Unit 1 Introduction to Business Communication MBA 1sem Notes

Unit 1 Business Communication MBA 1st sem notes

Business Communication MBA 1sem Notes


Communication: Communication is defined as the process of mutual exchange of ideas, views or opinions from one person to another person.

For example, you are talking with your friends about your favourite movie. you share your thoughts and your friends respond with their own opinions. This exchange of ideas is a communication.

Business Communication: The communication that takes place within the organisation for the smooth flow of information for achieving the organisation's objectives is known as business communication

For example: Think about a meeting, where your boss explains a new project to your team. Your team members ask questions to clarify the details. This communication within the organizations, aimed at achieving the project's goals, is known as business communications.


Features of Business Communications

  • Clarity: Business communication should be clear and easy to understand. It should convey the intended message without confusion.
  • Conciseness: Effective business communication is concise, conveying information efficiently without unnecessary details.
  • Formality: Business communication often follows a formal tone and structure, reflecting professionalism and respect for the recipient.
  • Accuracy: It is important for business communication to be accurate, providing correct and reliable information to avoid misunderstandings or errors.
  • Purposeful: Business communication should have a clear purpose or objective, whether it is to inform, persuade, or collaborate, ensuring that the message serves its intended goal.

Process of Communications

The Communication Process involves several steps:

  • Sender: The person who starts the communication by encoding a message.

  • Message: The information, ideas, or feelings being communicated.

  • Channel: The medium through which the message is transmitted, such as face-to-face conversation, email, or phone call.

  • Receiver: The person who receives and decodes the message.

  • Feedback: The response or reaction of the receiver to the message, which allows the sender to assess the effectiveness of the communication.

  • Noise: Any interference that may distort or disrupt the communication process, such as background noise or language barriers.

  • Context: The circumstances or situation in which the communication takes place, which can impact how the message is perceived and understood.

Role of Communication

1. Sharing Information: Communication helps people share information with each other.
For example, when you tell your friend about a new restaurant you tried, you're sharing information.

2. Building Relationships: Communication helps build relationships by allowing people to connect and understand each other better.
For example, when you chat with your coworkers during a break, you're building relationships.

3. Making Decisions: Communication plays a crucial role in decision-making.
For example, when a group of friends discusses where to go for a vacation, they use communication to make a decision together.

4. Expressing Feelings: Communication allows people to express their feelings and emotions.
For example, when you tell your family how much you love them, you're expressing your feelings through communication.

5. Solving Problems: Communication helps in solving problems by discussing issues and finding solutions.
For example, when a group of students works together to solve a math problem, they communicate to find the answer.

6. Achieving Goals: Communication is essential for achieving goals by coordinating actions and efforts.
For example, when a sports team communicates well on the field, they can achieve their goal of winning the game.

Types of Communication

A. Based on expression

  • Verbal Communication: Using spoken or written words. 
    • For example: When you talk to someone face-to-face, over the phone, or through a written message like a text or email, you're using verbal communication.

  • Non-Verbal Communication: Using gestures, body language, facial expressions, etc.
    • For example: When you nod your head to show agreement, smile to express happiness, or use hand gestures to emphasize a point while speaking, you're using non-verbal communication.

B. Based on direction

  • Vertical Communication: An upward or downward flow of communication within an organization.
    • For example: Imagine you work at a company and need to report your progress on a project to your manager. You send an email to your manager with the update. This is an example of upward communication because you are communicating information to a higher level in the organization.

  • Horizontal Communication: Communication between individuals or units at the same hierarchical level.
    • For example: Now, imagine you need to collaborate with a colleague from another department on the same project. You talk to your colleagues directly to discuss ideas and share information. This is an example of horizontal communication because it involves communication between individuals at the same hierarchical level.

C. Based on organization

  • Formal Communication: Follows the official channels of communication in an organization.
    • For example: Imagine you work in a company and need to request time off. You would follow the official process by filling out a leave application form and submitting it to your manager for approval.

  • Informal Communication: Communication that occurs outside the formal channels, often involving personal or social interactions.
    • For example: Now, think about chatting with your colleague during a coffee break about your weekend plans. This casual conversation about personal matters is an example of informal communication, as it's not part of the official work-related communication channels.

Communication Types

Aspect Formal Communication Informal Communication
Definition Follows official channels and protocols Occurs outside official channels, often casually
Purpose Convey work-related information, requests, or updates Share personal or social information, build rapport
Tone Professional, respectful Casual, relaxed
Structure Follows a predetermined structure and format No set structure, spontaneous
Examples Emails, official meetings, reports Watercooler conversations, social media interactions

Importance of communication in management

Communication in management is crucial as it ensures that everyone in the organization understands the goals and objectives, leading to better coordination and efficiency.

