Business Communication and Report Writing (Study Text) 2024 PDF

Business Communication and Report Writing (Study Text) ALL RIGHTS RESERVED This book and its contents including write-ups, tables, graphs, figures, etc., are copyright material and are protected under Copyright Laws of Pakistan. No part of this publication can be reproduced, stored in a retrieval system or transmitted in any physical photocopying, recording or otherwise without prior written permission of the ICMA ’s Head Office. Institute of Cost and Management Accountants pakistan Email : [email protected] Website : www.icmainternational.com Phone : + 92-21-99243900 Fax : + 92-21-99243342 First Edition 2014 Contents developed by a consortium led by KAPLAN. Second Edition 2020 Contents updated by the ICMA International Third Edition 2024 Contents updated by the ICMA International Disclaimer This document has been developed to serve as a comprehensive study and reference guide to the faculty members, examiners and students. 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Any deficiency found in the contents of study text can be reported to the Education Department at [email protected] Business Communication and Report Writing (Study Text) CONTENT S.no Chapters Page No 1 INTRODUCTION 01 2 COMMUNICATION IN AN organization 20 3 ORAL COMMUNICATION 41 4 INTERPERSONAL COMMUNICATION (IPC) 75 5 WRITTEN COMMUNICATION 92 6 BUSINESS COMMUNICATION 131 7 REPORT WRITING 206 8 CASE METHOD OF LEARNING 251 9 PRESENTATION SKILLS 267 10 EMPLOYMENT COMMUNICATION 283 11 GROUP COMMUNICATION 315 Business Communication and Report Writing (Study Text) HOW TO USE THE MATERIAL The main body of the text is divided into a number of chapters, each of which is organized on the following pattern:  Detailed learning outcomes. You should assimilate these before beginning detailed work on the chapter, so that you can analyse where your studies are leading.  Step-by-step topic coverage. This is the heart of each chapter, containing detailed explanatory text supported where appropriate by worked examples and exercises. You should work carefully through this section, ensuring that you understand the material being explained and can tackle the examples and exercises successfully. Remember that in many cases knowledge is cumulative; if you fail to digest earlier material thoroughly; you may struggle to understand later chapters.  Examples. Most chapters are illustrated by more practical elements, such as relevant practical examples together with comments and questions designed to stimulate discussion.  Self-Test question. The test of how well you have learned the material is your ability to tackle standard questions. Make a serious attempt at producing your own answers, but at this stage don’t be too concerned about attempting the questions in exam conditions. In particular, it is more important to absorb the material thoroughly by completing a full solution than to observe the time limits that would apply in the actual exam.  Solutions. Avoid the temptation merely to ‘audit’ the solutions provided. It is an illusion to think that this provides the same benefits as you would gain from a serious attempt of your own. However, if you are struggling to get started on a question you should read the introductory guidance provided at the beginning of the solution, and then make your own attempt before referring back to the full solution. Business Communication and Report Writing (Study Text) Business Communication and Report Writing (Study Text) 1|Page Chapter Learning Objectives:  Role of Communication  Defining and Classifying Communication Formal and Informal  Purpose of Communication  Process of Communication  Components of Communication  Characteristics of Successful Communication  Barriers to Communication Business Communication and Report Writing (Study Text) 2|Page 1. Role of communication (i) An organization is a group of people that work for a common purpose. They organize themselves to develop an association for a specific business, professional, political, religious, purpose. An organization cannot work without effective communication. (ii) Its members exchange information, ideas, plans and programs. (iii) They make decisions, agreements, contracts, etc. through mutual interaction. This is not possible without proper knowledge of business communication. So, communication is rightly called life-blood of every organization. As human body cannot survive without blood, same is the case with an organization which has to rely on communication for its survival. (iv) Communication plays a vital role in the survival, progress, promotion and expansion of a business organization. Hence a business organization cannot survive without Effective Communication. (v) Communication enables a business organization to keep in close touch with its customers. With the help of communication, a business is able to know its Customers Demands, likings and disliking, grievances, etc. (vi) Through different communicative devices, a business organization introduces its products and promotes its sales. In the absence of effective communication, it will remain unknown to the business world which will be fatal for its existence. (vii) Communication is indispensable for running an organization's internal affairs. The Executive of a firm has to depend upon communication. While giving instructions to his subordinates, he can enhance their efficiency through effective communication. (viii) Similarly, the workers of a firm communicate with their head by sending suggestions, information, and expressing their grievances. Business Communication and Report Writing (Study Text) 3|Page (ix) An Effective Business Communication offers numerous benefits to the individual seeking jobs and aspiring for promotions. The prime requisite of a promotable Executive is “ability to communicate”. Notice that it is at the top of the mountain in Figure below. Too often those who cannot communicate effectively in either oral or written communications remain “buried” in lower, dead-end jobs. Members of management spend 60 to 90 percent of their working days communicating - speaking, writing and listening. (x) Over the past 40 years, many surveys and articles have confirmed the idea that effective communication is essential for success and promotion in business. They have included responses from thousands of top-level executives, middle managers and university business graduates across the globe. When the respondents were asked to answer the question “What has been the most valuable subject you studied in college?” Business Communication, Letter and Report Writing and Presentation Skills Were consistently among the top three responses. Respondents, including top, middle and operations managers have repeatedly asserted that business communication skills significantly influenced their advancement to executive positions. Ability to communicate Ambition-drive- College education Sound decision-making skills Self-confidence Good appearance Ability to get things done with and through people Capacity for hard work Business Communication and Report Writing (Study Text) 4|Page 2. Defining and classifying communication: Formal and Informal a) Communication: Communication is at least a two way process of exchanging information, feelings, ideas, emotions etc. b) Classifying Communication: i. Formal Communication:  Formal communication refers to the flow of official information through proper, predefined channels and routes.  The flow of information is controlled and needs deliberate effort to be properly communicated.  Formal communication follows a hierarchical structure and chain of command.  It involves a protocol of manners. ii. Informal Communication  Informal communication moves freely within the organization and is not bound by pre-defined channels and communication routes.  It moves a lot faster and does not have a paper trail.  Informal communication in the workplace is often called the ‘grapevine’ and generally begins with employees through social relations. c) Difference between Formal and Informal Communication: Formal Communication Informal Communication Follows a specific structure and set of More spontaneous and casual rules Likely to have a paper trail Very unlikely to have a paper trail. Slower Prompt Communication is through pre-defined Communication moves freely channels professional and respectful language More relaxed and conversational Business Communication and Report Writing (Study Text) 5|Page 3. Purpose of Communication The main objective of communication is to transmit a message which should motivate the receiver to react favorably. This objective may take any form according to the situation: information, order, suggestion, negotiation, persuasion etc. Whatever the form it takes, it must be ensured that communication is effective i.e. it must prompt your receiver to act as you wish. The major objectives of communication are as follows: (i) Information (ii) Advice (iii) Counseling (iv) Suggestion (v) Order (vi) Motivation (vii) Persuasion (viii) Warning (ix) Negotiation (x) Education/ Training (I) Information: One of the objectives of communication is enquiring, supplying or receiving information. Without information, you remain ignorant to what happens around you. If you want to start a business, you will need information about the products you are interested in. Similarly, you will supply information when you receive an enquiry about your products. So information forms the basis of communication. (ii) Advice: Advice is a personal opinion about what to do, how to do, and where to do. It points out a particular cause of action in a particular situation with a view to changing the behavior and opinion of the receiver. No business head is expected to have thorough knowledge of all the fields. He, therefore, needs advice of professionally expert persons.. (iii) Counselling: Counselling seems like advice but counselling is with professional touch by a man with greater knowledge and skill. A person facing domestic or professional problems needs counselling. With counselling his worries and emotions are shared; his tension is released. He feels relaxed and regains his physical as well as mental health. Business Communication and Report Writing (Study Text) 6|Page (iv) Suggestion: