DEFINATION, ROLE, ELEMENTS AND PROCESS OF

BUSSINESS COMMUNICATION

Dr. Vishnu Charan Mahto

Communication is a continuous and dynamic process. It involves dissemination and

understanding of information in the right context. In day to day communication, people

express ideas, emotions, opinions and thoughts in a casual manner by using colloquial

language and non-verbal cues. In such communication, there is a great possibility of

misunderstanding and misinterpretation. Whether it is a formal or informal situation,

communication should be meaningful, effective and correct. Effective communication

requires appropriate use of words, correct pronunciation, speed in delivery of words, suitable

tone and befitting body language. Appropriate use of tools to communicate the message

makes communication meaningful. Effective communication motivates people to respond

correctly to the messages and work together in tune with each other. However, it requires

intentional efforts to develop those skills.

The word communication is derived from Latin word “communicare” that means "to

share" (Matthew 2018). In general sense, communication is defined as a meaningful

exchange of thoughts, opinions, ideas, views or messages between at least two or more than

two people. It can also be interpreted as a transmission of ideas and information to develop

common understanding for smooth functioning of business association. In simple words,

communication is an exchange of information among people to draw common understanding

to some of the definitions given by scholars in this field: 1. Merriam Webster’s Dictionary

defines Communication as, “A process by which information is exchanged between

individuals through a common system of symbols, signs, or behavior”.

2. Louis Allen: “Communication is the sum of all the things one person does; when he wants

to create understanding in the mind of another. It involves a systematic and continuous

process of telling, listening and understanding.”

3. Koontz and Weihrich: “Communication is the transfer of information from a sender to a

receiver, with the information being understood by the receiver”.

4. Katz and Kahn: “Communication is the exchange of information and the transmission of

meaning. It is the very essence of a social system of an organization”

5. Robert Anderson: “Communication is an interchange of thoughts, opinions or

information by speech, writing or signs.”

All the definitions mentioned above highlight the fact that communication is a

continuous, dynamic, and systematic interaction initiated for a specific purpose. The main

purpose of communication is to convey messages clearly and it becomes possible only when

it is done systematically. Although communication is considered as a continuous process,

there is difference in day to day communication and Business Communication. So, let’s

understand the concept of business communication.

BUSINESS COMMUNICATION

Communication is considered as the backbone of every organization. It enables the

organization to exchange information between different parties and streamline the

functioning of the organization. This very process of sending and receiving data from one
person to another, within and outside the business organization is called ‘Business

Communication’. It is an exchange of business related views, ideas, opinions, etc between

business related people.

Every organization is formed with certain objectives and the success of every

organization lies in the collective efforts of its stakeholders that are put in to accomplish the

organizational objectives. It becomes possible only when the organization develops an

effective communication system. Effective communication system means a process through

which information is collected, analyzed and circulated through various channels. It includes

various aspects like marketing, public relations, internal and external communication etc. As

per the growth of the organization, it should be upgraded. Speedy and systematic

communication updates the employees about current happenings and that helps them achieve

their goals. Through the communication system, all the updates about production, sale,

financial status, needs, demands, obstacles, challenges etc are shared with employees. It gives

a clear picture of the current situation and enables them to set goals. In addition to it, with an

effective communication system, the daily operations can be streamlined and everyday results

can be achieved.

The elements of communication are regarded as distinguished products in the field

of communication (Udemy, 2020). When the individuals are conducting research on

communication or are pursuing educational programs in communication, then taking into

account the elements of communication is regarded to be of utmost significance. The first

and the foremost question that arises is, why and how the processes of communication needs

to be put into operation, so they prove to be beneficial to the senders as well as receivers.

When the senders are imparting information, they need to ensure that the receivers

understand it well. Whereas, when the receivers are receiving information, they need to

ensure that they are able to provide solutions to all their problems. Hence, the theoretical
approach of the elements of communication contribute in imparting the necessary and

valuable information to the senders and receivers in terms of communication processes.

Role of communication in business:

1. Conveys Information:Communication is the process of exchanging information, ideas,

and messages between individuals, groups, or organizations. In a business setting,

communication helps to convey information about the organization's goals, objectives,

policies, and procedures. This information can be conveyed through various channels, such as

meetings, reports, emails, and memos.

