Business Communication: Definition, Functions, Types & Process


Business Communication is the act or process of transferring information from one person to another person, and every communication involves at least one sender, a message, or a receiver. Here in this article, we have shared complete details about business communication and its definition, function, types, process, and advantages.

►What is Business Communication?

Business communication is the act of sharing information between people within and outside the organization.

Effective communication is how employees and management interact to achieve organizational goals. It is an essential element in the success of any business.

✔ Definition of Business Communication

According to William G. Scott,

Business communication can be defined as “Administrative communication is a process which involves the transmission and accurate replication of ideas ensure by feedback to elicit actions which will accomplish an organizational goal”.

✔ Characteristics of Business Communication

  • Business communication must be realistic.
  • It should avoid imaginary or useless information for saving time.
  • Any business communication must have a clear purpose or target.
  • The concerned audience must be targeted.

✔ Need of Communication in business

  • Communication is an important part of any Business organization.
  • No business can grow in lack of Effective Communication.
  • It is essential not only in business but in all types of organizations.
  • Every activity in Business is impacted by communication.
  • Effective communication is necessary for developing a trustworthy reputation.

Must Read :Types of Business Speech

✔ Importance of Business Communication

  • Basis for decision-making
  • Facilitates Smooth operations
  • Facilitates Coordination
  • Increases Managerial Efficiency
  • Facilitates Control
  • Promotes Industrial Peace
  • Basis of Leadership
  • Provides Motivation

✔ Advantages of Business Communication

  • If there will be good communication among two people then it leads or promotes understanding.
  • It will also increase employee productivity.
  • If there will be proper communication then it will enhance loyalty to the company.
  • There will be clarity of directions and goals for organizations and employees.

Must Read :Skills of HR Manager

✔ Scope of Business Communication

  1. Communication in decision making.
  2. Communication in management.
  3. Communication in publicity
  4. Communication in Industrial Relation
  5. Communication in International Relations
  6. Communication in Social life

1. Communication in decision making- Person or organization, each is to decide on various issues daily. In each case, proper information is vital to make perfect decisions and communication play a vital role here by supplying relevant information.

2. Communication in management- Proper business communication is very important in all steps of management in an organization.

3. Communication in publicity- In this world of information, every organization is keen to advertise itself in some distinctive ways. By communicating with concerned parties an organization does publicity also.

► Functions of Business Communication

There are four functions of communication.

  1. Information
  2. Control
  3. Motivation
  4. Emotional/Expression

✔ Information

The principal function of communication is used to provide information to others. Before providing or passing information one has to receive, collect information from various sources, both external and internal. It can be done verbally and Non verbally.

✔ Controlling

The next very important function of communication is to control ‘member behavior’ in several ways. As we all know that in every organization has formal guidelines that the employees are supposed to follow.

✔ Motivation

All business is goal-oriented. All possible efforts have to be made to achieve a target within a well thought- out framework of time. For this purpose, the team of workers must put in their very best efforts.

✔ Emotional/ Expression

The workgroup is a primary source of social interaction.  The communication that takes place within the group is of vital importance in the sense that it gives them the best opportunity to share their frustrations as well as feelings of satisfaction.

Must Read :5 Barriers in Communication

Process Of Business Communication

Communication is a continuous process that mainly involves (at least) one sender, a message, and a recipient.

(Sender Message Encoding Channel/Medium ➜ Decoding Receiver)

(Receiver Feedback Sender)

The basic function of Management such as Planning, Organising, Staffing, Directing, and Controlling cannot be performed well without effective communication.

There are many ways of the Communication Process. But the famous communication process is the linear communication process which is applicable to almost all areas of communications.

✔ Linear Communication Process

The elements involved in the linear communication process are explained below in detail:

1. Sender: The sender is the source and the one who starts the communication process.

2. Message: Message refers to the idea, information, view, fact, feeling, etc. that is created by the sender and then communicated further.

3. Encoding: The message generated by the sender is encoded symbolically such as in the form of words, images, gestures, etc. before it is being conveyed.

4. Channel/Media: It is the medium in which the encoded message is transmitted. The message may be transmitted orally or in written form. The medium of communication includes telephone, social media, post, fax, e-mail, etc. The choice of medium or channel is decided by the sender.

5. Decoding: Decoding is the process of converting the message in encoded form by the sender. Then receiver decodes the message.

