Ch 5 - Communication.pdf

Business CMA Foundation Communication – CA Hemangi Kothari Communication CH 5: Business...

Business CMA Foundation Communication – CA Hemangi Kothari Communication CH 5: Business communication 5.1 Concept of Communication ❖ Meaning of Communication: → Communication in its simplest form means transferring of information from one person to the other. → The word communication has been derived from the Latin word ‘communicare’ which means ‘to share’. → Hence, it can be defined as ▪ the process of What is the basic Aim of Communication? ▪ transferring, sharing, exchanging, transmitting,  to share, listen and understand ▪ ideas, facts, feelings, data, information and experience  the message ▪ from one entity to other  being exchanged by the parties ▪ through a medium.  involved in Communication. When is Communication said to be Effective Communication? Effective communication is said to have taken place when:    assign similar interpretations to the message, when the receiver listens closely to what has been said and makes the sender feel heard and understood. ❖ Requisite skills for an effective Communication → Prior information about the topic gives listener time to form an opinion or get an idea on the topic. → The speaker must deliver the message in a concrete and clear manner to avoid miscommunications. → Both the parties must be empathic & must have an open mind towards each other’s opinions → The message should be complete. → The speaker must try and use non-verbal forms of communication as well while delivering the message → The listener must be attentive and alert. → The listener should provide feedback and it is the responsibility of the speaker to seek a response What is Active Listening Importance of Listening Active listening is paying attention to a speaker, ▪ It helps improve problem-solving abilities comprehending what they’re saying, responding and ▪ It helps improve social skills reflecting on what they’re saying, and storing the ▪ It helps to empathise with others information for later use. This retains both the ▪ It helps to absorb information better listener and the speaker in the discourse. ▪ It helps to learn and grasp things better in a While listening, we must make a conscious effort to social and professional setting not just hear but also absorb, digest, and comprehend ▪ It helps to build stronger relationships and by what others are saying making people feel appreciated Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication ❖ Process of Communication: → The communication process is a dynamic framework that explains the transmission of message between a sender and receiver using various communication channels. → Key elements of communication: Sender: The person who first has the idea/ message and sends it to the recipient. Encoding: The way the information is described or translated into a message and put in verbal or non-verbal medium. Message: The information that the sender wants to send. Messages can be in speech and writing, signs, pictures or symbols depending upon the situation and the nature and importance of information desired to be sent. Communication channel: The method of delivering the message. The message may be oral or written. Written messages can be transmitted through computer, telephone, cell phone, apps or televisions. Receiver: An individual or a group of individuals for whom the information was intended to reach. The receiver is at the other end of the communication process. Decoding: It refers to interpretation and conversion of information communicated into intelligible form so that the recipient can fully understand the true meaning of the information. Feedback: It is the final step of the process. It refers to the response or action a receiver takes after decoding a message. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication Flow of Communication Develop an Idea Identify the information the sender wants to communicate to the receiver. Encoding the message: The message needs to be presented in a proper and coherent manner using suitable words, phrases and symbols. Transmission of Message: The sender determines the method/channel/medium of transmission of message. Communication channels can be verbal, non-verbal, written and visual. Receipt of message Receiver receives the message. The receiver will process the message according the channel of communication. If written message is sent, then the receiver will read that message and if it is verbal, then receiver will listen to the message. Feedback of message: It is the receiver’s response to the message. The sender gets to know whether the recipient got the message and interpreted it accurately or not. → Classification of Feedbacks: (a) Positive Feedforward – It basically means affirming comments with regard to future behaviour. (b) Negative Feedforward – It is the opposite of a positive feedforward it includes corrective comments with regard to future behaviour. (c) Positive Feedback – Positive feedback means affirming comments with regard to past behaviour. (d) Negative Feedback – Negative feedback is the opposite of a positive feedback it includes corrective comments with regard to past behaviour. ❖ Modes of Communication One-way process Two-way process A one way communication process wherein the It is more contemporary in nature. In the two-way communication is one sided. It begins when the sender process follows the same steps only here the selects a message to deliver to the receiver, followed by receiver gives the sender feedback and can also the encoding stage. The message is transmitted via a clarify his / her doubts or even share his / her medium, after that receiver decodes it. perspective on the proposed topic of discussion. One-way communication is a linear Two-way communication is a cyclic model. The sender is unaware if the receiver has The sender is aware if the receiver has correctly correctly perceived and interpreted the message. perceived and interpreted the message. Eliminates the concept and significance of feedback. Includes the concept and significance of feedback. One-way communication is a monologue Two-way communication is a dialogue by nature. Eg: Watching a video, listening to music Eg: Communicating with a friend, interviews Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication 5.2 Business Communication ❖ Meaning of Business Communication:  Business communication is the process of sharing/exchanging information between people within and outside the organisation in order to accomplish organizational goals and have mutual understanding of the commercial benefit of the organization.  For example- inter and intra departmental communication within organization, stakeholders, etc.  The purpose of business communication is to clearly understand the business processes effectively. ❖ Significance of Business Communication  Managerial efficiency: Communication helps in the smooth operation of management. An organisation must communicate its goals in a way so that all parties involved are on the same page and can carry out the tasks required to achieve those goals.  Building a dedicated and loyal employee base: Effective communication emphasizes the employee’s participation in management. It creates a positive environment where an employee can flourish. It helps to build the employees morale and cordial industrial relations between management and employees.  Effective leadership: A leader must communicate and listen to views and share feedback to his/her subordinates for smooth functioning of tasks.  Mutual trust and confidence: Effective communication builds mutual trust and confidence between workers and management which is essential for the effective functioning of the organization because it helps to reduce misunderstandings and resolve conflicts.  Better decision making with informed judgement: If the data, information and goals are not effectively communicated, it hampers the decision-making process and could even have adverse impacts on the organization’s profitability.  Human resources management: Effective communication helps in the proper human resource management of the company in form of selection, placement, socialization, promotion, and transfer. Communication also plays a major role in teaching and training employees.  Managerial functions: All managerial functions such as planning, organizing, directing, controlling, etc cannot be conducted without communication.  Improving customer service: Effective communication with customers by answering questions and providing solutions helps to improve the business’ reputation and enhance customers’ satisfaction. ❖ Modes of Business Communication: Group Discussion (GD) GD is a technique where individuals are put into groups and given a particular topic, question or problem statement. Once the topic is introduced to the members of the group they are given some time to discuss, share ideas or come up with a solution to the given problem or statement. It helps to develop and evaluate the skills in leadership, communication, listening, awareness, social skills, initiative taking ability, etc. Rules to be followed for an effective Group Discussion  Be clear, confident and to the point about your content  Prepare the topic for the discussion well  Introduce yourself before you present your content.  