C o n f i d e n t i a l

Unit-3 The Nature of Business Communication

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Program : MBA
Semester : 1
st
Semester
Subject Code : MB 0039
Subject Name : Business Communication
Unit number : 3
Unit Title : The Nature of Business Communication
Lecture Number : 3
Lecture Title : The Nature of Business Communication
C o n f i d e n t i a l
Unit-3 The Nature of Business Communication
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The objectives of this lecture are to:

describe the types of business communication
explain the communication networks in organisations
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Objectives
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The Nature of Business Communication
C o n f i d e n t i a l
Unit-3 The Nature of Business Communication
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Lecture Outline
Introduction
Types of Business Communication
Communication Networks in Organisations
Summary
Check Your Learning
Activity
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C o n f i d e n t i a l
Unit-3 The Nature of Business Communication
A manager has to maintain communication linkages with different
entities, both within and outside the work environment.
There are various advantages and disadvantages of different types of
channels of communication.
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Introduction
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Unit-3 The Nature of Business Communication
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Types of Business Communication
Business communication is diverse and involves both internal
stakeholders within the organisation, as well as external stakeholders
outside the organisation.
Managers have to stay in continuous touch with their internal
stakeholders like their superiors, peers, subordinates, shareholders,
employees and unions.
At the same time managers have to communicate with external
stakeholders such as customers,
intermediaries (distributors and retailers),
suppliers of materials and components,
government, bankers, society at large and
the media.
(Contd)
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Unit-3 The Nature of Business Communication
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Effective business communication therefore involves both internal as
well as external communication.








The wheel of business communication reinforces that communication is
like breathing, it never stops and is a constant process.










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Types of Business Communication
(Contd)
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Unit-3 The Nature of Business Communication
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Types of Business Communication:










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Types of Business Communication
(Contd)
Internal Communication
- Stakeholders
Superiors
Peers
Subordinates
Employees/ Unions
Shareholders
External Communication
- Stakeholders
Consumers
Intermediaries
Suppliers
Government
Society
Bankers
Media
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Unit-3 The Nature of Business Communication
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Types of Business Communication
External Stakeholders
Internal Stakeholders
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Unit-3 The Nature of Business Communication
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Communication Networks in Organisations
A communication network refers to how information flows within the
organisation.
Information within an organisation generally flows through a system,
rather than being a free flow.
In the words of Adler, Communication networks are regular patterns
of person-to-person relationships through which information flows in
an organisation. 'The flow of information is managed, regulated and
structured.
(Contd)
C o n f i d e n t i a l
Unit-3 The Nature of Business Communication
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Communication Networks in
Organisations
Formal
Communication
Network
A formal communication network
is one which is created by
management and described with
the help of an organisational
chart.
In a formal network, information
is passed on only through official
channels such as memos,
bulletins and intranet (email
within the organisation).
Informal
Communication
Network
In this type of network,
information does not flow in a
particular direction
Informal networks are based
more on friendship, shared
personal or career interests.
Types of Communication Networks in Organisations:










(Contd)
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Unit-3 The Nature of Business Communication
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Communication Networks in
Organisations
(Contd)
Upward
Communication
Reasons: To discuss
work related problems,
Give suggestions for
improvement, Share
feelings about job and
co-workers.
Advantages: Problem-
solving, valueable ideas
and suggestions from
lower level employees,
Employees learn to
accept the decisions of
management.
Downward
Communication
Reasons: For giving job
instructions, Explain
company rules, policies
and procedures, Give
feedback regarding job
performance.
Advantages: Regular
feedbacks, Transparency
or openness, Boost
employee morale.
Horizontal
Communication
Reasons: Coordination
of tasks, Sharing of
information, Resolving
interpersonal or work
related problems and
building rapport.
Advantages: Sense of
team work gets created.
Types of Formal Communication Networks:










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Unit-3 The Nature of Business Communication
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Communication Networks in Organisations
Informal Communication or Grapevine
Reasons: Fill in the transparency gaps left by formal
networks, Information can be passed on free from any
formalities, Can be used for constructive purpose.
Advantages: Rapid spread of information, Quick
communication, Used to verify the accuracy of
information received, Inexpensive, Channel to express
anxieties and opinions without fear, by the employees.
Informal Communication Networks:










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Unit-3 The Nature of Business Communication

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The following Points summarises the concepts of this unit.
A manager has to maintain communication linkages with
different entities, both within and outside the work
environment.
Business communication is diverse and involves both
internal stakeholders within the organisation, as well as
external stakeholders outside the organisation.
The wheel of business communication reinforces that
communication is like breathing, it never stops and is a
constant process.
A communication network refers to how information flows
within the organisation.
The flow of information is managed, regulated and structured.
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Summary
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Unit-3 The Nature of Business Communication
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1. Mention the stakeholders in external communication.
Ans: The external communication stakeholders are:
Consumers
Intermediaries
Suppliers
Government
Society
Bankers
Media

2. What are the reasons for horizontal communication?
Ans: The reasons for horizontal communication include coordination of tasks,
sharing of information regarding goals of organisations, resolving
interpersonal or work related problems and building rapport.

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Check Your Learning
C o n f i d e n t i a l
Unit-3 The Nature of Business Communication
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Activity 1
An organisation has recently changed certain human
resource policies. The change is related to variable payouts
to employees. Illustrate through different communication
networks, how the flow of information would take place?
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Activity