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Chapter 1
Effective
Communication in
Business
by
Syed Maqsood Ahmed
Syed Maqsood Ahmed
1
Business Communication
 Transferring information from one part of the business
to another that leads to some outcome (Profits), changed
behaviour or changed practice,
 Formal Communication – established and agreed
procedures
 Informal Communication – channels not formally
recognised – ‘the grapevine’
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 Importance & Benefits of Effective
Communication
 Is the KEY to SUCCESS.
 Effective communication whether speaking or writing is
highly valued skill. Number of surveys told us that executives
having the ability to communicate are ranked first among the
personal factors necessary for promotion.
 The importance of effective communication extends across
all areas of business, including management, technical,
clerical & social positions.
.
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Ancient Heritage for Communication
Principles
 In ancient world, both the East & the West, depends heavily
on oral communication. It was necessary to communicate
well specially when dealing with matters in Government
assemblies & the law courts.
 For Example,
 China.
 Egypt.
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Lifeblood of Every Organization
 An organization is a group of people associated for
business, political, professional or social purposes.
 Organization cannot function without open & effective
communication.
 The group of people require to interact & react, that is
to communicate. They exchange information, plans,
order needed supplies, make decisions, rules and
regulations, proposals, contracts and agreements.
 So communication is lifeblood to every organization
means without communication no organization can
run its functions .
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 Internal Communication
And
 External Communication
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Internal Communication
 A vital means of getting the organizational goals is
through effective communication.
 There are four types of internal communication flows
within the organization.
Downwards
Upwards
Horizontal
Diagonal
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1 Downward communication
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1 Downward communication
 Relatively easy to manage
 Ensure staff know what their job is
 Keep staff informed about changes
 Communicate orally, then follow up in writing
 It helps increase job satisfaction, safety, productivity,
and profitability
 It helps to decrease absenteeism, losses, and
grievances.
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1 Downward communication
 Staff information needs
 Job responsibilities

What is my job?
 Performance feedback
 How am I doing?
 Individual needs
 Does anyone care?
 Work unit objectives, results
 How is my unit doing?
 Vision, mission, values
 Where are we headed?
 Empowerment
 How can I help?
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1 Downward communication
 Mechanisms
 Job descriptions
 Notices
 Training
 Instructions
 Memos, meetings, emails
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2 Upward Communication
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2 Upward Communication
 Hard to manage
 Boss must be willing to listen
 Especially to bad news
 Boss must take time to listen
 Staff must be willing to share
 Especially bad news
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2 Upward Communication
 Mechanisms
 Short, written weekly notes summarizing activities and
problems

Boss must provide feedback
 Regular staff meetings to discuss activities
 Staff copy relevant emails to boss
 Visit staff’s workplaces
 Keep your door open
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3 Horizontal Communication
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3 Horizontal Communication
 Necessary to ensure coordination, avoid “islands” or
“information silos”
 Encourage/require staff to communicate among units
 Effective horizontal communication is also essential in
order to solve problems, perform job duties, prepare
for meetings and cooperation in important projects.
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4 Diagonal Communication
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4 Diagonal Communication
 Can be formal – eg. teams
 Can be informal
 Build cross-departmental teams
 Encourage friendliness and informality
 Encourage informal interaction
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The ideal: Internal communication web
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How to encourage internal
communication
 Make information sharing part of job description
 Define reporting and information sharing
responsibilities
 But avoid over-rigid procedures if possible
 Hold regular staff meetings
 But keep meetings short and efficient
 Provide physical bulletin boards
 Communicate actively
 Be an information source
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External Communication
 Effective communication to people outside the
organization is called external communication & it
helps to create a good reputation & have a +ve impact
on its ultimate success.
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External Communication
 To Whom
 Customers
 Vender / suppliers
 Government
 Distributors / wholesalers
 Methods:
 Marketing ways, Paper + electronic
 Sales Dep't
 Customer Services
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Challenge of Communication in The
Global Market
 The way you communicate within or outside the
country affect’s everything you accomplish. Your
ability to communicate effectively make a difference to
your organization.
 Developing The Right Attitude:
 Preparing Adequately:
 Becoming Flexible:
 Developing the right attitude and preparing
adequately are crucial to effective communication in
the international market place. These qualities helps
to be effective in dealing with the international
business people & becoming flexible helps you to deal
Syed within
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with the issues
your organization.