Display a positive body language and attitude  Avoid making vague or false statements  Do not put on a casual attitude Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication  Do not argue with someone you disagree with  Follow your domain  Try to take a leadership initiative within the group Speeches and Debates While the two terms are used inter-changeably there exists a thin line of difference between the two. A speech is more performative in nature as compared to a debate. Speeches include public addressing, radio broadcasting, drama, poetry, extemporary speeches, oratory.. A debate is based usually on current affairs or situations where the speaker researches in depth about the topic and either speaks for or against the notion. Presentations Presentation is the process of conveying information to an audience. Presentations are used to introduce, pursue, inspire or convey details. Presentations are widely being used by businesses and educational institutes. It saves time and provides a bird’s view on a given matter or report. While presentations and PowerPoint presentations are used as synonyms one must note that all forms of presentations do not essentially require a PowerPoint or any form of graphical aid. ❖ What features do best business communicators must have??? Good listening In order for a communication to be effective it is essential to develop a good listening skills skill rather than speaking skills. It is important to hear the other person in order to avoid premature evaluation and verbal conflicts. Open Minded While communicating people must keep an open mind and accept that they too could be wrong. Hence it is essential to keep an open mind and learn from others. Being attentive During communication it is essential to be attentive and listen to the communicator patiently without fidgeting or being distracted Participating Just like being a good listener is essential it is also necessary to participate and show interesting the discussion. SPACE FOR NOTES Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication 1.3 Eight C’s of Effective Communication Clarity: Clarity in the communication ensures that the message is understood accurately by the receiver. There is no scope for assumptions by the receiver. Example Wrong: “The Co. has received a new manufacturing order of tyres from a new client.” Right: “The Co.has received a manufacturing order of 150 units of tyres from JVC Ltd.” Conciseness: All message short, direct and to the point. Unnecessary complex words and beating around the bush should be avoided. Example Wrong: We are attempting to create a meticulous proposal of expanding our business operations and customer reach by open a new branch in the City of Joy, Kolkata.” Right: “We’re planning to open a new branch in Kolkata.” Courteous: Courtesy is important in a corporate communication to maintain a healthy working relationship. Harsh, aggressive, disrespectful and humiliating tones and gestures should be avoided. Example Wrong: “I don’t appreciate how your team ignores our requests for collaboration with my team. The work we do is more vital as compared to yours. Talk to your team and ensure that they promptly collaborate with my team from now on.” Right: “I understand that your team is busy and receives many requests to collaborate on other important matters. However, my team is working on a high priority and urgent project. I would greatly appreciate if you could ask your team to collaborate more readily with mine to move this project forward faster. Please let me know in case you need anything.” Correctness: Proper grammar and syntax increase the effectiveness and credibility of the message. Mistakes and typos affect clarity, create ambiguity, and raise doubts. Example Wrong: “This weak expenses have increased by 6.5%.” Right: “This week’s expenses have increased by 6.5%. Completeness:The message should have all information on the basis of which the receiver can respond and take action. Incomplete messages waste lot of time and efforts. Example Wrong: “There is marketing department meeting tomorrow at 7 for discussing marketing strategies.” Right: “There is a marketing department meeting tomorrow at 7:00 pm in conference room no. 5 for discussion of marketing strategies for our newly launched soap product.” Concreteness: Concrete communication is specific, clear, & meaningful & avoids vagueness & adds authenticity. Example Wrong: “Manufacturing costs have increased. They need to be reduced.” Right: “Manufacturing costs have increased by 30 %. They need to be reduced at least by 15 %.” Consideration: Before communicating, the sender should put itself in the place of receiver and try to understand the potential effects of the message transmitted. Example Wrong: “The presentation made by you looks awful. Why can’t you improve?” Right: “I noticed some mistakes in the presentation made by you. Let us have a meeting to help you work on this.” Coherence: Communication should be relevant, logical and make sense. It will help in comprehending the information. Example Wrong: “The due date for the project has been extended to next month. Arex Ltd. wants to discuss some new issues with the product. They requested a meeting for this Saturday.” Right: “Arex Ltd. wants to discuss some new issues with their product this Saturday. So, the due date for project completion has been extended to next month to assess the new issues. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication 1.4 Business Communication & Marketing ❖ Meaning of Marketing:  Marketing is a process of creating, communicating, delivering, and exchanging products and services to the customers, clients and society at large.  The terms marketing and communication are inter-related.  Communication is the core element & it is the key through which marketers can spread the word about the products of their businesses to customers.  Consumers rely on the information available from marketing communication to make purchase decisions.  Communication helps to move products, services, and ideas from manufacturers to end users and builds and maintains relationships with customers, and other important stakeholders in the company. ❖ Benefits of Communication in Marketing: Building and In order to have effective and efficient long-term relationships with its stakeholders, maintaining a good marketer must possess good interpersonal skills. It is essential to create an emotional and emphatical connection with their clients. relationships Facilitates In order to market the goods and services better than competitors businesses needs innovation to be creative. In order to be creative effective communication skills are required, so that one can when convey their ideas well in front of others. marketing Enhancing Marketers are the brand ambassadors of the business. They are the ones who convince transparency the customers across the globe to trust the brand they work for. Moreover, effective communication makes employees and customers sure that their needs are considered and understood. Overcoming In a dynamic VUCAFU (V– Volatility, U- Uncertainty, C- Complexity, A- Ambiguity, F- marketing Fear of unknown, U- Unprecedentedness) world, businesses face multiple hurdles in their day-to-day functioning. These hurdles appear in the form of cultural barriers, obstacles linguistic barriers, legal barriers etc. These barriers hinder the process of marketing. Hence, in order to make marketing effective one needs an effective communication system. If a marketer possesses the right communication skills and approaches the specific target groups, then it becomes easier to understand the consumer needs and establish connections with the consumers and potential consumers. Establishing A professional relationship exists between the business and its customers and clients. professionalism It is essential to use a professional language while dealing with customers. A marketer, must possess good interpersonal skills to connect with prospective clients. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication ❖ Modes of Communication in Marketing:  Advertising – Advertising is an impersonal form of communication which is persuasive in nature. The main aim of advertising is to target the mass audience. It is viewed as the cheapest way of reaching out to the customer. Communication in advertisement plays four objectives i.e. to inform, persuade, differentiate and remind  Direct marketing – Direct marketing involves communicating directly with the target customers using telephone, mail or any other electronic means. Direct marketing allows a company to focus precisely on a segment of customers and prospects with a sales message tailored to their specific needs and characteristics.  Sales promotion - Sales promotion is done in order to accelerate the product’s movement from the producer to the consumer. Consumer promotions includes techniques of non-verbal communication such as coupons, samples, premiums, and negotiating discounts.  Personal selling - Personal selling basically means face to face interaction with the customer with the purpose of introducing a product and persuading the customer or potential customer about the product and closing the sale. Being an interpersonal form of verbal communication, and it is also the most effective tool of communication as it provides immediate feedback Advertisement Direct Marketing Sales Promotion Personal Selling SPACE FOR NOTES Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication 1.5 Business Communication & Advertising ❖ Meaning of Advertising  Advertising is derived from a Latin word ‘Advertere’ - ‘turn the minds of someone towards something.  It is a non-personal presentation and promotion of ideas, goods and services paid by an identified sponsor wherein business information is made available to an audience. ❖ The objectives of the advertisement are as follows:  To promote newly launched products among the potential customers.  To promote unique selling point of an organisation.  To create awareness among the general public.  To tap into untapped market segment.  To enhance the goodwill and build credibility. ❖ Importance of advertising  Introducing new product: A business organisation introduces its new product by giving out all information to the general public about the product.  Amplifying sales: It helps in reaching to a larger audience and make new customers for the business.  