01 Effective Communication in Business.pdf

7/27/2019 01 Effective Communication in Business.pdf

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Chapter 1

Effective Communication in

Business


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Chapter ObjectivesTo understand the importance and

benefits of effective communication

To understand essential components of

communication

To learn the concepts of communication

and Challenges of communication

To understand the role of nonverbalcommunication in overall

communication


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importance of effectivecommunication Important for the development of

human civilization

The ancient world depended heavily on

oral communication

With the evolution of human

civilization, the art and science of

written communication were developed Writing became more important as a

means of keeping permanent record of

communication


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importance of effectivecommunication (contd.)The origination of communication

principles can be traced back to the

bureaucratic traditions of China.

Thus, some of the principles of writing

are based on a mixture of ancient oral

and written traditions.


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importance of effectivecommunication (contd.) Lifeblood of Every Organization

As blood helps transmission of vitalnutrients and hormones for effective

functioning of human body,Communication does so in anorganization.

This is achieved through InternalCommunication - Downward, Upward

and Horizontal. Effective downward communication

motivates employees to engage in a goal-directed behavior.


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Effective downward communication alsoprovides the employees proper guidelines

to carry out their tasks. Effective upward communication fosters

employee loyalty towards the organization.They feel they are part of the organization.

Managers, through effective upwardcommunication get to know the impact oftheir decisions on their employees andoverall functioning of the organization.


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Effective horizontal communication is

essential for peer-learning within the

organization.

It helps employees solve problems,

perform duties, prepare for the meetings

and enhance the level of inter-

departmental coordination required forcarrying out cross-functional tasks.


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importance of effectivecommunication (contd.) External Communication

External communication determines can

have far reaching effect on a firms

reputation and ultimate success.

The letter, proposal, report, telephone call,

or personal conversation can win back a

dissatisfied customer.


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importance of effectivecommunication (contd.) Cost of Communication

Cost of communication can be measured

in terms of time and money.

Late or ineffective communication may

cause loss of customers and firms

goodwill.

In certain businesses, such as aviation, oil

drilling, healthcare, mining, construction,

poor communication may cost life of

people and money.


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benefits of effectivecommunication A Valuable Job Requirement

Managerial career requires mainly

intellectual inputs to perform tasks

effectively and hence an ability tocommunicate effectively becomes a

valuable asset.

Communication is a primary responsibility

in many careers, such as marketing,sales, public relations, human resources,

customer relations, financial services, and

teaching.


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benefits of effectivecommunication (contd.) A Valuable Job Requirement

Even if your work is mainly with figures,

as in the accounting profession, the ability

to communicate to those who read yourfinancial reports is essential.

It is an important requirement for those

who are looking for their career

advancement.


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benefits of effectivecommunication (contd.) An Essential for Promotion

Managers spend 60 to 90 percent of their

working days communicatingspeaking,

writing, and listening.

Ability to communicate is one of the very

important aspects of becoming successful

in managerial career.


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components of communication

ContextSender-Encoder

MessageMedium

Receiver-DecoderFeedback


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components of communication(contd.)

Context Every message, whether oral or written,

begins with context.

It is a broad field that includes country,culture, organization, and internal stimuli.

Every country, culture and organizationhas its own conventions for processingand communicating information.

Your attitudes, opinions, emotions, pastexperiences, likes and dislikes, education,etc. influence the way you communicate.


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Context

Especially important is your ability to

analyze the culture, viewpoint, needs,

skills, status, experience and expectationsin order to communicate effectively.

Words alone have no meanings. They are

meaningful in a given context.


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Sender - Encoder

As a sender-encoder, you use symbols

that express your message and create the

desired response.

Alphabets are verbal symbols, which are

used to design a message.

Posture, gesture, eye contact, facial

expressions, silence, etc. are some of thenon-verbal symbols managers use to

encode a message.


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Message

It is the core idea that on wants to

communicate and it contains bothverbal

and non-verbal symbols.

A communicators first task is to decide

exactlywhat the message is and what

other information to include.

Choice of medium is crucial indetermining the effectiveness of the

message being communicated.


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Medium

The selection of communication channel

depends on all the contextual factors and

the nature of the message itself.

The choices of medium include oral

conversation, presentation, meeting, on one

hand and e-mail, letter, memorandum,

report, proposal, on the other hand. In nutshell, a communicator should

decide:to speak or to write.


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Characteristics of Oral and Written Media:

Oral Written

Immediate feedback Delayed feedback

Shorter sentences & words Longer sentences & wordsConversational More formal

Focus on interpersonal relations Focus on content

Prompt action Delayed action

Less detail technical information More detailed technical info.

More personal pronouns Fewer personal pronouns

More colloquial language More complex constructions

Simpler constructions Possibility of review

More imperative, interrogative,

and exclamatory sentences

Useful for permanent record and

detailed documentation


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Receiver-Decoder

The receiver of the message - either a

reader or a listeneris also known as

decoder. The receiver-decoder is influenced by the

context and by the external and internal

stimuli.

