What is Business Communication?

Business communication is a process in which employees inside and outside the company share information to draw appropriate conclusions. In other words, it is an important activity used to achieve the organizational goals and accomplish proper performance that meets the organization’s role. Since there are several companies and departments, business communication has various methods, techniques and purposes.

The purposes of business communication

Information exchange

One of the most important purposes of business communication is to share information with people involved inside and outside the organization. Business communication is made through orders, proposals, and opinions, etc., within the organization. And outside, it communicates with government agencies, competitors, investors, and clients, etc.

Planning

Management makes plans for the future of the organization. Management needs to collect information through communication to establish business plans efficiently and shares information with organizational managers. When planning is complete, the organization executes the program, which requires communication to facilitate the program’s progress. In other words, communication is an essential element for establishing the business plan and the successful realization of the plan.

Organizational policy establishment

As repetitive problems often arise within the organization, it establishes policies as a solution to issues repeated. Policies allow organizations to operate flexibly. Communication plays an important role in collecting necessary information in the process of policies establishment.

Coordination improvement

It is impossible to achieve goals without cooperation within the organization. It should try to achieve its goal through appropriate collaboration with other organization departments, which requires proper communication.

Motivation

Organizational efforts are needed to improve employees’ ability to work. Motivational factors can divide into financial and non-financial factors. Financial factors are satisfied by employees’ financial interests, while regular communication with employees is required to meet non-financial factors.

Flexible response to change

Organizations must have a flexible response to cope with frequent changes. To respond flexibly, people inside and outside the organization must provide new plans and goals through communication.

Two Communication Models

Communication can divide into various categories according to classification criteria. A very simple and representative classification is to divide it into two categories: formal and informal communication.

  1. Formal communication takes place where the organization’s systems are orderly, and procedures are clear. Since it officially communicates to formal means and methods, certain conditions are formalized, making communication accordingly. In addition, formal communication is classified into upward, downward, and horizontal communication, etc., according to the direction of the information flow.
  2. Upward communication means that the information and intentions of subordinate employees of the organization go up to the top. It includes reporting, proposal systems, opinion surveys, and internal approval systems. Reporting is the main method of upward communication. The organization’s upper class makes decisions or orders based on reports from subordinates. In other words, organizational superiors are reported on the results and make new decisions or instructions. The proposal system is a system in which a subordinate submits proposals and opinions on ways to improve their work environment to help improve work efficiency. It can result in the participation of members of the organization and the improvement of problem-solving skills. The opinion survey is a way to solve various problems by surveying multiple work environments, satisfaction and dissatisfaction of subordinates. The internal approval system is a system in which a subordinate prepares a plan to be handled in writing and submits it to the supervisor for approval. When writing a document, it is possible to get help from the relevant departments. Since decisions are made together by superiors and subordinates, there is an advantage that all officials participate in the decision-making. For upward communication to carry out actively, active participation of subordinates and acceptance of superiors are required. However, there is a disadvantage that information may deteriorate in delivering information from assistants to directors.
  3. Downward communication refers to the flow of information from superiors to subordinates through the organization’s command system. Orders and instructions by document or oral are typical types of downward communication. Orders can divide into document orders and verbal orders. Orders based on records are useful when the content is uniform, when long-term preservation is needed, and far away from each other. Verbal orders are useful in simple instructions, orders, and urgent situations. The advantages of verbal orders are that they can change orders directly depending on the situation, know the opponent’s reaction and understanding, and immediately reflect the opinions of subordinates. On the other hand, verbal orders have a disadvantage in that they have limited delivery targets and are also vulnerable to long-term preservation. In addition, If the content is complicated, it is difficult to deliver information.
  4. Horizontal communication is communication between members at the same level of an organization and is also called lateral communication. It is open and relatively free communication, focusing on horizontal relationships rather than vertical relationships between subordinates and superiors. Usually, there are many departments due to the division of labor in large organizations, but conflicts often arise because the goals pursued between departments are different. In this case, horizontal communication needs to find a compromise between employees or departments. It includes problem-solving, conflict resolution, information sharing, meetings, and circulation.
  5. Informal communication is communication conducted informally through informal channels outside the scope of the hierarchical structure within the organization. Formal communication is relatively stricter and more limited because it is a communication that keeps the hierarchical order within the organization. For this reason, it is difficult for everyone to express various wishes and desires. Thus, employees within the organization try to complement the limitations of formal communication through informal communication. These days, it recognizes as an important part of organizational communication by delivering information faster than formal communication and information that is difficult to convey due to the limitations of formal communication. In addition, it also relieves tension among employees through human and soft instructions, breaking away from a rigid command system. Nonetheless, since informal communication contains a lot of individual human relationships and personal feelings, there is a limit to systematizing the phenomenon of communication. Also, rumors are likely to arise because even if you find information errors, it is difficult to find a person to hold accountable.

