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WHAT IS BUSINESS Firm | Enterprise | Organisation | Cooperative | Services | Customers| Profit | Professional A person, partnership, or corporation engaged in commerce, manufacturing, or a service; profit-seeking enterprise or concern. An organisation designed to provide goods and/or services to consumers. The management of individuals to maintain collective productivity to accomplish particular creative and productive goals (usually to generate profit) Businesses are classified in many ways. One of the most common focuses on the primary profit-generating activities of a business: 1. 2. 3. 4. 5. 6. 7. 8. Agriculture and mining businesses Financial businesses Manufacturers produce products Real estate businesses Retailers and Distributors Service Businesses Transportation businesses Utilities The study of the efficient and effective operation of a business is called management. Management, among others focus on organisational behavior to achieve individual and group dynamics in an organizational setting. It is through this context that communication plays a significant role in shaping the way people communicate in business setting. WHAT IS COMMUNICATION Transfer information | Process | Sender | Receiver | Meaning | Understanding | Message Transfer of information from one source to another Two-way process A process whereby information is encoded and imparted by sender to a receiver via a channel/medium A process by which we assign and convey meaning in an attempt to create shared understanding “Communication is a process to create, maintain or demolish meaningful contact between sources and receivers through speaking, writing or signaling” The following principles apply: 1. Communication is a process 2. Communication involves meaning 3. Communication may be positive, negative or neutral 4. Communication may involve one or more channels 1. 2. 3. 4. 5. 6. 7. 8. Source Encoding Message Channel Decoding Receiver Feedback Noise Sources 1. ◦ ◦ ◦ Any process of communication must begin with a source the initiator (a speaker / writer) For communication to occur, someone must originate the message i.e. the source All message by the source will go through a process of encoding Encode 2. ◦ ◦ ◦ ‘Raw’ entity, in the form of idea Translation process of the intended message Communication process cannot occur until the source translate what is within to an external message. Message 3. ◦ ◦ An information which is sent from a source to a receiver. Any thought or idea expressed and prepared in a form suitable for transmission by any means of communication. Continued… 2 types of message: ◦ a) Verbal A verbal message is an exchange of information using words. Examples include face-to-face communication, telephone calls, voicemails, etc. b) Nonverbal A nonverbal message is communicated through actions or behaviors rather than words. Examples include the use of body language and the actions made by an individual or idea. Channels 4. ◦ ◦ ◦ ◦ Medium through the message is sent. Electronic channels: telephones, television, radio, e-mail, etc. Written channels: letters, memos, magazines, reports, manuals, books, etc. Oral channels: conversation, discussion, facial expression, tone of voice, etc. Decode 5. ◦ ◦ At the receiver’s end. Converting the idea into words or gestures that will convey meaning. Receiver 6. ◦ ◦ The recipient of the message. Receivers may be the readers of the letters, memos, or listener of oral communication during the meeting. Feedback 7. ◦ ◦ Response from the other party to the message sent by the speaker. 5 characteristics of feedback: a) b) c) d) e) Type : verbal / nonverbal Time: immediate / delayed Channel: oral / written Direction: positive / negative / neutral Quality: clear / ambiguous Noise 8. Anything that disrupts communications process. 3 types of noise: ◦ ◦ Physical – loud music, people talking loudly, etc. Psychological - preconceived notions we bring to conversations, such as racial stereotypes, reputations, biases, and assumptions. Semantic - cause by the sender. i.e, the encoder and occur by speaking grammar that the decoder cannot understand and by speaking technical language COMMUNICATING IN ORGANISATIONS Business communicators create and exchange knowledge that are critical to fostering innovation. This act of exchanging information is executed by communicating internally and externally. Definition of Business Communication 90% of all business transactions involve written communication. Most managers and executives in today’s business setting now write their own email, memos and letters on their computer as it is faster and more efficient. As such, the requisition and skill in business communication has become the essential for all to acquire. In the challenging world of business, a company must always remain competitive. To keep it in line with others, the ability to create and exchange innovative knowledge is crucial. The act of exchanging information is mediated through communication – by means of internal or external Internal Staff Top Mgt BOD Communication To inform To persuade To promote goodwill External Public Customer Media The bottom line is to identify the comm. needs according to different audiences and in different contexts with the aim at building awareness to the audiences The sender has primary responsibility for communication process: 1. 2. 3. 4. Receiver understanding Receiver response Favourable relationship Organisational goodwill Internal Communication Pattern ◦ Organisational communication flows in all directions. ◦ Network may be planned or unplanned. Formal Communication ◦ Business related. ◦ Planned. ◦ Flows in all directions. Informal Communication ◦ Is not planned by the organisation ◦ Flows in all directions. ◦ Develops and maintains positive human relationships Serial Communication ◦ Chain transmission of information. ◦ Messages are usually changed ~ as they are sent from one member of the chain to another. ◦ Each sender may omit, modify, or add details to the messages. ◦ Four techniques to assist in maintaining the accuracy of the message: SENDERS SHOULD: RECEIVERS SHOULD: Keep the message simple Take notes Request Feedback Repeat the message External Communication Patterns ◦ Organisations communicate with many external publics. ◦ External communication can be formal or informal. ◦ E.g. customers, suppliers, competitors, the media, governmental agencies, and general public. ◦ May be oral or written. Business Communication is goal oriented. The rules, regulations and policies of a company have to be communicated to people within and outside the organization. Business Communication is regulated by certain rules and norms. In early times, business communication was limited to paper-work, telephone calls etc. But now with advent of technology, we have cell phones, video