort to informal channels of communication. Distortion may appear in the transmission of such messages through grapevine in the form of rumors and gossips. An informal system of communication is generally referred to as grapevine, because it spreads throughout the organization with its branches going out in all directions in utter disregard of the levels of authority and linking members of the organization in any directions. Informal communication or grapevine arises from social interactions of the people. On the basis of studies, Keith Davis has summarized the characteristics of grapevine as 1.People talk most when the news is recent. 2.People talk about things that affect their work. 3.People talk about people they know.




There are 3 basics elements of group dynamism by the following:-

a) Group Membership

A group is a collection of people. It is composed of individuals who interact verbally and non-verbally, assume certain roles with respect to one another and cooperate to accomplish a definite goal. A group will normally agree upon certain guidelines and regulations and react upon the human factor (behaviour, strength and weaknesses) in the best of manner. This is important for them as it will determine their success in arriving at certain goals. When a number of people are present within a particular space at the same time, they do not necessarily belong to a group. This is visible in public spaces such as the commuter train station, at supermarkets or bus stops. Nonetheless, a group may be formed in a scenario where a calamity arises, for example a train accident. The public would then group together to assist the victims to safety. Based on this example, it is clear that members of a group consistently influence each other and are influenced by each other. Interaction in the form of mutual influence occurs. The individual members affect the character of the group and are also affected by it.

b) Group Size Group size can vary from 2 people to a very large number of people. Small groups of two to ten are thought to be more effective because each member has ample opportunity to participate and become actively involved in the group. Large groups may waste time by deciding on processes and trying to decide who should participate next. Group size will affect not only participation but satisfaction as well. Evidence supports the notion that as the size of the group increases, satisfaction increases up to a certain point. In other words, a group of six members has twice as many opportunities for interaction and participation as a group of 12

BUSINESS COMMUNICATION BBKN3103 three people. Beyond 10 or 12 members, increasing the size of the group results in decreased satisfaction. It is increasingly difficult for members of large groups to identify with one another and experience cohesion.

c) Group Goals, Structure and Climate

Group structure is a pattern of relationships among members that hold the group together and help it achieve assigned goals. Structure can be described in a variety of ways. Among the more common considerations are group size, group roles, group norms, and group cohesiveness.

As per Charles Redding suggestion in the book Communication within the Organization, effective climate is characterized as the followings: i ii iii iv v Supportiveness Participative decision making Trust among group members Openness High performance goals




A group can be defined as several individuals who come together to accomplish a particular task or goal. Group dynamics refers to the attitudinal and behavioral characteristics of a group. Group dynamics concern how groups form, their structure and process, and how they function. Group dynamics are relevant in both formal and informal groups of all types. In an organizational setting, groups are a very common organizational entity and the study of groups and group dynamics is an important area of study in organizational behavior. The following sections provide information related to group dynamics. Specifically, the formation and development of groups is first considered. Then some major types or classifications of groups are discussed. Then the structure of groups is examined.




Problem Solving Groups are better problem solvers compared to individuals. This is clearly seen in an organizational structure. Group problem solving offers a number of important advantages, as shown by the following factors. iPooling Resources - Firstly, it permits a variety of options in problem solving with different information and different points of view. The broader the perspective and the deeper the knowledge, the more likely an effective solution can be obtained. Motivation - Participating in groups encourages individual motivation as it creates participation and input of ideas that contributes to resolving problems. Finding the solution may form greater creativity and commitment from each group member.


BUSINESS COMMUNICATION BBKN3103 Easy to identify each others mistakes and solve the problem before it is too late to do so. This will adversely affect business performance. With check and balance, groups are better equipped than individuals to foresee difficulties, detect weaknesses, visualize consequences and explore possibilities. As a result, they tend to produce superior decisions and solutions. Easier to accept decisions It will be easier to accept decisions coming from a group rather than an individual. The person or persons to whom a group solution is reported will tend to respect the fact that a number of people working together came to one unified conclusion. More pleasant & fulfilling than work alone Generally, working as part of a group are more pleasant and fulfilling than working alone. The group provides companionship, a chance to affirm ideas, feelings and an opportunity for selfconfirmation. It is rewarding to know that others respect enough to listen and react to what we have to say. It is even more rewarding to have our thoughts and concerns adapted by others. 5.1.2 Decision Making

In many businesses, critical decisions are usually related to groups. At times, it may come from higher level management group and at times, even the lower level groups are able to decide as they are the ones handling the day-to-day demands. Depending on the group, a wide variety of decision-making strategies or approaches may be used. In this section, we evaluate the workings within a group and pose several questions.




In this age of competition communication is the number one problem of the management. Competition, complex methods of production, large scale operations and specialization in production function have increased the importance of communication. Without effective communication a manager cannot performs his duties well. Communication is as es s e n t i a l t o business as blood is to the human body. Success of the communication system affects the success of business.

The following points will prove its importance in business Good communication is an essential component for an organization success, whether it is the interpersonal intra group organization or external levels.

Getting Job Good communication skills can provide you a confidence while seeking a job. With the skills you can design a powerful resume, writing a convincing application letter and attending an interview with a high confidence \


Promotions With good communication skills you are easy to get promotion from your employer. Your employer sees you as a potential employee as you always communicate with confident. For example, you will be promoted as a sales marketing officer.


Providing Leadership Good communication skills are a key part of managing individual employee performance. If you have good communication skills, you will know how to give clear feedback on performance while not denting peoples self-esteem. Good communication skills will enable you to work more closely with your team members, determine personal goals that will suit them and help them to work towards those goals.


BUSINESS COMMUNICATION BBKN3103 iv v vi Being Productive on the job Relating Positively to Other Assuring the success on your organization



Effective communication is an essential component for organization success, whether it is the interpersonal intra group organization or external levels. A recent newspaper report said that our of very hundred interviews, only five qualified for the employability. It is not that were technically not sound but they lacked in communication skills. Communication skills are as important as technical qualifications for youngsters aiming at a bright career. Communications hold the key. Poor communication skills, low confidence levels and improper body language have resulted out in the job race. The person recruited will have to deal with the global clients directly. The command over the language and accent neutralization also plays a vital role in the recruitment process.



REFERENCES Yap K.H., Massila H., (2004) Business communication: Understanding business communication, Open University Malaysia Courtland Bovee, John T., Business communication essentials: Business Communication Foundations, Pearson Education, Inc., New Jersey http://www.answers.com