1

BUSINESS COMMUNICATION

Define Communication:

Communication is any act by which one person gives to or receives from person information
about that person’s needs, desires, perceptions, knowledge, or affective states.
Communication may be intentional or unintentional; it may involve conventional or
unconventional signals, may take linguistic or non-linguistic forms, and may occur through
spoken or other modes.” Or in simple words;

Communication is the exchange of ideas, opinions and information through written or spoken
words, symbols or actions.

Lastly we can say that Communication is the activity of conveying information through the
exchange of thoughts, messages, or information, as by speech, visuals, signals, writing, or
behavior.

Communication requires a sender, a message, and a recipient, although the receiver need not
be present or aware of the sender's intent to communicate at the time of communication; thus
communication can occur across vast distances in time and space. Communication requires
that the communicating parties share an area of communicative commonality. The
communication process is complete once the receiver has understood the message of the
sender.

Types of communication:
Communication is the exchange of ideas, opinions and information through written or spoken
words, symbols or actions. Communication may be intentional or unintentional; it may
involve conventional or unconventional signals, may take linguistic or non-linguistic forms,
and may occur through spoken or other modes.”
In an organization, communication flows in 5 main directions-

A. Downward
B. Upward
C. Lateral
D. Diagonal
E. External

Downward Flow of Communication:

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

1. Providing feedback on employee’s performance

2. Giving job instructions
3. Providing a complete understanding of the employee’s job as well as to communicate them
how their job is related to other jobs in the organization.
4. Communicating the organization’s mission and vision to the employees.
5. Highlighting the areas of attention.
www.bankingnewsbd.com, Email: bankingnewsbd@gmail.com
 2

Organizational publications, circulars, letter to employees, group meetings etc. are all
examples of downward communication. In order to have effective and error-free downward
communication, managers must:
1. Specify communication objective
2. Ensure that the message is accurate, specific and unambiguous.
3. Utilize the best communication technique to convey the message to the receiver in right
form.

Upward Flow of Communication:

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.

The subordinates also use upward communication to tell how well they have understood the
downward communication. It can also be used by the employees to share their views and
ideas and to participate in the decision-making process.

Upward communication leads to a more committed and loyal workforce in an organization

because the employees are given a chance to raise and speak dissatisfaction issues to the
higher levels. The managers get to know about the employee’s feelings towards their jobs,
peers, supervisor and organization in general. Managers can thus accordingly take actions for
improving things.

Grievance Redressal System, Complaint and Suggestion Box, Job Satisfaction surveys etc all
help in improving upward communication. Other examples of Upward Communication are -
performance reports made by low level management for reviewing by higher level
management, employee attitude surveys, letters from employees, employee-manager
discussions etc.

Lateral / Horizontal Communication:

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. The advantages of horizontal
communication are as follows:

1.It is time saving.

2. It facilitates co-ordination of the task.
3. It facilitates co-operation among team members.
4. It provides emotional and social assistance to the organizational members.
5. It helps in solving various organizational problems.
6. It is a means of information sharing.
7. It can also be used for resolving conflicts of a department with other department or
conflicts within a department.

Diagonal Communication:
Communication that takes place between a manager and employees of other work groups is
called diagonal communication. It generally does not appear on organizational chart. For
instance - To design a training module a training manager interacts with some Operations
personnel to enquire about the way they perform their task.

www.bankingnewsbd.com, Email: bankingnewsbd@gmail.com

 3

External Communication:
Communication that takes place between a manager and external groups, such as - suppliers,
vendors, banks, financial institutes etc. For instance - To raise capital the Managing director
would interact with the Bank Manager.

Factors Affecting Effective Communication:

There is more to communicating effectively than simply saying the right words at the right
time. It's difficult to adequately convey your thoughts or feelings to another person efficiently
and successfully. Many things affect effective communication, no matter what the situation,
from work-related memos and text messages to presentations and casual conversation.
Knowing the factors that can prohibit effective communication lets you achieve your
meaning simply and articulately.

Non-verbal Communication:
Not all communication is spoken. Self-Growth states that about 90 percent of communication
is nonverbal, meaning that people's bodies don't always say the same thing their mouths say.
Be aware of how close you stand to people while speaking. Getting too close or too far away
can make people feel uncomfortable. Avoid distracting gestures like tapping your foot,
shaking your leg or looking around when speaking or listening. Make sure your body
matches up with your words to communicate effectively.

Preparation:
Your level of preparation for any communication dictates how effectively you'll get your
message across. Even for things as simple as text messages or casual conversations, think
about what you want to say and how you want to say it beforehand. If you have time to
prepare for a lecture, presentation or business meeting, make notes and ready yourself to
answer questions and take advice.