Steady demand: Advertising helps in creating and maintaining the consistent demand of the product by constantly reaching out to the public.  Stay in competition: If products are not continuously advertised, then the potential customers can be snatched by other competitors through their rigorous advertising.  Public awareness: Customers get awareness about a product and its usage through advertising ❖ Mediums of advertising:  Print media advertising: It is done in the form of magazines, newspaper advertisements & brochures.  Broadcast advertising: It includes television and radio advertising.  Outdoor advertising: It includes banners and billboards, advertising on trains, subways, taxis & bus stops.  Digital advertising: It is done in the form of internet, social media, videos, media devices and podcasts. ❖ Relationship between Advertisement and Communication  Target Audience: Audience is the receiver of the message. Companies formulate marketing plans and strategies in order to find suitable customers who will be interested in their products and services. Advertising facilitates this function of the companies because it has a soft and subtle way of persuading people.  Message creation: Every firm must have a marketing objective and it must deliver that message to the target audience. Advertisements in business helps to increase the customer base, improving the customer attitudes for the brand, generating clients and revenue. It is possible only through communication.  Methods of communication: Advertising is done through print media like newspapers and magazines, digitally like social media, blogs, videos, broadcasting through televisions and radios and also through banners and billboards.  Customer service: Follow up communication is essential in businesses that are sourcing and retaining clients through advertisement. This helps to build a good understanding between customers and the company and as a result customer loyalty is built. Communication helps the company to know on what areas it needs to improve so that it comes with better quality products and services. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication 1.6 Types of Business Communication On the basis of Organisational Relationship: Formal Communication  Formal communication also known as official communication is designed by organizations to ensure the flow of official information through proper, predefined channels and routes.  Employees are bound to follow formal communication channels while performing their duties.  The flow of information is controlled. It also ensures that deliberate effort to be properly communicated.  Advantages of Formal Communication include: → It is considered effective as it is a timely and systematic flow of communication. → It is more reliable than informal communication. → Documentary evidence is present. → Full secrecy is maintained. → It follows a hierarchical structure and chain of command.  Disadvantages of Formal Communication include: → The structure is typically top down. → It is slower than informal communication because it is time consuming to follow communication through a long chain of command. → It also tends to cause a lot of distortions. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication Informal Communication  In this kind of communication, the communication is multidimensional.  It moves freely within the organization. It is not bound by pre-defined channels and communication routes and is particularly quick. Neither does not have a paper trail.  It is also known as Grapevine Communication and generally begins with employees through social relations.  Informal communications can turn to formal communication if they are added into the formal communication information flow of a company.  Informal communication is considered effective as employees can discuss work- related issues which saves the organization time and money. It also helps to build more productive and healthy relationships in the workforce.  Advantages of Informal Communication includes: → It is faster than formal communication. → It is rapid and quick. → It boosts employee morale. → It increases trust and develops a better employee relations and coordination.  Disadvantages of Informal communication includes: → Informal communication is less reliable than formal communication. → It propagates the spread of rumours. → It is difficult to maintain secrecy.  Structure of Informal Communication → Single Strand Chain: The communication in which one person tells something to another, who again says something to some other person and the process goes on. → Cluster Chain: The communication in which one person tells something to some of its most trusted people, and then they tell them to their trustworthy friends and the communication continues. → Probability Chain: The communication happens when a person randomly chooses some persons to pass on the information which is of little interest but not important. → Gossip Chain: The communication starts when a person tells something to a group of people, and then they pass on the information to some more people and in this way the information is passed on to everyone On the basis of Expression Mode & Media: Verbal Communication  It uses spoken words to communicate a message.  It is the most effective form of communication. It leads to the rapid interchange of information and feedback.  There are fewer chances of misunderstanding as the communication between parties is clear.  But in this communication, listening is crucial.  There are Two Tyes of Verbal Communication – Oral Communication & Written Communication Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication Oral Communication: It refers to communicating with spoken words. It's a verbal form of communication where you communicate your thoughts, present ideas and share information. Written Communication: It refers to sending of messages, orders or instructions in writing through letters, circulars, manuals, reports, telegrams, office memos, bulletins, etc. In order to be effective communication should be clear, complete, concise, correct, and courteous. This kind of communication is suitable for long distance communication and repetitive standing orders. Advantages of Written Communication Dis-Advantages of Written Communication  It creates permanent record of evidence.  Feedback process also is not instant.  It can be used for future reference.  It is expensive.  It gives the receiver sufficient time to think, act and react.  There is no scope for immediate  It can be sent to multiple persons at a time. clarification.  It is suitable for sending statistical data, charts, diagrams,  It is less flexible. pictures, etc.  It is not effective in case of emergency.  Good written communication can create goodwill and promote business. Steps in Written Communication  Step 1 – Preparing the message – The communicator at this stage should focus more on the what he wants to communicate that is the idea.  Step 2 – First Draft – After the message is prepared it should be expressed properly. He must draft it properly on paper. After drafting the message, he should check properly for any errors or mistakes. He can avoid spelling and grammar checks at this stage.  Step 3 – Revising and editing – At this stage, the communicator focuses on correcting the grammar, spellings and punctuations. While editing he must ensure the message is brief and to the point and that there is no unnecessary information.  Step 4 – Proof Reading – During proof reading, the communicator must check the context, accuracy, form and appearance of the message before he sends it out to people. Non - Verbal Communication  It is based on the understanding of the parties. It uses signs. Communication succeeds only when the receiver understands the message completely and proper feedback is given afterwards. It complements the verbal communication.  The types of Non-verbal communication are as under: Chronemics The use of time in communication is chronemics, which speaks about the personality of the sender/ receiver like punctuality, the speed of speech, etc. Vocalics or The volume, tone of voice and pitch used by the sender in communication. Paralanguage: Haptics The use of touch in communication. Kinesics It studies the body language of a person. Proxemics The distance maintained by a person while communicating with others. Artifacts The study of the appearance of a person. Sign Language “Action speaks louder than words”, non-verbal communication often depends on the uses of gestures and signs to express oneself. Language in itself is a combination of a set of sophisticated signs and symbols. