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Chapter 1
Effective Communication in Business
Effective Business Communication
Herta A MurphyHerbert W Hildebrandt
Jane P Thomas7th ed. (SIE) Tata McGraw-Hill, New Delhi
Chapter Objectives
To 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 nonverbal communication in overall communication
importance of effective communication
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
importance of effective communication (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.
importance of effective communication (contd.)
“Lifeblood” of Every Organization As blood helps transmission of vital
nutrients and hormones for effective functioning of human body, Communication does so in an organization.
This is achieved through Internal Communication - Downward, Upward and Horizontal.
Effective downward communication motivates employees to engage in a goal-directed behavior.
importance of effective communication (contd.)
“Lifeblood” of Every Organization Effective downward communication also
provides 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 upward communication get to know the impact of their decisions on their employees and overall functioning of the organization.
importance of effective communication (contd.)
“Lifeblood” of Every Organization 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 for carrying out cross-functional tasks.
importance of effective communication (contd.)
External Communication External communication determines can
have far reaching effect on a firm’s reputation and ultimate success.
The letter, proposal, report, telephone call, or personal conversation can win back a dissatisfied customer.
importance of effective communication (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 firm’s goodwill.
In certain businesses, such as aviation, oil drilling, healthcare, mining, construction, poor communication may cost life of people and money.
benefits of effective communication
A Valuable Job Requirement Managerial career requires mainly
intellectual inputs to perform tasks effectively and hence an ability to communicate 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.
benefits of effective communication (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 your financial reports is essential.
It is an important requirement for those who are looking for their career advancement.
benefits of effective communication (contd.)
An Essential for Promotion Managers spend 60 to 90 percent of their
working days communicating – speaking, writing, and listening.
Ability to communicate is one of the very important aspects of becoming successful in managerial career.
components of communication
ContextSender-Encoder
MessageMedium
Receiver-DecoderFeedback
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 organization
has its own conventions for processing and communicating information.
Your attitudes, opinions, emotions, past experiences, likes and dislikes, education, etc. influence the way you communicate.
components of communication (contd.)
Context Especially important is your ability to
analyze the culture, viewpoint, needs, skills, status, experience and expectations in order to communicate effectively.
Words alone have no meanings. They are meaningful in a given context.
components of communication (contd.)
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 the non-verbal symbols managers use to encode a message.
components of communication (contd.)
Message It is the core idea that on wants to
communicate and it contains both – verbal and non-verbal symbols.
A communicator’s first task is to decide exactly what the message is and what other information to include.
Choice of medium is crucial in determining the effectiveness of the message being communicated.
components of communication (contd.)
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.
components of communication (contd.)
Characteristics of Oral and Written Media:
Oral Written
Immediate feedback Delayed feedback
Shorter sentences & words Longer sentences & words
Conversational 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
components of communication (contd.)
Receiver-Decoder The receiver of the message - either a
reader or a listener – is also known as decoder.
The receiver-decoder is influenced by the context and by the external and internal stimuli.
The receiver decoded the whole message – the verbal and non-verbal contents of the message.
components of communication (contd.)
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.
A communication model
Sender-Encoder_______________(experiences,
attitudes, skills)Perception
Idea encodingSymbol Decisions
Sending Mechanism
Message_________
MediumVerbal
Nonverbal
FEEDBACKVerbal, nonverbal
Receiver-Decoder_______________(experiences,
attitudes, skills)Receptor Mechanism
PerceptionDecoding
Idea interpretation
CONTEXT
Stimuli
Concepts and problems of communication
Each person’s 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 sender’s meaning is conveyed to the receiver.
Concepts and problems of communication (contd.)
The sender’s meaning the sender’s meaning and the receiver’s meaning are affected by a number of factors: Individual Conventions of Meaning Individual Perception of Reality Individual Values, Attitudes and Opinions
Concepts and problems of communication (contd.)
Individual Conventions of Meaning The fundamental principle of
communication is that the symbols the sender uses to communicate messages must have essentially the same meaning in both sender’s and receiver’s minds.
A sender can never assume that the message that resides in his/her mind will be perfectly transmitted to receiver’s mind.
This is because of differences in semantic understanding.
Concepts and problems of communication (contd.)
Individual Conventions of Meaning The difference in semantic understanding
can be reduced by common experience. The closer the common experiences
surrounding 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.
Concepts and problems of communication (contd.)
Communication Problems in Individual Conventions of Meaning Miscommunicated Instructions Reactions to Denotations, Connotations,
and Euphemism
Concepts and problems of communication (contd.)
Miscommunicated Instructions Miscommunication occurs when the
communicator (sender) and the communicatee (receiver) attribute different meanings to the same words or use different words though intending the same meanings.
It does not occur only in business and corporate offices but also among government officials, professionals and all of us in our everyday contacts.
