Significance of Business Communication in Your Organization

Significant of Business Communication in Your Organization Page 1

Particulars Page No.

1. Introduction 01-02

2. An overview of Business Communication 02-10

2.1 Definition of Communication 02-03

2.2 Definition of Business Communication 03-04

2.3 The objectives of communication 05-06

2.4 The Communication Process 07-08

2.5 7Cs Effective Communication 08-10

3. Significant of Business Communication in Your Organization 10-15

3.1 Broad Categories of communication in an Organization 15-17

3.2 The role of effective business communication within and outside

the organization

17-19

3.3 Differentiate between formal and informal language 19

4. Conclusion 20

5. References 20


1. Introduction: Communication used to promote a product, service, or organization;

relay information within the business; or deal with legal and similar issues. Business

Communication encompasses a variety of topics, including Marketing, Branding,

Customer relations, Consumer behavior, Advertising, public relations, Corporate

communication, Community engagement, Research " Measurement, Reputation

management, Interpersonal communication, employee engagement, online

communication, and $vent management. It is closely related to the fields of professional

communication and technical communication. Business is conducted through various

channels of communication, including the internet, print publications', radio, television,

ambient media, outdoor, and word of mouth. Business Communication can also refer to

internal communication. A communications director will typically manage internal

communication and craft messages sent to employees. It is vital that internal

communications are managed properly because a poorly crafted or managed message

could foster distrust or hostility from employees.

The importance of communication can never be over-emphasized. Communication is

the lifeblood of all organizations. It is of vital importance to the well-being of a state, a

business enterprise, a religion and other social or cultural identities including the

family. The success of a business enterprise is directly proportional to the level of

communication maintained by it. In the new context of globalization and free trade,

organizations have to communicate cutting across national and cultural boundaries.

Unless effective skills of communication are used, an organization would run the risk of

getting insulated and fossilized. Modern techniques would not be available to them.

Within an organization, effective inter-personal relationships are possible only if

communication skills are cultivated. Today, Multi-nationals organize communication

courses for their employees irrespective of their positions. Effective communication

enhances the potential of the employees and acts as a motivating force for greater

efficiency and productivity.


Good communication skills place an organization at the correct slot in the society. The

image of an organization depends on its ability to communicate with, the society

around it. Good communication promotes better understanding between the employer

and the employee. In this competitive environment, organizations vie with each other to

acquire an employee friendly image. Thus, communication skills help in establishing,

running, producing and marketing of products by commercial establishments. A

worker will not be able to turn out a good product and a customer will not buy a

product however good it is, until each is convinced to do so through effective

communication.

2. An overview of Business Communication:

2.1 Definition of Communication: The word communication has been derived from

the Latin word communis which means to share. Communication means sharing

ideas and information so as to create mutual understanding between people. It

involves giving and receiving of messages and messages may contain not only the fact,

but opinions and emotions too.

Communication is the process by which we exchange meanings, facts, ideas, opinions

or emotions with other people. It is an essential condition of our existence and the most

important activity of ours.

Communication is the nervous system of an organization. It keeps the members of the

organization informed about the internal and external happenings relevant to a task

and of interest to the organization. It co-ordinates the efforts of the members towards

achieving organizational objectives. It is the process of influencing the action of a person

or a group. It is a process of meaningful interaction among human beings to initiate,

execute, accomplish, or prevent certain actions. Communication is, thus, the life blood

of an organization. Without communication, an organization, an organization is lifeless

and its very existence is in danger.


Authorized Definitions:

1. Communication is the sum of all things, one person does when he wants to

create understanding in the minds of another, it involves a systematic and continuous

process of telling, listening and understanding. -------Allen Louis

2. Communication has been defined As the transfer of information from one

person to another whether or not it elicits confidence. -------Koontz and ODonell

3. Communication is an exchange of facts, ideas, opinions or emotions by two or more

persons. --------George Terry

4. Communication is defined as the process of passing information and understanding

from one person to another, it is essentially a bridge of meaning between people. By

using the bridge of meaning a person can safely cross the river of misunderstanding. --

-------Keith Davis

5. Communication is an exchange of ideas, facts, opinions or emotions by two or more

persons. -------- NEWMAN AND SUMMERS

6. Administrative communication is a process which involves the transmission and

accurate reception of ideas ensured by feedback for the purpose of eliciting actions

which will accomplish organizational goals. -------SCOTT

Communication means sharing ideas and information so as to create mutual

understanding between people. It involves giving and receiving of messages and

messages may contain not only the fact, but opinions and emotions too.

