Principles of Communication in

Business
Chapter 1

Learner Outcome
Understand and know how to apply the principles
which govern the transmission of information in
business situations.
Apply knowledge of the purposes of communication.
Explain why a particular medium is appropriate or
inappropriate in a given situation.
Explain how relationships between people affect
communication
Describe simple communications structures.

Purposes of Communication
Communication is natural we all do it from the time
of birth
What is business communication?
Apply the skills that you already have to a business
context
Learn new skills

Factors affecting communication

Medium written, verbal or non-verbal

Formal or informal
Individual or group
Audience diversity
Time available
What time of day
Where are the participants located
How well do we know the person

Factors affecting communication

Is this the first time we have communicated with the
person
Status relative to us superior, subordinate, equal
Language skills
Gender, age, race, nationality, cultural background,
attitudes

Why is the communication taking place?

Purpose of Communication
Before you begin to communicate, always ask
yourself
WHAT DO I WANT TO ACHIEVE?
Clarify

Inform

PURPOSE

Co-operate

Instruct

Request

Persuade
Buy / Sell

Advertise

Using an appropriate Medium or

Channel
MEDIUM Nature of the expression of
communication
Written
Oral / Verbal
Non-Verbal

MEDIUM

CHANNEL Actual way the message is passed

Written message Letter
Oral message Telephone Call
Non-verbal Road Sign

CHANNEL

Choice of Medium
Factors affecting the choice of communication medium
Formality of message
Formal message written or oral?
Why?

Amount of detail
Detailed message written or oral?
Why?

Choice of Medium
Factors affecting the choice of communication medium
Urgency of message
Urgent message written or oral?
Why?

Size of audience
Large number of people
Orally speech / television/ radio
Written Notice / email / newspaper

Communication Channels
Written

Oral

Informal Note

Unplanned Encounter

Memo

Meeting on individuals

Notice

Briefing Meeting

Letter

Full staff/workers meeting

Email

Interviews

Report

Formal lecture or presentation

Press release

Telephone call

Questionnaire

Teleconference , Videoconference

Skype

Skype

Text messaging

Press conference

Advantages and Disadvantages

Read study Manual page 4 to 9

Channel :

Advantages

Disadvantages

Characteristics of Written
Communication
Advantages

Disadvantages

Permanent Record

Permanency can sometimes be a

disadvantage

Expression can be controlled

more carefully

Lacks the personal touch

Personal feelings is removed from Written words can be

the exchange
misinterpreted
A meeting is not needed

Lack of feedback

Characteristics of Oral
Communication
Advantages

Disadvantages

Feedback ensures
comprehension

No written record

Use of body language

Time-consuming

Immediacy

Emotional Involvement

Courtesy

Written vs Oral Communication

Use Written Communication
When:

Use Oral Communication When:

Conveying facts

Conveying emotions and feelings

The message needs to become

part of a permanent file

The message does not need to be

permanent - temporary

There is little time urgency

There is time urgency

You do not need immediate

feedback

You need immediate feedback

The ideas are complicated

The ideas are simple or can be

made simple with explanations
http://agilevietnam.com/2012/12/05/communication/

Non-verbal Communication
Body Language
Appearance and grooming
Physical Surrounding

Relationships and Communication

Autocratic Management Style

In control
Does not consult staff before making decisions
Does not give staff independence or responsibility
Shares information on a need to know basis
Advantages

Decisions are taken faster and

staff are less likely to question
them

Disadvantages
Manager may be insecure hence
not a good leader

Staff will respect or fear manager Decisions lack check and

balance
Staff tend to work hard

Staff are not close to manager

hence grapevine can develop

Relationships and Communication

Democratic Management Style
Consults and involves staff in decision making
Friendly
Advantages

Disadvantages

Seen as part of a tem

Staff do not fear manager and

may lose respect

Staff will feel involved and can

become more motivated

Staff may work less efficiently

Staff feel free to approach

manager because of relaxed
relationship

Staff may become too familiar

with the manager and difficult to
discipline
Because manager is easy to
approach, may waste managers
time with trivial matters

Relationships and Communication

A good first impression helps develop a good
relationship
Make a good first impression
You and your requests will be taken seriously
Oral
Speak clearly, use warm friendly tone, smile, open body
language

Written
Neat, legible, well organized, easy to understand language

Relationships and Communication

Office Layout
http://www.hongkiat.com/blog/creative-modern-officedesigns/
Open- plan or Cellular

Open plan Office Layout

Advantages
Creates a sense of team
teamwork

Disadvantages
Lots of noise and disturbance

People can talk to each other and Conflicts and petty talk more
interact very easily - Easy to
likely
motivate each other
Easy for manager to supervise
staff