How communication affects relationships in business

Communication is the most basic and important human behaviour that conveys thoughts and emotions to each other and has a great impact on all parts of humans. As can be seen above, communication also has a great effect on the workplace.

Positive effect

  • Through positive communication at work, employees form trust relationships with customers and co-workers and appeal to other companies or officials interacting with the company for the role and type of work performance of this organization. Thus, it helps them understand what kind of work this company or department is appropriate.
  • Communication always affects the quality of human-to-human relationships, so workers should always take a positive mindset. Positive communication at work can be considered more important than communication in daily life because communication within a set range is important to consider how the other person responds and how I express it.
  • Employees within the organization should convey the right message by recognizing how various communication methods provide their information. By selecting the appropriate communication method, effective communication can be elicited, and each other’s work can be effectively performed.

Negative effect

  • Poor communication between employees can adversely affect the role of work, which can instill a bad image for those involved.
  • The process of sharing information through communication is not easy. If the meaning of the information changes due to inaccuracy or deterioration of the shared information, misunderstandings may occur, which may adversely affect the work and confuse.

Employees can improve teamwork and increase efficiency through communication with their bosses, colleagues, or subordinates. However, forming appropriate communication at work is not easy because members of the organization are groups of individuals based on various social experiences and positions, so they understand and accept the same content differently. Therefore, communicators should recognize that messages are flexible and acceptable differently from person to person and try to convey them appropriately according to the situation.

Communication Barriers

A communication barrier is a phenomenon in which the information to be delivered is distorted or misinterpreted when an individual or group communicates. There are numerous factors in the barrier factor, and there are various subjects in which the factors occur. For example, many communication failures are caused by the sender, the receiver, and the delivery process.

  • Obstacles caused by the sender

Clarification of information

Failure to organize the message the sender wants to convey can lead to communication failures, especially when three or more people communicate.

Filtering

If the sender fails to properly write a message or filters information that the sender finds unnecessary in writing a message, the receiver may not interpret it properly.

Considering the receiver’s position

Delivering information or messages without assuming the receiver’s position is fatal to positive communication. If you send a message or talk to the recipient without considering the other person’s feelings, communication problems may occur, and your relationship with that person may worsen. For example, if you express the joy of a salary increase to a friend suffering from employment difficulties, the friend may misunderstand it as teasing and lead to a fight.

Excessive information

If the sender delivers too much information at once, it becomes difficult for the receiver to understand. Since there is a limit to the amount of information that can understand at once, an appropriate amount of information should deliver to avoid communication failures caused by information overload.

  • Obstacles caused by the receiver

A Prejudice

Receivers often tend to interpret the information they receive based on their emotions and prejudices. It can cause distortion and misunderstanding in communication. Therefore, to communicate positively, it is necessary to carefully and objectively interpret the message sent by the sender.

Misunderstanding

In the case of face-to-face communication rather than a communication method such as mail or phone call, there are times when the other person says something they do not want to say, but if you accept it as it is, misunderstanding can occur. Therefore, to successfully communicate, it is necessary to accurately grasp the intention of the other person by asking again about the message content.