2.2 Definition of Business Communication:

Communication is defined as The flow of material information perception,

understanding and imagination among various parties.

Business includes those organizations, which are engaged in the production and

distribution of goods and services to earn profit.

Therefore Business communication means, Flow of information, perception etc. either

within a business organization or outside the organization among different parties.


Business communication is nothing new but something special because it is a

specialized branch of general communication. Process, types, method etc. are the same

with those of general communication but the only difference lies in their application to

the situation. Business deals with a wide range of economic activities and therefore it

produces and sells for earning profit. And here we can define business communication

as a flow of information occurring within the environment with a specific formal

motive.

In a broad sense, business communication can be defined as:

The process of expressing any type of notice, instruction, request, recommendation,

perception, and the liking to a person or a number of person within the organization or

outside the Organization, with a view to information them of any business data,

decision instruction, objectives etc. and expecting feedback from the receivers to secure

action by the receiver.

It has been following characteristics-

a) It is a specialized branch of communication.

b) It deals with internal and external business environment and generally with formal

attitude.

c) It is focused to secure some action by receiver.

d) Simple, concise and to the point language is used to draw attention, developing

interest and include action.

Business Communication can be of two types:

1. Oral Communication - An oral communication can be formal or informal. Generally

business communication is a formal means of communication, like: meetings,

interviews, group discussion, speeches etc. An example of Informal business

communication would be - Grapevine.

2. Written Communication - Written means of business communication includes -

agenda, reports, manuals etc.


2.3 The objectives of communication

The basic purpose of communication is to convey information and ideas in such a

manner that will produce a response as desired by the sender.

1. To give and receive information: An individual often communicates with other

individuals to give or receive information. In organization, the management uses

communication to keep the employees well informed about the goals, policies and rules.

When the employees are well informed about the various aspects of the jobs, they can

perform better. Meetings, notices, telephones, employee hand book and bulletins are

used to convey necessary information to employees.

Similarly, an organization communicates with outsiders (investors, customers,

suppliers, Government, Public) to provide them information about its plans and

contributions.

Managers require accurate and up-to-date information for formulating plans and

decision making. Such information may be collected from both internal (staff, sales and

production data, etc.) and external (government policy, market conditions, etc.)

2. To provide advice: Information tends to be factual and neutral whereas advice is

subjective and opinionated. Advice may be given on personal or official matters. In

business, superiors advice workers in handling machines and equipment in factory or

office. Manager needs specialized advice from experts in matters like taxation, project

finance, quality control, etc. Advice is most effective when given through face to face

contact. Advice should be given in a confidential and informal manner with the

purpose of helping the employee improve his performance. Tact and sympathetic tone

are help and the employee should not be made to feel inferior or guilty.

3. To provide counseling: Counseling is an organized and specialized activity requiring

professional expertise and an objective approach. Modern age is full of strains and

stress. When an employee is facing some personal or family problem his morale and

efficiency tends to be decline. The experts provide counseling sessions with employees

who require counseling and vocational guidance. Face-to face conversation with

counseling helps worker to improve their physical and mental health.

4. To issue orders and instructions: An order is a directive to do something whereas

instruction indicates how to carry out the order. Order involves assignment of task

while instructions specify the way the task is to perform. Orders and instructions are


based on the supervisors authority and subordinates are expected to obey them. Order

and instructions may be oral or in writing.

5. To impart education and training: Education involves formal communication over a

long period so as to widen knowledge and skills. It consists of both teaching and

learning. Education and training of workers and executives is necessary to keep them

abreast of new developments to improve their efficiency and potential and for

orientation of new employees. Eg., lectures, case studies, seminars, AV aids etc.

6. To receive suggestion: Employees and customers are a useful source of new ideas

for business as they are in direct touch with operation and banking procedure.

Suggestions flow upward, as feedback and represent a mild and subtle form of

communication. Executives should set aside their ego and should have an open mind

towards constructive suggestions from the subordinates. Under such a scheme,

suggestion boxes are installed at convenient places in the official/branch. Employees at

all levels are encouraged to put their written suggestion in these boxes. These

suggestions are scrutinized by a suggestion committee. Useful suggestions are

implements and employees who offered them are given awards.