Suggestion is an important objective of communication. Suggestions are the proposals by subordinates flowing upward to the management. Through suggestions, the management comes to know the grievances and problems of employees and can think over them before they protest or agitate. Sometimes, their suggestions help in improving some business affairs. (v) Order: An order is the directive issued by the higher authorities to subordinates specifying to do or to restrain from doing some action. Order is always an internal and downward communication as it flows from higher management to the subordinates. (vi) Motivation: Motivation inspires and urges a man to work and proceed to the organizational goals. While motivating his subordinates, the business manager plays the role of a sympathetic guide. He cultivates healthy and harmonious relations among people at work. Motivation is possible in a congenial atmosphere of trust and understand. (vii) Persuasion: Persuasion is an act of influencing to change one's behavior, thinking, feeling or belief. Through effective persuasion people change themselves unconsciously. In business, persuasion is an effective tool to influence the customers. The seller persuades the buyers to buy the products by telling them the remarkable benefits they can get. (viii) Warning: Warning is informing about the unpleasant consequences if certain course of action is not given up or changed. Such course of action may be long absence from duty, mishandling material or machinery, negligence, misbehaving others, disobeying orders etc. The purpose of warning is to ask the worker to mend his ways and abide by the rules and regulation. Warning also aims at betterment of the individual as well as the organization. The Executive Manager should avoid using harsh and humiliating words. (ix) Negotiating: Negotiating is a sort of compromise or agreement. In negotiation, two or more parties discuss the proposals regarding specific problem to find an acceptable agreement. While negotiating, all the parties concerned try to find a solution to a problem maintaining healthy relations. Their efforts mainly aim at gaining maximum benefit without causing loss to any party. (x) Education/Training: Education is one of the most important objectives of communication. Education is not merely for students, rather the executives and employees of the companies need education and training. These days all the leading firms arrange training and education of both existing as well as newly Business Communication and Report Writing (Study Text) 7|Page recruited staff to learn new techniques to increase their efficiency. Besides, through mass media like television, radio, newspaper, business organizations educate the people about the utility and benefits of their products. 4. Process of Communication The process of communication requires the following six steps: i. Formation of an idea ii. Encoding Sender’s Activity iii. Transmission iv. Reception v. Decoding Receiver’s Activity vi. Response (i) Formation of an Idea: The first step in the process of communication is the formation of an idea. In this step, the sender forms an idea which he wishes to communicate to the receiver. This consists of the basic context of the message. For an effective expression of thoughts, the sender should have pre-planned ideas in his mind. (ii) Encoding: Encoding is conversion of message/ideas into symbols. In this step, messages are composed of symbols understandable both for sender and receiver. Encoding, therefore, includes the conversion of an idea into message by the sender which may be verbal or non-verbal. There is a difference of words and style for different kinds of communication. The language and style of formal and informal letters may be different. The lights on a beacon house tower are also encoded message for ships. Sirens are also encoded messages indicating danger etc. This step is the duty of the sender. (iii) Transmission: Transmission is sending out the message to some receiver by the sender. The sender is responsible for the selection of the medium for transmission. In this step, the sender may choose either verbal or non-verbal channel. The choice of channel depends mainly upon the inter-relationship and the nature of the situation. (iv) Reception: In the process of communication, this is the first function of the receiver of the message. Here, the receiver receives the message sent by the sender. This is a Business Communication and Report Writing (Study Text) 8|Page very important step. Here, the receiver should receive the message attentively and any sluggishness on the part of the receiver may spoil the process of communication. (v) Decoding: Decoding is the conversion of encoded symbols into meaningful words. The requirement of this step is that both the sender and the receiver enjoy the identical qualification and mental filter. Otherwise, the receiver won't be able to comprehend the encoded symbols into meaningful words. If a receiver fails to decode the symbols, the communication will become miscommunication. (vi) Response (Feedback) This is the most important step performed by the receiver. It indicates the effectiveness of the communication. It is basically the reaction of the receiver that may lead to the effective communication if the desired response is given by the receiver. 5. Components of Communication a) Context Every message whether oral or written, begins with context. Context is a broad field that includes country, culture, organization and external and internal stimuli. Every country, every culture and every company or organization has its own conventions for processing and communicating information. The aspect of context is the playing field on which you must plan, design and communicate your message successfully. Another aspect of context is the external stimulus that promotes you to send a message. The source of this prompt may be a letter, memo, note, electronic mail, fax, telex, telephone call, a meeting or even a casual conversation. Your response to this prompt may be oral or written. Another aspect of context is the external stimulus that prompts you to send a message. The source of this prompt may be a letter, memo, note, electronic mail, fax, telex, telephone call, a meeting, or even a casual conversation. Your response to this prompt may be oral or written, The internal stimulus has a complex influence on how you translate ideas into a message. When you encode, your own view of the world affects the choices you make in language. Your attitudes, opinions, emotions, past experiences, likes and dislikes, education, job status, and confidence in your communication skills all influence the way you communicate your ideas. Business Communication and Report Writing (Study Text) 9|Page b) Sender-Encoder When you send a message, you are the “encoder”, the writer or speaker, depending on whether your message is written or oral. You try to choose symbols - usually words (and sometimes also graphics or pictures) that express your message so that the receiver(s) will understand it and react with the response you desire. After considering all the factors mentioned above, you decide which symbols best convey your message and which message channel will be most effective among the oral and written media. c) Message The message is the core idea you wish to communicate; it comprises both verbal (written or spoken) symbols and nonverbal (unspoken) symbols. Your first task is to decide exactly what your message is and what content to include. You must consider your context and especially the receiver of your message – how the receiver will interpret it and how it may affect your relationship. Simple answer to a request for information may be relatively easy. In contrast, a message explaining why a company is moving some of its manufacturing to Karachi or a proposal to build a new headquarters for a governmental agency will require more complex and carefully planned communication strategies. d) Medium Like message content, the choice of medium is influenced by the relationship between the sender and the receiver. Some research suggests that the urgency of a message is a primary factor in whether to use the written or spoken medium. You may also consider factors such as importance, number of receivers, costs and amount of information. If the message goes to an international audience, you must also consider which medium is preferred in the receiver’s culture. Oral Written Immediate feedback Delayed feedback Shorter sentences; shorter words Longer sentences; longer words Conversational More formal Focus on interpersonal relations Focus on content Prompt action Delayed action Less detailed technical information More detailed technical information More personal pronouns Fewer personal pronouns More colloquial language More complex constructions Simpler constructions Useful for permanent record; detailed documentation More imperative, interrogative and Possibility of review exclamatory sentences Business Communication and Report Writing (Study Text) 10 | P a g e The written channel is often preferred when the message is long, technical or formal in nature and when the message must be documented. The oral channel is effective when the message is urgent or personal or when immediate feedback is important. o Inside Your Organization For internal communication, written media may be memos, reports, bulletins, job descriptions, posters, notes, employee manuals, electronic bulletin boards, even internal faxes. Oral communication may take the form of staff meeting reports, face-to-face discussions, presentations, audio tapes, telephone charts, conferences, or videotapes. Another oral channel, is the “grapevine.” through which news and rumors travel quickly - often quite accurately. o Outside Your Organization External written communication media may be letters, reports, proposals, telegrams, cablegrams, mailgrams, faxes, telexes, postcards, contracts, ads, brochures, catalogs, news releases and a host of other things. You may also communicate orally in face to face discussions, by telephone or by presentations in solo or panel situations. You may speak to groups in live presentations or through teleconferences, video conferences or television. e) Receiver - Decoder The message receiver is your reader or listener, also known as the decoder. Many of your messages may have more than one decoder. The receiver as well as the sender is influenced by the context and by the external and internal stimuli. Both receive messages through the eyes and ears but are also influenced by non-verbal factors such as touch, taste and smell. All factors of a message are filtered through the receiver(s) view of and experiences in the world. f) Feedback Ultimately the receiver reacts with either the desired response based on a clear understanding of the symbols or with an undesired response because of miscommunication. Feedback can be oral or written. It can also be an action such as receiving in the mail an item you needed. Senders need feedback in order to determine the success or failure of the communication. Business Communication and Report Writing (Study Text) 11 | P a g e 6. Characteristics of Successful Communication The characteristics of successful communication are defined by 7 C’s of effective communication. 