Manager does not have privacy

to do confidential work

Easy for staff to approach

manager

Staff can become too familiar

with manager and lose respect

Cellular Office Layout

Advantages

Disadvantages

Easy to concentrate on your work Isolates colleagues hence lack of

interaction
Separate rooms give privacy

Difficult to supervise staff hence

staff may not work as hard

Fewer casual time-wasting

conversations

Less staff interaction hence less

opportunity for creative
interaction

Furniture and Equipment

Communications Cycle
To inform

Written
E.g.
Letter

Purpose

NonOral
Verbal
E.g. To influence
E.g.
Meeting To initiate action
Gestures

Information
Encoding
Sender

Message

Decoding
Medium / Channel

Message

Receiver

Feedback
Positive

Negative

Motivation

Communications Systems
Vertical Communication
Horizontal Communication
Diagonal Communication

Communications Systems
Formal Communication
Any message sent and received through official
channels using the established office communication
channels
Memo, letter, report, official meeting

Advantage
Carries authority
Detailed messages can be passed
Stored as a permanent record

Disadvantage
May not be the best way to motivate employees and
close knit groups

Communications Systems
Informal Communication
Usually verbal
Used to pass unofficial information between
individuals and small groups
Has no legal force
Grapevine

Communications Systems
Grapevine
Office gossip
Information in grapevine is usually distorted

Grapevine
Does not contain the authority stamp so
management can use grapevine for their advantage
Management can use the informal network of
communication:
By using informal groups in a semi-formal capacity to
"brainstorm" new ideas.
To sound out opinion before action is taken.
To encourage "open door" availability at all levels of
staff to discuss issues that are worrying them.
To encourage participation in decision-making and to
get feedback about current situations and problems at
the workplace.

Grapevine
Advantages

Disadvantages

Information is carried rapidly

Mostly rumors so may damage

goodwill of the company

Creates a sense of unity among

employees

Conflicts within employees

Can be used by managers to test

opinions and changes before
introducing formally

Employees may become

unproductive since lots of time
wasted in gossip

Communication Networks
The actual pattern and flow of
communication connecting senders
and receivers
Networks of communication may
be:
Centralised - where a leader directs
the flow of communication
Decentralised - each member of the
group has access to the ideas of all
other members.

The Wheel
Figure of authority (A) passes information
to others
A has complete control
Each person can only communicate with A
Most structured and centralised
Advantage
Saves time in decision making

Disadvantage
Low job satisfaction

The Chain
Seen in vertical communication
A cannot check whether E received the message until
feedback is received through the chain
Can produce distortion as the message is passed
along the chain
Very slow
Example: Teacher reports to department head,
department head reports to principal, Principle
reports to Superintendent

The Y
Information shared at the same time
through two channels A and B
C plays a central role
More like the wheel but slightly less
centralised

The Circle
Similar to chain but feedback is
direct
Communication can pass in either
direction
More democratic
Symbolic of horizontal and
decentralised communication
Every member given equal
communication opportunity

The Star
Most decentralised
No clear leader, all parties free to
communicate with any or all of the
others
Feedback is fast
Can be an informal network grapevine

Communication Networks
What network is the best?
Depends on the situation
Centralised networks (Wheel, Y, Chain) more effective in
accomplishing simple tasks
Decentralised networks are more effective in complex
tasks

Group morale in decentralised networks are higher

than in centralised networks

Communication Networks
The structure of the network influences

Speed
Accuracy
Morale
Leadership
Flexibility

 Adam, Boris, Chow and Dev all work from home. Boris, Chow and
Dev all report to the same manager at the company's head office.
Adam reports to Boris and has no communication with the
manager at head office. Boris, Chow and Dev never contact one
another directly. Any communications between them take place
through their manager.
The pattern of communication described above is represented by
which of the following?
A. The chain
B. The circle
C. The wheel
D. The Y

Dec 2005, Q1
Successful communication depends on a number of variable factors.

(a) Show that you understand what is meant by a communications cycle

between a sender and a receiver, and explain in detail, stage by stage, how
a complete cycle will occur.
( 8 marks)
(b) Use a neat, labeled drawing to illustrate and make clear what you have
written above in your answer to question 1(a).
(3 marks)
(c) Use words and simple, but clear, drawings to show how each of the
following three communications structures operates, and state also a strength or
a weakness of each one:
( 9 marks)
(i) chain
(ii) circle
(iii) wheel

June 2008, Q6
(c)Describe a situation in which a star communication network is
appropriate, and say how such a network functions. Use a simple drawing to
illustrate this network.
(6 marks)