Unit III: Communication in Business
(a) Meaning and methods: letter, e-mail, video conferencing, telephone
Meaning:
Business is a multi-dimensional entity which requires highly efficient communication system to function properly. Business communication means interaction among people within a workplace and outside. It is the interaction among people at different levels to share information about different stages of the business process.
Key elements:
Key elements in the communication process are:
(i) Sender – One who initiates the communication
(ii) Message – Subject or message that has to be carried
(iii) Channel – The method of communication – Telephone, short message, e-mail, letter, tele/video conferencing
(iv) Receiver – There has to be a recipient of the message which completes the process.
Conditions:
In order to be effective, a business communication must fulfil the following conditions:
(i) Clarity: The messages exchanged must be clearly understood so that correct response is generated.
(ii) Purpose: The message should be specific about its purpose.
(iii) Awareness: One important aspect is to raise awareness of the audience.
(iv) Feedback: Messages should able to trigger feedback to upgrade business relationship.
Based on functionality and purpose business communication can be classified into two parts:
(a) Internal Communication
(b) External Communication
(a) Internal Communication: These are hierarchical channels and can be classified as follows:
(i) Upward communication: This is the communication that flows from subordinates to upper management levels in the form of progress sheet, reporting of bottlenecks and suggestions for improvement.
(ii) Downward communication: When information flows down from management level downwards, it is called downward communication. For example, communication from production manager to floor supervisor.
(iii) Lateral Communication: Here communication runs at the same hierarchical level. When managers interact among themselves, it is called lateral communication.
(b) External Communication: When a business entity opens up different channels of communication with outside parties, it is called external communication. External communications build relationship with other business entities and pave the way for mutual trust and confidence.
Methods of business communication:
(a) Letters:
Use of letters for business communication is probably as old as business itself. There are introductory letters, offer letters, letters accepting or rejecting terms of business, letters of enquiry and letters seeking settlement of dues etc. Letters have stood the test of time because of the following factors:
(i) Letters bear the official stamp as formal communication in every matter related to a business.
(ii) Letters are most useful for contacts, proposals, expression of terms and conditions and formal requests.
(iii) As means of communication, letters are permanent records.
(b) Emails:
(i) Nowadays, emails are extensively used for all sorts of communication whether it is for day to day business or contingencies.
(ii) Emails are quick and efficient as means of communication. They transmit data at the click of a button if sender and recipient have registered email addresses.
(iii) One key advantage of emails is that documents can be forwarded as attachment with the mail.
(c) Phone calls:
(i) Phone calls, both landline phones and mobile phones are important for urgent communications.
(ii) For immediate feedback or clarification phone calls are indispensable.
(iii) Economical contact option.
(d) Reports and memos:
(i) Used mainly as internal communication tools, reports and memos are useful updates.
(ii) At different hierarchical levels the reports are structural formats.
(e) Presentation:
(i) The Power-point is the most widely used tool for sharing analytical data to a group of people.
(ii) Slide presentation is also very useful for meetings and training sessions.
(iii) Effective tool to convey conceptual ideas.
(f) Video conferencing:
(i) Video conferencing tools like Zoom conduct virtual meetings
(ii) facilitates long distance collaboration among remote teams.
(iii) facilitates real time interaction with visual aids.
(iv) Essential for remote teams and international collaborations.
(g) Tele-Conferencing:
Tele-conferencing is simultaneously connecting a number of people by merging calls in a cell phone so that everyone can participate in the conversation to make his point. This is a method of quick communication to build teamwork.
(h) Instant message/chat:
Tools like Microsoft Teams and Stack allow for real time communication. This is useful for quick teamwork. WhatsApp chat is also very popular and links people for important messages.
(h) Social- media:
Platforms like linked-in or X help build up networking of professionals and other communities and are pretty effective as communication tools.
Barriers to Communication: In-spite of being crucially important for any business organisation, communication faces challenges that it has to overcome in order to be effective. The common barriers are:
1. Physical barriers:
These are social distancing or closed office doors which are reluctant and are not open to conversation.
2. Emotional barriers:
Mistrust, stress or anger can be stumbling blocks as unhappy consumers are difficult to reach.
3. Cultural barriers:
Language and other cultural differences are obstacles which come in the way of effective communication.
4. Organisational barriers: If the organisational framework is not well defined in a business, internal communication will suffer.
CBSE Class 10 Elements of Business Unit III: Communication in Business – Completed
The following topics have been completed in Unit III: Communication in Business:
(a) Meaning and methods: letter, e-mail, video conferencing, telephone
Related Links:
Unit I -Joint Stock Company
Unit II – Sources of Business Finance
Unit III – Communication in Business Organisations
Unit IV – Selling and Distribution
Unit V – Large Scale Retail Trade
Unit VI – Selling
Class 10 Elements of Business Test Paper 1