what is business communication

What is Business Communication: Importance, Objectives & More

Business communication is the information transfer between people inside and outside the company. Verbal, written, or even non-verbal forms of communication apply as outlined. Communication modes could be verbal, written, or non-verbal intermixed. It aimed toward establishing clarity, efficiency, and effectiveness in delivering messages in business. Business communication serves many purposes. The purpose of collaboration, decision-making, conflict resolution, and relationship-building. To know business communication, one must understand how a business organisation depends on smooth and effective communication to achieve its objectives. Effective communication includes communication with all employees, customers, and investors.

Business communications have indeed changed dramatically as a result of technology. E-mail is the primary medium for reaching people miles away.

what is business communication

What is Business Communication?

Business communication is a broad process of exchanging information inside and outside an organization to accomplish its objectives. It is verbal, non-verbal, and written communication employed by employees, managers, and shareholders to communicate information clearly and effectively. Proper communication supports relationships, promotes collaboration, and improves business success.

AspectDescription
Verbal CommunicationIncludes spoken words in meetings, phone calls, and presentations.
Written CommunicationEncompasses emails, reports, and official documents.
Non-Verbal CommunicationInvolves body language, facial expressions, and gestures.
Internal CommunicationCommunication within an organization between employees and management.
External CommunicationCommunication with clients, suppliers, and stakeholders outside the organization.
Formal CommunicationStructured communication following organizational protocols.
Informal CommunicationCasual interactions that occur naturally within the workplace.
Upward CommunicationInformation flow from employees to management.
Downward CommunicationDirectives from management to employees.
Lateral CommunicationInformation exchange between peers or departments.

Discuss the Importance of Business Communication. 

Business communication locates understanding and application. It can do of the most basic tool in effective and efficient communication needs. The importance of business communication are as follows.

  1. Clear communication enhances effectiveness by:
  •    Setting clear expectations
  •   Reducing misunderstandings
  • Improving work performance
  1. Frequent and open communication fosters team building by:
  • Creating a sense of belonging
  • Promoting cooperation within a group
  1. Open communication ignites creativity and innovation by:
  •  Encouraging the sharing of ideas and opinions
  •  Leading to new and innovative solutions
  1. It has fast and accurate information that supports decision-making by enabling quick and informed choices. Good communication skills strengthen relationships by building trust and fostering strong stakeholder connections.

Types of Business Communication 

Business Communication is how they share information within or outside the organization. It is done to achieve business goals. Business communications include verbal, non-verbal communication. It also has written and digital communication channels between employees, management, clients, and stakeholders. Effective business communication improves productivity, teamwork, and decision-making. It has led the organization in growth and success over the years. Different types of business communication are as follows.

CategoryTypeDescriptionExamples
Based on ModeVerbal CommunicationSpoken or written words are used to convey messages.Meetings, emails, reports, presentations, phone calls.
Non-Verbal CommunicationBody language, tone, gestures, and visual elements.Facial expressions, eye contact, posture, charts, graphs.
Based on DirectionUpward CommunicationEmployees communicating with higher management.Employee feedback, reports, surveys, and suggestions.
Downward CommunicationInformation flows from management to employees.Company policies, work instructions, official announcements.
Lateral CommunicationCommunication between employees at the same level.Team meetings, project discussions, peer collaboration.
Diagonal CommunicationCommunication across different levels/departments.A finance executive communicating with a marketing manager.
Based on PurposeInternal CommunicationCommunication within the organization.HR policies, internal emails, team updates, memos.
External CommunicationCommunication between the company and external entities.Client interactions, PR campaigns, investor relations.
Based on FormalityFormal CommunicationStructured, professional communication.Business reports, legal contracts, official meetings.
Informal CommunicationCasual, spontaneous communication.Office chit-chat, social media interactions, quick chats.
Based on MeansDigital CommunicationCommunication using digital tools.Emails, video conferencing, instant messaging, webinars.
Face-to-Face CommunicationIn-person interactions.Business negotiations, sales meetings, team brainstorming.
Print CommunicationTraditional, paper-based communication.Brochures, business cards, newsletters, company reports.
Audio-Visual CommunicationUse of multimedia for communication.Corporate videos, product demos, infographics, presentations.

