Business communication

Concept of Business communication

The word communication derived from latin word “Communis”. It is the exchange of idea, messages or information as by Speech, signal or writing. It is the continuous process exchanging the facts, ideas, thoughts, and feeling between individuals or groups. It is essence of learning, decision making, co-ordinating and monitoring. It is considered as Life-blood of organization. Effective communication reduces delay, misunderstanding, conflicts and increase efficiency, skills, effectiveness, profitability and productivity.

Business communication is the process of transmitting information about and within the organization. Letter, notice, memo, telephone, mobile, fax, e-mail etc are the mayor means of business communication. It promotes a product, service or organization relays information within a business, or functions as an official statement from an organization. Communication brings good relation among employee and management. It increase efficiency and ability of the employees and it also increases the productivity and profitability of the organization.

Importance of communication

a. Smooth working of an organization: Smooth working of an organization depends on effective communication whether big, small or medium or private or public or government communication plays a vital role in all organizations. For eg, If we go to any organization, we can find its staff busy over phone or any other forms of communication. Similarly, in other organization also we can find the same. Communication should be flown at right time, for the right person, and through the right channel to be effective. In the lack of effective communication, it becomes difficult to implement order and direction due to which there may appear organizational conflicts.

b. Basis of decision making: Communication is a primary requirement of decision making. It helps to make quick and rational decision. Quick and rational decision help to utilize business opportunities and also helps to face challenges. Communication also helps to implement decisions effectively and efficiently for the organizational success by transmitting decision to the implementation level. Thus, effective communication is the base of decision making.

c. Basis of coordination: Communication is a two-way traffic. It is the basis of coordination. It plays an important role coordinating the functions of management . Communication provides all kinds of reliable, complete, and up to date information through suitable Channel for effective coordination. Communication is the key to co-ordination without communication no coordination is possible.

d. Increases managerial efficiency: Management conveys goals and targets, gives directions issues instructions, allocate authorities and look after the performance of sub ordinates with the help of effective communication.  It helps to reduce cost of production and increase productivity and profitability. Thus, communication is much more essential to increase managerial efficiency.

e. Increase in employees morale: The employees got opportunity to express easily as well as openly their feeling through ideas, wants, and suggestion for management. It makes analyzes, and draw correct conclusion and takes a proper step to solve their problems. Besides, there does not  appear ,it can be managed easily. The employees get satisfied and become happy and enthusiastic. They become dedicated to the organization for the achievement of organizational goal.

f. Necessary for managerial functions: Communication is necessary for managerial functions such as planning, organizing, directing and controlling. Managerial functions requires extensive communication among the executive among the other personnel, we cannot do managerial functions without effective communication. Every work requires communication.

g. Maximum productivity with the minimum costs: Communication is a source information to the organizational members for decision making process as it helps Identifying and assessing alternative course of actions. It ensures quick and rational decisions. As a result, organization can enjoy maximum productivity with the minimum costs.

Types of communication

A) Formal communication: Formal communication through officially designated channels of message flow between organizational positions. It takes place through the formal channels of the organization structure along the lines of authority established by the management.

Generally, a proper system of communication is developed in an organization in order to make the flow of information orderly so that information flow smoothly and timely to the point where it is required. It supports in maintaining supervision and control over the performance of subordinates and fix their official responsibility. The formal communication can be of upward, downward, horizontal and network communication.

B) Informal communication: It is an of unofficial form of communication. It is free from all sorts of formalities. In this form of communication, it is not necessary to follow formal channels to exchange messages. Members of an informal group exchange Their opinions, views, ideas and other information to each other and also to other informal groups. In an office it is not used to communicate formal messages. However, employs of an organization use this type of communication to develop understanding, social relationship and friendship with each other. They Interact with each other without any official instruction, Grapevine communication and diagonal communication are the main forms of informal communication.

C) Interpersonal communication: Interpersonal communication is exchange of information between two or more people. It is the process by which people exchange ideas, message, and feelings through oral and written form. The following are:

a. Oral communication: Oral communication is the exchange of information through spoken words. In other words, It is the exchange of message through oral means. In oral communication, massage can be exchanged either face to face or through mechanical devices. Face to face communication is the most natural way o transmitting messages. The benefit of oral communication is that can be interchanged and also it provides immediate feedback and saves time of both the sender and receiver.

b. Written communication: Written communication is the transformation of information in written words. In other words when information is exchanged through written means, it is known as written communication. It plays the role of evidence when any kind of dispute or misunderstanding arises among the parties. Written communication can be done in the form letters, circular, telegram, memo, reports, manuals, bulletins notices etc.