7 C’s are applicable on both written as well as oral communication. 7 C’s of effective communication are as follows: 1. Completeness: The communication must be complete. A complete communication has following features:  Complete communication develops and enhances reputation of an organization.  A complete communication always gives information wherever required.  It leaves no questions in the mind of receiver.  Complete communication helps in better decision making. 2. Conciseness: Conciseness means communicating what you want to convey in least possible words. It is a necessity for effective communication. Concise communication has following features:  It is time-saving.  It is cost-saving.  It underlines and highlights the main message as it avoids using excessive and needless words.  Concise message is non-repetitive in nature. Business Communication and Report Writing (Study Text) 12 | P a g e 3. Consideration: Effective communication works on the concept of You-attitude, meaning thereby that it must take the audience into consideration, i.e., the audience’s viewpoints, background, mind-set, education level, etc. Features of considerate communication are as follows:  Emphasize on “you” approach.  Empathize with the audience and exhibit interest in the audience.  Emphasize on “what is possible” rather than “what is impossible”.  Lay stress on positive words such as jovial, committed, thanks, warm, healthy, help, etc. 4. Clarity: Clarity implies emphasizing on simple and clear language. Clarity in communication has following features:  It makes understanding easier.  It enhances the meaning of message.  Clear message makes use of exact, appropriate and concrete words. 5. Concreteness: Concrete communication implies being particular and specific rather than being ambiguous or vague. Concrete message has following features:  Supported with specific facts and figures.  Leaves no room for misinterpretation. 6. Courtesy: Courtesy in message means being respectful towards the receiver but communicating the sender’s expression e.g. by communicating politely. Courteous message has following features:  Positive  Focused at the audience  Polite and unbiased Business Communication and Report Writing (Study Text) 13 | P a g e 7. Correctness: Correctness in communication implies accuracy. There shouldn’t be any inaccurate and erroneous message. Correct communication has following features:  Exact  Well-timed  Precise and accurate facts and figures 7. Barriers to Communication Barriers to communication include the following: (i) Distortion: It refers to a problem in which the meaning of the communication is lost in handling of the message which occurs at the stages of encoding and decoding. (ii) Overloading: It refers to the problem of giving the receiver more information than he can digest. When the available information to work with is in excess of the processing capacity of the recipient, the result is information overload. Since the available information is more than the requirements, individuals tend to select only that information that they consider to be relevant and ignore, pass or forget the information that is not of interest to them. (iii) Differences: Difference in social, racial or educational backgrounds of sender and Receiver. (iv) Lack of Sender’s Credibility: Receivers are keen to receive information, the source of which is credible. If they are unsure about the sources’ credibility, they may lose focus in the message. (v) Unfamiliar Language: Linguistic problems arise when sender and receiver are not familiar with the same language. Here language also includes dialects and accents. It should be noted that words mean different thing to different people. (vi) Improper Timing: Even proper information at an inappropriate timing affects the process of its reception because a distracted target might be unable to absorb such information. (vii) Attitude Differences: Difference in attitude, beliefs, needs and wants of the sender and the reviver may also act as a hurdle in process of communication. (viii) Differences between People: Differences in social classes, ethnic backgrounds, Age, gender, education level and field of interest may also act as a potential obstacle in process of communication. Business Communication and Report Writing (Study Text) 14 | P a g e (ix) 9. Relationship between the sender and the Receiver: Communication process is also affected by the relationship dimension between interlocutors. A sender has to mold his message in accordance with the relationship with his target. Examples include status, boss- employee, parent-child, etc. (x) Filtering of Information: Manipulation of information by the sender so that it will seem more favorable to the receiver. Filtering of information refers to the sender’s deliberate suppression or manipulation of information so that it may be seen in a more favorable perspective by the receiver. It includes concealment of information by the sender which is not considered to be in accordance with the expectations or viewpoints of the receiver. (xi) Selective Perception: It is a problem in which receiver hears message based on his/her interests, needs, motivations, experience, background and other personal characteristics. It is the process by which the sub- conscious mind subjectively ‘decides’ which stimuli relating to an object, person or event are relevant and accepts only such stimuli which is in accordance with the interests, experience, background and attitude of the recipient to match or confirm the individual’s viewpoints. All other stimuli which are considered irrelevant by the recipient are ignored and rejected by the sub-conscious mind. (xii) Defensiveness: It is a response when receiver interprets the message as threatening and deliberately withdraws attention from its reception. (xiii) Noise: Noise is any disturbance which interferes with the transmission and understanding of a message. Noise is a phenomenon which reduces the effectiveness or causes confusion or affects the clarity of the message being transmitted between the sender and the receiver. Kinds of Noise: o Physical Noise: It is caused by interference from the external environment during the conveyance of the message. Disturbance caused by the surrounding environment e.g. humming of an air-conditioner or loud playing of music by the neighbors can cause physical noise. o Technical Noise: This noise involves the failure of the medium of communication. It includes crackle on the telephone line or illegible handwriting etc. This may prevent the exchange of communication. Business Communication and Report Writing (Study Text) 15 | P a g e o Social Noise: It occurs when people communicate differently from one another because they have been socialized into different cultures/groups. Thus our age, gender, social class, race, gender, ethnic identification, or religious background can affect how we communicate. o Psychological Noise: It is caused by the differences in the manner in which the receiver processes and interprets the message. The extent of mutual trust, individual biases and pre-conceived prejudices and poor listening are examples of psychological noises which are impediments towards the delivery of messages. o Semantic Noise: is the interference in delivery of message on account of differences in language or social and educational backgrounds. It prevents the receiver from accurately comprehending the message of the sender. Excessive use of jargon and complex words which are not understood by the receiver are also an obstacle to the delivery of accurate message. o Physiological Noise: Physiological noise is any physiological issue that interferes with communication. For example, if you have a migraine, it may be difficult to speak to others or listen to them when they speak to you. o Overcoming Noise (Redundancy): Noise can be reduced by using more than one channel of communication so that if there is a problem in one channel the message may be completely sent through the other channel e.g. phone, meeting, verbal instructions etc. Business Communication and Report Writing (Study Text) 16 | P a g e Overcoming Communication Barriers (i) Audience Analysis: Analyze the audience. A careful audience analysis is essential to ensure that the communication is effective and understandable to the audience. (ii) Choice of an appropriate medium: Choose an appropriate medium through which a message can be transmitted conveniently and which is accessible to audience without too much effort. (iii) Encourage feedback: A sender should encourage feedback to ensure that the message has or has not been correctly received, understood and interpreted according to senders’ intentions. a. Regulate information flow and timing b. Listen actively c. Stop talking. Do not interrupt. (iv) Active Participation: Communication demands the active participation of both the related parties, i.e. sender and a reviver. A sender should transmit the message without any suppression or manipulation, whereas, on the receivers’ end the responsibility is that he/she should stop talking. Receiver should not interrupt and pay full attention towards the source. (v) Listen Emphatically: A target should try to understand the speaker’s perspective and should place him in shoes