  • Obstacles caused by the delivery process

Surrounding environment

In face-to-face communication, in delivering information to the other party, it is often difficult to provide information due to noise in the surrounding environment. Non-face-to-face communication also causes obstacles in the delivery process. For example, you may not be able to send e-mails or text messages due to a place where the phone is not working or the Internet is not available.

Proper communication methods

successful communication is possible only when an appropriate communication method is adopted and used according to the various communication methods. For instance, if a friend loses his or her mother, it is appropriate to meet and comfort him in person rather than by phone or text.

To overcome communication barriers

The effort of the sender

Information flow control: To send appropriate information to the receiver, both the quantity and quality of communication can control to solve communication problems caused by excessive information.

Using simplified language: If the language is complicated, it confuses the recipient, making effective communication impossible. An expert in one field should choose a simple and easy language that helps a receiver understand rather than jargon when delivering information to outsiders.

Appropriate medium: It is important to choose the right medium for information delivery. Effective communication is possible by using a medium that is easy for receivers to understand and access information.

The effort of the receiver

Listening: To achieve good communication, the receiver must understand the information the sender wants to convey. Considering the sender’s position, you should listen carefully and try to understand the information.

Using Feedback: It should react that the receiver understands the intention of the message sent by the sender. Through the reaction, the sender can receive feedback and know if the receiver understands.

Efforts to understand each other are also essential to overcome communication difficulties. Communication in everyday life is ultimately building mutual trust. Creating trust is the most important key to allow us to open our hearts and talk to each other.

Types of Communication and Appropriate Use in Organizations Employees within the organization communicate work-related content in a variety of ways. Communication can also divide into face-to-face communication and non-face-to-face communication based on whether communication takes place directly or indirectly.

Face-to-Face CommunicationNon-Face-to-Face Communication
Since communicators meet and communicate in person, it is easy to grasp the authenticity through the other person’s facial expressions or gestures.  

1. Reporting: It is a method in which subordinates deliver information to their superiors within the organization or request permission from their supervisors. The brief information should be organized so that the manager can detail the necessary actions. Despite the summarized information, it must contain all purposes.

2. Meeting: A meeting is a method of discussion by two or more employees, and each organization determines the cycle and discusses the work regularly. However, when it is an important or urgent issue, periodic meetings may be held.

3. Presentation: This is how an employee presents to the whole. Report the issues set through meetings and approval, and prepare and present visualized data on important statistics or changes.  

Limitations of Face-to-Face Communication The limitations of face-to-face communication are clear. It is impossible without meeting. People use non-face-to-face communication to overcome this limitation. There is a limit that cannot be achieved if communicators do not meet. However, they can effectively convey what they want to say to each other because face-to-face communication can be done with non-verbal communication.
Records can be left because people communicate using indirect mediums such as phone calls or e-mails. For this reason, it uses for simple reporting or notification in the organization.

1. E-mail: Since the spread of the Internet, it has become as a useful communication method. It is useful to report or notify from a distance away from each other. The sender can send the same content to several people at the same time, and records are left. It can use to communicate with people outside the organization, and important documents or files can be attached.

2. Phone call: To talk to a distant person by voice, it is better to use a call rather than an e-mail for sensitive business content. It is characterized by communicating with each other through voice even though they are far away. With the development of technology, several people can make phone calls simultaneously, and video call methods are often used.

3. Messenger: It is a way to communicate online through real-time chat. Immediate communication is possible because it proceeds in real-time.  

Limitations of Non-Face-to-Face Communication As technology advances, techniques and methods of communication have evolved. However, developed communication often causes communication obstacles because non-face-to-face communication lacks non-verbal communication. E-mails or text messages cannot convey speech, intonation, gestures, and facial expressions that help accurately grasp the sender’s meaning. Hence, the more convenient communication techniques are, the more sophisticated and careful the information you want to convey.

