Business Communication (5409)Associate Degree in Commerce Spring, 2015

ASSIGNMENT No. 1

Q.1 Define business communication. Discuss the role of effective business communication within and outside the organization in contemporary business operations. (10+10)Ans: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 distributionof 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”.E X P L A NAT I ON : -

We can extract the following points form the above definition;(i) Flow between two or more parties.

In business communication the material flow from one person to another person or from many persons to different people. This flow may either be inside the organization or outside the organization.

(ii) Flow of information, perception, imagination etc.Flow of information takes place when a party transfers the material to another mind. For example,

when a news caster says, “Pakistan has conducted nuclear test on 28th

May 1998”. This is a flow of information from news caster to the listeners.

Flow of perception means transfer of different feelings. Finally, flow of imagination that occurs when a painter conveys his/her imaginations through a portrait.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 can not 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.

COM M UN I C A T I O N I NS I D E A N O R G AN I ZA T I O N : 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. S etti n g g o a l s a n d Ob j e cti v es : -

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. M a k i n g a n d I mp l e m e n ti n g d e c i s i o n : -

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. A p p r a is a l: - 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. M a n u f a c t u r i n g t h e p ro d u c t s : -

Getting an idea for a new product out of someone’s 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. I n t e r ac ti o n b e t w e e n e m p l o y e r & e mp l o y e e: -

1

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.

E X TERNA L C O MM UN I C A T I O N :

1. H iri n g t h e e m p l o y e es: - If a company wants to hire some one, 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. D e a li n g w i t h c u st o m ers: -

Sales letters and brochures, advertisements, personal sales calls, and formal proposals are all used to stimulate the customer’s interest. Communication also plays a part in such customer related functions as credit checking, billing, and handling complaints and questions.3. N eg o ti a ti n g w i t h s upp lie r s a n d f i n a n c ier s : -

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. I n for m i n g t h e i n v e s t or s : -

Balance sheet, income statement, and ratio analysis are used to inform the investors regarding performance of business.5. I n t e r ac ti n g w it h G o vt . : -

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.

Q.2 a) Explain various essential elements of communication process.Ans: Elements of CommunicationCommunication is one of the most important factors for the existence of our society today. The importance of effective communication is immeasurable in the world of business and in personal life. Denis McQuail is one of the most influential scholars in the field of mass communication studies says “ Communication is the sending of meaningful messages from one person to another”. According to Harold D Lasswell “ Communication is discerning who says what, in which channel to whom and with what effect”. In simple words Communication is giving, receiving or exchanging ideas, information, signals or messages through an appropriate media. It is a dynamic process involving a series of actions and reactions with a view to achieve a goal. The importance of effective communication is immeasurable in the world of business and in personal life. Communication is, therefore, a two way process. Each element plays an important role in making the communication effective and can be classified as follows:1.Sender:  Sender is an individual, group, or organization who initiates the communication. This source is initially responsible for the success of the message. A process by which the sender formulates an idea to communicate is selected first. The first step the sender is faced with involves the encoding process. In order to convey meaning, the sender must begin encoding, which means translating information into a message in the form of symbols signs that represent ideas or concepts, which is then communicated. This process can be influenced by external factors, or it can come about internally by thinking about a particular subject. For Ex:Ex. A politician giving a speech.A parent lecturing a child.Customer of a restaurant writing a complaint letter to the management of the restaurant.2. Message:  A message can be an idea, concept, emotion, feeling that a person wants to share with another person. A message can be verbal or non-verbal form of communication. It is based on the source or idea, but the message is crafted to meet the needs of the receiver. The purpose to send a message is to evoke meaning to the other person. A message can be intentional or non-intentional. Messages can be encoded into a variety of formats oral, written or visual.Eg: Speech is a channel,  signs, gestures, symbols are different ways in which a message can be transmitted.3. Channel:  It’s the medium through which communication is transmitted from one person to the reliever.  Most channels are either oral or written. Common channels include the telephone and a variety of written forms such as memos, letters, and reports. The effectiveness of the various channels fluctuates depending on the characteristics of the communication. In case of immediate feedback Oral Communication