of the source. Additionally, he should try to assess the feelings or intentions of the encoder. (vi) Hear before evaluating: Listen to what the person has to say before jumping to conclusions or judgment. (vii) Listen to the whole message: Moreover the receiver should listen to the whole message instead of whatever is of interest to him. (viii) Send Feedback: In order to make sure that the receiver has heard correctly, paraphrase what he heard and should repeat it to the person he was listening to. Business Communication and Report Writing (Study Text) 17 | P a g e Self-Test Questions: 1. JBS Bank has recently been privatized. Previously as a nationalized bank, the organization’s culture valued length of service and seniority of employees. The new management consists of young and aggressive managers, who now want to infuse a result-oriented culture where performance is rewarded. Today the new Head of Branch Operations, A. Salim, is meeting a senior officer of the bank’s Main Branch, S. Akhtar, who is being made to report to a new manager inducted recently from another bank. The new manager is young and dynamic, but Akhtar feels his seniority is being undermined and is very upset. The situation goes as Salim has a busy schedule, and to save time he has agreed to meet Akhtar over lunch in the busy officers’ cafeteria for 15 minutes, and hear his grievances. His mind is preoccupied with the presentation he has to make to the Directors in the afternoon. He has his views on Akhtar’s professional capabilities and feels the meeting will be an unproductive use of his time, but has agreed to the meeting as Akhtar has been requesting it for many days. Akhtar on the other hand is skeptical of the new management’s intentions. Salim delivers a jargon-filled monologue on the new People Development philosophy, and tries to convince Akhtar that he can still grow professionally without being promoted. Akhtar hears him out but has difficulty grasping the new organizational concepts especially since they are explained in high-flown and accented English. During their luncheon meeting, several colleagues briefly stop by to greet them. Which types of Noise can you identify in the above situation? Explain in each case. How it can impact the quality of communication between Akhtar and Salim? (06) Business Communication and Report Writing (Study Text) 18 | P a g e MCQs: 1. Feedback moves: a. from sender to receiver b. from receiver to sender c. none of the above 2. Selective perception occurs: a. when sender withholds information b. when receiver hears only that message which is based on his interests c. none of the above 3. Filtering of information occurs when: a. receiver hears only that message which is based on his interests b. when sender withholds information c. none of the above 4. Semantic Noise is the interference in the delivery of the message on account of: a. ambiguity in words, sentences or symbols used b. disturbance in the environment c. excessive emotion or prejudice MCQs Answers: 1. B 2.b 3.a 4.a Business Communication and Report Writing (Study Text) 19 | P a g e Business Communication and Report Writing (Study Text) 20 | P a g e Chapter Learning Objectives:  Communication Structure  Formal Communication Network  Informal Communication Network  Importance of Communication in Management  Role of social media in organizational communication Business Communication and Report Writing (Study Text) 21 | P a g e It is important to define and understand ‘Organisation as a system’ before developing an understanding of “Communication in an Organisation’. Organisation is defined as follows: 1. Organization 1.1 Formal Organization A social arrangement for the controlled performance of collective goals with an identifiable boundary. Social Arrangement: People in an organization follow certain hierarchy. Their relationships are structured in a particular way. Hierarchy comes into being through the process of effective delegation of work. Controlled Performance: Performance depends on the efficient use of scarce resources. It can be achieved by controlling individual’s functions. This leads to: (a) Division of labour i.e. equitable division of work. (b) Division of function i.e. assigning work according to specialization. Collective Goals: Individuals in organizations have common goals Individuals cannot achieve goals in solitary situations which can be easily achieved in organizational situations. Identifiable Boundary: Membership of an organization is restricted. 1.2 Informal Organization: A social unit arising spontaneously as a result of shared interest and circumstances. An informal organization co-exists with formal one. Hawthorne Studies conducted during the 1920’s and 1930’s discovered the existence of the informal organization. 1.2.1 Kinds of Informal Organizations (i) Trade Unions (Workers) (ii) Networks (Managers) Business Communication and Report Writing (Study Text) 22 | P a g e 1.2.2 Features of Informal Organization: (I) Its membership is gained consciously or unconsciously. (ii) It is loosely structured. It has no structure or official hierarchy. (iii) It is flexible and is dissolved after achieving its objectives. (iv) It is spontaneous type of organization. (v) Grapevine is an important feature of this organization. (vi) It involves informal behavioural norms. (vii) It has informal leaders. 1.2.3 Advantages of Informal Organization: (i) Informal organizations can usefully improve communication by means of “grapevine system.” (ii) Coordinate the activities of various individuals or departments without red- tape. (iii) Establish unwritten but practical ways of doing things. (iv) It increases employee commitment because informal organization is a tool for solution of their problems. (v) It is a source of knowledge sharing. (vi) It is a tool to increase the responsiveness to environmental changes. (vii) It enhances cooperation among the employees. (viii) It provides satisfaction of members’ social needs, and a sense of personal identity and belonging. (ix) It provides for additional channels of communication; for example, through the ‘grapevine’ information of importance to particular members is communicated quickly. (x) It provides a means of motivation, for example, through status, social interaction, variety in routine or tedious jobs, and informal methods of work. (xi) It provides a feeling of stability and security, and through informal ‘norms’ of behaviour can exercise a form of control over members. (xii) It provides a means of highlighting deficiencies of weaknesses in the formal organisation, for example, areas of duties or responsibilities not converted in job descriptions or out-dated systems and procedures. The informal organization may also be used when formal methods would take too long, or not be appropriate, to deal with an unusual or unforeseen situation. 1.2.4 Disadvantages of Informal Organization: (i) It works against organization’s interests as its members remain busy in the meetings of informal organization. (ii) It ignores organization’s objectives. (iii) Grapevine, which is an important part of informal organization, may be inaccurate. (iv) It causes stress among employees when excluded from informal group. Business Communication and Report Writing (Study Text) 23 | P a g e (v) Informal work practices like mutual adjustments may cut corners. 1.3 Formal vs. Informal Organization: Formal Organization - the official, legitimate, and most visible part of the system Informal Organization - the unofficial and less visible part of the system. Points of Formal Informal Comparison Organization Organization 1. Origin Created Arise deliberately spontaneously 2. Nature Planned and Unplanned and official unofficial 3. Size Large Small 4. Continuity Stable Unstable and dynamic 5. Focus Built around jobs Built around people and their roles 6. Structure Definite structure, Structure-less, mechanical and impersonal and rational emotional 7. Goals Profits and service Satisfaction of to society members 8. Influence Legitimate Informal Power processes authority 9. Control Rigid rules and Group norms and process regulations values 10. Communication Official and well- Unspecified defined paths. channels. Two- One way and slow way and fast flow flow of information of information, grapevine. 11. Authority Positional, flows Personal, flows top down bottom up 12. Charting Shown on Not shown on organizational organizational chart chart (Sociogram) Business Communication and Report Writing (Study Text) 24 | P a g e 2. Communication Structure Regardless of size, industry or structure, an organization must maintain a clear and precise internal communication structure that allows managers to issue directions to workers and allows workers to give feedback so managers can adjust their plans. Communication Occurs in Four Directions in Organizations (i) Upward communication (ii) Downward communication Vertical communication (iii) Horizontal / Lateral communication (iv) Diagonal communication Communication Flows: Business Communication and Report Writing (Study Text) 25 | P a g e 2.1 Downward Communication: Communication from management to workers. 2.1.1 Advantages / Objectives / Purposes: (I) when employees receive appropriate downward communication from management, they can be better motivated and more efficient. (ii) They need not only clear job directions and safety rules but also facts about organizational strategy, products and viewpoints on important controversial issues. (iii) They are concerned about employee benefits health care, insurance, promotions, pensions, training, work environment and retirement. (iv) In all, the many pressures from employees force employers to be accountable for their decisions through effective downward communication. Employers who communicate effectively have more productive employees. (v) Conveying objectives. (vi) Information on work procedures & practices. (vii) Giving feedback to employees on performance. (viii) Clarifying company’s culture. 