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication Lets talk about sign language in detail: Advantages of sign language includes: Disadvantages of sign language includes: → Posters and paintings have an educational value. → Sometimes sign language might not be effective → People perceive and remember the visual signs enough to convey that are attractive. → If the receiver does not understand sign language → It is an effective means of communication if communication might become difficult. properly used. → It is not used properly sign languages can create → Pictures and drawings can also lead to mental huge misunderstandings between the parties motivation for many people. → It promotes creativity and uniqueness. Types of Sign Language: Modern ways of Non-Verbal Communication Visual Signs – These are commonly seen and used in Jingle – A jingle is a short piece of music with one and around us. We come across multiple visual signs or more hooks and meanings that promote a product in our daily life. For example: or service being sold, usually through the use of one (a) The traffic signs help to prevent accidents and or more advertising slogans. Jingles are utilised by mishaps on the road. ad buyers in radio and television ads, but they can (b) The use of posters in advertising to also be employed to develop or maintain a brand communicate messages to potential buyers image in non-advertising circumstances. (c) Maps and e-maps that help us to navigate For eg: McDonald’s jingles is “I’m Lovin’ It”. Audio Signs - Audio signs are another common form of non-verbal communication. For example: Music – Music allows people to exchange feelings, (a) Sirens on the ambulance telling the driver in intents, and meanings even if their spoken languages front to let the ambulance pass. are incomprehensible to each other. It can also be a (b) Car horns are ways drivers communicate to lifeline for those with special needs who find it each other while driving. challenging to communicate through other means (c) Parade drums which alarm the passing of a Cartoon –The cartoons’ philosophy, logic, and parade. objectives are genuine, and they educate the (d) Warning signals and alarms telling people to general audience. It makes severe depictions on vacate in case of a building fire. occasion, but always with a sense of humour, and shines a light on the dark parts of society or political goals. Social media has reshaped and improved communication using cartoons, particularly during times of crisis. On the basis of Flow of Information: Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication Vertical Communication  Vertical communication takes place among seniors and subordinates or between two people at different levels of the organizational hierarchy.  It is generally used when a senior has to assign tasks or delegate authority among subordinates.  It is also used when the subordinate is responsible and accountable for a certain task for which he must report to his senior.  The flow of communication is either upward, when the communication is from a subordinate to his senior or downward when the senior communicates to the subordinate Download Or Here people working at higher levels have the authority to communicate to the people Downstream working at lower levels. It strengthens the authoritarian structure of the organization. Communication However, it is time-consuming and, in the process, managers may withhold some valuable information from employees. Upward Or It is useful in sending information, suggestions, complaints and grievances of the lower- Upstream level workers to the managers above. It is more participative in nature. Modern Communication managers encourage upward communication. It is the direct result of increasing democratization. Here, psychological problem may come up as managers do not like being told by their subordinates. In order to eliminate these conflicts arising out of the communication gap many organizations are adapting to the concept of an ombudsperson. An ombudsperson is a person hired by the organization who acts as a liaison between the top management and the employees. The ombudsperson promotes upward communication by discussing the employees concerns and grievances with the top management. Horizontal Communication  Horizontal Communication is the communication that takes place among employees on the same organizational level. It is also known as lateral communication.  This form of communication is more timely, direct, and efficient than up or down communication.  It produces a higher quality of information exchange since it occurs directly between people working in the same environment.  It generally occurs formally in meetings, presentations, and formal electronic communication, and informally in other, more casual exchanges within the office.  However, there are a few barriers to horizontal communication such as differences in style, personality, or roles amongst co-workers. Problems can occur because of territoriality, rivalry, specialization, and simple lack of motivation.  As lateral communication grows, management may have a harder time maintaining control.  Lateral communication can also lead to conflict among employees who are exposed to each other as a result of the procedure. Diagonal Communication  Diagonal communication is said to take place when people working at the same level interact with those working at a higher or lower-level of organizational hierarchy and across the boundaries of their reporting relationship.  It is also known as crosswise communication.  It promotes inter departmental coordination and is more practical. Diagonal communication also plays a vital role to boost workers’ morale.  It makes the superior feel like he has been by passed in the communication process.  However, superiors may refuse to implement the suggestion as he has not been consulted. As a result, it may lead to internal anarchy and external animosity. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication 1.7 Internet Based Business Communication ❖ Introduction  Over the years, the concept of e-communication has gained significant importance in the business world.  While the internet makes doing business online easier, communication can prove tricky.  However, online communication, can create hindrances for businesses if it is not done properly.  Hence, businesses must conduct proper research and consider the different areas of internet communication that would suit the business and also provide their clients with the best service available.  The internet has truly helped businesses grow and become more productive by helping them seek multiple new opportunities. ❖ How has social media affected the traditional business style  The traditional business was governed by 3B’s the building, the boss and the boundaries.  Social media has eliminated the dependency of businesses on these 3B’s.  Today we can start our own businesses whilst sitting at a sofa in our home and pressing a few buttons.  However, even though we use informal channels to conduct our business knowing the art of business communication while communicating over social media is essential. ❖ What are the ways to make internet based business communication more effective are as follows: Customer  Online businesses do not have in-person communication like telephone Interaction services either.  Hence, they should provide a more personal touch and make business between a customer and the company easier.  Businesses should have instant messaging services for customers and online forums as well to discuss the product and offer tips and reviews. Support  Customer support indicates that the company is making efforts to show customers that Options it takes their concerns seriously and are willing to resolve it as soon as possible.  Posting and following turnaround policies for answering customer questions makes the customer feel valued.  Also, providing customers with a Frequently Asked Questions (FAQs) section on the main page of the website helps a lot. Questions can be answered and the customers’ time is saved. The Personal  Since online business communications are mostly faceless, it helps to make the customers Touch feel like they are talking to people rather than computers.  Moreover, sending personal messages in response to emails can make the customer feel like the company cares about them and their views.  Entities can delegate this task or create separate department. Professional  By projecting themselves as professional, companies ensure about its reliability to Presentation customers.  Companies can use a certain professional email template or include a letterhead along with some professional information to make the customer feel secure about the business. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication ❖ Types of Internet Based Business Communication Email: E-Commerce: Every good business has an email id to make E-commerce is reducing the gap between communication easier. businesses and customers. Sometimes they have different email ids for It is making companies reassess their sales and different departments so that the customer can marketing strategies. send an email directly to the concerned department. It has made retail a much more competitive Businesses should invest in an email provider that business in terms of both price and quality. prevents spamming and offers filters. Cloud Computing Voice over Internet Protocol (VoIP) and Video A cloud is an on-demand availability of computer Conferencing: resources with direct active management by the Now, with the internet, business can place calls users. This helps business save space and hence time over the internet using VoIP at low costs, and money by storing all information. avoiding the expensive and time consuming It also increases a company’s flexibility and customer calling by phones. collaboration since information can be accessed by The company can hire employees from all across the authorized personnel from anywhere in the the country and get them to work remotely so world. they can get the best quality of workers to work By using the cloud for mobile communications, at untapped places. businesses can access all in-office telephone features and critical cloud-based applications from anywhere. ❖ Do’s & Don’t’s of Communication through Social Media Do’s while communicating through social media Dont’s while communicating through social media  Complete profiles are credible in nature which Don’t Project as Needy: A business should not- ensures engagement and forming connections  Ask its followers to retweet or like its post. becomes easy.  Worry about the number of followers rather focus  Business should be consistent with the type of on quality and not on quantity. content you share for others to see.  Fake and pretentious.  