2. Builds Relationships: Effective communication helps to build and maintain relationships

with stakeholders, including employees, customers, suppliers, and partners. Good

communication skills can help to establish trust, credibility, and rapport with others, which is

essential for building strong relationships.

3. Resolves Conflicts: Conflicts can arise in any business setting, and effective

communication can help to resolve them. By listening to others, clarifying

misunderstandings, and addressing concerns, communication can help to resolve conflicts

and improve relationships.

4. Improves Productivity: Good communication can improve productivity by ensuring that

employees understand their roles, responsibilities, and expectations. Clear communication

can also help to reduce errors, improve quality, and increase efficiency.

5. Enhances Customer Service: Communication is critical for delivering excellent customer

service. By listening to customers, responding to their queries, and resolving their issues,

businesses can build customer loyalty and improve customer satisfaction.

to support decision-making within the organization. By sharing information, ideas, and

perspectives, communication can help to inform decision-making and improve the quality of

decisions.

7. Fosters Collaboration: Communication helps to foster collaboration and teamwork within

the organization. By sharing information, ideas, and perspectives, communication can help to

build a sense of community and promote collaboration.

8. Manages Crisis: Effective communication is critical during times of crisis, such as natural

disasters, product recalls, or financial difficulties. Communication can help to manage the

crisis by providing timely and accurate information to stakeholders.

9. Promotes Transparency: Communication helps to promote transparency within the

organization, which can lead to increased trust and credibility. By sharing information openly

and honestly, communication can help to build trust with stakeholders.

10. Drives Business Growth: Effective communication is essential for driving business

growth. By building relationships, resolving conflicts, improving productivity, and promoting

transparency, communication can help to drive business growth and success.

THE ELEMENTS OF COMMUNICATION

As it is comprehensively understood that individuals are making use of technologies to a

major extent in communicating with others. But the effective use of technologies do not

guarantee effective communication. In other words, it is not guaranteed that when the

individuals will make use of various types of technologies and innovative methods, they will

communicate with each other in an effective manner. With the advent of modernization and

globalization and with advancements taking place, the senders need to ensure that they put

into operation the communication processes in accordance to the needs and requirements of
the receivers and keep pace with the changes taking. However, there are various elements in

the communication processes, which need to be taken into account. These are stated as

follows:

Verbal Messages - Verbal messages are referred to the use of sounds and words that are used

to express oneself, particularly in contrast to the use of gestures and mannerisms. In the

implementation of this element of communication, both the senders and receivers participate

in the implementation of communication processes. Verbal messages are important as they

are regarded as the key in the maintenance of successful terms and relationships among

individuals. Verbal messages are the use of words to share information with other

individuals. It includes both spoken as well as written forms of communication. However,

there are number of individuals, who make use of this term to describe only spoken

communication. The verbal element of communication is regarding the words, which are

spoken. In this element, there are various aspects, which need to be taken into consideration.

These include, speaking clearly and fluently, listening, making use of decent words and

communicating in a friendly manner. When the individuals put into practice these aspects in

an appropriate manner, they are able to enhance this element of communication (Verbal

Communication Skills, 2020).

Non-Verbal Messages – Non-verbal messages is the transmission of messages or signals

through non-verbal means. These include, eye contact, facial expressions, gestures, postures

and body language. Making use of these means can give

clues and additional information and meaning over and above verbal communication. Non-

verbal messages have been regarded as significant and meaningful to the individuals in

number of ways. These include, reinforcing or modifying what has been specified in words,

conveying information in terms of their emotional state, describing and strengthening the

terms and relationships among individuals, providing feedback to others and regulating the
flow of information. Non-verbal messages are conscious as well as unconscious. The reason

being, it is usually difficult for the individuals to control facial expressions, because one

cannot see oneself to know what they are doing. The individuals may complicate the

communication processes by making an attempt to convey one message consciously and

another unconsciously. Furthermore, it is vital to understand that handwriting clues can also

signify how one is feeling (Non-Verbal Communication, 2020). Therefore, it can be stated,

non-verbal messages are important elements of communication.