D) Nonverbal Communication: The transmission and receipt of message by some medium other than oral or written is non- verbal communication. It often  relies on facial expression, body movement, physical contact, gestures etc. It often used to supplement oral communication. It is very useful to express feelings, attitude and emotions. In some situations, it carries more meaning than the oral or written expression. Handshake by the manager with s subordinate or patting on his back shows the sign of informal relation between them.

Means of Communication:

A) Audio and audio-visual means: Radio, television and cinema are the major audio and audio-visual means  of communication.

a. Radio: It is common and effective means of communication. It broadcast news and other programs through short wave, medium wave, and frequency modulation (FM). It is very popular communication. Mass communication as possible through radio.

b. Television: Television is an important audio-visual means of communication. It is popular among all age-groups people. It is an effected means of communication. Mass communication is possible through television.

c. Cinema: Cinema is also an important means of audio-video communication. It is quite popular and effective. It provides useful information to the general public.

B) Written means:

a. Letter: Letter is traditional but very popular means of written communication. Letter can be of application, enquiry, reply of enquiry, order, reply of order, complaint, reply of complaint, circular and reference.

b. Notice: Notice is a kind of information given to concerned person or parties about to do something or not to do. Notice is very common, effective and popular means communication.

c. Newspaper: It is the most popular means of written communication. It provides updated news to the public. It is a means of mass communication.

d. Memo: Memo is the Short form of Memorandum. It is a short note designating something to be remembered, especially something to be done in the future. It is not more than memory points. Memo is common means of communication.

e. Report: Report is an account or statement describing in detail an event, situation, or the like, usually as the result of observation, inquiry etc.

C) Mechanical means:

a. Telephone: Telephone is on the most popular and quickest means of communication. Telephone call can be local anal trunk. Now a days, smart cell phones are getting popular.

b. Fax: Fax is another mechanical device of communication. It uses telephone line to sends message from one place to another place in the written form.

c. Email: Email is a modern mechanical device of communication. It is economical and effective means. It needs a modern, computer set, and Telephone line yahoo, hotmail, g-mail etc are getting popular in communication world.

e. Other mechanical means: Apart from above mentioned mechanical means of communication there are other means of mechanical means of communication such as skype, facebook, wechat, viber, youtube etc

D) Personal means: Face to face conversation is related with personal means of communication. It is is very common, widely used and effective means communication. It can be done through holding meeting, holding seminar and workshop, sales representatives and so on. Spokesperson of the organization is an example of personal means of communication.

Sources of office Information.

A) Internal Sources: The Communication that takes place in carrying out work within business is known as internal communication. It is related to office work. This is the communication that takes place among the business managers, employees, and workers to create, to implement, and to monitor. It helps to maintain co-ordination. Branches, department, trade union or employees are the major sources of of office information. For example, information about consumer response on new product received from marketing department, information about employee turnover, absentees information  received from human resources department, information about financial conditions received from finance department. Similarly, employees grievances received from trade union. Internal source of information can be in form of written or oral or in both. Generally, internal information includes letters, telephone, memos, reports, announcement, circular, note, face to face etc.

B) External sources: When people of one organization transmit Information to the people of other organization, then that communication is called external communication. It maintains good relationship with outsiders such as supplier, customers, government department, pressure etc. It is very important For the business. Government bodies or departments, banks and financial institutions, research Institutions, university or other places or organizations are the major external sources of information. External sources of information can be divided info two headings. They are primary sources and secondary sources.

a. Primary source: A primary source is one that itself collects the information. It becomes much difficult and expensive to collect primary information. It can be collected through survey, observation or experiment. Sellers representative, researchers etc collect primary information in business organization.

b. Secondary resources: The information used once are called secondary information. It becomes much easier and less expensive to collect secondary information than primary Information. The secondary information is collected from several sources e-library, government bodies, trade, professional and business associative, private business firm, advertising media, university research institution, and other sources.

Business letter: 

Business letter is a formal communication from an organ to its customers, the general public for their information, another organization or the authorities. It is often written in a standard format and in formal language. Business letter is a popular and effective means of communication. It expand business contracts, helps to improve organization prestige and builds good will. It provides evidence or proof.

According to Jackie Gamble,” Business letter are formal letters used for business-to-business, business to client, or client -to- business correspondence.”