Business should create grounds for healthy  Dedicate the whole time on social media rather than discussion on social media about the business in a develop productive relationships. unique way engaging the customer and sharing all the details Don’t Over-share the Content: Business should not:  Build new relations as well as nurture the existing  Spam with the same promotional messages. relations with the clients by engaging with the  Join groups, spam, and then leave. target audience  Overshare as it can lead to losing the followers.  It is vital to use the right content on the right  Automate same message across different networks network since audiences vary across networks, have Don’t use Poor Grammar and Spelling: It Should not: a clear vision of the brand and translate the same across all networks  Make grammatical mistake which reduce credibility.  Firms must regularly interact with their customers  Write posts in all caps as it seems offensive.  Businesses should not constantly focus on selling  Use hashtags unnecessarily. their product or service they should also share Don’t excessively depend upon Automated DMs: informative and entertaining posts Don’t believe Everything you Read: A business is not required to project itself as know it all Business should avoid complaining as it can make it seem unprofessional. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication 1.8 Writing & Drafting for Business Audiences ❖ Every business has audiences. These audiences are none other than the customers or clients of. ❖ It is the duty of every business to satisfy their audience at the end of the day. ❖ The audience on the other hand want the business to maintain a personal touch with them, keep them updated about new products, discounts and benefits. ❖ There are mainly 4 types of business audiences: Friendly Audience They are easy to deal and the duty of the business is to reinforce their beliefs. Uninformed They are unaware about the business or details of the business. Hence, the primary Audience duty of the business is to educate them. Apathetic They are uninterested from the start and it is hard to deal with them. The business Audience must first have to prove and justify their point of view. Hostile Audience They began to disagree with the communicator from the start and they are the hardest to deal with. They listen with a closed mind. ❖ Reasons for writing and drafting for business audiences: Inform It is the duty of every business to inform its audiences and stakeholders about relevant information about corporate policies, decisions, upcoming offers and discounts. Laws have also been created under the constitution such as the Right to Information so as to protect the rights of the business audiences. Persuade While PRs try to pursue and develop the company name and reputation through communications with potential audiences, the marketing department tries to pursue potential consumers about the company, brand name and the product and services offered by the business. Create Goodwill Goodwill is an immeasurable and intangible asset however it is the aim of every business to create as much as goodwill as they can. In order to create and maintain the goodwill, business communication plays a significant role. ❖ What is the significance of writing skills in communication  Improving communication skills - Strong writing skills help a person to communicate and connect with others. It makes the message transmitted clear, concise and concrete. Readers can easily understand the essence of idea being presented.  Fostering creativity, imagination and knowledge - Writing enables a person to pour down his idea, thought, imagination in a paper. The frequently a person writes, the more his brain is enhanced to generate new ideas. Reflecting on these ideas helps in exploring productive ways of solving an issue, leading to fostering creativity. Moreover, writing involves reading and researching.  Enhancing problem solving skills - Writing involves several complex cognitive activities, such as listening, reading, and then processing the concept in your mind, and finally put it down in a paper. It leads to a clarity of thought and thereby improving problem solving skills.  Targeting a large audience - Writing enables a person to make its idea reach to a large number of people. If judiciously planned, designed and written the information, the intended readers get the idea directed to them in complete manner.  Demanding skill in today’s world - Having good writing skills is one of the top attributes an employer looks for in a job in today’s evolving period. So, this might act as an income generator for a person. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication Letters ❖ Business letters illustrate commitment to the objective at hand. ❖ A letter must be in the desired format, expressing ideas, dedication to the requirements, and an understanding that words and letters can make a difference in the lives of others. ❖ Business letters can be informational, persuasive, motivational, or promotional by nature. It can be for various purposes such as sending order, sending offer details, communicating to vendors, etc. ❖ Types of business letters: (a) Enquiry Letter - Buyers usually want to know the details of the goods which they are willing want to buy, like quality, quantity, price, mode of delivery and payment, etc. They may also ask for a sample prior to making an order. (b) Quotation Letter - After receiving an enquiry letter from a prospective buyer. The seller supplies the relevant information by writing a letter that is called quotation letter. (c) Order Letter - The prospective buyer decides to place on order with the best business firm which offers goods at minimum price and favourable terms and conditions. (d) Complaint Letter - When the purchaser does not find the goods up to his satisfaction (i.e improper, incorrect, insufficient, or damaged goods), he files a complaint letter. (e) Recovery Letter - A letter written by the seller for collecting of money for the goods supplied by him to the buyer is called recovery letter Memorandum ❖ A memorandum is a one to all note normally used for communicating policies, procedures, or related official business within an organization. ❖ It is often written for broadcasting a message to an audience, rather than a one- on-one, interpersonal communication. ❖ It may also be used to update a team on activities for a given project, or to inform a group within a company of an event, action, or observance. ❖ A short message or record used for internal communication in a business. Reports ❖ A report is written to pass on specific information with a clear purpose to a particular audience. ❖ The information is clearly structured making use of sections and headings so that the information is easy to locate and follow. ❖ A report can outline the purpose, audience and problem or issue, together with any specific requirements for format. ❖ Types of Reports Analytical Reports – Analytical reports contain facts and analytical explanations offered by the reporter himself or may be asked for by the one who is seeks the report. Research Reports – Research reports are usually based on research work conducted by an individual or by a group of individuals on a given problem statement. Statutory and Non – Statutory Reports – Statutory reports are made to be presented according to the legal requirements of a rule or a custom now has become a rule. Non-statutory reports are not legal requirements or rules wants. Routine Reports – Routine reports are required to be prepared and submitted periodically on matters required by the organization. Special Reports – It is specially required to be prepared to be submitted on matters of special importance Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication Formal Report - Reports that are prepared in prescribed forms, according to some established procedures to proper authorities are said to be formal reports.  Form of the report - Formal report is highly structured and is prepared in a prescribed format.  Purpose- Formal report is written to help management in making long term and strategic decision making.  Objective - Formal report are used to assist decision making by providing an effective recommendation.  Length - It is long in size. Size of a formal report is large.  Distribution - Formal reports are circulated to top-level executives and outside parties.  Nature of problem- Formal report deals with complex and non-recurring problems. It is analytical and systematic in nature.  Frequency of writing- Formal report is written infrequently.  Writing responsibility- This type of report is usually written by internal or external experts.  Use of Visual aids- This type of report makes extensive use of visual aids to present the facts.  Writing Style- This report follows an indirect and impersonal writing style.  Recommendation- Recommendation is an essential part of a formal report. Informal Report Informal reports are prepared with no proper prescribed forms or according to established procedures and neither for proper authorities are said to be formal reports. It is the opposite of a formal report.  Form of the report - Informal report are less structured and it is less important to follow the prescribed format.  Purpose - The main purpose of an informal report is to present the facts to assist managers in making daily business decisions.  Objective - Conveying routine messages and to help routine functions  Length - It is short in size. An informal report is short in size.  Distribution - Short report is usually circulated within an organization.  Nature of problem - Informal report deals with less complex and recurring problems.  Frequency of writing - It is written frequently almost on a daily basis. Writing responsibility - These reports are usually written by a subordinate. Use of visual aids - This type of report seldom uses visual aids.  Writing Style - This report follows direct and personal writing style.  