Knowing Your Audience:

Even if a speaker has good ideas, he won't effectively communicate his message to an
audience he doesn't cater to. Use appropriate language and body language depending on
whom you're talking to. If you're speaking to experts in your field, you don't have to explain
basics; however, if you're talking to high school students, you can't take specific knowledge
for granted. Adapt to your audience so you both get the most out of the exchange.

Effective Listening:
To communicate effectively, you have to speak precisely and persuasively, but you also have
to listen. Maintain eye contact and listen to everything the other person says so you can
respond directly to her rather than simply saying what you were going to say anyway. When
people listen to and learn from each other, they communicate more efficiently and honestly.

Environment:
Environment greatly affects communication. If you have a meeting in a boardroom or a busy
restaurant, the environment can cause distractions, discomfort or monotony. Communicate in
an environment that is spacious, comfortable and relevant to what you'll talk about.

The Importance of Communication in the Organizational:

Communication can be a tricky concept to master within an organization, particularly one
with complex levels and multiple issues. When all parts of your organization communicate
smoothly, it can improve work flow and overall productivity. By making an effort to improve

www.bankingnewsbd.com, Email: bankingnewsbd@gmail.com

 4

your communication processes, you can build a stronger company that will have staying
power in the market.

Employee Trust:
Clear, open communication can create a sense of transparency in your organization, which
builds trust between levels of employees. Where keeping employees in the dark can result in
resentments, tension, and a feeling of low job security, strong communication can help them
feel valued and trusted. Open communication can reduce feelings of uncertainty and clueless
about the state of the company, which makes for a more-positive work environment and staff
who feel secure and safe.

Relationships:
Communication is essential to building relationships between staff members and between
levels of employees, both on a professional and social level. An atmosphere of open
communication makes it safe for employees to express their ideas; as a result, you will have
the benefit of your staff's combined experience in coming up with innovative solutions.
Communication prevents employees from feeling isolated, builds teamwork, and creates a
more collegial atmosphere in the office. When relationships are strong, employees are better
able to trust one another and work together more effectively.

Clarity:
In an organization, confusion and ambiguity can create negative feelings and a tense
atmosphere. By making roles and responsibilities clear to everyone on staff, you can give
your employees the information they need to get their jobs done; this is particularly important
when your employees are dispersed or come from different backgrounds. Communication
reduces misunderstandings and cuts the costs associated with mistakes.

Collaboration:
Communication can help your employees collaborate effectively, which will make for a
more-productive team overall. When you have multiple departments who are working on
different facets of the same project, communication can streamline the process and improve
the end result. When your staff talks openly to each other, they can communicate potential
issues, requirements and feedback that can make the result stronger. Communication can
ensure that everyone is on the same page and prevent problems down the road.

Promotes motivation:
Communication promotes motivation by informing and clarifying the employees about the
task to be done, the manner they are performing the task, and how to improve their
performance if it is not up to the mark.

Source of information:
Communication is a source of information to the organizational members for decision-
making process as it helps identifying and assessing alternative course of actions.

Altering individual’s attitudes:

Communication also plays a crucial role in altering individual’s attitudes, i.e., a well-
informed individual will have better attitude than a less-informed individual. Organizational
magazines, journals, meetings and various other forms of oral and written communication
help in moulding employee’s attitudes.

Helps in socializing:
www.bankingnewsbd.com, Email: bankingnewsbd@gmail.com
 5

Communication also helps in socializing. In today’s life the only presence of another
individual fosters communication. It is also said that one cannot survive without
communication.

Controlling process:
As discussed earlier, communication also assists in controlling process. It helps controlling
organizational member’s behavior in various ways. There are various levels of hierarchy and
certain principles and guidelines that employees must follow in an organization. They must
comply with organizational policies, perform their job role efficiently and communicate any
work problem and grievance to their superiors. Thus, communication helps in controlling
function of management.
An effective and efficient communication system requires managerial proficiency in
delivering and receiving messages. A manager must discover various barriers to
communication analyze the reasons for their occurrence and take preventive steps to avoid
those barriers. Thus, the primary responsibility of a manager is to develop and maintain an
effective communication system in the organization.

Oral Communication:
Oral communication implies communication through mouth. It includes individuals
conversing with each other, be it direct conversation or telephonic conversation. Speeches,
presentations, discussions are all forms of oral communication. Oral communication is
generally recommended when the communication matter is of temporary kind or where a
direct interaction is required. Face to face communication (meetings, lectures, conferences,
interviews, etc.) is significant so as to build a rapport and trust.

What are the Advantages of Oral Communication?

