Chapter 1

Nature and Scope of

Business
Communication

Business Communication

M K Sehgal, Vandana Khetarpal

INTRODUCTION
The word communication originates from the Latin word
communis, which means common And the word business
stands for any economic activity which is undertaken with a
view to earn profit and the communication undertaken in the
process of this activity is termed as "business communication.

Business Communication

M K Sehgal, Vandana Khetarpal

NATURE OF COMMUNICATION
i.

It is a process

ii.

It is inevitable

iii. Meaning based

iv. Communication could be intentional and unintentional
v.

Communication is systematic

vi. A twoway traffic

vii. Communication is a social process
viii.

A dynamic process

ix. Continuous process

x.

Communication involves interaction and transaction

Cont.

Business Communication

M K Sehgal, Vandana Khetarpal

xi.

It is spiraling process

xii.

It is contextual

xiii.

Needs proper understanding

xiv.

Leads achievement of the organizational objective

xv.

Dispels misunderstanding

xvi.

It has four specific skills

xvii. It is all pervasive

xviii. It shares thoughts and ideas, which produce response
xix.

It is the life blood of the business:

Business Communication

M K Sehgal, Vandana Khetarpal

CLASSIFICATION OF COMMUNICATION
Communication is classified according to the number of persons
(receivers) to whom the message is addressed:

Intrapersonal communication

Interpersonal Communication

Group communication

Mass communication

Communication can also be classified on the basis of the

medium employed:

Verbal Communication

Non-verbal communication

Meta communication
Business Communication

M K Sehgal, Vandana Khetarpal

PROCESS OF COMMUNICATION
The process of communication involves two or more persons
participating through a medium that carries the information or
message for a particular purpose which is mutually understood by
both the sender and receiver. Only when these conditions are
fulfilled, a significant communicative situation will take shape

Business Communication

M K Sehgal, Vandana Khetarpal

Elements of the Communication Process

For the communication process to materialize, it is essential that the
basic elements of communication be identified. These elements are:
1.

Sender/Encoder/Speaker

2.

Receiver/Decoder/Listener

3.

Message

4.

Medium

5.

Feedback

Business Communication

M K Sehgal, Vandana Khetarpal

Working of the Process of Communication

One Way Process
ONE WAY COMMUNICATION PROCESS
SENDER
DECODING

ENCODING
RECEIVER

MESSAGE

CHANNEL

Message

Two Way Process

Encoding

Channel

Decoding

Receiver

Idea
Sender

Encoding
of

Decoding of
Feedback

Response

Feedback
Business Communication

Perceived Meaning &

Internal Response

M K Sehgal, Vandana Khetarpal

OBJECTIVES/PURPOSE OF COMMUNICATION
The objectives of business communication would include the
following:

To inform

To persuade

To educate

To train

To motivate

To integrate

To relate

To entertain

Business Communication

M K Sehgal, Vandana Khetarpal

SCOPE OF COMMUNICATION
Communication has unlimited scope which can be understood under
two broad headings:
1. External dimension
2. Internal dimension

In addition to external and internal dimensions, the scope of

communication can be further expanded to include:
Oral and non-verbal communication.
Interpersonal, intrapersonal and mass communication.
Human communication.
Reading, writing, speaking and listening.
Business Communication

M K Sehgal, Vandana Khetarpal

FUNCTIONS OF COMMUNICATION

Information sharing

Feedback

Influence

Problem solving

Assists in decision making

Facilitating change

Group building

Gate keeping

Conveying the right message

Helps in co-ordination of effort

Cont

Business Communication

M K Sehgal, Vandana Khetarpal

Good industrial relations

Development of managerial skills

Ensuring effectiveness of policies

Motivating people Performance feedback

Job instruction

Controlling people

Spreading rumours

Emotive function

Business Communication

M K Sehgal, Vandana Khetarpal

EVALUATION OF COMMUNICATION
EFFECTIVENESS
Communication effectiveness can be examined in relation to the
following criteria:
i.

Fidelity of communication

ii. Economy
iii. Congruence
iv. Influence
v.

Relationship building

Business Communication

M K Sehgal, Vandana Khetarpal

ORGANIZATIONAL COMMUNICATION
The communication system serves as the vehicle by which an
organization is embedded in its environment. It keeps the members
of the organization informed about the internal and external
happenings which are relevant and of interest to the organization.
Information to be Communicated in an Organization
Broadly, all business communications can be divided into five types
of informations:

Statutory information

Regular work-situation

Major policy or operational change information

Information bulletin

Cont.

Communication by expectancy
Business Communication

M K Sehgal, Vandana Khetarpal

Importance of Communication in Management

Management as a discipline includes every conceivable form of
communications.
Some Important Functions of Managing

Forecasting

Planning

Organizing

Instructing

Co-ordinating

Controlling

Cont.

Business Communication

M K Sehgal, Vandana Khetarpal

Communication Needs in Different Jobs

Job Title
Secretary
Finance Associate/Finance
Product Manager
Sales Representative

Personnel Manager

Production Manager

Contracts Administrator

Business Communication

Communication Skills
Proficient and writing skills.
Ability to communicate clearly to client and others.
Develop and communicate product strategies.
Excellent oral communication, follow up skills and
ability to draft
proposals.
General knowledge of proposal preparation: good
oral/ written
communication skills.
Ability to write and read, listening to grievances,
ability to conduct
interviews.
Ability to communicate precisely to employees
working under his
supervision.

M K Sehgal, Vandana Khetarpal