Recommendations - Recommendations are not required in informal reports. ❖ Elements of a business reports  Cover Page - The first and the most crucial element of a business report is its cover page which tells the readers what the report is about and who wrote the report.  Contents – A business report must have an index page which tells the readers about the titles of topics covered in the report. It provides a quick glance and opinion of the nature and contents of the report.  Executive Summary - An executive summary provides a concise description of the report’s purpose as well as the report’s main findings, recommendations, and conclusions. The summary is usually a half-page or less in length and does not include any supporting documentation.  Sections - To make your report easier to grasp and flow from one issue to the next, divide it into chunks of related content in the form of sections.  Supporting Information - If the report contains a lot of research, data, financial records, charts, reviews, graphs, and drawings, put them in an appendix. If they are only supporting documents that readers might desire after they have read the report to verify your claims. Include them on the pages where you are making your remarks if they are important to demonstrate a point Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication Business Proposals ❖ A business proposal is a written document sent to prospective clients to obtain a specific job. A business proposal is a written proposal presented from a business that intends to elicit business from a prospective buyer. It is unique because it contains a lot of figures and statistics represented by pie charts and graphs. ❖ Characteristics of a Business Proposal  Solutions - After writing a lead paragraph on the company’s problems, follow up with a solid presentation of how your business can provide solutions.  Benefits - Business proposals, clearly outline for the company the benefits to be gained from doing business with a firm.  Credibility - This is often the overlooked portion of a business proposal but all proposals glow with credibility.  Samples - Business proposals with samples and evidence of one’s ability to deliver is vital to gaining the winning bid.  Targeted - Business proposal is all about communication. Speak in a language spoken by the intended audience. ❖ Benefits of the program include  Generating funds  Preventing the equipment in the store from damage  Gathering funds for CSR activities  Cleaning up office space  Getting new machines and equipment for the office ❖ Obstacles of holding the program  While trying to conduct the program there could be certain hindrances such as:  Certain Employees might disagree to the plan  Funds accumulated might not be as high as expected How to enhance writing skills  Organising the thought: It is foremost a person to organise the concepts on which he/she is planning to write to have a clear purpose.  Outlining before writing: Outlining the idea and making key points helps the writing process smoother and leads to early and better finishing of the project.  Wide reading: Reading a variety of material helps in increasing knowledge base and growing a lot of vocabulary. Also, a person gets introduced to different styles of writing.  Use simple words and phrases: Writing too many jargons and complex words do not make a writing smart and impressive. It is advisable to use simple and effective words to convey the message to the intended readers.  Practice: Frequent writing will make writing easier, more efficient and more effective. A person can develop his/her own personal writing style through regular practice.  Awareness about audience: It is necessary for a person to understand the kind of readers who will be reading. Careful choice of appropriate words and selection of the right length of communication will help to streamline the writing.  Read before sending: A person should always read what he/she has written before sending it to others. While doing so, shortcomings of the writing become evident and can be corrected timely.  Feedback on writing: Getting responses is extremely helpful in providing valuable lessons and improving writing skills in future. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication 1.9 Intercultural and International Business Communication ❖ These days due to globalizations businesses have sought to expand their activities across the globe , hence it has become important to understand the diverse cultures. ❖ Cultures vary from place to place and it is essential for businesses to be sensitive to the diverse cultures as they expand. ❖ When a business expands to a new city or country it depends upon that place for its suppliers, employees, customers and other forms of stakeholders. ❖ During international or intercultural communications must keep the following points in mind:  Display respect, patience and empathy towards the others culture.  Business should remain open minded during intercultural or international communication because sometimes in order to adapt to a particular culture a business firm might have to tweak its rules and regulations, habits and business methodology.  Search for similarities instead of differences in culture which will help both the parties connect and communicate more smoothly and effectively.  Use gestural communication as much as possible. When people belonging to different cultures or languages communicate, they tend to follow each other’s gestures and reactions.  Be attentive and avoid any form of distractions. ❖ Stages of Intercultural Sensitivity Sir Milton Bennett had described six stages intercultural sensitivities. It is discuss as follows: Stage 1 At this stage, the members are completely unaware about the cultural differences that Denial exist among their respective cultures, It, is essential that the members recognize and understand the differences among the cultures to avoid any form of intercultural disputes. Stage 2 In the second stage, once the members have spotted the differences in their cultures and Defence they look upon these differences as negatives. They uphold the values of their own culture as “rightness” and criticize the beliefs and practices of other culture. At this stage each member of one culture must be taught to be tolerant towards the other culture(s). Stage 3 In this stage, the members recognize and even appreciate the differences in the cultures. Minimization & focus their attention on studying more about their own culture and avoid projecting their cultural values upon others. Stage 4 This stage, is a reasonable goal that every organization must seek to achieve while Acceptance expanding across cultures and countries. At this stage the members learn to accept each other’s culture however they still remain devoted to their own respective cultures. Stage 5 In the fifth stage, of the intercultural sensitivity the members function in a bi-cultural Adaptation capacity is that they learn more about the other culture(s) and mentally shift, adapt, adjust and operate within the other culture after understanding both the cultures. Stage 6 In the final stage, the members have complete in depth knowledge and adapt to the Integration different cultures and the ability shift easily among cultures. At this stage the members integrate both the cultures and cultural flexibility emerges as a result of the integration. ❖ Ethnocentrism When a person(s) believes that his or her culture is superior compared to the culture of other people, this belief is called ethnocentrism. It is a type of psychological barrier that obstructs communication among people belonging to different cultures. The three ways to avoid ethnocentrism are as follows:  Avoid assuming details. One must not assume that the other will possess the same ideas, notions as himself.  Avoid premature evaluations.  Avoid judging and evaluating people without completely understanding or gaining proper knowledge about the other person’s culture.  Recognize the differences in culture. One must keep an open mind in order to understand and accept the differences among the cultures. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication 1.10 Barriers to Business Communication ❖ There is an old saying that “Good fences make good neighbors” that express the need to have clear boundaries or barriers to prevent misunderstandings and divisions among the people. ❖ While communication is an effective tool in expressing oneself, an improper communication can lead to the creation of barriers and obstructions, that might disrupt smooth functioning. ❖ There are multiple kinds of barriers that effect a smooth flow of communication. ❖ These barriers are often caused by misinterpretations of various kinds and lead to misunderstandings between the parties. ❖ The barriers in communication simply refer to the obstructions that affect the smooth transmission of messages and can be of various forms for example noise, improper medium, languages community, region and many others. ❖ Types of Communication Barriers: Physical Barriers ❖ Physical barriers are created mainly due to disturbances in the surroundings or environment of either party or both parties involved in the communication process. A physical barrier can be natural or artificial and can easily be spotted. ❖ Physical barriers can be of many types. Firstly, disturbances in the background in the form of noise. Secondly, inappropriate communication medium. Thirdly, when either party (listener or speaker) is disturbed or inattentive or suffers some physiological defect like shortness of hearing or stammering. Lastly, disturbances in the environment or surroundings. ❖ Causes of Physical Barriers  Distance: Geographical distance is a big cause of physical barriers. It prevents personal communication. Communication is done through video conferencing, phone calls, mails and memos. Obstacles can be in forms of poor reception and slow network which later cause delay in communication process.  