MUHAMMAD AZAM

 Professional Qualification: FCMA, ACCA, APFA

 Academic Qualification: B.COM, MA (Economics), MS
Economics & Finance *
 Industry Experience: 10+ Years
 Employers: Unilever Pakistan Limited, Sara Lee Kiwi Pakistan,
United Towel Exporters, Gul Ahmed Textile Mills Limited
BUSINESS COMMUNICATION
What is Communication?
 “sharing of ideas in common is called communication”

 Communication is defined as “The flow of information, perception, and imagination

among two or more persons or parties”.

 “Communication is the process by which information is transmitted between

individuals and organization, so that an understanding response results”.
What is Business?

 Business includes those organizations, which are engaged in the

production and distribution of goods and services to earn profit.
 Any activity which is performed to earn profit is called business.
 As per ownership point of view, Business may be fall in sole
proprietorship, partnership or Company category
 As per nature point of view, it may be Manufacturing business, Trading
business or Service business.
 Profit is excess revenue realized over its cost
What is Business Communication?

 Therefore Business communication means, “Business communication is the

sharing of information between people within and outside the organization that
is performed for the commercial benefit of the organization”.
 Examples:
 Hiring of Employees
 Customer Order Queries
 Vendors Correspondence
 Relationship with Investors
What is Business Communication?
Explanation
We can extract the following points form the above definition
 Flow between two or more parties:
 In business communication the material flow from one person to another person or from
many persons to different people. This flow may either be inside the organization or
outside the organization.
 Flow of information, perception, imagination
 Flow of information takes place when a party transfers the material to another mind. For
example, when a news caster says, “Company is pleased to announce the 200% Bonus for
the year 2017”. This is a flow of information from Management to Employees.
 Flow of perception means transfer of different feelings.
 Finally, flow of imagination that occurs when a painter conveys his/her imaginations
through a portrait.
Process of Communication
 Because communication is a central factor in the emerging knowledge economy
so a major consideration for anyone entering today’s workforce.
 The process of communication is successful only when the receiver understands
an idea as the sender intended it. Both parties must agree not only on the
information transmitted but also on the meaning of that information.
 It involves the following 5 steps
1. Sender has an idea
2. Encoding
3. Transmission
4. Decoding
5. Feedback
Process of Communication

1. Sender has idea:

The very first step in the process of communication is generation of thought in
the sender’s mind. These thoughts may be about a request, order, inquiry
production or any other such activity.

2. Encoding – Sender encodes idea in message:

The next step in the communication process involves encoding. This means
converting the idea into words or gestures that will convey meaning. For
example, a sender thinks about having a job. Now, he will put his thought on a
paper. That is called job application. In his way, his thought becomes a message.
Process of Communication

3. Transmission through channel:-

The medium over which the message is physically transmitted is the channel.
Once a thought is converted into message, it should be transmitted to the
receiver through a suitable channel. This media might be electronic media as
T.V., E-mail, radio etc. or it may be print media like newspaper, magazines,
letters or merely sound that is transmitted through the medium of air or
combination of all.
Process of Communication

4. Decoding by Receiver
The individual for whom the message is intended is the receiver. Translating the
message from its symbol form into meaning involves decoding. Only when the
receiver understands the meaning intended by the sender—that is, successfully
decodes the message—does communication take place.
 In our case, the receiver, having received job application, reads the
application and understands the message conveyed by the applicant.
Process of Communication

