What is Communication?

Communication can simply be defined as a mutual exchange of information with specific intent. It is an omnipotent fact of life and the basis for every activity carried out in society. However, communication carried out in the course of business activity can be termed business communication. Communication is the most essential part of business and involves a constant flow of information. Effective communication in a business environment is crucial to the survival and success of an enterprise. Lack of effective and efficient communication can prove to be fatal to a business.

Proper communication of organization policies and regulations, terms and conditions of a vendor contract, and reaching out to customers and clients are some of the examples of why effective communication is necessary and plays a huge part in the success of a business.

Purpose of Business Communication

Communication is paramount and wisely used in any organization. Some of the key reasons for the importance of communication in a business environment are as follows:

For instructions

In a business setup, getting tasks done is essential and the instructions provided for such related activities form the basis of business communication. This involves directing employees on the methods and techniques of carrying out a process, and delegation of tasks.

For training

Admission of new employees in an organization is often followed by informing them about their duties, the past business practices, the current working environment, and instructions relevant to how their job is to be done. Most of the above-listed activities are carried out referring communication like e-mails, seminars, and face-to-face training sessions.

For feedback

When imparting any kind of instruction or training, it is essential that the same is being understood and carried out in a correct manner by the receiver of such information. To ensure the same, feedback is obtained. It is essential to keep track of the progress made while carrying out any activity, and business communication plays an essential part in the process.

For leadership

Leadership implies effectively motivating a person or a group to work towards a goal and is the principal factor that makes everything work smoothly in an organization. The most important tool of a leader is the quality of communication. It largely involves consultation, encouraging dialogue among employees, motivation, setting goals and objectives, creating reward systems, encouraging creative participation, and developing a connection with all members of the organization. Most of the above-listed activities will prove redundant without communication structures in place.

For decision making

Decision-making is undertaken by everyone in an organization from the workers at the operations level to the executives or the senior management level. At the operations level, a well-informed decision ensures day-to-day progress and the achievement of goals and objectives set. At the management level, a manager must have all the relevant information to make a well-informed decision. Decision-making, as an activity, is carried out every day in every little business process and the decision makers must be recipients of suitable and appropriate information via e-mail, reports, ledgers, management reviews, financial statements, transcripts, and records relevant to the business.

Tools of Business Communication

An enterprise uses various tools to carry out communication among employees, with senior management, with customers and clients, and with vendors and other participants of a business environment. Business communication is also widely used in turning data into relevant information. Some of the tools are:

• E-mails
• Letters
• Seminars and Webinars
• Meetings, Conferences, and Sessions
• Processing Systems
• Preparation of Accounts, Financial Statements, and Reports
• Recording of transcripts and minutes of meetings.

Challenges to Business Communication

It is not entirely unfair to say that communication is the backbone of a business enterprise. Consequently, the challenges faced in course of business communication are detrimental to the entire operation. The barriers faced in business communication can be classified into the following broad categories:

• Physical barriers
• Language barriers
• Personal barriers
• Social barriers
• Organizational barriers

Physical barriers

These are the barriers caused by technical difficulties in the media and the disruptions present in the surrounding environment. For instance, time and distance can be difficult to manage while communicating. Time differences between people living in two separate countries with mutual business interests can affect communication.
Noise, slow internet speed, faulty signal, lack of acoustics, stammering and fumbling while speaking, and use of defective devices are some of the instances of physical barriers.

Language barriers

Oral and written communication is based on words, symbols, and language used to impart information. In the course of business, many challenges like the misinterpretation of words, use of technical jargon, use of different languages, and faulty translations are faced by an enterprise daily. These barriers often cause a communication failure.

Personal barriers

Barriers that are directly linked to the receiver and sender of information are termed personal barriers. These are in relation to the education, intention, age, background, and experiences of an individual. In any organization, the attitude and motives of the employees towards clients, upper management, and each other play an important role in defining the quality of communication that takes place in the organization.

Whether a superior is open to feedback or not, for instance, often defines the overall culture of an organization and thus is very detrimental to its success.

Social barriers

Social and cultural differences among the members of an enterprise can give rise to complexity in the flow of information. Many factors like differences in languages, and culture-specific assumptions in the mind of the sender or the receiver of information cause such barriers.
People belonging to different cultures may attach different meanings to words, symbols, gestures,
and behavior. Such differences largely lead to a lack of understanding among the employees, or between employees and vendors or clients.

Organizational barriers

Organizational structure greatly influences the flow of information in an organization. Conflicts between personal goals and organizational goals, hostile organizational policies, and the type of an organizational hierarchy and whether it is suitable for a certain business or industry are some of the major organizational barriers.

Context and Applications

Business communication is most widely prevalent in businesses and corporate organizations. Business communication is taught in management courses as part of the academic curriculum of:

• Bachelors in Commerce
• Masters in Commerce
• Bachelors in Business Administration
• Masters in Business Administration

Practice Problems

1. Identify the language barriers from the following.

1. Noise
2. Use of defective devices
3. Technical jargon
4. Time difference between the two countries

Answer: Option c

Explanation: Technical jargon refers to technical terms that are relevant to a topic and known to professionals but may be difficult for others to understand.

2. Which of the following is not a tool for business communication?

1. E-mail
2. Seminars
3. Letters
4. Printer

Answer: Option d

Explanation: A printer is not a tool for business communication. However, e-mails, seminars, and letters are frequently in use in business organizations for conveying information.

3. Which of the following is not a purpose of business communication?

1. Training
2. Directing
3. Purchasing
4. Feedback

Answer: Option c

Explanation: Business communication has no role in the act of purchasing.

4. Which barrier is often caused when people belonging to different countries work together?

1. Language barriers
2. Personal barriers
3. Organizational barriers
4. None of the above

Answer: Option a

Explanation: Language barriers refer to challenges in business communication when the sender and the receiver do not speak the same language.

5. Organizational barriers are caused by which of the following?

1. Inefficient hierarchy at the workplace
2. Rigidity in rules and regulations at the workplace
3. Absence of communication channels for feedback
4. All of the above

Answer: Option d

Explanation: Organizational barriers are caused by the inefficient hierarchy at the workplace, rigidity in organizational policies, and lack of a proper communication channel for feedback.