7. To persuade people: Persuasion is the art of influencing the attitudes, opinions and

actions of people. Managers try to persuade workers to put their best efforts. Eg. Sales

person persuade customers to buy products and services. Persuasion requires the

ability to speak and write effectively.

8. To improve morale: Morale reflects he mental health of people. High morale is

necessary to improve efficiency and performance. Notice, bulletins and meeting are

used to prevent fears and rumors among the employees. Upward communication in

the forms of suggestions and grievances is used to raise morale. Attitude survey and

joint consultation may be used to judge employee morale.

9. To improve discipline: Rules and regulations are made known to employees

through written or oral communication. Actions taken to enforce discipline become

more acceptable to employees when the actions are properly explained

10. To seek information: a passer by asking you the way to the post office, the student

asking the teacher for some clarification or the investigating policeman making

enquiries for seeking information by using this communication skill.


2.4 The Communication Process:

Communication is a process of exchanging verbal and nonverbal messages. It is a

continuous process. Pre-requisite of communication is a message. This message must be

conveyed through some medium to the recipient. It is essential that this message must

be understood by the recipient in same terms as intended by the sender. He must

respond within a time frame. Thus, communication is a two way process and is

incomplete without a feedback from the recipient to the sender on how well the

message is understood by him.

1. Context - Communication is affected by the context in which it takes place. This

context may be physical, social, chronological or cultural. Every communication

proceeds with context. The sender chooses the message to communicate within a

context.

2. Sender / Encoder - Sender / Encoder is a person who sends the message. A sender

makes use of symbols (words or graphic or visual aids) to convey the message and

produce the required response. For instance - a training manager conducting training

for new batch of employees. Sender may be an individual or a group or an organization.

The views, background, approach, skills, competencies, and knowledge of the sender

have a great impact on the message. The verbal and non-verbal symbols chosen are

essential in ascertaining interpretation of the message by the recipient in the same terms

as intended by the sender.


3. Message - Message is a key idea that the sender wants to communicate. It is a sign

that elicits the response of recipient. Communication process begins with deciding

about the message to be conveyed. It must be ensured that the main objective of the

message is clear.

4. Medium - Medium is a means used to exchange / transmit the message. The sender

must choose an appropriate medium for transmitting the message else the message

might not be conveyed to the desired recipients. The choice of appropriate medium of

communication is essential for making the message effective and correctly interpreted

by the recipient. This choice of communication medium varies depending upon the

features of communication. For instance - Written medium is chosen when a message

has to be conveyed to a small group of people, while an oral medium is chosen when

spontaneous feedback is required from the recipient as misunderstandings are cleared

then and there.

5. Recipient / Decoder - Recipient / Decoder is a person for whom the message is

intended / aimed / targeted. The degree to which the decoder understands the message

is dependent upon various factors such as knowledge of recipient, their responsiveness

to the message, and the reliance of encoder on decoder.

Feedback - Feedback is the main component of communication process as it permits the

sender to analyze the efficacy of the message. It helps the sender in confirming the

correct interpretation of message by the decoder. Feedback may be verbal (through

words) or non-verbal (in form of smiles, sighs, etc.). It may take written form also in

form of memos, reports, etc.

2.5 7Cs Effective Communication:


There are 7 Cs of effective communication which are applicable to both written as well

as oral communication. These are as follows:

1. Completeness - The communication must be complete. It must be full of facts, figures

and pictures to convey an appropriate message based on the receivers mindset.

Important features include:

Strategic cost saving approach due to completeness of all the necessary

information in corporate business

Completeness of the data leaves no doubt in the audience/ receivers/ readers

mind as all the desired crucial information is received

Helps to be in a much better decision-making position

2. Conciseness - Conciseness means wordiness, direct or to the point. It has following

features:

A very comprehensive approach which makes it more appealing to the crowd or

the audience.

A more time-saving and economic path

Usage of short and limited verbiage underlining key elements by being non-

repetitive

3. Consideration - Consideration means stepping into the shoes of others. Modify

your words in message to suit the audiences needs while making your message

complete. Features of considerate communication are as follows:

Being Empathetic is necessary to stimulate positive reaction from your listeners

Showing optimism and stressing on positive words to influence the audience

Modification of words to suit your listeners/ customers/ readers needs

4. Clarity - Clarity emphasizes on a specific message or goal at a time, rather than

looking at the overall scenario. Clarity in communication has following features:

Clear understanding

Increased grasping power and clarity of thoughts enhancing the meaning of

message.