Clarity of Thought and Expression – The senders of the information need to be well-aware

of the concepts and other information that they need to impart to the receivers. Another

important aspect is, they need to be aware in terms of purpose. Communication usually

takes place among individuals, when they have a purpose. The individuals make sure that

they implement the communication processes in such a manner that they are able to achieve

the purpose. The individuals need to think before they speak. Thinking before speaking is an

important strategy that facilitates in the development of clarity of thought and expression

and achievement of goals of communication. Clarity of thought and expression is central to

effective communication. When one will be able to think clearly, they will be able to express

themselves clearly. One should not think that communication processes can be carried out

spontaneously. One has to put it into operation and clarity of thought and expression is

regarded as indispensable. Therefore, it is considered as an important element of

communication .

Precision and Appropriateness – The elements of precision and appropriateness are

regarded as vital in terms of message. The message, which the senders are conveying to the

receivers of information should be correct, precise and appropriate. When one is conveying

the message in a verbal manner, they need to ensure, they speak clearly, fluently and truth.

On the other hand, when the individuals are communicating with others in a written form,
they need to ensure, they impart factual information and there should not be grammatical

errors and spelling mistakes. When the individuals, particularly in educational institutions

and organizations are communicating with each other in terms of statistical data, facts and

information, they need to ensure that they are imparting the truth. The elements of precision

and appropriateness are regarded as significant in not only educational institutions and

organizations, but in other places as well. When the individuals are communicating with

each other within homes, financial institutions, marketplaces and in other public places, then

also these elements need to be taken into consideration.

Conciseness – The message should be concise. There are various reasons that signify the

meaning of this element. When the message is concise, the senders are able to deliver it well

through different sources, the receivers are able to understand it in an appropriate manner

and it leads to alleviation of any kind of perplexity. The concise message not only imparts

information that is important, but also the individuals are able to implement clarity of

thought and expression. This element normally is put into operation on the basis of

concepts, and subjects of communication. When the individuals feel that they are to impart

information to others in terms of topics, which are lengthy, then they would not take into

account the element of conciseness. On the other hand, when the topics require the senders

to impart messages, which do not comprise of large amount of information, then the element

of conciseness is taken into account. The individuals are required to convey all kinds of

information, lengthy as well as brief. Therefore, it is vital for the individuals to acquire an

efficient understanding of this element when imparting information.

Conducive Environment – Research studies have indicated that it is vital for the individuals

to create a conducive environment in order to carry out the communication processes in an

effective manner. The conducive environment is characterised by implementing the methods

and approaches that are favourable, encouraging, and advantageous to the individuals. When
the environmental conditions are favourable and contain all the essentials that are necessary

to promote effective communication and carry out ones tasks and activities in a well-

organized manner, then the individuals are able to augment their learning and understanding.

In order to create a conducive environment, there are various factors, which need to be taken

into consideration. These include, providing the necessary infrastructure, amenities and

facilities, there should be heating and cooling equipment in accordance to the weather

conditions, and technologies, materials and tools that are needed in the implementation of

job duties. All the members, employed in various types of organizations and educational

institutions of all levels need to be well-aware and put into operation the methods and

strategies that would contribute in the formation of conducive environment.

Channel – Communication channel is referred to as the medium, mean, manner or method,

through which the message is imparted by the senders to the receivers. The communication

channels include, physical transmission medium such as, wire, or logical connection through

a medium, which includes radio channel in the communication processes,

telecommunications, computer networking, electronics, technologies and multimedia. The

channels need to be suitable in accordance to the needs and requirements of the senders as

well as the receivers. In order to ensure that information is imparted to the receivers in an

appropriate manner, it is vital to make selection of appropriate channels. Communication

channels lead to flow of information among individuals in terms of particular topic, concept

or factor or among organizations. In organizations, and when individuals are located at a

distance, there are comprehensive utilization of technologies in communicating.

Implementation of appropriate communication channels within the organization is regarded

to be of utmost significance in keeping the employees engaged, aligned and help them to be

more productive (Top Communication Channels, 2019). Therefore, it can be stated that
implementation of appropriate channels contributes in promoting willingness and interest in

communicating.