Components of Communication
A. Context
B. Sender-Encoder
C. Message
D. Medium
E. Receiver-Decoder
F. Feedback
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Context
 Communication is affected by the context in which it
takes place. This context may be physical, social,
chronological or cultural. Every communication
proceeds with context. The sender chooses the
message to communicate within a context.
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Sender / Encoder
 Sender / Encoder is a person who sends the message. A
sender makes use of symbols (words or graphic or
visual aids) to convey the message and produce the
required response. For instance - a training manager
conducting training for new batch of employees.
Sender may be an individual or a group or an
organization. The views, background, approach, skills,
competencies, and knowledge of the sender have a
great impact on the message.
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Message
 Message is a key idea that the sender wants to
communicate. It is a sign that elicits the response of
recipient. Communication process begins with
deciding about the message to be conveyed. It must be
ensured that the main objective of the message is clear.
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Medium
 Medium is a means used to exchange / transmit the
message. The sender must choose an appropriate
medium for transmitting the message else the message
might not be conveyed to the desired recipients. The
choice of appropriate medium of communication is
essential for making the message effective and
correctly interpreted by the recipient. This choice of
communication medium varies depending upon the
features of communication. For instance - Written
medium is chosen when a message has to be conveyed
to a small group of people, while an oral medium is
chosen when spontaneous feedback is required from
the recipient.
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Recipient / Decoder
 Recipient / Decoder is a person for whom the message
is intended / aimed / targeted. The degree to which
the decoder understands the message is dependent
upon various factors such as knowledge of recipient,
their responsiveness to the message, and the reliance
of encoder on decoder.
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Feedback
 Feedback is the main component of communication
process as it permits the sender to analyze the efficacy
of the message. It helps the sender in confirming the
correct interpretation of message by the decoder.
Feedback may be verbal (through words) or non-verbal
(in form of smiles, sighs, etc.). It may take written form
also in form of memos, reports, etc.
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Concepts & Problems of Communication
&
Nonverbal Communication
A. How Appearance Communicates
B. How Body Language Communicates
C. How Silence, Time, & Space
Communicates
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Nonverbal Communication I
Is it possible to communicate without words?
Studies show that over half of your message is carried
through nonverbal elements:
 Your appearance
 Your body language
 The tone and
 the pace of your voice.
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Nonverbal Communication I
 Communication researcher Mehrabian found that only
7% of a message’s effect are carried by words ; listeners
receive the other 93% through non -verbal means.
 ♦Birdwhistell suggested that spoken words account for
not more than 30-35% of all our social interactions.
 ♦Over 65 percent of the social meaning of the
messages we send to others are communicated nonverbally.
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A. Body Language
 “The bodily gestures, postures, and facial
expressions by which a person communicates
nonverbally with others”
 POSTURE
 GESTURE
 FACIAL EXPRESSIONS
 GAZE / EYE CONTACT
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A. Body Language
 1.Facial expression(s)
 2.Eyes
 3.Lips
 4.Arms
 5.Hands
 6.Fingers
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A1.2. Facial Expression(s)
Forehead
Wrinkles
Anger
Eyebrows
Outer edges up
Anger
Nose
Upward
Contempt
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A2. Eyes
Cantered
Focused
Gazing Up
Thinking
Gazing Down
Shame
Gaze on the Side
Guilty
Wandering
Disinterested, Bored
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A3. Lips
Parted
Relaxed, Happy
Together
Possibly Concerned
Wide Open
Very Happy / Very Angry
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A4. Arms
Arms Crossed
Angry, Disapproving
Open
Honest, Accepting
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A5. Hands
On Top of the Head
Amazement
Scratching Head
Puzzled , Confused
Rubbing Eyes
Tired
Rubbing Chin
folded
Thinking,
Timid, Shy
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A6. Fingers
Fingers Interlocked
Tense
Pointing at you
Angry
OK Signal
Fine
V Sign
Peace
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A. Basic Types of Body Language postures
 1.OPEN / CLOSED
 People with arms folded and legs crossed and bodies
turned away are signaling that they are rejecting
messages. People showing open hands, fully facing you
and both feet planted on the ground are accepting
them.
 2.FORWARD/ BACK
 When people are leaning forward and pointing
towards you they are actively accepting or rejecting the
message. When they are leaning back, looking up at
the ceiling, doodling on a pad, cleaning their glasses
they are either passively absorbing or ignoring
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Thank You
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