For example, imagine a restaurant where the manager communicates clearly with the kitchen staff about the orders. This helps ensure that the food is prepared correctly and delivered to customers on time. If there is a lack of communication, orders might be delayed or incorrect, leading to unhappy customers and loss of business.

Barriers to Effective Communication

Barriers to effective communication can include:

1. Language barriers: Differences in language and vocabulary can lead to misunderstandings.
For example: Imagine you're in a foreign country where you don't speak the local language. You try to ask for directions, but the person you're talking to doesn't understand you because you're speaking a different language.

2. Physical barriers: Distractions, noise, or distance can interfere with communication.
For example: You're trying to have a conversation with someone in a noisy, crowded room. The noise makes it difficult to hear each other, so you have to repeat yourselves or move to a quieter place to communicate effectively.

3. Emotional barriers: Feelings such as fear, anger, or stress can hinder effective communication.
For example: You're discussing a sensitive topic with a friend, but they are feeling upset and angry about something else. Their emotions make it hard for them to focus on your conversation, leading to misunderstandings.

4. Cultural barriers: Differences in customs, norms, and values can impact how messages are interpreted.
For example: You're working on a project with a team from different countries. During a meeting, you suggest an idea that is common in your culture but is seen as disrespectful in another culture. This cultural difference leads to confusion and miscommunication.

5. Perceptual barriers: Differences in how individuals perceive and interpret information can lead to miscommunication.
For example: You and your colleague are working on a project, but you have different ideas about how to approach it. Your colleague sees the project as a creative challenge, while you see it as a logistical task. These different perceptions can lead to misunderstandings and disagreements.

6. Organizational barriers: Issues such as hierarchical structures, poor leadership, or inadequate communication channels can impede effective communication.
For example: You're trying to communicate an idea to your manager, but there are too many layers of hierarchy in your organization. Your message gets lost or distorted as it passes through various levels of management, making it difficult to effectively communicate your ideas.

Crisis Communication

Crisis communication is how companies and organizations respond to unexpected events that could harm their reputation or operations. It involves quickly and effectively communicating with the public, employees, and other stakeholders to manage the situation and minimize damage.

Explanation of Crisis Communication

  • Imagine a popular restaurant chain discovers that one of its suppliers has been involved in a food safety issue, leading to a risk of contaminated products. This is a crisis for the restaurant chain because it could harm its reputation and affect customer trust.
  • In this situation, the restaurant chain would need to engage in crisis communication. They might issue a public statement explaining the issue, what steps they're taking to address it, and how they're ensuring the safety of their products. They would also communicate with their employees to keep them informed and trained on how to handle customer inquiries.
  • The goal of crisis communication is to be transparent, empathetic, and proactive in addressing the crisis to maintain trust and credibility with stakeholders.

Role of Communication in Crisis

  • Providing Information: Communication helps provide timely and accurate information to people during a crisis, keeping them informed about the situation.
  • Reducing Fear and Anxiety: Clear communication can help reduce fear and anxiety by providing reassurance and guidance on how to stay safe.
  • Coordination of Response: Effective communication is essential for coordinating the response to a crisis, ensuring that resources are allocated efficiently and actions are well-organized.
  • Building Trust: Transparent and honest communication helps build trust with the public, as people feel more confident in the information and guidance provided.

  • Example: During a natural disaster like a hurricane, communication plays a crucial role in informing people about evacuation procedures, shelter locations, and safety precautions. Clear and timely communication from authorities can help minimize panic and ensure that people take necessary actions to protect themselves and their families.

Reason of Crisis

  • Miscommunication: Not conveying information clearly can lead to misunderstandings, causing a crisis.
    • Example: A company's advertisement is misunderstood, leading to public outrage.
  • Lack of preparation: Failing to anticipate potential problems or having a plan in place can result in a crisis.
    • Example: A city is unprepared for a natural disaster, causing chaos and confusion.
  • External factors: Events beyond control, such as economic downturns or natural disasters, can trigger a crisis.
    • Example: A company faces a financial crisis due to a recession in the market.
  • Poor decision-making: Making decisions without considering long-term consequences can lead to crises.
    • Example: A government makes a hasty decision that leads to protests and unrest.
  • Neglecting feedback: Ignoring feedback or warning signs can allow issues to escalate into crises.
    • Example: A company ignores customer complaints, leading to a major product recall.
  • Ethical lapses: Acting unethically can damage reputation and lead to crisis.
    • Example: A company is caught in a scandal involving bribery, leading to public outrage.