2.1.2 Problems in Downward Communication: (I) Failure to communicate. (ii) Management assumes that employees will not be interested in the larger issues of the management. (iii) Management assumes that employees will not understand the larger issues of the management. (iv) Management do not themselves have the information or do not know the answers to problems. (v) Managers are not skilled, trained or confident in communication. (vi) Managers fear that they are undermining their authority by sharing information with subordinates. (vii) Managers fear that they are making themselves redundant, by allowing subordinates to know and understand more of their job. (viii) Managers fear that they are undermining their role as manager because it leads to more frankness between manager and his subordinates. (ix) Managers fear that they are giving information that might fall into the wrong hands, or be contrary to the organization’ s interests. 2.1.3 Improving Downward Communication: (i) Establishing regular systems for conveying information to subordinates: Meetings, briefings, circulars, manuals, notice boards. (ii) Promoting a culture of trust and sharing information. Business Communication and Report Writing (Study Text) 26 | P a g e (iii) Organizing training sessions for managers to communicate frequently with their subordinates. (iv) Rewarding managers who promote a culture of communication. (v) Encouraging news swapping informally between managers and their subordinates. (vi) Discourage excessive status consciousness among managers. 2.2 Upward Communication: The process of encouraging employees to share their feelings and ideas with management. Upward communication flows from lower levels to higher levels in the organizational hierarchy. Upward communication provides feedback to the managers and keep them inform of the progress towards the achievement of the organizational goals and problems faced by the subordinates in the performance of their duties. It also informs the managers how the subordinates feel about their jobs, morale, co-workers and the organization. 2.2.1 Advantages / Objectives / Purposes: (I) Many executives sincerely seek frank comments from employees in addition to the usual periodic reports. (ii) Successful managers listen closely to opinions, complaints, problems and suggestions especially when these are clearly and effectively stated. (iii) As a response to increasing global competition, some companies are developing new management styles which make input from employees an integral part of important decisions affecting the company. (iv) Information by employees on their work/performance/problems. (v) Information about achieved targets/objectives. (vi) Comments on procedures and policies. (vii) Suggestions for improvement in the system. (viii) Employees’ feelings about the organization. 2.2.2 Problems in Upward Communication: The following problems may create impediments in the upward flow of communication in a large organization: (I) Subordinates may consider that the seniors would not be interested in the opinions or information given by subordinates. (ii) Subordinates may think that the seniors are busy and already facing information overload and would not have time to consider the problems or suggestions provided by subordinates. Business Communication and Report Writing (Study Text) 27 | P a g e (iii) Subordinates may fear that reporting of a problem or communications of a grievance may result in antagonizing or disappointing the seniors which may have adverse consequences. (iv) Subordinates may fear that the upwards communication may be considered by their colleagues as a way of getting closer to seniors and seeking favours. 2.2.3 Improving Upward Communication: (i) Organizing meetings between managers and subordinates frequently. (ii) Organizing brainstorming sessions for employees and teams. (iii) Setting up quality circles. (iv) Encouraging input and suggestions from employees. (v) Open door policy by managers. Managers encourage and welcome suggestions of their subordinates. They are always ready to listen to their grievances. 2.3 Horizontal Communication: Communication between associates at the same level. 2.3.1 Advantages / Objectives / Purposes: (i) To coordinate activities between and among departments. (ii) To provide support and assistance to other departments and staff members. (iii) Effective horizontal communication between peers is also essential in organizations. 2.3.2 Problems in Horizontal Communication: (i) One manager or department may feel that another is encroaching on their area of authority or expertise. (ii) Line managers may resist the expert authority of functional managers such as accountants or personal officers within their departments. (iii) There may be conflict between individuals, groups or functions because of widely different working habits and styles, coordination problems and distorted perceptions. 2.3.3 Improving Horizontal Communication: (i) Regular meetings between managers to discuss issues related to their departments and organization. (ii) Inter-departmental meetings and teams. (iii) Job rotation i.e. periodic shifting of employees from one department to another. (iv) Sharing information with other departments through newsletters/circulars. (v) Appointment of a liaison officer. Business Communication and Report Writing (Study Text) 28 | P a g e 2.4 Diagonal Communication: Communication that cuts across both work areas (Department/Section) and organizational levels (Hierarchy) in the interest of efficiency and speed. 3 Formal Communication Network: Communication that takes place through the formal channels of organizational structure is known as Formal communication, also known as Impersonal or Business communication. It pertains high level of formality, impersonality, brevity and deliberation. It is generally in writing and better planned and controlled by the management Formal communications include contracts, business letters and reports. Types of Formal Communication Network: o Chain network:  Information is passed straight up or down the formal chain of command.  One person passes information to others up/ down within the line of hierarchy, who then pass it further up/down their own chain of authority.  It allows only vertical movement and is strictly hierarchical.  Chain networks have a leader who decides as to what messages are to be sent and how these messages are to be communicated.  Here each member communicates with the person above and below.  It reflects upward and downward communication and exists in a vertical hierarchy.  This type of network is suitable for tasks that have to be accomplished within a given time and without any deviation.  However this type of arrangement does face the risk of losing some part of information at every successive level.  Persons at the bottom may feel isolated and less motivated. o Y Network:  Y network is a variation of chain network  Messages are communicated vertically, between the subordinates and supervisors in the hierarchical arrangements.  The information from the leader is shared simultaneously through two channels, which in turn pass on the information outwards.  This arrangement can disseminate the information faster than the chain network. o Wheel Network: Business Communication and Report Writing (Study Text) 29 | P a g e  It is characterized by the central position of the leader, where the leader plays the key role to disseminate information.  The primary communication occurs between the members and the group leader and then group leader shares the information with all.  It is the feature of a typical work group.  Decisions can be made fast.  Group morale is low since others do not take an active part in decision making.  The leader is very important and powerful. o Circle Network:  It is an example of horizontal and decentralized communication.  The circle network assumes no leader;  There is complete equality.  The members can communicate with persons to their right and left.  Members have same restrictions, but the circle is a less constrained condition than the wheel, chain, or Y networks.  Each member of the circle has the same authority or power to impact the group.  The core issue is that information moves rather slowly, and might get distorted.  Morale is high because everyone participates in the decision-making process. o All Channel network:  The all channel also called as star pattern is an extension of the circle in that all members are equal and wield exactly the same amount of power to influence others,  This pattern permits all group members to communicate actively with each other.  This pattern allows for maximum member contribution.  A prominent example is a self-managed team in which individual group members are free to contribute and no one assumes a leadership role. Business Communication and Report Writing (Study Text) 30 | P a g e 4. Informal Communication Network (Grapevine) Informal communication channels do not adhere to supervisor-subordinate relationship and take place across the different official levels in the organization. Informal communication occurs outside the formal communication channels. It co exists with the formal communication system. It refers to: (i) talks in the canteen (ii) in the corridors (iii) on the way home (iv) on the phone line and messaging applications etc. 4.1 Characteristics of Grapevine Network: The characteristics which are common in all grapevine networks are: (I) Official communication channels are weak or management deliberately withholds information. In this situation, informal communication becomes important. (ii) Social and personal interaction of employees exists. (iii) Grapevine is mostly oral communication. (iv) Mostly among workers, but it is also prevalent among managers. (v) Flow in all directions in the organizations, spatially and hierarchically. (vi) People oriented rather than work oriented. (vii) It is reflection of informal organization. (viii) It is usually verbal and lacks any formal documentation (ix) Although informal, it still can has effect on decision making Business Communication and Report Writing (Study Text) 31 | P a g e Grapevine or Informal Communication: PROS CONS  It acts very fast.  It might be malicious some  It is selective. It spreads among individuals may move it with relevant employees belonging ill-will. to all sections.  It may contain inaccurate  It operates within organization. rumours or half-truths or  It co-exists with formal simply be wild speculations communication network. which become further  It is latest/ more current. distorted in the retelling  It is related to internal politics. process.  