COMMUNICATION | COMMERCE FORM 3 TOPIC 2

 Communication

Mining of the Term Communication

Define the term communication

Communication is the transmission of information from one point or person to another point or person. Involves two-way process of reaching mutual understanding, in which participants not only exchange (encode-decode) information, news, ideas and feelings but also create and share meaning.

In general, communication is a means of connecting people or places. In

business, it is a key function of management–an organization cannot

operate without communication between levels, departments and employees.

See also communications.

Communication

is a function that is indispensable for commerce. All types of trade

transactions, receiving of trade inquiries, sending of information about

dispatch of goods, receiving of payment, etc.” Communication is a

function that is indispensable for commerce. All types of trade

transactions, receiving of trade inquiries, sending of information about

dispatch of goods, receiving of payment, etc. are possible with the

help of Communication

Trade

business cannot function efficiently if the buyers and sellers do not

make proper use of communication channels. It is through communication

that all formalities of transaction are completed. An efficient

communication system brings businessman close to each other not only in

one country but in the whole world.

Management

and supervision also remain incomplete and shabby in the absence of

proper communication. Communication means sharing of ideas in common.

When we communicate, we are trying to establish a rationale with

someone. We are trying to share information, ideas or attitudes.

Communication is basically the fine-tuning of the receiver and the

sender, aimed at affecting a particular message.

The Nature of Communication

Explain the nature of communication

Seven

major elements of communication process are: (1) sender (2) ideas (3)

encoding (4) communication channel (5) receiver (6) decoding and (7)

feedback.

Communication

may be defined as a process concerning exchange of facts or ideas

between persons holding different positions in an organisation to

achieve mutual harmony. The communication process is dynamic in nature

rather than a static phenomenon.

Communication

process as such must be considered a continuous and dynamic

inter-action, both affecting and being affected by many variables.

1. Sender:
   The person who intends to convey the message with the intention of
   passing information and ideas to others is known as sender or
   communicator.
2. Ideas: This is the subject matter of the
   communication. This may be an opinion, attitude, feelings, views,
   orders, or suggestions.
3. Encoding: Since the subject matter of
   communication is theoretical and intangible, its further passing
   requires use of certain symbols such as words, actions or pictures etc.
   Conversion of subject matter into these symbols is the process of
   encoding.
4. Communication Channel: The person who is interested in
   communicating has to choose the channel for sending the required
   information, ideas etc. This information is transmitted to the receiver
   through certain channels which may be either formal or informal.
5. Receiver:
   Receiver is the person who receives the message or for whom the message
   is meant for. It is the receiver who tries to understand the message in
   the best possible manner in achieving the desired objectives.
6. Decoding:
   The person who receives the message or symbol from the communicator
   tries to convert the same in such a way so that he may extract its
   meaning to his complete understanding.
7. Feedback: Feedback is the
   process of ensuring that the receiver has received the message and
   understood in the same sense as sender meant it.

Importance of Communication to Business

Show the importance of communication to business

The Importance of Communication in Business

Imagine

trying to run a business where no one of your staff communicates with

each other. Departments would be out of sync, no one would be quite

certain what was going on, and it would be impossible to work together

on group projects. In other words, a lack of communication would cause

serious efficiency problems, and at the end of the day that’s money out

of the company’s pockets. Taking the time to keep everyone in the loop

fixes all these issues, and for that reason it’s absolutely essential

for every company to stress communication.

Unity

A

company that works to develop strong communication with each other is a

united company. Each team member shares the same goals in this case,

and everyone knows what their co-workers have on their plate. By simply

keeping in touch on a regular basis, everyone remains united and working

together. This instils a cooperative atmosphere rather than encouraging

the idea of having a bunch of individual people only looking out for

themselves. All companies have a vision for their success, and through

communication, that vision spreads to everyone. The result is a happier,

healthier workplace where things get done more efficiently and a bigger

likelihood of retaining the top talent.

Feedback

When

communication is stressed, it creates an open environment where

everyone feels comfortable talking with each other. When that level of

comfort is present in a business, employees feel confident that they can

express their ideas about the work process to each other and even to

management. Feedback is a vital component of communication, and it works

both ways. Management give feedback to the employees in regards to how

well they’re faring at their duties, and employees feel safe giving

feedback on how well the company’s policies and procedures are working.

Communication is not communication if it only comes from one direction.

Improves Customer Relationships

No

business would succeed without customers, and every company exists to

serve them. Communicating with customers is every bit as important as

communication within the workplace. Thankfully, this is easier today

that it’s ever been, as there are a wide variety of ways to keep in

touch with your customer base. Consider this course on connecting with

your customer base through blogging for one method, but no matter what

method you use to reach out to your customers, keeping constant

communication going will bring your company much closer with the ones

that spend the money on your products or services.

Furthermore,

this type of communication also ensures your customers remain happy

with you, since they can share their needs with you and make suggestions

on what you can do to better serve them. When customers feel they are

listened to and that their suggestions are implemented accordingly, the

reputation of your business will grow and you will find yourself

generating additional profit, not to mention that you will have more and

more customers to communicate with.

It

isn’t just sales that customer communication helps, however.