2

is convenient. In a situation where the message must be delivered to more than a small group of people, written channels are often more effective. Although in many cases, both oral and written channels should be used because one supplements the other. For Eg: A president delivering a Speech may speak face to face with an audience, via the broadcast media or via print.For Ex : An audience receives the politician’s speech.The child who is the recipient of the parents lecture4. Receiver: Receiver is the individual or individuals to whom the message is directed to. The extent to which a receiver comprehends the message will depend on a number of factors, which include the following: knowledge of the individual regarding the message, their receptivity to the message. All interpretations by the receiver are influenced by their experiences, attitudes, knowledge, skills, perceptions, and culture.Ex. An audience receives the politician’s speech.Student receiving a lecture from the teacher in a classroom.5. Decoding: Decoding is the process where the message is interpreted by the receiver . The receiver begins to interpret the message through words, signs, symbols sent by the sender translating the message to its set of experiences in order to make the message meaningful. Successful communication takes place when the receiver correctly interprets the sender’s message.Eg: A student searches the definition of a word unknown to her in the dictionary, interprets the meaning and gains information.6. Feedback: Feedback  is an integral part of communication process that allows the speaker to monitor the process and to evaluate the success of the message communicated. This step conveys to the sender that the message is understood by the receiver. After receiving a message, the receiver responds through a channel and signals that response to the sender. For Ex: The signal may take the form of a spoken comment, a written message, a smile, rolling of eyes, a sigh or some other action. No response is also a form of feedback. Without feedback, the sender cannot confirm that the receiver has interpreted the message correctly. For Eg: Employee surveys, company news letters, e-mails.7. Noise-  There are certain barriers present in the communication process. These factors may have an impact on the communication process. Noise is one of the most common barriers, that influence the feedback in this process. Noise essentially is anything that distorts a message by interfering with the communication process. Noise can take many forms it can be external or internal factors. Noise as a barrier may originate from the source or the receiver, from the channel used in sending the message, or outside the source and receiver’s control.Eg: Internal factor– Involves mental forces within a receiver or sender that might affect his or her ability to either encode or decode a message correctly. Eg: Daydreaming, fatigue, exhaustion.Eg: External factors: Anything around the person that disturbs the communication process. Eg: Sights, sounds, smell.Conclusion:Successful and effective communication for an individual, group or an organization starts with the right implementation of the communication process. Effective communication leads to understanding. Through this process that the sharing of a common meaning between the sender and the receiver takes place.  Communication is important for us. For effective communication we need to understand how various elements work.

b) Explain the need and importance of communication for an organization.

Ans: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.

3

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 importance of communication in an organization can be summarized as follows:

1. Promotes motivation: Communication promotes motivation by informing and clarifying the employees about the task to be done, the manner they are performing the task, and how to improve their performance if it is not up to the mark.2. Source of information: Communication is a source of information to the organizational members for decision-making process as it helps identifying and assessing alternative course of actions.3. Altering individual’s attitudes: Communication also plays a crucial role in altering individual’s attitudes, i.e., a well informed individual will have better attitude than a less-informed individual. Organizational magazines, journals, meetings and various other forms of oral and written communication help in molding employee’s attitudes.4. Helps in socializing: Communication also helps in socializing. In today’s life the only presence of another individual fosters communication. It is also said that one cannot survive without communication.5. Controlling process: Communication also assists in controlling process. It helps controlling organizational member’s behaviour in various ways. There are various levels of hierarchy and certain principles and guidelines that employees must follow in an organization. They must comply with organizational policies, perform their job role efficiently and communicate any work problem and grievance to their superiors. Thus, communication helps in controlling function of management.An effective and efficient communication system requires managerial proficiency in delivering and receiving messages. A manager must discover various barriers to communication, analyze the reasons for their occurrence and take preventive steps to avoid those barriers. Thus, the primary responsibility of a manager is to develop and maintain an effective communication system in the organization.

Q.3: Explain encoding and decoding of a message in interpersonal communication. Discuss different types of barriers which hinder an effective communication process. (10+10)

Q.4 a) Differentiate between internal communication and external communication.(10)b) Differentiate between verbal communication and non-verbal communication.(10)Ans: V E R B AL C O MM U N I CA T I O N: Verbal communication means such a communication that takes place by means of a language or words”. It includes the following contents.

a. O r a l c o m m u n i c a t i o n ( S p e a k i n g & l i s t e n i n g ) b. W r i tt e n c o m mu n i c a t i o n ( w r i t i n g & re a d i n g )

1. Sp e a k i n g : - In order to send message in business, speaking plays a vital role. Giving instruction,

conducting interviews, attending meetings, sending orders through telephone calls are very common in today’s business.2. W r iti n g : -

It is used when a complex message is sent. Placing order through letters, informing employees through circulars, sending reports and memos, filling different government forms, keeping records in writing are some examples of this aspect of verbal communication.3. L iste n i n g : -

People in business spend more time in obtaining information then transmitting it. Listening is the most important way to receive information: information regarding order of employers, instruction, rules and regulation, customer trend etc, are obtained through listening. But in listening, people generally forget 75% of the message after few days.4. R e a d i n g : -

4

Reading reports, memos, policies, circulars, and different business statements are essential for an organization: Reading involves understanding and interpreting the material.

N O N V E R B AL C O MM UN I CA T I O N: It means communication without the use of language or words. It includes appearance, body language, silence, etc. Its explanation is as follows;1. F a c i a l E x p ressi o n s: -

Face and eyes are helpful means of nonverbal communication. They reveal hidden emotions such as anger, confusion, enthusiasm, fear, joy etc.2. G est u r e s , p o s t u re s & m o v e m e n t: -

Postures means the language primarily composed of hand and fingers. Communication of deaf people and signal given by traffic constable are the example of posture. Gestures and body movement also indicate many things. Shaking hand with firmness indicates a warm relationship, moving back and forth reveals nervousness.

Q.5 Define management information system. Describe various users of information within and outside the organization. (20)

5