6. Receiver: The receiver is the person for whom the message was sent by the sender. Once the receiver gets the message and understands it in proper perspective and acts according to the message, only then the purpose of communication is successful.

7. Feedback: Feedback is the process when the receiver confirms to the sender that he has received the message and understood it. On this point, the process of communication is complete.

When the receiver will give feedback to the sender, if there are some doubts he will ask about that and the quality of response should be a good indicator of whether the message was properly received.

8. Noise: Noise refers to any obstruction that is caused by the sender, message, or receiver during the process of communication.

For example, Noise in communication consists of Poor telephone connection, faulty encoding, faulty decoding, inattentive receiver, poor understanding of message due to prejudice or inappropriate gestures, etc.

► Types of Flow of Communication

There are four types of communication flow.

  1. Upward communication
  2. Downward communication
  3. Horizontal communication
  4. Spiral or Diagonal communication

◉ Upward communication

It refers to that form of communication that flows from bottom to top management like the flow of communication between subordinate to a superior.

◉ Downward communication

It refers to that form of communication that flows from top to bottom management like the flow of communication between superior to subordinate.

◉ Horizontal communication

This communication includes communication between persons having the same level of designation like communication between a sales manager and purchase manager.

◉ Spiral/ Diagonal communication

This type of communication includes communication between any level of management at any time. It happens in case of emergency.

Must Read :All Types of Communication (in detail)

► What is Miscommunication?

Mis-communication can be defined as the ” Flow of wrong communication by the mediator in the organization”.

◉ Main causes of Miscommunication

  • We have to use uncommon words of vocabulary while communicating.
  • By physical barriers, arising at the end of the receiver’s or sender’s end.
  • By poor listening of the receiver.
  • By the poor speaking skill of sender.
  • By using poor grammar.
  • When the receivers make too many assumptions about what he/ she receives.

Q. What are the Repercussion of it?

Ans. A lack of communication can ultimately lead to low morale. Because effective communication can create misunderstandings, missed opportunities, conflict with the dissemination of misinformation, and mistrust, employees might just feel overall defeated.

► Tips for Effective Business Communication

Here are the factors that improve communication skills in any person whether they are students or employees of any organization.

  • Participate in group discussion
  • Create a Safe Ambiance or Working Environment
  • Active Listening
  • Create Teamwork
  • Allow Students to share Opinions
  • Positive Feedback

✔ Strategies for improving Business Communication

1. Whenever we talk with any new person we should have to use simple language.

2. If someone has done good work then he should get appreciation or good feedback in front of all which will encourage them and they will do better work next time.

3. An organization should have to avoid overload or burden in the head of employees which will make feel good to employees in the organization.

4. Be a good listener.

5. If there is any kind of problem then they have to talk directly with whom they have a problem (Walk the talk).

Must Read :5 Barriers in Communication

► What is Non-Verbal Communication?

Non-Verbal Communication is the transmission of messages or signals through a nonverbal platform such as eye contact facial expressions, gestures, posture, and the distance between two individuals.

✔ Benefits of Non-Verbal Communication

  • Those people who don’t understand our language also help to communicate with those people.
  • It helps in emergencies when there is no time for verbal communication.
  • It is very helpful for communicating in silent zones.

✔ Tips for Effective Non-Verbal Communication

  • There is a specific situation that is observed and understood.
  • There should be proper eye contact while nonverbal communication.
  • All should have to listen properly.
  • The tone should be smooth, not harsh.
  • There should be a good posture.
  • Always show Gratitude/ Thanks.
  • The power of touch.
  • There could be cultural differences.

◉ Types of Non-Verbal Communication

1. Kinesics: Kinesics include facial expressions, gestures, postures.

2. Oculesics: Oculesics include eye contact.

3. Haptics: Haptics include the power of touch.

4. Proxemics: Proxemics include communication of space and proximity. 4.5 to 5 feet is neutral and 20 feet and more is for distance.

5. Appearance and Artifacts: Appearance and Artifacts include physical characteristics, hair, attire, accessories.

6. Vocalics/Paralanguage or Para Linguistics: Vocalists include pitch, speed, volume, causes, intensity, tone, inflection, articulation (voice modulation) system.

7. Chronemics: Chronemics include the effects of time on communication.