Communication is perhaps even more essential when it comes to providing

excellent customer service, something that any successful company must

do. For any number of reasons, customers are not always happy with your

company even if you did everything you could, but as long as you are

able to communicate your concern for their satisfaction, you can turn

any situation into a positive experience. Customers that are displeased

with a company do not hesitate to share their bad experience with

others. By communicating clearly with them, you and ensuring your

business always delivers the finest customer service possible, and

that’s another critical component of building customer relationships.

Improves Employee Relationships

No

friendship is ever formed without a good level of communication. The

more a company’s employees communicate with each other, the closer they

will become naturally over time. Bear in mind that much of communication

takes place without the need for words, so it’s important to master

both verbal and non-verbal communication, both in the written form as

well as body language.

Enforcing Rules

Every

business must have a code of policies and procedures that must be

followed in order for everyone to succeed. Maybe there is a specific

process for a task, for example, or maybe there are certain consequences

for underperforming. Either way, you want to make all this very clear

to your employees, or it isn’t possible to do this without strong

communication skills.

This

kind of communication requires more than simply writing out a company

manual and issuing it to each of the new hires on their first day. Any

company knows that rules always need to be altered as things change and

evolve over time, and it’s important to revisit how all of these changes

affect your employees regularly. Even if the general company guidelines

never shift, continually communicating expectations and policies is a

good practice that will never fail. The outline for your business must

be followed at all times, and without communicating about that outline, a

company can’t expect the employees to stay within the lines on their

own.

Enhanced Innovation

No

matter how skilled and talented the people at the top of your company

are, you can never have too many ideas. By encouraging everyone at your

business, whether big or small, to openly share their thoughts without

fear of being shut down, you will quickly notice the employees that have

the most to add. Your best employees have ideas on how you can make

your business run even better, and it’s wise to give them a chance to

speak. A business can become more innovative overnight just by working

together to be good communicators, and that’s bad news for your

competition and good news for your revenue.

Clearly,

the benefits of communication in a business are plentiful, and in fact

it’s hard to imagine any kind of success at all without it. No matter

what kind of business you have, and whether it’s big or small, one of

the single most important determinants of success is communication. If

you feel your business does not have the quality of communication it

should, don’t wait another day to address that issue. There is no need

for your company to suffer from something that can be so easily fixed

with a little effort.

Various Types (Divisions or Classifications) of Communication

Identify the various types (divisions or classifications) of communication

Types of communication

Oral communication

is the process of verbally transmitting information and ideas from one

individual or group to another. Oral communication can be either Formal

or Informal. Examples of informal oral communication include:

• Face-to-face conversations
• Telephone conversations
• Discussions that take place at business meetings

Written communication

involves any type of message that makes use of the written word.

Written communication is the most important and the most effective of

any mode of business communication.

Examples of written communications generally used with clients or other businesses include:

• Email
• Internet websites
• Letters
• Proposals
• Telegrams,
• Faxes
• Postcards
• Contracts
• Advertisements
• Brochures and
• News releases.

Visual communication

is the transmission of information and ideas using symbols and imagery.

It is one of three main types of communication, along with verbal

communication (speaking) and non-verbal communication (tone, body

language, etc.). Visual communication is believed to be the type that

people rely on most, and it includes signs, graphic designs, films,

typography, and countless other examples.

Factors that Influence Choice of Communication Media

Point out the factors that influence choice of communication media

FACTORS WHICH SHOULD BE CONSIDERED IN CHOOSING A MEDIUM OF COMMUNICATION.

1. Quickness/Speed
   There are many types of transactions conducted during the business
   hours. One must speed up the transmission of message on the basis of
   importance and urgency of transaction. If the party is available in the
   transacted place, oral communication is enough. If the party is residing
   in the same city, telephonic message is good: if outside the city,
   message through Subscribers’ Trunk Dialing (STD). If much distance is
   there, then telegram can also be sent. If the matter is not urgent, a
   mere letter will be sufficient.
2. Accuracy If the
   accuracy of the message is the prime motive, a letter will serve the
   purpose Telephonic conversation might be misheard by the other party.
   Even telegrams, sometimes lead to wrong conclusion. Therefore, success
   can be reaped by a letter, provided the letter is properly written.
   Therefore, the communication medium which is selected should ensure
   accuracy in the transmission of messages.
3. Safety
   There is always risk when valuables are sent by post. Therefore, for
   safety purposes, important documents may be sent by registered post; for
   further safety by registered and insured post.
4. Secrecy
   In business field, certain transactions have to be kept confidential.
   When one aims at secrecy, letter will achieve the aim. In other
   communication systems, secrecy may leak out to unwanted persons.
5. Record
   Record of the message is essential and is possible only if it is in
   writing. For this purpose, duplicate copies of the letters can be
   preserved and they are good proof against disputes, relating to the
   transaction, in future. There is no record for oral communication.
6. Cost
   The cost of communication is also important. Before adopting any
   system, the expenses in different means may also be considered. The
   material cost (stationery) and labour cost in preparing the letter will
   also be considered.
7. Distance Distance between
   the persons who are parties to communication is an important factor. If
   distance is too short, face to face communication is suitable. If there
   is distance, message can be transmitted through phone or telegram or
   letter.

Barriers of Communication

• Lack of skilled personnel in communication
• Lack of modern communication equipment
• increased in costs in communication
• bad weather condition affects communication adversely.
• remoteness of some areas makes them not easily accessible.