Structure of Business Letters

a. The heading: The reading of business Letter contains the name, address, telephone number, fax number, post box number, email address, reference number, date etc. of the organizations. Business organization use printed letter pads for correspondence. Generally, name and address of the organization are printed on the top middle part of the page. The following is the example of heading of a business letters. For eg.

                                                            THE THIRD EYE TRADERS

                                                                   Kathmandu, Nepal

Phone No…                                                                                                                                     Fax No……

Email….                                                                                                                                           Telegram …..

Post Box No….                                                                                                                               Date…..

Reference No….

b. Inside address: The name and address of the receiver is known as inside address. It should be written two space below the Reference number. It facilities filing and helps the dispatch clerk to write the same address on envelop. The respective works like M/S Should he written before the name of the receiver. For eg,

M/S Namuna commercial Enterprise,

Krsna Bhawan, Kantipath

Kathmandu, Nepal

c. Salutation: The salvation is the greeting of the addresses or reader or receiver. It should be written two space below the inside address and two space before beginning the message. For eg,

For an Individual

Dear Sir (or Simply, Sir)

Dear Madam(or simply, Madam)

For an organization

Dear Sirs, (For gents)

Dear Madams, (For ladies)

d. Subject heading: The subject heading the main theme of the letter. It adds clarity of the letter. It should he written in between inside address and salutation. But there is not hard and fast rule about subject heading. It can also be written in between salutation and beginning of the message. Subject heading is not essential part business letter. It is optional. The example of subject heading is as follow:

Subject: Enquiry of furniture and terms of Business.

e. Body of the letter: Body of the letter is the main part of business letter. It Contains the message which the letters to convey. So as to produce a suitable response It contain opening paragraph, main paragraph, and closing paragraph.

Opening paragraph: Reader’s attention and concentration.

Main paragraph: Main subject matter of the letter.

Closing paragraph: Friendly approach and friendly attitude.

f. Complimentary close: The complimentary close is the politely way of ending business letter. It is usually given below the closing paragraph of the body the letter at the right side of the page. Complimentary close should corresponds with the salutation as shown below.

g. Signature: Signature of authority person is very essential In business letter. It leads authenticity to the business letter. It is placed just below the complimentary close. The same name and position of the person signing the letter is placed below the signature. For example,

Sole trading concern → Jaya Krishna, For Jaya Enterprises

Partnership Firm → Hare Ram partner. For Annapurna Enterprise

Joint-stock Company → Ram Chandra Secretary For. Super Nepal ltd.

h. Enclosures and postscripts: Abbreviation form of enclosure in Encl. In some cases important document like, catalogue, price less, draft etc are attached with the letter in the same envelope. In such cases a mention of these enclosures should be made in the letter. Abbreviation form postscript os P.S. when a sender forgets to include something important in the body of the letter, he/she can add the massage in the part of the letter. Examples of enclosures and postscript are given below:

Encl. Bank draft of Rs. 50,000

P.S. In case bulky buying, we will provide discount  to 10%

writing postscript is not a good practice. It makes rough to the business letter.

Qualities of Good Business letter:

a. Clarity: The message of the letter must be clear. Simple words and short sentences increase the clarity of message of the letter clearly written letters save time and avoid misunderstanding. The letter writer must be clear about the massage to be sent his/her expression also must be clear. Technical words, jargon words, slang word, literary work, and mull-meaning words should be avoided. Excessive use of the infinitive also should be avoided because it makes the letter more impersonal.

b. Correctness: Language, contents, grammar, spelling, style, facts, etc of the letter should be correct. Incorrect information leads to confusion and loss of image. Incorrect language spoils the message and harms the prestige of the sender, Similarly, typing mistake, too many corrections and defective layout create poor image of organization. The writers should have sound knowledge of contents and language. The correctness of the letter increases the clarity of the letter and builds good image of the organization.

c. Completeness: The letter should he complete. It should not be unnecessary details, repetition and unnecessary words. For example we should avoid to in other words, truly speaking and soon. It is better to write enclosed in than enclosed herewith, please find, conciseness saves time and leads quick action. Completeness cannot be sacrificed for conciseness.

d. Courtesy: Courtesy is another essential quality of good business letter. It implies consideration for others’ feelings. A letter should be courteous to be best and effective. Thus, the letter writer should be aware of how the words sounds to the reader. Courteous words like thank you, sorry, please etc. should be used and irritating words like we disagree, you forgot, you leave us no chance etc should be avoided as far as possible. Polite language and sincere apologies enhance the favorable response and build good relationship.