conferencing, emails, satellite communication to support business communication. Effective business communication helps in building goodwill of an organization. Oral Communication - An oral communication can be formal or informal. Generally business communication is a formal means of communication, like : meetings, interviews, group discussion, speeches etc. An example of Informal business communication would be - Grapevine. Written Communication - Written means of business communication includes - agenda, reports, manuals etc. Oral communication implies communication through mouth. It includes individuals conversing with each other, be it direct conversation or telephonic conversation. Speeches, presentations, discussions are all forms of oral communication. Oral communication is generally recommended when the communication matter is of temporary kind or where a direct interaction is required. Face to face communication (meetings, lectures, conferences, interviews, etc.) is significant so as to build a rapport and trust. There is high level of understanding and transparency in oral communication as it is interpersonal. There is no element of rigidity in oral communication. There is flexibility for allowing changes in the decisions previously taken. The feedback is spontaneous in case of oral communication. Thus, decisions can be made quickly without any delay. Oral communication is not only time saving, but it also saves upon money and efforts. Oral communication is best in case of problem resolution. The conflicts, disputes and many issues/differences can be put to an end by talking them over Oral communication is an essential for teamwork and group energy. Oral communication promotes a receptive and encouraging morale among organizational employees. Oral communication can be best used to transfer private and confidential information/matter. 1) 2) Relying only on oral communication may not be sufficient as business communication is formal and very organized. Oral communication is less authentic than written communication as they are informal and not as organized as written communication. 3. 4. Oral communication is timesaving as far as daily interactions are concerned, but in case of meetings, long speeches consume lot of time and are unproductive at times. Oral communications are not easy to maintain and thus they are unsteady. 5. There may be misunderstandings as the information is not complete and may lack essentials. 6. It requires attentiveness and great receptivity on part of the receivers/audience. 7. Oral communication (such as speeches) is not frequently used as legal records except in investigation work. Written communication has great significance in today’s business world. It is an innovative activity of the mind. Effective written communication is essential for preparing worthy promotional materials for business development. Speech came before writing. But writing is more unique and formal than speech. Effective writing involves careful choice of words, their organization in correct order in sentences formation as well as cohesive composition of sentences. Writing is more valid and reliable than speech. But while speech is spontaneous, writing causes delay and takes time as feedback is not immediate. 1. Written communication helps in laying down apparent principles, policies and rules for running of an organization. 2. It is a permanent means of communication. Thus, it is useful where record maintenance is required. 3. It assists in proper delegation of responsibilities. While in case of oral communication, it is impossible to fix and delegate responsibilities on the grounds of speech as it can be taken back by the speaker or he may refuse to acknowledge. 4. Written communication is more precise and explicit. 5.Effective written communication develops and enhances an organization’s image. 6. It provides ready records and references. Legal defenses can depend upon written communication as it provides valid records 1) 2) 3) Written communication does not save upon the costs. It costs huge in terms of stationery and the manpower employed in writing/typing and delivering letters. Also, if the receivers of the written message are separated by distance and if they need to clear their doubts, the response is not spontaneous. Written communication is time-consuming as the feedback is not immediate. The encoding and sending of message takes time. 4) Effective written communication requires great skills and competencies in language and vocabulary use. Poor writing skills and quality have a negative impact on organization’s reputation. 5) Too much paper work and e-mails burden is involved. 1. Convey Messages communication allows a process to take place. The sender sends a message through a medium. The receiver receives it, processes it and then gives a feedback which completes the communication process. Without this process, no two people could ever communicate effectively. There would be no information dispatched and hence no work done 2. Clarity of Ideas When one communicates with another in a business scenario, it is important to understand that the message has to be conveyed in such a way that there is complete clarity in what is being said. The message should be so clear that all doubts and vague and unclear thoughts will be dispelled. The communication process also allows for the person who has received the message to give a feedback and therefore the communication format achieves a 360 degree solution. 3. Get Work Done It is only through the adaption of the varied communication processes like speech, body language, gestures and other feedback mediums that any work can be expected to get done. An instruction, for example, that is given by a boss to his subordinate needs to be carried through till the final stage of execution. If the process of communication and feedback is missing, an end result is never possible. 4. Avoid Misunderstandings When two people work together, there is bound to be miscommunication at times, which can lead to misunderstandings and other problems in the workplace. Which naturally affects the work adversely and the business suffers. Communication offers a platform whereby all the misunderstandings can get cleared and one can hope for solutions. This is crucial if there has to be a success made of the plan. 5. Increase Productivity and Efficiency When there is a proper communication process taking place then the productivity and efficiency of the employees increases. This is because the right information is dispelled and the correct action executed. Therefore there is no, or very less scope for mistakes to happen. 6. Employee Job Satisfaction When there is scope for open communication at the work place. There is a clear path provided, whereby the seniors and subordinates can talk and solve workplace conflicts amongst themselves.