Objectives Of Business Communication

Business communication establishes important objectives, These objectives facilitate the proper operation of firms towards such objectives.

Information Dissemination

Business communication is all about facilitating the transmission of information. Employees, managers, and clients must always receive the most updated and credible information on a specific topic.

Decision Making

Decision-making is also a critical function that communication fulfils; if the correct information is clear and accessible, managers will be able to utilize it for planning and problem-solving.

Motivation and Morale

Communication builds motivation for the employees. Managers communicate to bring a sense of importance and participation to their employees. 

Coordination

Coordination must occur across different departments within a firm. Optimal communication helps ensure that groups can work well to meet common deadlines.

Persuasion

In the corporate setup, communication serves the purpose of persuasion. It guides clients, investors, or employees. In marketing messages, persuasion will be extremely important during negotiations and sales.

7 C’s of Business Communication

The seven C’s of business communication are a set of treasured principles. This enhances clarity and effectiveness. It improves the overall quality of communication. Keeping business communication as clear, concise, concrete, correct, coherent, complete, and courteous as possible is what these seven principles ratify. So, being faithful to them saves all the hassle of misunderstandings. It increases efficiency in operations that play crucial roles in business by making every interaction meaningful and productive. 

PrincipleDescription
ClearEnsure the message is clear and free from ambiguity.
ConciseKeep the message brief and to the point.
ConcreteProvide solid facts and stay specific.
CorrectUse accurate information and correct language.
CoherentEnsure the message is logical and consistent.
CompleteInclude all necessary information in the message.
CourteousBe respectful, friendly, and considerate in communication.

Process of Business Communication

Business communications are characterised by a regular process that follows several processes, each pertinent to efficient communication.

  1. Sender: The sender is the individual who begins a communication. A sender constructs and transmits messages.
  2. Message: The message is the information the sender desires to convey, which must clearly express its intent.
  3. Encoding: Encoding means converting the message into a form the receiver can understand, whether verbal, written, or visual.
  4. Channel: The channel is the means of communication; it can be through email, phone, meetings, or reports.
  5. Receiver: The receiver is the individual who receives the message. They should interpret and understand it correctly.
  6. Feedback: Feedback is the response from the receiver. Feedback ensures communication that has been correctly understood.

Barriers to Business Communication

There are obstacles to effective business communication; communication barriers should be addressed. With these barriers, communication can occur.

  • Cultural Barriers: Artistic backgrounds may also be interpreted differently. Physical Barriers: Long-distance communication can be obstructed by noise and bad communication channels.
  •  Emotional Barriers: Stress, anger, or personal differences can very well disrupt communication.
  •  Information Overload: Overloading people with information disturbs their concentration and inhibits decision-making. 
  • Lack of feedback: Basically, breakdowns in communication occur due to a lack of feedback. Without feedback, the sender cannot be sure whether the message has been understood correctly.

What is Business Communication FAQs

What is business communication?

Business communication is nothing but an exchange of information within and outside organizations. It helps employees, managers, and customers interact with one another and achieve the business goals.

What are the types of business communication?

The types of business communication are verbal, written, non-verbal, and visual. They serve different purposes within the business environment.

Why is it necessary to understand the importance of business communication?

 Choosing the most appropriate means for specific purposes enhances communication efficiency overall.

What are barriers to effective business communication? 

One common barrier is language differences, leading to misunderstanding and miscommunication.

How are the 7 C’s going to improve communication at the workplace?

 Adhering to the 7 C’s will ensure clear, concise and respectful communication. Thereby enhancing understanding. It forges better relationships in the workplace.