MB0039 Slides Unit 03

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Unit-3 The Nature of Business Communication

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Program : MBA

Semester : 1stSemester

Subject Code : MB 0039

Subject Name : Business Communication

Unit number : 3

Unit Title : The Nature of Business Communication

Lecture Number : 3

Lecture Title : The Nature of Business Communication

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The objectives of this lecture are to:

describe the types of business communication

explain the communication networks in organisations

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Objectives

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The Nature of Business Communication

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Lecture Outline

Introduction

Types of Business Communication

Communication Networks in Organisations

Summary

Check Your Learning

Activity

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A manager has to maintain communication linkages with different

entities, both within and outside the work environment.

There are various advantages and disadvantages of different types of

channels of communication.

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Introduction

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Business communication is diverse and involves both internal

stakeholders within the organisation, as well as external stakeholders

outside the organisation.

Managers have to stay in continuous touch with their internal

stakeholders like their superiors, peers, subordinates, shareholders,

employees and unions. At the same time managers have to communicate with external

stakeholders such as customers,

intermediaries (distributors and retailers),

suppliers of materials and components,

government, bankers, society at large and

the media.

(Contd)

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Effective business communication therefore involves both internal as

well as external communication.

The wheel of business communication reinforces that communication is

like breathing, it never stops and is a constant process.

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(Contd)

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Types of Business Communication:

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(Contd)

Internal Communication- Stakeholders

Superiors

Peers Subordinates

Employees/ Unions

Shareholders

External Communication- Stakeholders

Consumers

Intermediaries Suppliers

Government

Society

Bankers

Media

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External Stakeholders

Internal Stakeholders

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Communication Networks inOrganisations

FormalCommunication

Network

A formal communication networkis one which is created bymanagement and described withthe help of an organisationalchart.

In a formal network, informationis passed on only through officialchannels such as memos,bulletins and intranet (emailwithin the organisation).

InformalCommunication

Network

In this type of network,information does not flow in aparticular direction

Informal networks are basedmore on friendship, sharedpersonal or career interests.

Types of Communication Networks in Organisations:

(Contd)

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Communication Networks inOrganisations

(Contd)

UpwardCommunication

Reasons: To discusswork related problems,Give suggestions forimprovement, Sharefeelings about job andco-workers.

Advantages: Problem-solving, valueable ideasand suggestions fromlower level employees,

Employees learn toaccept the decisions ofmanagement.

DownwardCommunication

Reasons: For giving job

instructions, Explaincompany rules, policiesand procedures, Givefeedback regarding jobperformance.

Advantages: Regularfeedbacks, Transparencyor openness, Boostemployee morale.

HorizontalCommunication

Reasons: Coordination

of tasks, Sharing ofinformation, Resolvinginterpersonal or workrelated problems andbuilding rapport.

Advantages: Sense ofteam work gets created.

Types of Formal Communication Networks:
http://www.google.co.in/imgres?imgurl=http://cms.mumbaimirror.com/portalfiles/21/2/201108/Image/SME%20Times%20Image(4).jpg&imgrefurl=http://www.bizxchange.in/u47/S-2P-2A-20110829201108291637013302839880dT-2N-/SME-Times.html&usg=__t1wIjerFmqVlskCy9jKLP6ZL4P0=&h=186&w=200&sz=10&hl=en&start=60&zoom=1&tbnid=ViHvlQQWg7s_GM:&tbnh=97&tbnw=104&ei=AMwPUO2vBIPprAfV24HQBQ&prev=/search?q=horizontal+communication&start=40&hl=en&sa=N&biw=1280&bih=575&site=imghp&tbm=isch&itbs=1http://www.google.co.in/imgres?imgurl=http://www.joemcgonigal.com/wp-content/uploads/2012/07/business-graph-downward-trend.jpg&imgrefurl=http://www.joemcgonigal.com/2012/07/&usg=__LI_GomR7tLHrhByJuZIJn2_ob1c=&h=299&w=300&sz=16&hl=en&start=13&zoom=1&tbnid=tOI6G7jnZvFR7M:&tbnh=116&tbnw=116&ei=mssPUMidMMHOrQfi24CoAw&prev=/search?q=downward+communication&hl=en&biw=1280&bih=575&site=imghp&tbm=isch&itbs=1http://www.google.co.in/imgres?imgurl=http://www.corexcel.com/vital/assets/images/communicating-up2.jpg&imgrefurl=http://www.corexcel.com/vital/communicating.up.htm&usg=__NbRKoAqriOiDzumDV0n7c8DIFS4=&h=146&w=158&sz=7&hl=en&start=3&zoom=1&tbnid=aKQHhMf4hFAtiM:&tbnh=90&tbnw=97&ei=ecsPUMrDMM3JrAer3ICICg&prev=/search?q=upward+communication&hl=en&biw=1280&bih=575&site=imghp&tbm=isch&itbs=1

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Communication Networks in Organisations

Informal Communication or Grapevine

Reasons: Fill in the transparency gaps left by formalnetworks, Information can be passed on free from any

formalities, Can be used for constructive purpose.Advantages: Rapid spread of information, Quickcommunication, Used to verify the accuracy ofinformation received, Inexpensive, Channel to expressanxieties and opinions without fear, by the employees.

Informal Communication Networks:

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The following Points summarises the concepts of this unit.

A manager has to maintain communication linkages with

different entities, both within and outside the work

environment.

Business communication is diverse and involves both

internal stakeholders within the organisation, as well as

external stakeholders outside the organisation.

The wheel of business communication reinforces that

communication is like breathing, it never stops and is a

constant process.

A communication network refers to how information flows

within the organisation.

The flow of information is managed, regulated and structured.

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Summary

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1. Mention the stakeholders in external communication.

Ans: The external communication stakeholders are: Consumers

Intermediaries

Suppliers

Government

Society Bankers

Media

2. What are the reasons for horizontal communication?

Ans: The reasons for horizontal communication include coordination of tasks,sharing of information regarding goals of organisations, resolving

interpersonal or work related problems and building rapport.

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Check Your Learning

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Activity 1

An organisation has recently changed certain human

resource policies. The change is related to variable payouts

to employees. Illustrate through different communicationnetworks, how the flow of information would take place?

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Activity

Documents

MB0039 Slides Unit 03