5. Feed back
Process of communication is incomplete until the receiver responds to
the sender. This response may be negative, positive, or for further
enquiry. It means when the receiver of job application welcomes or
regrets the sender, the process of communication is deemed to be
complete.
Process of Communication
OVERCOMING COMMUNICATION BARRIERS
 The communication process is successful only when the receiver understands the
message as intended by the sender.
 But in actual it is not easy as seems. How many times have you thought that you
delivered a clear message, only to learn later that your intentions were totally
misunderstood?
 While transmitting the information to the receiver, the sender faces lots of
barriers. These noise and barriers are explained as under:
 On sender’s side:- Noise and barriers may take place during the process of encoding.
Some of them may be caused by distraction, lack of concentration, typing mistake,
poor language etc.
 In the medium:- Some barriers are caused by medium such as poor transmission on T.V.
and radio misprinting in newspapers etc.
 On receiver’s side:- The receiver can also create certain barriers to the receiving of
message such as poor reading ability, emotions, lack of concentration etc.
Obstacles / Hurdles / Problems That
Create Misunderstanding
 You can improve your chances of communicating successfully by
learning to recognize barriers that are known to disrupt the
process.
 The most significant barriers for individuals are:
1. bypassing,
2. differing frames of reference,
3. lack of language skill, and
4. Distractions / interruptions
Obstacles / Hurdles / Problems That
Create Misunderstanding
1. Bypassing
 One of the biggest barriers to clear communication involves words. Each of
us attaches a little bundle of meanings to every word, and these meanings
are not always similar. Bypassing happens when people miss each other with
their meanings.
 Example: Let’s say your boss asks you to “help” with a large customer
mailing. When you arrive to do your share, you learn that you are expected
to do the whole mailing yourself.
Obstacles / Hurdles / Problems That
Create Misunderstanding
2. Differing Frames of Reference
 Another barrier to clear communication is your frame of reference.
Everything you see and feel in the world is translated through your
individual frame of reference.
 Your unique frame is formed by a combination of your experiences,
education, culture, expectations, personality, and other elements. As
a result, you bring your own biases and expectations to any
communication situation. Because your frame of reference is totally
different from everyone else’s, you will never see things exactly as
others do.
Obstacles / Hurdles / Problems That
Create Misunderstanding
3. Lack of Language Skill
 No matter how extraordinary the idea, it won’t be understood or fully
appreciated unless the communicators involved have good language skills.
 Each individual needs an adequate vocabulary, a command of basic
punctuation and grammar, and skill in written and oral expression.
 Moreover, poor listening skills can prevent us from hearing oral messages
clearly and thus responding properly.
Obstacles / Hurdles / Problems That Create
Misunderstanding
4. Distractions
 Other barriers include emotional interference, physical distractions, and
digital interruptions.
 Shaping an intelligent message is difficult when one is feeling joy, fear,
resentment, hostility, sadness, or some other strong emotion.
 To reduce the influence of emotions on communication, both senders
and receivers should focus on the content of the message and try to
remain objective.
 Physical distractions such as faulty acoustics, noisy surroundings, or a
poor cell phone connection can disrupt oral communication. Similarly,
sloppy appearance, poor printing, careless formatting, and typographical
or spelling errors can disrupt written messages.
Overcoming Communication Obstacles
Careful communicators can conquer barriers in a number of ways. Half the
battle in communicating successfully is recognizing that the entire process is
sensitive to breakdown.
 a good communicator anticipates problems in encoding, transmitting,
and decoding a message.
 Effective communicators also focus on the receiver’s environment and
frame of reference. They ask themselves questions such as, How is that
individual likely to react to my message? or Does the receiver know as
much about the subject as I do?
 Misunderstandings are less likely if you arrange your ideas logically and
use words precisely.
Overcoming Communication Obstacles
 A large part of successful communication is listening. Management
advisor Peter Drucker observed that “too many executives think they
are wonderful with people because they talk well. They don’t realize
that being wonderful with people means listening well.
 Effective communicators create an environment for useful
feedback. In oral communication this means asking questions such
as, Do you understand? and What questions do you have? as well as
encouraging listeners to repeat instructions or paraphrase ideas.
 As a listener it means providing feedback that describes rather than
evaluates. In written communication it means asking questions and
providing access: Do you have my phone numbers in case you have
questions? or Here’s my e-mail address so that you can give me your
response immediately.
Importance of Communication for an
individual
Helps in getting a desired job
 Getting a desired job is not an easy task. It requires a person to be excellent, especially
in terms of communication abilities.
 Communication abilities can be classified into fourt categories that is reading, writing,
speaking, and listening.
 If a candidate is a good reader of not only text books and reference books but also of
newspapers and magazines, this would help him developing confidence level at the time
of interview.
 Writing skills are necessary for preparing an appropriate Biodata and covering letter, so
that a better initial impression could be created.
 No doubt, conversational skill right at the time of interview is equally countable towards
success of the candidate.
 Listening abilities on the other could prove to be fruitful especially when the interviewer
is making a comment or asking a question.
 In short we can say that the presence of above mentioned four communication skills
could give a better chance of being selected during an interview.
Importance of Communication

Help in maintaining social and personal relationships

 We as human beings live in a cobweb of relationships.
 These social relations compel us to act simultaneously in the capacity of
father, child, husband, uncle, neighbor, cousin, teacher, nephew and so on
and in business as a employee, colleague, supervisor, subordinate, vendor,
customer and so on.
 All these relationships could be maintained properly if we can communicate
well to all these relations, that we are here to take care of them and our
services are always there to help them in case of any needs
Importance of Communication