e. Conciseness: The letter should be concise. It should not be unnecessary long. Consciousness can he achieved by avoiding unnecessary detail, repetition and and unnecessary words. For example, we should avoid to write in other words, truly speaking and so on. It is better to write enclosed in than enclosed herewith , Please find etc. Conciseness saves time and leads in quick action. Completeness cannot be sacrificed for conciseness.

f. Simple: A good business letter should be simple. Words and language should be clear and short to be simple.

g. Original: A good business letter should be original. Initiative letter give negative impression. Originality in letter is must.

h. Attractive: Another Characteristics of a business letter is attractive. Proper word and language structure, good starting, short and complete baby, appropriate salutation, good ending etc are essential in letter to be attractive.

i. Effective: Effective is another Characteristic of good business letter. Effective business letter gives clear, simple, short but complete manage to the receiver.

DRAFTING DIFFERENT TYPES OF BUSINESS LETTERS

There are several types business letters.

1. Enquiry letter and reply to enquiry letter.
2. Order letter and reply to order letter.
3. Complaint letter and Reply to complaint letter.
4. Reference letter.
5. Circular letter.
6. Application letter and appointment letter

A) Enquiry letter and Reply to Enquiry letter

An enquiry letter is a letter written to request for information. In an organization, a buyer writes an enquiry letter to seller to inquire about the quality, price, means of payment etc of the goods to be purchased. While drafting inquiry letter, the following points should be kept in mind:

1. Purpose of a letter
2. Catalogue and price list
3. Credit, discount, mode of delivery means of payment, etc
4. Quantity and quality
5. Other things seller writes reply to enquiry letter to the buyers.. All inquiries should be carefully replied. He/she should state the nature and features of the goods to be purchase.

B) Order letter and reply to order letter

If the buyer is satisfied with the quantity, prices, terms and condition of trade, discount etc. He/she will write a letter to seller for the purchase of goods, which is called order letter. While writing an order letter, the following point should be kept in the mind.

1. Quantity, quantity and price of goods.
2. Time period within which the goods are to be sent.
3. Name of the bank and bank draft number,
4. Place of delivery

Other things,  The seller should execute all order promptly and correctly. He/she should acknowledge every order expressing his/her gratitude and appreciation of the customers’ interest. While drafting a reply to order letter, the following points should be considered.

1. Thank the customer for his/her order,
2. Date of dispatch,
3. Mode of dispatch,
4. Prompt payment,
5. Amount of invoice
6. Request for additional and other things.

C) A complaint letter and Reply to complaint letter:

Letter in which complaint such a shortage of goods, defective goods, or delay in execution is expressed is called complaint letter. It is written to the seller informing him/her of fault and claiming compensation. Complaints should he made politely and firmly without showing any sign of anger. A complaint letter should be clear about complain. While drafting a complaint letter, the following points should be considered:

1. Order number and date,
2. Fact of mistake,
3. Courtesy languages,
4. Claim,
5. Probable loss and inconvenience,
6. Avoid threats but threats of legal action may be given,
7. Other things.

After having received complaint letter, the seller must reply promptly. He reply to complaint letter Should be written politely without showing any sign of anger. The seller should thank the customer for telling him/her about fault or shortage or wrong. He/She must avoid negative words and accusation.

Example,

                                                     Reply to a complaint letter

                                                              Kalika Enterprises,

                                                                 Hetauda, Nepal

Phone No….                                                                                                                           Fax No…

E-mail……                                                                                                                                Telegram…..

Post Box No……                                                                                                                     Date ……

Reference No.

M/S Third pole Traders,

Bagbazar, Kathmandu, Nepal

Dear sirs,

We are sorry to hear from you that wall clocks were sent on 1st August and reached you in broken condition. Our dispatch section has a pre-packing inspection which allows the packing of goods only when it is in good condition. Broken, such as in your case occurs very rarely when the packages are roughly handle in transit.

Please kindly return us the broken wall clocks. A fresh package of 13 wall clocks will be sent to you immediately.

Thankyou

Your Sincerely

Krishna Mahat

Assistant Manger.

D) Reference letter: 

This is the age of credit transaction. A major parts of transaction of business is done on credit. But credit involves risk. Thus, information  about a customer about his/her honesty, attitude, character, creditworthiness, business condition etc should be collected before allowing credit. The seller may ask the buyer to furnish name of trader as reference. Then the seller may write a letter to the trader to collect information about the customer or buyer. Such letter is called a reference letter. The seller should assume to the reference that the information given will be treated as confidential.