The receiver decoded the whole messagethe verbal and non-verbal contents of the

message.


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Feedback

The receivers response to a message

depends on the meaning that is

communicated through the message. The receiver gives feedback using either a

verbal or non-verbal or both symbols.

Feedback can be an oral or a written

message, an action or simply silence.


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A communication model

Sender-Encoder

_______________(experiences,attitudes, skills)

PerceptionIdea encoding

Symbol DecisionsSending Mechanism

Message_________

MediumVerbal

Nonverbal

FEEDBACKVerbal, nonverbal

Receiver-Decoder

_______________(experiences,attitudes, skills)

Receptor MechanismPerceptionDecoding

Idea interpretation

CONTEXT

Stimuli


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Concepts and problems ofcommunication Each persons mind is a unique filter.

Problems with communication are

more likely to occur when the two

communicators filters are sharply

different.

The communication is said to be

effective only when the sendersmeaning is conveyed to the receiver.


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Concepts and problems ofcommunication (contd.)The senders meaning the senders

meaning and the receivers meaning

are affected by a number of factors:

Individual Conventions of Meaning

Individual Perception of Reality

Individual Values, Attitudes and Opinions


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Concepts and problems ofcommunication (contd.) Individual Conventions of Meaning

The fundamental principle of

communication is that the symbols the

sender uses to communicate messagesmust have essentially the same meaning

in both senders and receivers minds.

A sender can never assume that the

message that resides in his/her mind willbe perfectly transmitted to receivers mind.

This is because of differences in semantic

understanding.


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Concepts and problems ofcommunication (contd.) Individual Conventions of Meaning

The difference in semantic understanding

can be reduced by common experience.

The closer the common experiencessurrounding the symbols and their things

(referents) in the minds of sender and

receiver, the closer the level of

understanding. For examples, meanings of FIFO (fist in,

fist out) or LIFO (last in, first out) can be

understood by those who commonly share

the profession of an accountant.


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Concepts and problems ofcommunication (contd.) Communication Problems in

Individual Conventions of Meaning

Miscommunicated Instructions

Reactions to Denotations, Connotations,and Euphemism


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Concepts and problems ofcommunication (contd.) Miscommunicated Instructions

Miscommunication occurs when the

communicator (sender) and the

communicatee (receiver) attribute differentmeanings to the same words or use

different words though intending the same

meanings.

It does not occur only in business andcorporate offices but also among

government officials, professionals and all

of us in our everyday contacts.


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Concepts and problems ofcommunication (contd.) Reactions to Denotations, Connotations,

and Euphemism

Most People agree on denotative meanings

of word, as they are dictionary meanings. A connotation is an implication of a word

or a suggestion separate from the usual

definition.

In addition to more literal denotativemeanings, some words have connotative

meanings that arouse qualitative

judgments and personal reactions


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Concepts and problems ofcommunication (contd.) Reactions to Denotations, Connotations,

and Euphemism

For example, the word studentis

denotative; whereas scholar, bookworm,dropout, are connotative.

The connotative meanings for words are

also affected by the communicators

backgrounds and interests. Words such asspeed, gay, feministarouse mixed feelings

and arguments.


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Concepts and problems ofcommunication (contd.) Individual Perception of Reality

The world provides a special reality to

individuals called Perception.

Human beings receive external stimulithrough sensory mechanismtouch,

sight, sound, smell, taste.

Every individuals attach meanings to

these stimuli in their own way.


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Concepts and problems ofcommunication (contd.) Communication Problems in

Individual Perception of Reality

Abstracting

Inferring


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Concepts and problems ofcommunication (contd.) Abstracting

Abstracting is a process of focusing on

some details and omitting others.

Abstracting is necessary in countlesssituations, as the communicator has

limited time, money, space and purpose.

The communicator and communicatee

should ensure that the facts they areacquainted with are truly representative of

whole.

Slanting is unfair in reporting and creates

communication problems.


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Concepts and problems ofcommunication (contd.) Inferring

Inferences are the conclusions made by

reasoning from the evidence or premises.

Most of the individuals make assumptionsand draw conclusions even though they

are not able to immediately verify the

evidence.

Some inferences are both necessary anddesirable, however, some are risky and

even dangerous.


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Concepts and problems ofcommunication (contd.) Necessary and Desirable Inferences

Inferences are essential for analyzing

materials, solving problems. And planning

procedures, for many professionals suchas marketers, advertisers, architects,

designers.

Certain inferences we make in our day-to-

day life are necessary and are reliable,such as

If I assign some task to Mr. Shah- Sr.

Executive, Marketing, it will be completed

in time.


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Concepts and problems ofcommunication (contd.) Risk of Inferences

Inferences made without factual support

or sufficient evidence prove to wrong and

they remain mere assumptions. So far our company is doing well, but if current

economic slowdown continues further, many of

our colleagues might have to lose their jobs. (Theemployee may or may not lose jobs)


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Concepts and problems ofcommunication (contd.) Individual Values, Attitudes, and

Opinions

The effectiveness of communication is

affected by the values, attitudes, andopinions of the communicators and

communicatees have in their minds as

mental filters.