Informal channels of  It is a type of communication communication fill in the gap which may be stressful to the resulting from inadequacies of people in an organization due to formal channels. inaccurate rumours.  It is a means of sharing  It may make employees information and experience mistrust one another. across vertical boundaries.  If fallen into wrong hands, it  It is an effective tool for problem can work against identification. Specially, it organizational interest. serves to identify unethical activities which are, at times, embarrassing for the employees to be routed through formal channels.  It provides emotional and social support to its members. Business Communication and Report Writing (Study Text) 32 | P a g e 4.4 Managerial Attitudes Towards the Grapevine: (i) The grapevine is more prevalent at lower-levels of the managerial hierarchy. (ii) The grapevine appears to be more influential in larger organizations. (iii) Managers can keep abreast of grapevine communications by regularly conversing with known gatekeepers. (iv) The grapevine cannot be extinguished; attempts to stifle the grapevine are likely to stimulate it instead. (v) Monitoring and officially correcting grapevine information is perhaps the best strategy for coping with the grapevine. Difference between Formal and Informal Communication Networks (Features of Formal & Informal Communication). Formal Communication (Styles in Informal Communication Business) 1 Definition Communication that takes Communication arising out of place through the formal all channels of communication channels of organization that fall outside the formal structure is known as Formal channel is known as Informal communication. Communication. 2 Channels Such communication are Such communications are generally in writing and may usually oral and may take the take the form of, manuals, form of informal discussions in procedures and rule books, canteen, at public house, on the memoranda, official way home, on the telephone, meetings, reports, etc. etc. 3 Purpose To meet organizational To meet social and personal objectives of regulating the flow needs of the members of an line of authority established by organization. the management. 4 Formality Formal communication is Informal communication does carefully worded and follows not follow formal channels and line of authority established line of authority established by by the management. the management. Business Communication and Report Writing (Study Text) 33 | P a g e 5 Impersonality Formal communication is Informal communication may be unbiased, impartial, and partial and biased. Emotional neutral in organizations and feelings and prejudices may evaluation of facts, therefore, lead to discriminatory behaviour promotes non-discriminatory in organization. behaviour in organization. 6 Brevity Formal information is Informal communication may concise, relevant and to the contain personal discussions point. which may be irrelevant to the main subject. 7 Controls It is controlled by management. There are no established rules or There are certain rules as to the mechanisms for the format and format and layout of formal layout of informal messages. It is messages. not controlled by management. 8 Level of Responsibility Formal communication helps in At times, in informal fixation of responsibility about communication, it is difficult to fix the accuracy of information. responsibility about the accuracy of information. 9 Deliberation It refers to mature thinking It may be off hand communication. before sending the message. 5. Importance of Communication in Management Studies of how managers spend their time invariably show that the majority of it is spent in communication –irrespective of their positions in the organisation. Peter Drucker sees communication as central to management: "A manager motivates and communicates. He makes a team out of the people who are responsible for various jobs. He does that through the practices with which he manages. He does it in his own relations to the men he manages. He does it through constant communication, both from the manager to his subordinate, and from the subordinate to the manager". Communication is all pervasive within organizations and management. Factual information has to be sent to, received and interpreted by others above, below and at the same level as the manager. Ideas need to be received, considered, and agreed or Business Communication and Report Writing (Study Text) 34 | P a g e rejected by those in the decision-making process. Policies, strategic plans, major decisions and general directives have to be issued by senior management. Orders are sent down the line of the organization's hierarchy of command, and reports come back. Along horizontal lines, staff specialists, such as personnel managers, send recommendations and explanations concerning technical matters, and receive reports back as relevant. Throughout all this communication of information, notions of management culture and style are being confirmed, and common understanding and feelings about every aspect of operation are being sought. The central importance of communication within organizations is perhaps more tellingly shown by reflecting on the proportion of problems which arise from failures in communication. This is especially acute in large multi-disciplinary organizations, where it is all too easy for information flow to stop at the boundaries of professions, departments and specialist groups. We can also see the way in which individuals or groups can have their particular sensitivities provoked by exclusion from information flows –for example, non-invitation to a meeting, omission from a list of those receiving minutes of a meeting, absence of consultation over some matter –or by the way in which information is presented (for example, by the formality of expression and medium, or the use of offensive language including gender and racial stereotypes). Give this some thought for a moment–what failures in communication have occurred in your own organization in the last week or month? What were the consequences? The early writers on organization and management theory completely ignored the topic of communication –for them, information flow was simply a case of transmitting orders to subordinates, and the assumption of rationality in organizational functioning and decision-making meant that problems of information did not exist. Chester Barnard was the first writer to give the subject due attention, projecting it as a means by which people are linked together in an organization in order to achieve a central purpose. The human relations school of thought also brought communication to the fore. Group activity is impossible without information flow –without it leadership, co- ordination and change are impossible –and information flows are subject to interruption by various barriers –organizational, semantic and human relations. Finally, the systems approach can be seen as drawing attention to the flows between the parts of the system and the way in which each element of the system interacts with others. 6. The Role of Social Media in Organizational Communication Business Communication and Report Writing (Study Text) 35 | P a g e In today's digital age, social media has emerged as a powerful tool for communication within organizations. It not only influences how companies interact with external stakeholders but also significantly impacts internal communication processes. The integration of social media platforms like LinkedIn, Twitter, Facebook, and internal social networks into organizational communication strategies offers numerous benefits, but it also presents unique challenges. Enhancing Internal Communication Social media platforms facilitate open and real-time communication among employees, breaking down traditional hierarchical barriers. Through internal social networks, employees can easily share information, collaborate on projects, and engage in discussions across departments and geographical locations. This fosters a more inclusive and connected workplace culture, where ideas and feedback can flow freely. Examples: Platforms like Slack, Microsoft Teams, or internal blogs allow employees to communicate quickly, share updates, and collaborate on documents in real time. This can lead to more efficient problem-solving and innovation. Strengthening External Communication and Brand Image Externally, social media allows organizations to communicate with customers, partners, and the public in a direct and engaging manner. Companies can use social media to share news, updates, and content that reinforces their brand identity and values. By engaging with their audience on these platforms, organizations can build stronger relationships and enhance customer loyalty. Examples: Brands like Nike or Starbucks use social media to promote new products, engage with customers, and respond to inquiries, which helps in building a positive brand image and customer loyalty. Crisis Management and Social Media Social media plays a crucial role in crisis management. When an organization faces a crisis, the speed and transparency of its communication can determine the outcome. Social media allows companies to quickly disseminate information, address concerns, and manage their reputation in real time. Examples: During a product recall or a public relations issue, organizations can use social media platforms to issue statements, provide updates, and respond to customer concerns, helping to mitigate negative impacts. Business Communication and Report Writing (Study Text) 36 | P a g e Challenges of Using Social Media in Organizations While social media offers numerous advantages, it also presents challenges. Managing the balance between professional and personal use of social media can be difficult, and organizations must establish clear guidelines to avoid potential pitfalls. Issues such as data privacy, misinformation, and maintaining a professional image online are critical considerations. Guidelines: Organizations should develop social media policies that define acceptable use, provide training on effective communication practices, and ensure compliance with legal and ethical standards. Measuring the Impact of Social Media To effectively leverage social media, organizations must measure its impact on communication goals. Key performance indicators (KPIs) such as engagement rates, audience reach, and sentiment analysis can provide valuable insights into the effectiveness of social media strategies. Regularly assessing these metrics allows organizations to refine their approach and optimize their communication efforts. Chapter Roundup Business Communication and Report Writing (Study Text) 37 | P a g e  Formal Organization is a social arrangement for the controlled performance of collective goals with an identifiable boundary.  