Environment: Environmental conditions can badly affect the flow of communication. For example, if a person is standing in adverse weather conditions, the conversation would be hampered because that person would not be able to pay full attention to what the other person is saying and the flow of information will not be smooth.  Technical Disturbances: Technology is very helpful in an organization. But technical disturbances can happen unexpectedly. For example – a broken fax machine, crashed system and a faulty printer, etc. All these can cause delay in the flow of information and data can be deleted if not saved before.  Time: Organizations or people located in areas with different time zones face this issue. The sender should ensure that the message is concise, relevant and short so that crucial information can be communicated to the receiver to prevent further delays. Semantic Barriers ❖ Sematic barriers or language barriers arise when both the parties speak two different languages and most of the essence of the message is lost in the translation process. ❖ Even when both the parties speak the same language the essence could be lost when either of them uses jargons, dual meaning words. ❖ Causes of Symantic Barriers  Misunderstood words: Some words have different meanings or usage in different context. They sound exactly the same. As a result, confusion in the mind of listener is created. Example- Right and Write, Fair and Fare, Sale and sell.  Missed humor: Many times, people don’t get the jokes or humor. They find it offensive and inappropriate. Humor is only applicable and effective when there is a cordial, comfortable and harmonious relationship among the members of the organization. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication  Usage of idioms: Idioms are the phrases which have a figurative meaning which is totally different from literal meaning. They are usually used in daily normal interactions. In a business communication, it can be ambiguous and illogical. ❖ Some of the ways to overcome semantic barriers are:  A speaker should express himself/ herself to the listener clearly.  Appropriate body languages like facial expressions and gestures should be used.  Any party should never assume anything & should immediately clarify any doubts.  A speaker should always listen actively to the listener so that any confusion is not built. Phycological Barriers ❖ Communication is a form of expressing one’s thoughts using a verbal or non-verbal medium. ❖ The origin of communication is in one’s mind and hence involves the concept of psychology. ❖ However, the mind too can create barriers in communication that prevents a person from properly expressing himself or understanding the other person. ❖ Psychological barriers are of various types some of the most popular types include:  Emotions – Emotions play a major role in making rational decisions. Sometimes, communication also involves making decisions and these are affected by the persons mood and emotions.  Halo Effect – When a particular trait of a person outweighs the other traits it is said to be a halo effect. For example, judging people by their appearances or intelligence.  Information Overload – Burdening the listener with too much of information at a time gives rise to fatigue and the listener is unable to retain all the points during the conversation which might have severe impacts on the effectiveness of the communication.  Others – Other forms of psychological barriers include closed mindedness of either parties. Impatience of either parties is also another form of psychological barrier. Suppose a speaker is in a hurry and talks at a fast pace while the listener misses out on essential details. Organisational Barriers ❖ Sometimes communication barriers could be created within an organization due to inter and intra departmental conflicts or complexities within the organizational structure, organization policies and politics can all be different kinds of obstructions that prevent proper communication among the individuals in the organization. ❖ Major organizational barriers are listed below:  Rules and policies: Usually an organization has some rule regulations and policies regarding type of message, channel of communication and people to be contacted. If rules are stringent and rigid, employees will be hesitant to communicate freely. Further, the transmission of information can get delayed.  Hierarchical positions: An organization is divided into three levels of management- lower, middle and top. Sometimes, a superior may possess an arrogant and power conscious attitude which makes lower-level employee feel inferior and unworthy. They become reluctant to send information in the fear of sending faulty message or getting rejected/ humiliated.  Organization structure: Free interdepartmental communications become difficult especially in the organization which is divided into different departments on the basis of roles, responsibilities and authority. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication Overcoming the Communication Barriers Choose a proper The communicator must ensure that a proper medium or channel is selected for the medium of communication. While choosing the correct medium the communicator must consider the communication length, importance, time and environment. Proper focused The sender must make sure to keep his / her point precise and to the point and avoid communication unnecessarily beating around the bush. Meaningless small talk must be avoided while passing on an important message. Avoiding the use In order to avoid sematic barriers, the communicator must avoid using jargons or dual of jargons and meaning words which the listener or perceiver might be unfamiliar with. Also, in case both dual meaning the parties do not speak each other’s language a translator should be arranged for. words and using translators Open Both the parties must try to keep an open mind and be attentive during communication to Mindedness and prevent any sort of psychological barriers such as halo effect or allowing emotions to attentiveness affect the communication process. Feedback and In businesses it is essential to ensure that the listener has understood the message in Follow-ups the exact same way as the communicator wanted him to understand it hence it is always essential to ask for feedbacks and opinions in this matter. Also, organizations have to talk to multiple stakeholders and there could be instances of forgetting or missing out on details hence taking regular and timely follow-ups are essential. Fostering Strong In order to avoid or reduce organizational conflicts arising due to communication gaps an Relationships organization must try and foster a strong relationship between the business and its various stakeholders and employees. Organizational While formulating policies an organization must be considerate and flexible. The goals of Policies the organization must be clear and every employee irrespective of his / her position in the organizational hierarchy should be proper opportunities in the organizational communication process. The policies should be framed in a way that eliminates organizational communication barriers to the least. Division of labor There must be a proper division of labor intra and inter departmentally to reduce information overload and prevent delays in organizational communication Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication 1.11 Legal Aspects of Business Communication ❖ Legal aspect refers to selection of words used during a business communication to ensure that it is in conformity with the laws and regulations that govern a country’s business or corporate law and failure to abide by it could lead to serious legal actions against the individual(s) or the organization as a whole. ❖ There are various cases where business communication is essential, and its non-compliance could have serious legal impacts such as:  Product Disclaimer – Product disclaimers are a form of written or oral communications wherein the seller warns the buyers in case of any harmful side effect or dangers in using or consuming a certain product. If seller fails to inform the buyer or hides details from the buyer, the buyer possesses the right to sue him.  Legal Disclosures – Disclosures are similar to disclaimers but are less specific in nature. For eg: When an organization wants to protect its property or intellectual rights and prevent employees from disclosing such facts to outsiders a non-disclosure agreement is signed which is legally enforceable in a court of law.  Financial Reporting – This is the most essential form of written communication which presents the actual financial status of the company. Every organization must mandatorily maintain books of accounts which it presents to its stakeholders and any window dressing or fraudulent accounting can be legally enforceable.  Contracts and Internal Communications – Businesses enter into new contracts and hold meetings every second day with its stakeholders and it is essential for businesses to maintain a record of the minutes of the meetings, reports and contracts entered into not only for recording purposes but also to meet legal compliances.  Marketing Communications – The techniques of sales, promotion and marketing involves a lot of communications of various types - written, oral, gestural, direct and indirect. However, the salesman or person marketing the product on behalf of the business must be clever in his word usage, presentation. He must be tactful in describing the commodity such that he does not violate the laws of business communication in the process. ❖ How do we prevent the threats of legal aspects of Business Communication?  