5. Concreteness - Concrete communication implies strengthening your confidence by

being particular rather than general. Concrete message has following features:

It is supported with specific facts and figures.

A vivid, definite message rather than being vague, obscure makes up for a good

reputation

It reinforces confidence


6. Courtesy - Courtesy in message implies empathetic message along with respect for

the receiver. Courteous message has following features:

Consideration of viewpoints by being sincerely polite, judicious, reflective and

enthusiastic

It is an unbiased, positive and customer centric message

Courtesy builds goodwill and strengthens relations

7. Correctness - Correctness in communication includes no grammatical errors in

communication. Correct communication has following features:

The message is exact, correct and well-timed.

Correct information boosts up the confidence level.

3. Significant of Business Communication in Your Organization Effective Communication is significant for managers in the organizations so as to

perform the basic functions of management, i.e., Planning, Organizing, Leading and

Controlling. Communication helps managers to perform their jobs and responsibilities.

Communication serves as a foundation for planning. All the essential information must

be communicated to the managers who in-turn must communicate the plans so as to

implement them. Organizing also requires effective communication with others about

their job task. Similarly leaders as managers must communicate effectively with their

subordinates so as to achieve the team goals. Controlling is not possible without written

and oral communication.


Managers devote a great part of their time in communication. They generally devote

approximately 6 hours per day in communicating. They spend great time on face to face

or telephonic communication with their superiors, subordinates, colleagues, customers

or suppliers. Managers also use Written Communication in form of letters, reports or

memos wherever oral communication is not feasible. Thus, we can say that effective

communication is a building block of successful organizations. In other words,

communication acts as organizational blood.

The significance of communication in an Organization are given below_

Smooth Working of a Business Firm: Communication is necessary for the

successful smooth and unrestricted working of an enterprise. All organizational

interaction depends upon working of an enterprise. All organizational

interaction depends upon communication. The manager co-ordinates the human

and the physical elements of an organization into an efficient and working unit

that achieves common objectives. Be it an activity of purchase or sale or

production or finance it is the process of communication that makes cooperative

action possible. The internal and external communication process of an

organization decides the various activities to be done and various

objectives to be achieved. Communication is basic to an organizations

existence from birth of the organization through its continuing life when

communication stops, organized activity ceases to exist.

Basis of Managerial Function: Communication plays an important role in

discharging the various functions of management. No function of

management is possible without the communication process. Its importance in

performing the various functions is as follows:

i. Planning: Planning the most important among the functions of

management, requires extensive communication among the executives

and the other personnel. Communication is important in executing a

planned programme and then controlling the activities of the personnel

with the help of feedback information.

ii. Organization: Organization is the second important function of

management which decides the various activities of an organization,

divides them into workable units, delegates authority to perform the.

For this purpose, communication is a must because different persons,

departments and group come to know their powers and jurisdiction only

through an effective means of communication.


iii. Direction and Leadership: Direction and effective leadership requires

an efficient system of communication in an organization. A good leader

can direct or lead his subordinates only when an efficient system of

communication is present. It brings both the leader and the subordinates

in close contact with each other and removes misunderstanding if any.

iv. Motivation: An efficient system of communication enables

management to change the attitude of the subordinates and to

motivate, influence and satisfy them. Most of the conflicts in business

are not basic but are caused by misunderstood motives and ignorance of

facts. Proper and timely communication between the interested parties

reduces the points of friction and minimizes those that inevitably arise.

v. Co-ordination: The present day big organizations, designed on the

basis of specialization and division of labor are constituted of a large

number of people. In order to achieve the desired objective, it is very

necessary to co-ordinate the efforts of labor engaged in the various

activities of production and the organization. Co-ordination requires

mutual understanding about the organizational goals and the mode of

their accomplishment; and the interrelationship between the works being

performed by various individuals.

vi. Control: Communication aids in controlling the activities of the

individuals department and groups. The facts standards and information

are communicated to the concerned parties and they perform their

respective obligations according to the standards set forth in the plan.

Maximum Production at Minimum Cost: Every organization aims at getting the

maximum output at the minimum cost and for this purpose it requires an

effective internal and external communication system. In the external field, and

efficient communication system helps in improving public opinion having

contacts with government departments and getting market information in order

to achieve the primary goals.

Prompt Decision and its Implementation: In order to make prompt decisions,

fact collecting process is necessary. Information must be received before any

meaningful decision and for this purpose communication is a primary

requirement. Again to implement the decision effectively its communication to


subordinates concerned is essential. Thus, decision-making and its

implementation require and effective system of communication.