-There is high level of understanding and transparency in oral communication as it is
interpersonal.
-There is no element of rigidity in oral communication. There is flexibility for allowing
changes in the decisions previously taken.
-The feedback is spontaneous in case of oral communication. Thus, decisions can be made
quickly without any delay.
-Oral communication is not only time saving, but it also saves upon money and efforts.
-Oral communication is best in case of problem resolution. The conflicts, disputes and many
issues/differences can be put to an end by talking them over.
-Oral communication is an essential for teamwork and group energy.
-Oral communication promotes a receptive and encouraging morale among organizational
employees.
-Oral communication can be best used to transfer private and confidential information/matter.

What are the disadvantages of Oral Communication?

-Relying only on oral communication may not be sufficient as business communication is
formal and very organized.
-Oral communication is less authentic than written communication as they are informal and
not as organized as written communication.
-Oral communication is time-saving as far as daily interactions are concerned, but in case of
meetings, long speeches consume lot of time and are unproductive at times.
-Oral communications are not easy to maintain and thus they are unsteady.
-There may be misunderstandings as the information is not complete and may lack essentials.

www.bankingnewsbd.com, Email: bankingnewsbd@gmail.com

 6

It requires attentiveness and great receptivity on part of the receivers/audience.

- Oral communication (such as speeches) is not frequently used as legal records except in
investigation work.

Internship Progress Report:

Programs of study requiring students to complete an internship often also ask for an
internship report to fulfill degree requirements. Writing such reports gives students an
opportunity to practice the art of organizing information and communicating it with clarity.
Most internship reports should contain details of the work students performed in a given
discipline and also highlight their critical and analytical thinking skills. There are some
instructions to follow to prepare an internship report: -

1. Create a page that states the title of your report, the name and address of the company
where you completed your internship, your name and the name of the school for which you
are preparing the internship report.

2. Insert an executive summary that provides a synopsis of the information you describe in
your report. (Write this after completing the entire report, summing up the activities you
performed during the internship and your major findings and recommendations, if you have
any.)

3. Provide a description of the company and the specific department where you performed the
internship. This is useful background information for anyone reading the report. Describe the
purpose of the project on which you worked.

4. Provide information about the scope of your project, the data collection methods you used
and a summary of the information you obtained. Analyze the data and discuss the
implications of your findings. All this information forms the main body of the report in an
investigative internship.

5. Conclude with a summary of your main observations and write about what you learned
through the internship. If you have any suggestions for improvement, propose those as a
recommendation.

Use of Paragraph:
Writing of any length requires subdivision into a number of points or stages, and these stages
are expressed in a paragraph. Paragraphs provide a structure for your writing. The end of a
paragraph represents a significant pause in the flow of the writing. Each paragraph should
deal with one idea or aspect of an idea, and it should be clear to the reader what this main
idea is. There is no absolute rule: very short or long paragraphs can work when used by an
experienced writer. However, as a guideline, paragraphs should usually be no less than 2 or 3
sentences long and there should be 2 or 3 paragraphs per page of A4. Start a new paragraph
for each new point or stage in your writing. It is a useful rule always to have three stages in
a paragraph: introduction, development and conclusion.

Leaflets and brochures:

A flyer or flier, also called a circular, handbill or leaflet, is a form of paper advertisement
intended for wide distribution and typically posted or distributed in a public place or through
the mail.

Flyers may be used by individuals, businesses, or organizations to:

www.bankingnewsbd.com, Email: bankingnewsbd@gmail.com
 7

Promote a good or service, such as a restaurant or nightclub.

Persuade or send a social, religious, or political message, or political campaign activities
on behalf of a political party or candidate
Recruit members
Advertise an event such as a music concert, nightclub appearance, festival, or political
rally Like postcards, pamphlets and small posters, flyers are a low-cost form of mass
marketing or communication.

Flyers are inexpensive to produce.

Flyers are handed out on the street (a practice known as flyering or leafleting), or given away
at events. Cheap to produce and can be a very effective form of direct marketing.

Brochures are advertising pieces mainly used to introduce a company or organization, and
inform about products and/or services to a target audience. Brochures are distributed by mail,
handed personally or placed in brochure racks. They are usually present near tourist
attractions and hotels.

The most common types of single-sheet brochures are the bi-fold the tri-fold. A bifold
brochure results in four panels (two panels on each side), while a tri-fold results in six panels
(three panels on each side).

Compared with a flyer or a handbill, a brochure usually uses higher-quality paper, more
color, and is folded.

Leaflets are useful for distribution to a large number of people and to provide summary
information such as prices or product range. Brochures are useful for customers who require
more detailed or technical information. In designing a leaflet, budget and target audience
must be kept in mind.

www.bankingnewsbd.com, Email: bankingnewsbd@gmail.com