Informal Organization is a social unit arising spontaneously as a result of shared interest and circumstances.  Communication occurs in four directions: Upward communication, Downward communication, Horizontal / Lateral communication and Diagonal communication.  Informal communication channels do not adhere to supervisor-subordinate relationship and take place across the different official levels in the organization.  Communication that takes place through the Formal channels of organizational structure is known as formal communication. Also known as Impersonal or Business communication, it pertains high level of formality, impersonality, brevity and deliberation. It is generally in writing and better planned and controlled by the management.  Studies of how managers spend their time invariably show that the majority of it is spent in communication –irrespective of their positions in the organisation.  Social media has revolutionized the way organizations communicate, both internally and externally. When used effectively, it can enhance collaboration, strengthen brand identity, and provide a critical channel for crisis management. However, organizations must be mindful of the challenges and implement strategies to maximize the benefits while minimizing the risks associated with social media use so as to ensure goodwill of the business organization. Business Communication and Report Writing (Study Text) 38 | P a g e Self-Test Questions  What is an Informal Organization? State its features, advantages and disadvantages. (see 1.2)  Explain in detail various directions of communication. (see 2)  Define Informal Communication. Give its advantages and disadvantages. (see 3)  What is the importance of communication in management? (see 5)  As an informal communication network, Grapevine exists in all big organizations and transmits information through unofficial channels. Give five characteristics which are commonly observed in all Grapevine networks. (see 4) MCQs 1. Formal organization is created: a. spontaneously b. deliberately c. to meet people’s interest 2. Informal organization has: a. definite structure b. stable structure c. no structure 3. Vertical communication refers to: a. downward communication b. upward communication c. both of the above 4. Informal communication spreads: a. In upward direction b. In downward & horizontal direction c. In all directions 5. When dealing with informal communication, management should: a. stifle it down b. try to remove it c. accept it and monitor it Business Communication and Report Writing (Study Text) 39 | P a g e 6. Formal communication channels are: a. slow b. fast c. directionless 7. Diagonal communication cuts across: a. organizational levels (Hierarchy) b. work areas (Department) c. both of the above 8. Communication within organization can flow in: a. Two directions b. Four directions c. Three directions 9. A learning organization depends on: a. Upward communication b. Horizontal communication c. Downward communication 10. Formal communication: a. May also contain personal discussion b. Is always concise c. Has without any established mechanism MCQS Answers: 1.b 2.c 3.c 4.c 5.c 6.a 7.c 8.b 9.a 10.b Business Communication and Report Writing (Study Text) 40 | P a g e Business Communication and Report Writing (Study Text) 41 | P a g e Chapter Learning Objectives:  What is Oral Communication?  Principles of Successful Oral Communication  What is Conversation Control?  Two Sides of Effective Oral Communication  Effective Listening  Non-verbal communication Business Communication and Report Writing (Study Text) 42 | P a g e 1. Oral Communication Oral communication describes any type of interaction between individuals which makes use of words and involves speaking and listening. In oral communication, the sender and receiver exchange their thoughts or ideas verbally. It is also called Face to Face communication. 1.1 Advantages of Oral Communication: (i) Swift medium of communication; (ii) Direct medium of communication; (iii) Interactive mode of sending message; (iv) Flexibility in the message being sent; (v) Instant feedback is received; (vi) Nonverbal signals are available; and (vii) Sensitive handling of personal messages. 1.2 Disadvantages of Oral Communication: (i) Technical noise / physical noise may be a potential problem which may cause miscommunication. (ii) Memory which plays an important part in face to face communication is untrustworthy. (iii) Differences in perceptions may be a serious problem which may retard the process of communication. (iv) In this type of communication, less time is available for massive planning. (v) Strong personality overrules the weak personality in this type of communications. (vi) It is not appropriate for large audience. 1.3 When to use Oral Communication Clearly, the times and places where you can use oral communications are large in number and range. Some of the more suitable occasions are as follows: (i) When it is essential to meet the person involved to evaluate his/her suitability for a particular task. This is especially relevant to selection interviews, to ensure that you appoint the right person for a job vacancy but it is also important in other areas, such as choosing which member of a group to delegate a particular task. (ii) When it is important to pool the knowledge of several people to arrive at key decisions. This is true of various aspects of a company's activities, from the Board of Directors downwards. Business Communication and Report Writing (Study Text) 43 | P a g e (iii) Where you are discussing a delicate or personal matter with an individual employee or client. You may wish to raise matters carefully, while being aware of the person's reaction, in a manner which would be impossible in correspondence. (iv) Where you need to persuade listeners of a particular course of action, particularly if it involves change. People need reassurance in these circumstances and find discussion comforting even if they can't alter the outcome. (v) For a process of negotiation, where a compromise has to be reached between alternative or rival courses of action. This is particularly important in cases where possible issues of conflict are involved, such as grievance or disciplinary procedures, or discussion of conditions of work, rates of pay and other similar matters. (vi) For informing members of a company or department about new developments in company policy where a full staff meeting will provide the opportunity to pass on information and allow employees to ask questions and discuss the matter. (vii) To convey information about training or other matters at training conferences, which involve formal presentations as well as smaller discussion sessions to exchange ideas and information. (viii) To demonstrate and explain to a potential purchaser how a product works. Strategies for Effective Oral Communication Effective oral communication is a critical skill in both professional and personal settings. It involves not just the ability to speak clearly and persuasively, but also the ability to engage an audience and ensure the message is understood and retained. This chapter explores three key strategies for enhancing oral communication: using humor, incorporating visual aids, and conducting Q&A sessions. 1. Using Humor Humor is a powerful tool in oral communication. When used appropriately, it can lighten the atmosphere, engage the audience, and make the speaker more relatable. Humor helps in breaking down barriers between the speaker and the audience, making the communication more effective. Business Communication and Report Writing (Study Text) 44 | P a g e Benefits of Using Humor: Engagement: Humor captures attention and keeps the audience interested. A well- timed joke or a humorous anecdote can refresh the audience’s attention span, especially in long presentations or discussions. Relatability: Humor makes the speaker seem more human and approachable. It helps in building rapport with the audience, fostering a sense of camaraderie and trust. Memory Retention: People tend to remember humorous content better than plain information. Humor can make complex or dry subjects more memorable by associating them with something funny. How to Use Humor Effectively: Know Your Audience: Humor should always be tailored to the audience’s sensibilities. What is funny to one group may not be to another. Understanding cultural, social, and professional boundaries is essential to ensure humor is appropriate and effective. Integrate Naturally: Forced humor can be awkward and counterproductive. Instead, weave humor naturally into the content. A humorous story or an observation related to the topic can enhance the presentation without seeming contrived. Balance Humor and Content: While humor is engaging, it should not overshadow the main message. The primary focus should remain on the content being delivered. Use humor sparingly to complement the key points, not replace them. 2. Incorporating Visual Aids Visual aids are another essential strategy for effective oral communication. They enhance understanding by providing a visual representation of the information being discussed, which can be particularly useful for complex or data-heavy topics. Benefits of Visual Aids: Clarity and Comprehension: Visual aids like charts, graphs, images, and videos help in illustrating points more clearly. They can simplify complex information, making it easier for the audience to understand and retain. Engagement: Visual elements add variety to a presentation, keeping the audience’s interest alive. They break the monotony of spoken words and provide a visual break that helps in maintaining attention. Retention: Visual aids enhance memory retention. According to research, people remember 80% of what they see and do, compared to just 20% of what they hear. Visual aids help in reinforcing the spoken message, making it more memorable. Business Communication and Report Writing (Study Text) 45 | P a g e How to Use Visual Aids Effectively: Relevance: Ensure that all visual aids are directly relevant to the content being presented. Irrelevant images or graphs can distract from the main message rather than enhance it. Simplicity: Visual aids should be simple and easy to understand at a glance. Avoid cluttered slides or overly complicated charts. The goal is to clarify, not confuse. Integration: Use visual aids to complement and reinforce your spoken words, not replace them. For example, use a graph to illustrate a trend you are discussing, or a short video to provide a real-world example of a concept. 