It must maintain proper records, documentation, letters, contracts, books of accounts and vouchers audited or unaudited as the case may be  Avoid copying copyrighted documents and documents prohibited from photocopying or copying in any form without proper consent of the involved parties.  Use a proper tone and avoid inappropriate language or behaviour while dealing with employees and other stakeho lders.  Avoid window dressing of balance sheet and other financial documents.  Ensure that all license and legal documents are always updated and all changes are made note of.  Keep confidential documents at a safe place where it can only be accessed by authorized personnel to avoid fraudulent behaviour and misplacing documents.  Seal confidential documents and mark them as confidential so that others are aware.  Sales promoters and company representatives must be well trained and groomed about business communication, its types, significance and legal aspects. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication 1.12 Use of Graphics and References for Business Communication ❖ Graphic Elements:  Using graphic elements provides a bird’s view over documents and reports thereby allowing us to scan through and get an overall summary of the entire data. Types of graphical elements that are used in business communication: Flowcharts A flowchart is a step-by-step breakdown of a long cumbersome process which also shows us what could happen if we are made to choose between different alternatives. It speeds up the explanation process, easy to understand and interpret however sometimes lengthy flowcharts tend to become complicating Colour Colour coding is commonly generally used to highlight certain important documents or Coding matters of significance in a document. This is done by assigning colours. Tables and Graphs and tables are used to summarize huge volumes of sales, financial and HR Graphs reports. Tables make it easy to understand the break up and summarize the contents of a long cumbersome reports, tables in MS excel or spreadsheets also make it easy to run calculations and create reports. Graphs are imagery representations of a table or a huge bulk of data. Using graphs makes it easier to understand and interpret data which could otherwise be hectic and time consuming. Motion These are commonly used in training processes, product launch, introducing a new plan Graphics of action or process or a new machinery and in meetings to get the attention of everyone in the room. Advantages of using graphic elements Disadvantages of using graphic elements  Using spreadsheet tools to design tables not only  Not everyone can easily understand and interpret summarize the data but also allows the user to a flowchart. perform mathematical calculations and draw  People who are not tech-savvy may find it difficult reports. and overwhelming.  Charts and tables are easy to explain, understand  Designing videos is a very time-consuming process. and interpret.  Theoretical data cannot be easily graphically  Graphic elements help save time & makes reports represented. and data more presentable and colourful.  Video designing and editing tools are expensive.  Using animated videos and graphics help to draw  Specialized knowledge is required to create the attention of listeners. motion graphics and videos and it cannot be done by everyone. ❖ Referencing  Referencing helps to provide a trail to the original source document & act as supporting evidence to the original report. Features of Referencing Advantages of Referencing Disadvantages of Referencing  Helps to avoid plagiarism by  Using good references improves  Sometimes gives misleading clarifying original & other ideas. the quality of work. or inadequate information  Proper referencing shows your  It is a time saving process as  Sometimes styles & understanding of the topic Writers often can get new techniques might be  Referencing provides supporting ideas and learn about the short- complicated to understand evidence for ideas, arguments comings and interpret. and opinions  It is the basis of research using  Too much referencing can  Allows third parties to identify secondary data. lead to lack of originality. the sources that were have used  It acts as a protection of the  It brings about rigidity in while drafting the document. authors right of copywriting research and is time and protection against consuming process. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication 1.13 Business and Social Etiquette ❖ Etiquette is a set of guidelines and rules for manners and behaviour that is acceptable in a professional conduct. In a corporate world world, good business etiquette means a person acts professionally and behaves properly with socially acceptable manners when interacting with others in his/her profession. ❖ Good business etiquette is a valuable skill- set that can make a person stand out from others, enhance the person’s individual success rate in the organisation. ❖ Importance of business and social etiquette  Building positive relationships: Good Etiquettes helps in establishing good rapport with colleagues & seniors which helps in progressing a person’s career in the organisation.  Makes a workplace productive: Business etiquette is essential because it creates a professional and respectful environment. It improves communication among the members which ultimately makes the workplace a productive place. People feel satisfied about their jobs when they feel respected, and that helps in translating into better customer relationships as well.  Rewarding in nature: Those who exercise good business etiquette show that they value their job, respect colleagues, understand customers and take their performance seriously. These people get rewarded for their professional and polite skills in the form of promotions to advance in their career. ❖ Professional conduct in a business setting  Professional behaviour in the workplace is a set of guidelines that demands professionally acceptable attitude, appearance and manners.  It involves the way a person speaks, looks, behaves and make decisions.  The main features of professional behaviour are as follows: → Respecting managers, colleagues and clients. → Behaving in a positive manner. → Being calm and polite in stressful situations. → Making good and ethical decisions. → Dressing appropriately. ❖ Here are some of the ways an employee can exhibit business etiquette in workplace.  Honesty: An employee should always act openly and be honest with his/her job. He/she must not in any case share confidential and privileged information of client unless necessary  Respect: An employee works in a socially active workplace. Maintaining a respectful attitude to every member of the organisation is must. He/ she is expected to not lose his/her temper during stressful times.  Meetings: A person should always arrive on time. He/she should make contributions to discussions whenever required and never interrupt anyone unless necessary.  Communication: He/she should always use good manners when interacting with co-workers and clients. Also, he/she should be careful of language and tone in communications.  Integrity: A person should always try to act ethically and make ethical decisions. He/she should remain impartial keeping aside any personal bias in work.  Corporate Goals: An employee should have an understanding of the company’s missions, goals and objectives and the responsibility and role that he/she is expected to perform in achieving those aims.  Dress: An employee should follow the company’s dress code of conduct or guidelines.  Accountability: He/she should be honest if things go wrong and always try to improve and learn.  Teamwork: an employee works in social setting. So it is important for a person to work with people by setting aside the differences to work well for the benefit of the organisation.  Commitment: An employee should work with dedication and a positive mindset. He/she should remain fully committed to his / her responsibility. Get Connected on: Contact No: 8888111134 8668844566 | 8888111034 www.pranavchandak.com Contract Act  Business CMA Foundation Communication – CA Hemangi Kothari Communication ❖ Workplace Hierarchy  In a business organization, a chain of command refers to levels of authority starting from top level like CEO to bottom level like supervisors.  Companies institute a chain of command to provide all the members at all levels with a supervisor to whom they may ask their queries or report grievances.  The chain of command involves moving to the next level of authority. For instance, a plant worker will report issues to his immediate supervisor and the supervisor will report them to a manager.  Employees should study the organization’s chain of command and respect it as much as possible.  In some cases, in order to voice his opinion immediately, an employee can break the chain of command. Instead of reporting to the immediate supervisor, he may approach the manager directly. Business Meeting Etiquette  A business meeting is generally of two types internal and external meeting.  An internal meeting is one wherein the members and hosts are from within the organisation and no external member is allowed to participate in the meeting without the permission of the host.  On the contrary, an external meeting is one wherein the attendees of the meeting are the external stakeholders of the company such as the general public, government, media houses, etc.  What things should be kept in mind while conducting meeting → Invite only people who are essential to the meeting or have a role to play in the meeting. → Choose the right time and proper place to conduct the meeting. → Every meeting should have a proper and well-defined agenda that the attendees must be aware of. → All the attendees and host of the meeting should be well prepared with the documents or presentations that might be required for the meeting to avoid delay