The Role of Non-verbal Communication (Body Language)

Non-verbal communication is a type of communication that conveys one’s feelings or information through movements, physical contact, and facial expressions called body language, not the language or letters commonly used. Elements of non-verbal communication typically include gestures, postures, paralanguage, and various body languages. In a large category, gestures and postures are also included in body language. Gestures expressed using arms and legs are the most natural body language. Since gestures can vary depending on the country or culture, accurate understanding is required before use. In communication, a person’s posture implies the current state and emotion. For example, while listening in the right posture means that the listener is paying attention, staring elsewhere or hearing in a bent posture means that the listener is bored or indifferent. Paralanguage is not an official language but a sound made when communicating. It helps convey the speaker’s feelings and also affects the listener’s understanding and persuasion. And physical appearance is also one of the non-verbal factors. Maintaining a clean state is the most basic step in communication. There is a limit to expressing one’s thoughts or emotions simply in language, especially when conveying emotions. These non-verbal factors greatly influence. Non-verbal communication is a major means of communication, and the meaning varies depending on the degree of expression and situation.

What is the written communication in business?

Written communication is a method of communicating through various written media such as e-mails, letters, circulars, reports, etc., when it comes to business, and it is considered the most important communication method because it consists of writing so that all records can be preserved. The drawbacks of this method are time-consuming, costly, and inefficient in case of business confidentiality or emergency. For efficient written communication, the author must deliver information, concisely, and formally. There are various forms in the category of written communication in business, but they can classify into four types according to communication goals.

Instructional business documents: documents that provide necessary information to company employees or customers. Employees can refer to these documents to perform their work, and customers can get the information they want. These documents can be effective if classified as a process that is easy for the reader to understand.

Examples of instructional business documents

User manual: It is a document explaining to a customer how to use the product. Through this, information on how customers use the products they purchase can be obtained.

Specifications: This document provides technical documents with the parts or processes that make up the product.

Memo: A short notice shared within the organization explains the added guidelines or ways to perform tasks within the organization.

Informational business documents: It is to document the matters necessary for the business. Record the progress of the project, predict the future of the project, and record it. It also includes records of the company’s financial situation.

Examples of informational business documents

Report: It is used to perform tasks, deliver business information, and report completed works using reports. Usually, reports consist mainly of the core tasks of the company.

Finance: A document explaining the company’s financial situation, including the company’s consumption, income, and budget within a specified period.

Minutes: A document that records the contents of the meeting. Record in detail the decisions made through the meeting and the contents of the participants’ discussions.

Persuasive business documents: These documents are generally made for sale purposes. The purpose is to persuade customers or to impress them to arouse interest by delivering information.

Examples of Persuasive business documents

Proposals: The goal is to make customers interested by explaining how to provide products or services. In general, details such as the benefits, cost, and time of this project are described.

Press Release: A document sent to reporters and various media in a way that provides new information through media.

Transactional business writing includes a comprehensive scope. It consists of all day-to-day communication between employees of the same company or between the company and customers. It is usually written by e-mail but also includes official documents or invoices.

Examples of Transactional business writing

Email: It is mainly used to convey information to employees or customers.

Dismissal Notice: This document provides information related to the employment termination of certain employees in the Human Resources Department.

Task 03

Modern technologies affect communication in business.

As modern technology advances, it has had a great impact on business communication. Many companies around the world are entering the world with modern communication technologies. The effect of technology on business is enormous. It has become possible for companies to provide services to overseas customers through advanced technology and communication. For example, it is possible to communicate quickly using a free messenger and a call platform. Real-time meetings have also become possible between employees far away from each other using media such as group calls. In addition, Communication with employees of other companies has become much easier, making it easier to communicate for product sales or cooperation between companies. In this way, with the development of remote communication, the limitations of wired phones and faxes in the past have been supplemented with applications such as free overseas calls and group calls.

Advanced technology has also affected security enhancement. Currently, security is the most important part for many companies. Security reinforcement is essential, especially when delivering important confidential or information. These days, important information is provided by encrypted mail for security purposes. For this reason, many companies continue to update and invest in security software because they are likely to be hacked from outside if they do not invest in security.