The meaning of a message is derivedbased on these filters existing at both

the senders side and the receivers side.


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Concepts and problems ofcommunication (contd.) Communication Problems involving

Values, Attitudes, and Opinions

Favorable or Unfavorable Information

Receivers often react to unfavorable information byrejecting, distorting or avoiding it.

Inadequate or Incorrect Information Creates confusion about the meaning when message

is incorrect.

Closed Minds Some people hold rigid views on certain subjects.

It is very difficult to communicate with people who

have closed minds.


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Concepts and problems ofcommunication (contd.) Communication Problems involving

Values, Attitudes, and Opinions

Senders Credibility

Attitude towards the sender is very important indetermining the credibility of sender and therefore

authenticity of information.

Sender ahs to win the confidence of the audience

before sending any message to them.

Other Circumstances Lifes stresses affect communicators ability to

communicate effectively.

Sensitivity to ones own mind as well a to that of the

receiver helps communicate better.


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Nonverbal communication Nonverbal communication supports

the verbal message being delivered by

the communicator in an oral

communication situation. Some of the symbols of nonverbal

communication are:

Appearance

Body Language

Silence, time and space


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Nonverbal communication(contd.)

Appearance In written communication, an envelope's

appearancesize, color, weight, postagemay impress the receiver as eitherimportant, routine or junk mail.

A communicators appearance clothesand accessories, perfume, grooming -communicates a lot about his/her

profession, professional status, senderscredibility, etc.

Appearance of surroundingroom size,furnishing, lighting, air-conditioners, etc.supports the process of communication.


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Body Language includes:

Facial expressions

Gestures, Posture and Movement

Smell and Touch

Voice and Sounds


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Facial expressions The eyes and the face of a communicator

are very useful in oral communication.

They are capable of revealing emotionssuch as anger, confusion, joy, surprise,depression, dullness, etc.

Appropriate eye contact covering almosteveryone in the audience enhances the

effectiveness of the communication Cheerful and charming face attracts

audiences attention and thus helpscommunicator.


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Hands and head movement adds to the

message.

Excessive and aggressive hand movementdistracts the attention of the audience.

Posture and Movement can convey self-

confidence.

Relaxed, yet erect posture helpscommunicate more effectively.

Controlled amount of movement inside the

room helps communicate better.


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Continual gesture and movement such as

pacing back and forth may signal

nervousness and may be distracting tolisteners.

An interested listener may lean forward

towards the speaker; one who is bored

may lean backward, slump or glance atthe clock.


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Smell and Touch

Specific smell can communicate an

identity. For example smell of coffee or tea

attracts people to enter a restaurant. Touch can communicate friendship, love,

approval, hatred, anger or other feelings.

A pat on the back or shoulder

communicates more than just words.


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Voice and Sounds The voice quality and extra sound one makes

while speaking is known asparalanguage.

It includes voice volume, rate, articulation,

pitch and the other sounds such as throatclearing or sighing.

A loud voice communicates a sense of urgency.

A lazy articulation, slurring sounds or skippingover syllables or words, may reduce thecredibility.

Speaking fast may be a sign of nervousness.

A lack of pitch variation may be monotonous;while excessive variation may seem artificialand overly dramatic.

Throat clearing can be distracting.


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Silence, Time and Space

Silence communicates more than words.

Concepts of time varies across the

cultures. German are very time punctual. But if you

arrive for a meeting in time in Portugal,

the host may wonder why you came so

early. In Indian context, reaching late

communicates ones high status and

importance.


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Silence, Time and Space Space or the distance between the sender

and communicator is important foreffective communication.

The senior executive or officer keeps thesize of the table larger to ensure adistance between him / her and thevisitors or other staff in the office.

The size of office space / cubiclescommunicates a great deal about thedesignation and importance of people inan organization.


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Main Forms of

Communication in Business

Operational

Internal

External

PersonalIntranets (or portals) like this one

from Deere & Company are used

for internal communication.


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Communication Networks

Formal Network

Well-established, usually alongoperational lines

Depends on certain established formsor genres in the company

Planned and managed

Informal Network Complex

Dynamic


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Department

Manager

Supervisor Supervisor

Black Solid Lines = Formal Network

Brown Dashed Lines = Informal Network (at a moment in time, for they change often)

The Formal and Informal Communication Networksin a Division of a Small Manufacturing Company

F t Aff ti th


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Factors Affecting the

Communication in a Business

Nature of the business

Operating plan

Business environment Geographic dispersion

People

Company culture

Th B i C i ti


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The Business Communication

Process


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The Contexts for Communication

The larger context

Business-economic

Sociocultural

Historical

The relationship of thecommunicators

The communicators particularcontexts

Organizational

Professional

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