Building Human Relations: Man is the most active and effective factor of

production and good human relations are the basis of cooperation and

industrial peace that requires good working conditions and work

environment. As we have discussed earlier communication is a two-way

traffic which helps promote cooperation and mutual understanding between

the two partners of an organization. Efficient downward communication

helps the management to tell the subordinates what the organization wants

and how it can be performed. On the other hand upward communication helps

the workers in putting their grievances and suggestions and reactions to the

policies, before the management.

Job-satisfaction and Good Morale: Morale is the human element that

motivates a man to work in the right spirit. Good communication removes

the possibility of misunderstanding among the parties concerned. Workers know

what they have to do and how it creates a sense of cooperation among them. It

increases the morale of the workers and each worker will have job satisfaction.

Avoids Illusion: While passing through various stages information may be

distorted by interested parties and many create illusion and misunderstanding

among persons. Illusion is the great enemy of communication. An efficient

system of communication aims at removing illusions and misunderstanding

by communicating facts and figures.

Contacts with External Parties: Communication is essential not only for the

internal management of the organization but it also helps contacts with the

outside world. Contact with outside agencies such as customers, associations,

other manufacturers, advertisers, suppliers, trade unions, research councils

and institutions, etc. are necessary for furthering the interests of the

organization. It increases the goodwill of the firm and helps in creating a

favorable public attitude towards the organization.

Basis of effective leadership: Communication transmits the leaders idea and

opinions to the followers. Think about political leaders who lead and guide the

people for the betterment of the society or to fulfill any specific purpose.


Basis for the movement of ideas and information: It helps to move ideas and

information from one person to another person. It can develop a chain of

understanding through two-way communication. If there exists no

communication media, technique or process then there would be no sharing of

any idea or information.

Provision for data for decision making: it helps the manager to obtain data for

decision making, to assist in searching problem, and to know what action are

needed. Therefore, communication acts like a storehouse where data, idea or

information are available to deal with.

Smooth and efficient functioning: It helps in all managerial function, such as

planning, organizing, directing, motivating and controlling. It serves as a fuel to

managerial operation and function. Therefore, it makes a chain between past,

present and future and helps for effective performance.

Delegation of authority and responsibility: It helps in decentralization of

authority and delegation of responsibility to right person. Through downward

communication, superior delegates authority and responsibility to the

subordinates. Proper assignment of job and division labor calls for better output.

Increase in managerial competence: It helps to improve managerial competence

and efficiency. Manager use various techniques or tools to command or control

over resources. Continues tracking is possible in terms of communication.

Minimization of cost and time: Efficient communication attempts to minimize

time and cost in case of exchange of information. If any message is required to be

communicated to thousands of people then we have to think about Newspaper,

Television, or Radio which are strong media for communicating any message

around the globe.

Basis information: It acts as a basis of information to each department and helps

the employees to perform their respective jobs. So, any action to be taken

requires a basis and communication between organizations or within

organization provides such basis.

Fulfillment of Organizational objectives: It fulfills the organizational objectives

by co-operation and co-ordination among the managerial and working staffs.

Efficient Human Resources Management: Human resources are recruited,

trained and motivated through effective communication. Recruitment involves

circular by the organization towards general people. Then interested candidates

apply and on the basis of their merit, they are recruited by the respective

organization and transformation according to their skillfulness. The whole

activities involve verbal or non-verbal communication.


Creation of Employee motivation and moral: Managers provide incentives to

motivate their subordinates and maintain strong invisible chain. Motivation is

based on situation and therefore what should be the way of motivation required

judgment by the superior. The perfect motivation towards right person involves

effective communication.

Establishment of public Relation: The management can create cordial relations

with govt. customers, creditors, shareholders, regulatory bodies, trade unions

and the society as a whole. It ensures sound relation.

Communication is one of the most important facilitators of modern business. In its

broadest sense, the importance of modern business is to effect change, to influence,

action toward the welfare of the organization. It is essential in business, govt., military

organizations, hospitals, schools, committees homes; anywhere people deal with one

another.

3.1 Broad Categories of communication in an Organization

Communication on the basis of organization structure may be classified into two broad

categories: Formal and Informal.