Modern technology also affects work efficiency. For example, in the past, documents and letter piles had to be searched to find the necessary information, but it is easy to search for records communicated through various media.

Modern technology enables direct communication between companies and customers. Many companies use a variety of platforms to encourage direct communication with customers. In addition, companies develop their applications to manage customers and receive feedback from customers to improve their systems further.

Finally, advanced business communication technology is effective not only in sending messages and information but also in sharing ideas. Ideas can be shared in various ways, such as presentations. People can visualize business ideas and share development plans or problem-solving methods.

Common threats to the security data

As mentioned above, advanced technology has brought many advantages to business communication and performance. However, as important confidential information of the company has become data on the computer, many programs have also been developed that threaten its security. Thus, companies invest largely in security enhancement to protect their data from threats. However, SMEs often become targets of cyberattacks because they have a less strict defense system and awareness of dangers than large companies.

Phishing attacks

Phishing attacks are one of the representative security threat attacks by impersonating well-known organizations, sending disguised e-mails to unspecified people, attracting them to hacking-created websites, and stealing personal information, IDs, and passwords. These attacks often resulted in hacking business e-mails from the company’s executives to extract important confidential information from the company or attempting negative payments.

To be safe from phishing attacks, programs capable of filtering and blocking phishing mail in advance should be installed. The most important solution is employee security awareness training. The company should provide regular security awareness training to prevent damage from phishing attacks.

Malware attacks

Malware is software created to penetrate computer systems, including viruses, Trojan horses, and Adware. In the past, viruses and worms spread only through files attached to e-mails, but with the development of Internet systems, they have upgraded to the point of infection by accessing certain websites. It penetrates the system and hacks into personal information.

Companies can prevent malware attacks through the installation of powerful technical defense programs. A steady check is required to ensure that the user’s security is up-to-date. It is also important to introduce a web security program that prevents users from entering malicious websites in advance.

Ransomware

Ransomware is a new hacking method that penetrates the company’s system, encrypts and makes data unusable, and asks for money in return for decrypting it. Numerous companies are attacked every year, and because of its good profitability, it has established itself as one of the most common cyber-attacks. The distribution of ransomware is so diverse that it is impossible to protect computers from ransomware completely. Thus, companies must follow thorough precautions.

Important data and work files must be regularly backed up in separate storage or uploaded separately to cloud service to prevent damage from ransomware. And companies should install organized programs to quickly back up all data in the event of ransomware attacks, such as Sentinel One, which is an endpoint protection platform.

Insider threats

It refers to an act by a company’s executives or employees that threatens the its information security system. Authorized executives and employees can easily access confidential information so that they can be misled by money and sell it, or information leakage may occur due to simple carelessness. It can adversely affect not only employees but also their customers and cause enormous losses to the company.

To prevent insider threats, companies must provide regular security awareness training. Through the active participation of employees and security awareness training, insider threats due to carelessness can be prevented.

IT Policies

IT policies are guidelines for companies to explain how their employees cope with security threats and prevent them in advance. Recognizing official policies allows employees to know how to perform their tasks without detailed explanations and management and to respond effectively to problems. Although IT policies vary from company to company depending on industry and work, there are IT policies commonly required by all companies.

  • BYOD (Bring Your Own Device) Policy

It refers to employees using privately-owned electronic devices for company work. If you work from home and sometimes go to work, data management can be difficult. Therefore, with the company’s permission, it is possible to allow business processing with personal electronic devices by installing a security program required by the company on personal electronic devices. The advantages of implementing BYOD policies are that companies can reduce hardware replacement, software purchase, and maintenance costs. In addition, employees can improve the speed and efficiency of work because it is more convenient and has fewer restrictions on employment. However, there is a fatal disadvantage of unstable security. It is because personal equipment is likely to be vulnerable even if the security system required by the company is installed. Finally, since the standards for BYOD policy differ from company to company, employees need to act according to the standards of company policy. Some companies sometimes restrict the use of personal electronic devices.