3. Conducting Q&A Sessions A Q&A (Question and Answer) session is an interactive component that can significantly enhance the effectiveness of oral communication. It provides an opportunity for the audience to engage directly with the speaker, clarifying doubts, and deepening their understanding of the topic. Benefits of Q&A Sessions: Engagement and Interaction: Q&A sessions encourage audience participation, making the communication more interactive and engaging. They provide a platform for the audience to voice their thoughts, which can lead to a more dynamic and lively discussion. Clarification and Understanding: Allowing the audience to ask questions helps in clarifying any doubts or misconceptions. It ensures that the message has been understood correctly and gives the speaker a chance to elaborate on points that may have been unclear. Feedback and Improvement: Q&A sessions provide immediate feedback to the speaker about the audience’s understanding and reaction to the presentation. This feedback is valuable for improving future presentations and understanding audience needs better. How to Conduct Q&A Sessions Effectively: Set Clear Guidelines: Begin by informing the audience about the format and duration of the Q&A session. This helps in managing time effectively and ensures that the session remains focused and productive. Encourage Questions: Invite questions in a friendly and open manner to create a comfortable environment where the audience feels encouraged to ask. You can use Business Communication and Report Writing (Study Text) 46 | P a g e phrases like, "I’d love to hear your thoughts," or "Feel free to ask any questions you may have." Manage Time Wisely: Allocate a specific amount of time for the Q&A session to avoid it overrunning and cutting into other parts of the presentation. Politely steer the session back on track if it veers off-topic or becomes too lengthy. 1.4 Effectiveness of Oral Communication Oral Communication has the following advantages: (i) Feedback Ensures Comprehension Unlike many forms of written communication, oral communication always offers immediate feedback. If something is said which you do not fully understand, you can ask questions to encourage the other party to make the meaning clearer. (ii) Use of Body Language When you can see the other person, you will be watching their body language for reactions which shows he's puzzled, or even hostile. If you see this kind of reaction you will obviously try to clarify what you're saying. In this way, the problem of barriers in communication at the stages of encoding and decoding the message may be swiftly solved. Body language is a vital part of all personal meetings. (iii) Immediacy Oral communication also has the advantage that it saves a lot of time. All the people involved can express their views and avoid delay by exchanging information immediately. In a business context, where decisions may have to be reached quickly, this is an obvious advantage. It also means that those who take the decisions will be able to take into account all the points which seem relevant and discuss them, gathering the best ideas. This is particularly important in meetings of committees and larger bodies. (iv) Courtesy Meeting someone in person is a way of showing respect, especially if you have had to travel some distance for the meeting. A personal meeting shows that you are genuinely interested in the person, or in the business matter involved. This may make all the difference in obtaining an important contract or dealing with some other business concern. Personal meetings also allow those involved to develop a relationship of trust and understanding, which is most important when working together. They give those in positions of authority within a company a chance to show that they are concerned about the ideas and feelings of their staff, if they are willing to meet Business Communication and Report Writing (Study Text) 47 | P a g e 1.5 Difference in Oral and Written Communication Oral communication Written communication Less formal. Formal, planned and detailed. It produces a prompt It causes a response after lapse response of some kind. of some time. Not valued much for legal It carries more authority and is purposes. proof of a transaction. EXAMPLE EXAMPLE A casual conversation in a A written contract or a project hallway leaves no formal report provides a clear record of record of what was commitments and decisions. discussed. In a metting,participants can In an email chain, it might take ask questions and receive hours or even days to get a answers right away. response, especially if the message is lengthy or complex. 1.6 Forms of oral communication There are two categories: Face to face conversation Interviews  A formal talk between two people/parties i.e. the interviewer and the interviewee.  The interviewer asks the interviewee to obtain needed information from the interviewee. The required information might include abilities, background, attitude, expertise etc. It is a process that helps the interviewer to evaluate the interviewee.  Interview can be conducted for multiple purposes, some of them are: o Job interview o Induction interview - to communicate the organization’s norms and job requirements to the newly inducted employee, o Promotion interview o Appraisal Interview - the employee might be interviewed in order to evaluate his/her job performance and discuss his/her strengths and weaknesses. Grapevine Negotiations:  Process in which there are at least two parties and each party needs the involvement of the other to reach a desired outcome.  The parties begin negotiations with a different set of objectives and each party considers that the other party will be willing to modify its initial Business Communication and Report Writing (Study Text) 48 | P a g e position and compromise to reach a successful outcome of the negotiation process.  Negotiation is a skill that managers need to frequently adopt for example when agreeing prices with suppliers or gaining buy-in from subordinates to accept delegated work.  Stages in the negotiation process o Preparation and Planning o Definition of Ground Rules. o Clarification and Justification o Bargaining and Problem Solving o Closure and Agreement 1.6.1.1 Meetings  A meeting is a scheduled gathering of individuals to discuss, plan, or make decisions on specific topics, which can be conducted in-person, virtually, or in a hybrid format.  Types of Meetings: o Informational meetings: These meetings are aimed at providing or gathering information in order. In such meetings participants learn, ask questions and try to understand the information being provided. Participants attend these meetings with the sole objective of being informed and assimilate the information. E.g. details of new business plan. o Problem-solving meetings: The purpose of these meetings is to solve a particular problem by finding out some solution. The problem is presented, then suggested solutions are collected, these recommendations are evaluated and then final decision is made for further action. o Suggested solution meetings: Here the core purpose is to find suggested solution to some core issue. Recommendations are sought for and comments are made on the options recommended. Often no decision is made; meeting tends to remain explanatory and informational. A final suggested solution is worked out and forwarded for approval either from higher authorities or is kept for overall group’s consensus. 1.6.2 Conversations using mechanical devices e.g. telephonic conversation 1.6.3 Advantages  Quick Feedback Business Communication and Report Writing (Study Text) 49 | P a g e  Long distance barrier removed  No need for person to be physically present for communication to happen 1.6.4 Disadvantages  Long discussions are not possible.  Costly especially long distance calls  Technical problems  Phone calls at odd times are very disturbing. 2- Principles of Successful Oral Communication  Well-Planned Before presenting something, there should be proper planning regarding the audience, topics to be delivered, timing and other factors: So, a person must be well-prepared to deliver his speech.  Clear Pronunciation To make oral messages meaningful to receivers, words should be clearly and correctly pronounced. There should not be any lack of clarity; otherwise, the communication would be a confusing one.  Brevity Effective oral communication desires that a message should be brief. If the sender took a long time for talking, his message may not get the attention of the receiver.  Precision Precision is needed to make oral communication effective. There should not be any confusing words rather message to be delivered should be specific so that there is no misunderstanding.  Natural voice Any sort of unnatural voice may distort the message. Natural voice can do a lot to make oral communication effective.  Logical sequence Ideas should be organized in a sequential way to make the message communicative and attractive. Unorganized ideas do not provide clear sense while a logical sequence of ideas gives clear sense. Business Communication and Report Writing (Study Text) 50 | P a g e 3. What is Conversation Control Conversation control refers to the skills of listening and talking in a positive and meaningful way at an appropriate time. It helps participants c

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