1. Formal Communication

Formal communication is closely associated with a formal organizational structure. The

communication flows through formal channels, officially recognized positions along the

line in the organization. In the organization the path along which a communication is to

travel is deliberately created to regulate the flows of communication so as to make it

orderly and thereby to ensure that the required information flows smoothly, accurately

and timely to the points at which it is required. Very often we hear the term through

proper channels which means communication through the channel prescribed in the

organization. It is the path of the line of authority linking two positions in the

organization. It is also known as the chain line of command.

Advantages of formal Communication:

(i). It helps in maintaining the authority of line executives over their subordinates who

are responsible to get the work done by their subordinates and are answerable to their

bosses. The responsibility of the subordinates for the activities carried out by them can

easily be fixed.

(ii). An immediate superior has direct contact with the subordinates; so, a better

understanding is developed between them and communication is made more effective.

(iii). Since an executive better informed about the organization and its problems

than the subordinates a better solution can possibly be found easily and good relations

between the leader and his subordinates develop.


Disadvantages of formal Communication:

(i). Every happening in an organization cannot be foreseen; hence action required for

unforeseen events cannot be formalized.

(ii). It increases the workload of the line superior because all communications are

transmitted through tem. Thus, it leaves the superiors with little time to perform other

organizational functions well.

(iii). There are more chances of red-tapism and delay tactics in this method because

executives generally overlook the interests of the subordinates. Any information

upward or downward favoring subordinates is more often suppressed or delayed by

the superiors.

(iv). In most of the big organizations contact between the top executive and the

subordinates at the lowest level are far remote. Very often they do not recognize each

other. This adversely affects the relations of executives and subordinates.

2. Informal Communication

Informal communication also known as the grapevine is not a planned or deliberately

created channel of communication. It is free from all formalities. No formal

organizational chart is followed to convey messages. It is based on the informal

relations of the two persons, the sender and the receiver of communication. A general

manager may develop contacts with a worker at the lowest level and communicate

certain important information relating to him direct to the worker. It is an example of

informal communication. It is the result of the natural desire of people to

communicate with each other when they come into contact on a regular basis. When

interaction takes place among them a small social groups emerges spontaneously and

members of the group develop their own communication system known as an informal

communication channel or the grapevine.

Advantages of informal communication:

(i). The communication travels at a faster speed because there is no formal line of

communication.

(ii). It is multi-dimensional. As there is no channel of communication, communication

may be made on any topic of interest to any person in the group irrespective of his

position in the formal organization. It may go to any extent all limits as to direction

and degree of communication is self-impose.

(iii). It is dynamic and reacts quickly because informal channels have their sanctions in

the group and develop within the organization.


(iv). At times it may supplement the formal channel. Certain matters which are difficult

to communicate through formal channels may be effectively communicated through

informal channels. If properly utilized it may clarify the managements points of

view to the subordinates which otherwise may not be appealing or it may provide

necessary feedback to managers on the possible effects of a decision or action of the

management.

Disadvantages of informal communication:

(i). It very often carries half-truths, rumors and distorted facts at an alarming rate of

speed. As there is no mechanism for authentication of the news and views, members of

the organization are likely to be misinformed and misled by informal communications.

(ii). Sometimes the messages communicated through informal channels are so erratic

that any action based on these cannot be taken and if taken it may lead to a difficult

situation in the organization because responsibility for erratic messages cannot be fixed.

(iii). In informal communication, there are greater chances of distortion of messages.

Each person conveying the message may add, subtract, or change the original message

according to his motive or interest. There is a chance that by the time a message

completes its complex journey, it may be completely distorted.

3.2 The role of effective business communication within and outside the

organization:

A business Organization is a group of people associated to earn profit. Various kinds of

activities have to be performed by the people of an organization so as to earn profit.

These activities need an effective and systematic communication. Without efficient

communication, one cannot even imagine to do work and hence will be unable to earn

profit. Since the aim of business organization is to earn profit, the organization will die

without profit and this death is a result of the absence of communication. This is why

communication is called life blood of a business organization. We can prove this

statement in the following manner.

Communication inside an Organization:

Different employees and officials in an organization need to communicate to each other.

This internal communication with its importance is shown in the following way:

1. Setting goals and Objectives:-

Mostly, the organizations have a variety of formal and informal objectives to

accomplish. These objectives may be financial results, product quality, market

dominance, employees satisfaction, or service to customers. So the communication

enables all the persons in an organization to work towards a common purpose.