  • Remote Work Policy

Through technologies such as real-time video conferencing, companies can remotely collaborate with employees and perform tasks. Remote work policy provides an environment in which employees can work in other places. If telecommuting or remote work maximizes the productivity and efficiency of a company, a remote work policy should be established. Telecommuting is not suitable for all employees. Therefore, it is necessary to set standards according to the company’s necessity, and measures should also be prepared to cope with problems such as security threats caused by the use of personal electronic devices. The remote work policy must specify telecommuters and employees who manage their employees and record working hours and contents to ensure corporate efficiency and productivity.

  • Acceptable Use Policy

Currently, computer users can easily access information and deliver information extensively over the network. It is a good phenomenon, but it can also have adverse effects. For this reason, companies should introduce an acceptable use policy to control their employees’ online activities to some extent. By introducing the proper use policy, the company can protect against cyber threats and prevent unauthorized sharing of important company information. Necessary factors include restrictions on employees’ Internet activities such as social network service within the company, and informing employees of websites that cannot open. Moreover, it may include not only websites but also activities that are not allowed, such as downloading unsuitable content, invading the privacy of others, and using corporate networks for private purposes.

  • Incident Response Policy

Modern companies are vulnerable to cybercrime because they perform almost all their work with computer systems and networks. Failure to respond quickly can cause extreme damage to a company. Incident response policies should be prepared to cope with cyber threats effectively. To establish an efficient incident response policy, it is first necessary to set up a method of identifying important data and available security facilities in the company, detecting and reporting attacks from cyber threats. And follow-up plans must always be in place, and new strategies must be steadily provided to prevent accidents in advance.

In addition to these, there are various IT policies. Companies will be able to defend against threats from inside and outside by establishing IT policies based on their business plans and company objectives.

References

Communication techniques and types, https://blog.naver.com/jinty/221733803705.

QS Study, objectives of Business Communication, https://qsstudy.com/business-studies/objectives-business-communication.

Characteristics and direction of formal and informal communication, 공식적 및 비공식적 의사소통의 특성과 방향 – 일반자료모음 – 네일아트 네일 홀릭 (holic nail) (daum.net), [Accessed 07 Nov. 2021].

how communication affects relationships at work – active social care limited, https://activesocialcare.com/handbook/communication/how-communication-affects-relationships-at-work.

Communication Barriers and Improvement Measures, https://m.cafe.daum.net/opencoupleinstitute/7PJ4/12?q=D_YGnwgdD8Nqc0&, [Accessed 07 Nov. 2021].

Written Communication: Meaning, Advantages and Limitations, Priyali Sharma, https://www.yourarticlelibrary.com/business-communication/written-communication/written-communication-meaning-advantages-and-limitations/70195.

4 Types of Business Writing Styles, 2021, Tom DuPuis, https://www.instructionalsolutions.com/blog/types-business-writing.

7 ADVANTAGES OF TECHNOLOGY IN BUSINESS COMMUNICATION, 2018, Natalie Harris-Briggs, https://www.avocor.com/blog/7-advantages-of-technology-in-business-communication/

The biggest cyber security threats that small businesses face, and how you can protect yourself against them, 2021, Joel Witts, https://expertinsights.com/insights/the-top-5-biggest-cyber-security-threats-that-small-businesses-face-and-how-to-stop-them/

5 IT Policies Your Company Needs to Put Into Effect Today, 2020, Jacksonville, https://nettechconsultants.com/blog/5-it-policies-your-company-needs-to-put-into-effect-today/

https://en.wikipedia.org/wiki/Business_communication. [Accessed 09 Nov. 2021].

By Jeongsoo Kim

I am Jeongsoo Kim, a 30-year-old business owner and current student from South Korea. I have been studying business management at Concordia International University since October 2021.

No widgets found. Go to Widget page and add the widget in Offcanvas Sidebar Widget Area.
Search