Feedback – Feedback is an element of communication that is put into practice by the

teachers, instructors, supervisors, managers, employers, heads, directors and so forth in

various educational institutions and organizations. In educational institutions, the instructors

implement various types of assessment methods in order to evaluate the performance of the

students after information has been imparted to them in terms of lesson plans and academic

concepts. The various types of assessment methods include, assignments, projects, tests,

competitions, quizzes etc. After the students have participated, the instructors evaluate their

performance and give them feedback. On the other hand, in various types of organizations as

well, the supervisors and managers put into operation assessment methods to evaluate the

performance of the employees and give feedback. Obtaining feedback enables the

individuals to identify the limitations. After they have identified the limitations, they

implement the ways to bring about improvements and achieve the desired outcomes. When

feedback is given, it is vital to give it in a constructive manner. As constructive feedback

will help in development of motivation towards work. Therefore, feedback is regarded as an

important element of communication.

Completeness – The element of completeness is regarded as crucial because it enables the

individuals to understand that communication intends to create meaning and understanding.

When information is imparted to other individuals, it is vital to ensure that it is

comprehensive. Completeness in information helps in alleviating incompleteness and the

individuals are able to augment their understanding in terms of various aspects.

Completeness in information is more likely to generate the desired outcomes. The

individuals are able to fulfil the purpose of communication satisfactorily. The individuals,

belonging to various categories and backgrounds have the main objective of promoting well-
being and goodwill. In order to achieve these traits, it is vital for them to ensure that the

element of completeness is put into operation in the communication processes. Complete

information needs to be conveyed to other individuals in all fields, i.e. medical, education,

law, engineering, management, administration and so forth. The individuals in leadership

positions are the ones, who need to put it into practice throughout their jobs. Therefore, it is

regarded as an important element of communication and helps in achieving professional

goals and objectives.

Context – Context refers to the setting in which communication takes place. The context

helps in establishing the meaning and has an impact on what is stated and how it is stated.

Context is classified into four types, physical context, cultural context, social-psychological

context and temporal context. The physical context refers to the concrete environment, i.e.

workplace, park, home etc. Every place has its own rules, which influence the

communication processes. The cultural context refers to the values, norms, beliefs and

lifestyle of the individuals. These traits influence, whether something that has been said is

appropriate or inappropriate. The socio-psychological context takes into consideration the

norms of the group in a particular situation. There are certain rules, which need to be

followed in order to communicate efficiently. The temporal context is referred to as the

positioning of the message within the sequence of conversational events. It administers the

framework of the conversations and how the topics are to be addressed and related thereafter

(The Basics of Human Communication, n.d.). Therefore, context is regarded as an

indispensable element of communication, which enables the individuals to take into account

the essential attributes.

The elements of communication are regarded as important and there are number of

benefits. Communication takes place between two or more individuals, which are senders,

who are imparting information and the receivers, who are receiving information. The
elements of communication also imparts understanding among the individuals that they

need to adequately take into account the aspects of, verbal messages, non-verbal messages,

clarity of thought and expression, precision and appropriateness, conciseness, conducive

environment, channel, feedback, completeness and context.

PROCESS OF COMMUNICATION
Communication is a two-way process. It requires a sender and a receiver who can understand

the signs, symbols and language of each other. The process of communication begins with

ideation. The sender thinks of an idea, gives it a shape, decides the mode and medium to

convey the idea, and conveys it. On the other hand, the receiver receives it, tries to decode

and understand it, and finally gives feedback. Communication does not happen abruptly. It

happens systematically. There are different steps of communication. The steps involved in the

process of communication play an important part in sending and receiving messages clearly.

So, let’s understand the process of communication in detail.

1. Ideation:

The very first step in the process of communication is ideation. It means generation of

thought in the sender’s mind. Ideation consists of what is to be communicated. It could be a

request, an order, an inquiry or any other such activity. It depends on the sender’s knowledge,

experiences, perceptions as well as context of the communicative situation.

The ideas formed or encoded using specific codes of language are called a message.

Generally, a message carries a logical or emotional content. Logical messages comprise

factual details whereas emotional messages carry one’s feelings and emotions. Ideation turns

into a message when a particular idea is formed by considering its type and source using code

of a particular language.