Concepts and problems of communication (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 denotative meanings, some words have connotative meanings that arouse qualitative judgments and personal reactions
Concepts and problems of communication (contd.)
Reactions to Denotations, Connotations, and Euphemism For example, the word student is
denotative; whereas scholar, bookworm, dropout, are connotative.
The connotative meanings for words are also affected by the communicator’s backgrounds and interests. Words such as speed, gay, feminist arouse mixed feelings and arguments.
Concepts and problems of communication (contd.)
Individual Perception of Reality The world provides a special reality to
individuals called “Perception”. Human beings receive external stimuli
through sensory mechanism – touch, sight, sound, smell, taste.
Every individuals attach meanings to these stimuli in their own way.
Concepts and problems of communication (contd.)
Communication Problems in Individual Perception of Reality Abstracting Inferring
Concepts and problems of communication (contd.)
Abstracting Abstracting is a process of focusing on
some details and omitting others. Abstracting is necessary in countless
situations, as the communicator has limited time, money, space and purpose.
The communicator and communicatee should ensure that the facts they are acquainted with are truly representative of whole.
Slanting is unfair in reporting and creates communication problems.
Concepts and problems of communication (contd.)
Inferring Inferences are the conclusions made by
reasoning from the evidence or premises.
Most of the individuals make assumptions and draw conclusions even though they are not able to immediately verify the evidence.
Some inferences are both necessary and desirable, however, some are risky and even dangerous.
Concepts and problems of communication (contd.)
Necessary and Desirable Inferences Inferences are essential for analyzing
materials, solving problems. And planning procedures, for many professionals such as 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.
Concepts and problems of communication (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. (The employee may or may not lose jobs)
Concepts and problems of communication (contd.)
Individual Values, Attitudes, and Opinions The effectiveness of communication is
affected by the values, attitudes, and opinions of the communicators and communicatees have in their minds as mental filters.
The meaning of a message is derived based on these filters existing at both – the sender’s side and the receiver’s side.
Concepts and problems of communication (contd.)
Communication Problems involving Values, Attitudes, and Opinions Favorable or Unfavorable Information
Receivers often react to unfavorable information by rejecting, 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.
Concepts and problems of communication (contd.)
Communication Problems involving Values, Attitudes, and Opinions Sender’s Credibility
Attitude towards the sender is very important in determining 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 Life’s stresses affect communicator’s ability to
communicate effectively. Sensitivity to one’s own mind as well a to that of
the receiver helps communicate better.
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
Nonverbal communication (contd.)
Appearance In written communication, an envelope's
appearance – size, color, weight, postage – may impress the receiver as either important, routine or junk mail.
A communicator’s appearance – clothes and accessories, perfume, grooming - communicates a lot about his/her profession, professional status, sender’s credibility, etc.
Appearance of surrounding – room size, furnishing, lighting, air-conditioners, etc. supports the process of communication.
Nonverbal communication (contd.)
Body Language includes: Facial expressions Gestures, Posture and Movement Smell and Touch Voice and Sounds
Nonverbal communication (contd.)
Facial expressions The eyes and the face of a communicator
are very useful in oral communication. They are capable of revealing emotions
such as anger, confusion, joy, surprise, depression, dullness, etc.
Appropriate eye contact covering almost everyone in the audience enhances the effectiveness of the communication
Cheerful and charming face attracts audiences’ attention and thus helps communicator.
Nonverbal communication (contd.)
Gestures, Posture and Movement Hands and head movement adds to the
message. Excessive and aggressive hand movement
distracts the attention of the audience. Posture and Movement can convey self-
confidence. Relaxed, yet erect posture helps
communicate more effectively. Controlled amount of movement inside
the room helps communicate better.
Nonverbal communication (contd.)
Gestures, Posture and Movement Continual gesture and movement such as
pacing back and forth may signal nervousness and may be distracting to listeners.
An interested listener may lean forward towards the speaker; one who is bored may lean backward, slump or glance at the clock.
Nonverbal communication (contd.)
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.
Nonverbal communication (contd.)
Voice and Sounds The voice quality and extra sound one makes
while speaking is known as paralanguage. It includes voice volume, rate, articulation,
pitch and the other sounds such as throat clearing or sighing.
A loud voice communicates a sense of urgency.
A lazy articulation, slurring sounds or skipping over syllables or words, may reduce the credibility.
Speaking fast may be a sign of nervousness. A lack of pitch variation may be monotonous;
while excessive variation may seem artificial and overly dramatic.
Throat clearing can be distracting.
Nonverbal communication (contd.)
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 one’s high status and importance.
Nonverbal communication (contd.)
Silence, Time and Space Space or the distance between the
sender and communicator is important for effective communication.
The senior executive or officer keeps the size of the table larger to ensure a distance between him / her and the visitors or other staff in the office.
The size of office space / cubicles communicates a great deal about the designation and importance of people in an organization.