CPU Business & Information Technology College
Department of Business Management
Course: Business Communication
Course code: BUMA 241
Credit Hours: 2
By;Simachew Astewale
PhD Candidate at AAU
CHAPTER ONE COMMUNICATION -AN
OVERVIEW
Brainstorming question
What is business communication
What are the differences between
business and informal/general
communication
A. Communication as a Means of Sharing
Ideas
• According to the etymological background
(historical study) of the word communication,
it was originally derived from the Greek word
"communis",
• which literary means sharing or making
something common.
• It is a means of sharing some pieces of ideas kept in the short-
term memory, which can technically be called Information,
• and ideas kept in the long-term memory, technically known as
Intelligence or knowledge.
• It should be clear that the information we receive can be changed
to knowledge through repeated retrieval.
• Moreover, communication is not an aspect of only transferring
and receiving ideas, but also giving response or feedback
regarding the message received.
• This makes the communication process a two-way cycle as the
two parties are equally involved both in sending and receiving
message and responses
B. Communication as a Common thing for
all Living Things
• It is not limited to only human beings.
• So, thinking is something shared among different animals
including man.
• In fact, the level of thinking between man and other
animals differ as man thinks analytically by examining
things from different perspectives
• while other animals think instinctively by looking at
things plainly from one angle. Thus, it can be said that
both man and other living things can communicate in
their own way even if the level of the efficiency of their
communication varies.
C. Communication as a Continuous Process
• Due to two main factors communication appears a
continuous process that cannot be stopped at a
predetermined stage or level.
• The first main reason is that we communicate with the
help of the three levels of consciousness we have:
I. Consciousness (full feeling and knowledge of what we
do)
II. Sub-consciousness (partial feeling and knowledge of
what we do)
III. Unconsciousness (no feeling and knowledge of what we
do)
Most of our communication practices are done sub-
consciously and unconsciously.
D. Communication in Verbal and Non-verbal Forms
• There are some people who feel that effective
communication is held only through speaking or
writing (technically called verbal communication).
• Even while we speak, we often resort to physical
gestures. We wave our hands, shrug our shoulders,
smile and nod to reinforce what we say. Besides,
there are several other means of communication
available to us.
• We use nonlinguistic symbols such as traffic lights,
road signs, railway signals to convey information
relating to the movement of vehicles and trains.
E. Communication and Frame of Reference
• One of the points to note in communication is
that in every communication situation there are
two parties, a sender and receiver, who
interact with in a common frame of reference.
Without a common background, purpose,
interest, and verbal and nonverbal media, there
can be no effective communication.
F. Communication as the Only Means of Satisfying Needs
• Communication is used for such purposes as stimulating
conversation with friends, participating in a group
discussion that leads to solving a problem, promoting
sales etc.
• Even though we have been communicating since birth,
we are not always as effective as we would be.
• Effective communication seems to be a problem to many
people; otherwise there would not be so many books,
articles and workshops telling us how to communicate.
• To communicate effectively, it is necessary to develop
abilities in speaking, writing, listening, reading, and
observing. All these abilities play an integral part in our
contemporary life-style.
• Business communication is concerned with
business activities, and these business activities
are of two types:
1. Internal
Internal business activities include:
• Maintaining and improving the morale of
employees
• Giving orders to workers
• Prescribing methods and procedures
• Announcing policies and organizational changes
• Keeping the management informed
Communication Inside an Organization:
1. Setting goals and Objectives:- These objectives may be
financial results, product quality, market dominance,
employees satisfaction, or service to customers.
2. Making and Implementing decision:- In order to
achieve the objective, people in a business organization
collect facts and evaluate alternatives, and they do so
by reading, asking questions, talking or by plain
thinking. Once a decision has been made, it has to be
implemented which requires communication.
3. Appraisal
• It is the act of judging the value/ Having implemented the
decision, management needs to determine whether the
desired outcome is being achieved.
4. Manufacturing the products:- Getting an idea for a new
product out of someone’s head, Designing the plan regarding
product, introducing the workers, purchasing raw material,
marketing and distributing the product all require effective
communication.
5. Interaction between employer & employee:-
• Employees are informed about policies and decisions of
employers through circulars, reports, notices etc.
• Employers also get in touch with employees through
application, complaint etc.
• So, communication plays a vital role in the interaction of
employer and employee
2. External Business Activities Include:
• Selling and obtaining goods and services
• Reporting to the government and the shareholders
on the financial condition and business operations.