2. Sender:
Sender is the person who selects a thought or an idea, encodes it into a set of symbols and

transmits it to the receiver by using suitable medium. Sender is an important element in the

process of communication because he makes the idea understandable for the receiver. The

entire responsibility of encoding the message rests upon the sender. For the meaningful

delivery and successful transmission of message, the sender has to keep in mind the purpose

of the message and accordingly, as per the abilities of the receiver, has to select the words,

images, medium, and time for each transmission. The sender has to cope with internal and

external factors.

The external factors like physical surroundings, weather, noise, cultural customs etc.

and the internal factors like the sender’s physical and mental state, his attitudes, and opinions,

past experience, likes and dislikes also influence the way the sender communicates the ideas.

Along with it, a sender also has to frame and transmit the message considering the receiver's

needs, skills, status, mental ability and experience. In short, sender is of prime importance in

the process of communication.

3. Encoding:

Encoding is the next step in communication. It means transformation of the idea into a set of

symbols that are known to both sender and receiver. It could be words, symbols, pictures,

diagrams, gestures etc. It is a process of converting ideas into a coded message. The very

purpose of encoding is to formulate ideas or thoughts into the known language to produce

meaningful interaction. Application of known media decides the success of the encoding.

Ultimately, the sole purpose of communication is sharing information or ideas in a clear and

understandable manner. Therefore, selection of language is of utmost importance. If the

receiver is not able to decode the message, communication cannot take place. For example- if
a receiver does not know Marathi, he cannot decode the message transmitted in Marathi. It

becomes an unproductive exercise.

Along with language, selection of the right mode and medium for communication also

determines the effectiveness of decoding. Commonly, interpersonal messages are

communicated through verbal or non-verbal cues. Verbal communication includes spoken and

written messages and to decode them the sender should be aware of the codes of that

particular language. Use of non-verbal cues, generally, depends on the sender receiver

relationship. It may include body movements, facial expressions, touching patterns etc. To

decode non-verbal cues is a challenging task for a receiver because it requires mutual

understanding of the non-verbal cues. Therefore, to make decoding easy for the receiver,

appropriate use of language and medium of communication is must.

4. Medium and Transmission:

Another significant element in the process of communication is selection of appropriate

medium for the transmission of a message. Medium can be called as a channel used to pass

on the message. It could be oral, written or non-verbal. It is always better to choose the right

medium well in advance before the composition of the message. It should be known to the

receiver. On the other hand, Transmission means flow of message over the chosen medium.

Selection of suitable medium/channel transmits the information uninterruptedly so that the

receiver finds it easy to decode the message correctly. In short, success of communication

depends on the choice of medium. For instance, displaying instructions in Marathi to Tamil

people would not be an appropriate medium of communication.

5. Receiver:

Receiver is the person or a group of persons who listen to the message and find some

meaning by decoding it. The communication process becomes successful only when the
receiver recognizes the symbols of the code and understands its meaning. If the sender

encodes the message by using codes known to the receiver, the messages transmitted become

more receptive. In short, the receiver is the decoder of the message who uses his skills and

tries to understand its meaning to achieve the expected goal of the communication.

6. Decoding:

Decoding means converting the received message into a comprehensive thought by analyzing

the signs, symbols and non-verbal cues used by the sender. It is important to note that

messages can be transferred from sender to receiver but its meaning has to be revealed by

decoding the message. It involves interpretation and analysis of the message. In written

communication, decoding is done by reading and understanding the written words whereas in

oral communication, it is done by listening to and understanding of the spoken words. Correct

decoding is the soul of communication. If it is not done correctly, the message can be

misinterpreted and that can lead to misunderstanding.

7. Feedback

Aim of every communication is to send a message to the receiver and get feedback on it.

Feedback completes the circle of communication. It is an indicator of successful delivery of a

message. It is a response of the receiver to the received message. If the receiver could decode

and understand the message, he gives positive feedback. Positive feedback is a good sign to

continue communication in the same manner. But, if the sender gives bad feedback, the

speaker has to refer to the feedback and make necessary changes wherever required. Without

feedback, the sender cannot understand whether his ideas are understood by the receiver or

not. There could be verbal or non- verbal feedback. It is a key component in the process of

communication because effectiveness of communication is reflected through the degree of

accuracy in the receiver’s response to the intended meaning of the sender’s message.