Helps in getting on the job promotion

 promotion on the job requires some extra skills on the part of the
candidate.
 Amongst those skills, communication abilities rank on the top. If a person
can speak well during interactive and presentation sessions, can reports
properly, he will automatically be in the eyes of the management and
whenever a chance for promotion comes, he will be on the top of the list.
Importance of Communication

Helps in solving other’s problems

 It is commonly observed that around us there are so many people whom
we like to meet, their company is a source of enrichment for us. When we
are with them we feel secured.
 The only reason for such types of feelings is that such type of people are
not only good listeners but they also know it well that whenever they
would speak, it would only be for the sake of encouraging, not
discouraging others, only for solving other’s problems and not for creating
problems for others. Such people are no doubt excellent communicators.
CATEGORIES OF COMMUNICATION SKILLS

Following are the categories of communication:

1. Verbal Communication
2. Non Verbal Communication

VERBAL COMMUNICATION
 Verbal communication means such a communication that takes place by means
of a language or words”. It includes the following contents.

a. Oral communication (Speaking & listening)

b. Written communication (writing & reading)
CATEGORIES OF VERBAL COMMUNICATION
ORAL COMMUNICATION
1. Speaking
In order to send message in business, speaking plays a vital role. Giving
instruction, conducting interviews, attending meetings, sending orders through
telephone calls are very common in today’s business.
2. Listening
People in business spend more time in obtaining information then
transmitting it. Listening is the most important way to receive
information: information regarding order of employers, instruction,
rules and regulation, customer trend etc, are obtained through listening.
But in listening, people generally forget 75% of the message after few days
so better take the notes.
CATEGORIES OF VERBAL COMMUNICATION
WRITTEN COMMUNICATION
3. Writing
It is used when a complex message is sent. Placing order through letters,
informing employees through circulars, sending reports and memos, filling different
government forms, keeping records in writing are some examples of this aspect of
verbal communication.
4. Reading
Reading reports, memos, policies, circulars, and different business statements are
essential for an organization: Reading involves understanding and interpreting the
material.
CATEGORIES OF NON VERBAL COMMUNICATION

NON VERBAL COMMUNICATION:

 It means communication without the use of language or words. Non-verbal messages
are sometimes more clear, accurate and effective as compared to verbal
communication, because they are internationally used and understood.
 Non-verbal communication may be divided into the following three categories:
1. Appearance
2. Body Language
3. Silence, Time and Sounds
CATEGORIES OF NON VERBAL COMMUNICATION
1. APPEARANCE:
Appearance affects the quality of written and spoken messages as follows:
i. Written Messages: The envelope’s overall appearance size, colour,
weight, postage and the letter’s overall appearance length stationary,
enclosures, layout, etc. may convey significant information and
impressions.
ii. Spoken Messages: Personal appearance of the speaker-clothing,
jewelry, hair-style, neatness, etc. may tell about the age, sex occupation,
nationality, social, economic and job status. Similarly, appearance of the
surroundings room-size, location, furnishings, lighting, etc. may tell a lot
about the message.
CATEGORIES OF NON VERBAL COMMUNICATION
2. BODY LANGUAGE:
Facial expressions, gestures, posture, smell, touch, voice etc are included in body
language.
i. Facial Expression: The eyes and face may express the hidden emotions e.g. anger,
fear, joy, love, surprise, sorrow, interest etc.
ii. Posture and Gestures: The message can effectively be communicated by actions.
Deaf people and traffic constables make use of actions. In our daily life clenched fists
may indicate anger, leaning forward to the speaker may reveal interest and repeatedly
glancing at the watch may be a sign of being bored.
iii. Smell: Good or bad smell often expresses the situation e.g. smell because of oil or
gas leakage warns the danger. Similarly, fragrance and perfume convey emotions and
feelings better than spoken or written words.
iv. Touch: Touching people in different ways (and places) can silently communicate
friendship, love approval, anger or other feelings.
CATEGORIES OF NON VERBAL COMMUNICATION
3. SILENCE, TIME & SOUND
i. Silence: Silence is an effective medium of expressing serious feelings
and emotions e.g. death of relative or loss in business. A mistake may be
admitted by silence. Silence may also confirm a statement.
ii. Time: Time communicates in many ways, e.g. waiting for a long time
may indicate interest or love and giving a short notice means urgency.
iii. Sounds: The style of speaking and the volume of voice (Intonations
and Modulations) of voice may produce variations between what is said
and what is meant, e.g. the words “how early you are” may criticize a
person arriving too late.