• Creating a favorable Climate for conducting
business.
• Hiring the employees
• Dealing with customers
• Negotiating with suppliers and financiers:
• Informing the investors:- Balance sheet, income
statement, and ratio analysis are used to inform the
investors regarding performance of business.
Generally ,the main features that make business
communication a distinct identity are as follows:
It deals with various commercial and industrial
subjects.
It is characterized by certain formal elements such as
commercial and technical vocabulary, the use of
graphic and audio-visual aids, and conventional
formats.
It is impartial and objective as extreme care is taken
to convey information accurately and concisely.
It has comparatively a high concentration of certain
complex writing techniques and procedures.
Brainstorming Question
What are the significances of communication
for the three main parties i.e
1. Individual
2. Manager
3. Institution
Take two minutes and write your point of view
in your exercise book than you will be given a
chance to present.
1.2 Significance of Communication
Communication is important/significant to
individuals, a manager and an organization
For the individual
Helps in getting a desired job:
Help in maintaining social relationships:-
Helps in getting on the job promotion:-
Helps in solving other’s problems:
ii. Communication and the Manager
Communication is a major part of Managerial
Activity According of Henry Mintzberg (1973)
managers have three basic jobs:
• To promote interpersonal unity (Interpersonal role);
• To collect and convey information
(Informational role); and
• To make decisions (Decisional role);
• Managers collect relevant information from
conversations, the grapevine, phone calls,
memos, reports, database, and the Internet.
• They convey information and decisions to other
people inside or outside the organization through
meetings, speeches, press releases, videos,
memos, letters, and reports.
• Managers motivate organizational members in
speeches, memos, and conversations at lunch and
over coffee, bulletin boarders, and through
"management by walking around."
• Effective managers are able to use a wide variety
of media and strategies to communicate
• Communication, oral, nonverbal, and
written, goes to both internal and external
audiences.
• Internal audiences are other people in the
same organization: subordinates, superiors,
and peers.
• External audiences are people outside the
organization: customers, suppliers, unions,
stockholders, potential employees,
government agencies, the press, and the
general public.
According to American social and organizational
psychologist Robert Katz, the three basic types of
management skills include:
Conceptual skill
Conceptual skills involve the ability to think
critically, analyze complex situations, and
understand the broader organizational context.
These skills include strategic thinking, problem-
solving, decision-making, and the ability to see the
"big picture."
Interpersonal /human skill
Interpersonal /human skills are the abilities to
work effectively with others and build positive
relationships. These skills involve communication,
empathy, teamwork, and leadership.
Technical skill:
The managers the ability and the knowledge to use
a variety of techniques to achieve their objectives.
Technical skills refer to the knowledge, expertise,
and proficiency in a specific area or field. These
skills are specific to the tasks and functions that
managers are responsible for overseeing.
In general, communication is very important for the
manager as:
• Conveying Information: Managers need to
communicate clearly and effectively to convey
information such as goals, expectations, policies, and
procedures to their team members.
• Building Relationships: Effective communication
helps managers build positive relationships with their
team members. By actively listening, providing
feedback, and showing empathy.
• Facilitating Collaboration: Managers can foster
collaboration and teamwork and encourage open
dialogue, promote the exchange of ideas, and facilitate
problem-solving and decision-making processes.
• Resolving Conflicts: Conflicts and disagreements are
inevitable in any workplace. Effective communication
skills enable managers to address conflicts promptly and
constructively.
• Providing Feedback and Coaching: Managers should
deliver constructive feedback, recognize achievements,
and provide guidance on areas for improvement.
• Representing the Organization: Managers often serve
as a liaison between their teams and higher-level
management or other stakeholders.
• Managing Change: Change is a constant in today's
dynamic business environment. Managers need to
effectively communicate changes in processes, policies,
or organizational structure to their teams.
Communication in an Organization
Communication is the lifeblood of an organization;help
people in organizations exchange information, ideas,
feelings and proposals, make decisions, plans, policies,
rules, contractual agreements which all require effective
communication
if your job requires mainly mental work, your success
will be strongly influenced by how effectively you
communicate your knowledge, ideas, proposals, reports
etc.
In some jobs, communication skills are the main
responsibilities. The following are some instances where
good communication skill is given emphasis. - Public
relations - Customer relation - Sales - Labor relations -
Teaching etc.
Thank you for you patience and stamina