2. Making and Implementing decision:-

In order to achieve the objective, people in a business organization collect facts

and evaluate alternatives, and they do so by reading, asking questions, talking or by

plain thinking. These thoughts are put into a written form. Once a decision has been

made, it has to be implemented which requires communication.

3. Appraisal:-

Having implemented the decision, management needs to determine whether the

desired outcome is being achieved. Statistics on such factors as cost, sales, market share,

productivity and inventory levels are compiled. This is done through computers,

manual papers, memos or reports.

4. Manufacturing the products:-

Getting an idea for a new product out of someones head, pushing it through the

production process and finally getting the product also require communication.

Designing the plan regarding product, introducing the workers, purchasing raw

material, marketing and distributing the product all require effective communication.

5. Interaction between employer & employee:-

Employees are informed about policies and decisions of employers through

circulars, reports, notices etc. Employers also get in touch with employees through

application, complaint etc. So, communication plays a vital role in the interaction of

employer and employee.

External Communication:

1. Hiring the employees:-

If a company wants to hire someone, it advertises the vacancy, receives applications,

calls the candidates, takes the interview and then offers job to the successful candidates.

The whole process requires communication.

2. Dealing with customers:-

Sales letters and brochures, advertisements, personal sales calls, and formal proposals

are all used to stimulate the customers interest. Communication also plays a part in

such customer related functions as credit checking, billing, and handling complaints

and questions.


3. Negotiating with suppliers and financiers:-

To obtain necessary supplies and services, companies develop written specification that

outlines their requirement. Similarly, to arrange finance, they negotiate with lenders

and fill out loan applications.

4. Informing the investors:-

Balance sheet, income statement, and ratio analysis are used to inform the

investors regarding performance of business.

5. Interacting with Govt.:-

Government agencies make certain rules to regulate the economy. These rules are

communicated to organizations through various papers. These organizations try to

fulfill, these requirement like filling taxation form and other documents.

3.3 Differentiate between formal and informal language

Formal language: Informal Language:

(1) It is the language spoken in

office, business and other formal

places.

(2) Proper and standard words are

used.

(3) It consists of specific purpose

words like manager, supervisor,

owner, employer etc.

(4) It is used comparatively less

than informal language. (5) It is used when the speaker is relaxed.

(1) It is the language spoken at home

or with friends.

(2) Improper words and slangs are used.

(3) It has all purpose words like boss

that stands for various personalities.

(4) It is used in daily life.

(5) It is used when speaker is in a hurry/


4. Conclusion: Actions speak louder than words. The words we choose to communicate hold the key,

especially in a culturally diverse environment. According to the findings, effective

communication is extensively dependent 80% on non-verbal communication and a mere

20% on verbal communication. Communication has evolved from being one-on-one

between people in todays technologically advanced world to social Medias like

Facebook, Twitter, MySpace, etc. where we are communicating with thousands of

people simultaneously all across the globe. A key to success lies in breaking all

communication and cultural barriers in order to convey various messages in the form of

music, painting, dance forms, poster presentations, rallies, flash mobs, etc. Its equally

important even in corporate meetings to be presentable and understandable.

Future of communication is already and will continue to be heavily dependent on

advanced communication technologies all across the globe.

5. References: 1. Davis, Keith and Newstrom, John W. (2006). Organizational Behavior: Human

2. Behavior at Work 11th edition.

3. Ali, M. Omar (2003). Business Communication: Theory and Application 2nd

edition.

4. Business Communication by K. K. Sinha. Galgotia Publishing Company., New

Delhi.

5. Business Communication by C. C. Pattensheti. R. Chand and Company

Publishers, New Delhi.

6. Essentials of Business Communication by Rajindra Pal and J. S. Korlahalli. Sultan

Chand and Sons., New Delhi.

7. Effective Business Communication by Herta A. Murphy and Charrles E. Peck.

Tata McGraw Hill Publishing Company Limited, New Delhi.

8. Essentials of Business Communication by Pettett and Lesikar. Tata McGraw Hill

Publishing Company Limited, New Delhi.

9. Business Communication by Pettett and Lesikar. Tata McGraw Hill Publishing

Company Limited, New Delhi.

10. http://en.wikipedia.org/wiki/Communication

11. http://www.effective-communication.net/

12. http://notesdesk.com/notes/business-communications/the-seven-cs-of-effective-

business- communication/

13. http://www.managementstudyguide.com/seven-cs-of-effective-

communication.htm

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Significance of Business Communication in Your Organization