DAVV MBA: Business Communication


Define communication and its objectives in a business set up

Definition: Business communication is the process of sharing information between people within and outside a company.

Objectives in a business set up:

  1. To exchange information
  2. To develop a plan
  3. To implement a plan
  4. To facilitate policy formulation
  5. To achieve an organizational goal
  6. To organize resources
  7. To coordinate
  8. To direct the subordinates
  9. To motivate employees
  10. To create consciousness
  11. To increase efficiency
  12. To bring dynamism

Distinguish bbetween business communication and general communication

Business communicationGeneral communication
Deals with only business-related information.Deals with all the information except business.
FormalLess formal
Direct approachIndirect approach
Uses a specific format for communicationUses different format for communication
There is no scope of using personal feelings in business messages.Personal feeling covers most of the part of general communication.
It is involved with practical information that is impartial and objective.It may be involved with fictitious information and the scope is partial or subjective.
Business communication follows organizational policies.General communication does not follow any formality.
This communication is made to take a specific actionHere communication is done to inform the receiver about certain issues.
It is official communication.It is personal communication.
Feedback is very importantFeedback is not very much important

Principles of effective communication

  1. Clarity
  2. Correctness
  3. Conciseness
  4. Courtesy
  5. Concreteness
  6. Consideration
  7. Completeness

Process of communication explained through various models and its examples

Linear Models (One-Directional Communication)Interactive Models (Two-Way Communication)Transactional Models (Personal Communication with immediate two-way feedback)
Aristotle’s ModelSchramm’s ModelBarnlund’s Transactional Model
Lasswell’s ModelWestley and Maclean’s Model Dance’s Helical Model
Shannon-Weaver Model
Berlo’s Model

Importance of feedback and critique

Importance of Feedback:

  1. Feedback keeps everyone on track
  2. Feedback helps your team avoid major mistakes
  3. You form better relationships
  4. Constructive feedback motivates people
  5. Feedback promotes personal and professional growth
  6. Feedback helps to create a friendly work environment
  7. Feedback produces some business-related, direct benefits

Importance of Critiques:

  1. Critiques Increases knowledge and perspective
  2. Creates bonds
  3. Helps grow a workplace

Barriers to effective communication

  1. Dissatisfaction or Disinterest With One’s Job
  2. Inability to Listen to Others
  3. Lack of Transparency & Trust
  4. Communication Styles
  5. Conflicts in the Workplace
  6. Cultural Differences & Language


Formal Channels of Communication

A formal communication channel transmits information such as the goals, policies and procedures of an organization.

An example of a formal communication channel is a company’s newsletter, which gives employees as well as the clients a clear idea of a company’s goals and vision.

Informal Channels of Communication

Informal communication does not follow authority lines as in the case of formal communication.

An example of an informal communication channel is communication during lunchtime.

Upward flow of communication

Communication that flows to a higher level in an organization is called upward communication.

Downward Communication

Communication that flows from a higher level in an organization to a lower level is a downward communication. For example, communication from superiors to subordinates.

Lateral / Horizontal Communication

Communication that takes place at same levels of hierarchy in an organization is called lateral communication, i.e., communication between peers, between managers at same levels.

Compare formal and informal communication

Formal CommunicationInformal Communication
Organizational rules are strictly followed.It does not generally follow the rules of organization
Requires official’s recognition.Does not require any official’s recognition.
Inflexible to changeFlexible to change
Such Communication is not free and open to all. So, Secrecy is maintained here.It is free and open to all, So it is very difficult to maintain secrecy here.
It follows various rules of organization. So, It requires much time and cost.Informal communication does not bother for the formalities of organization and therefore it requires less time and cost.
This type of communication involves written procedure, So record can be kept in formal communication.Permanent record is impossible here because almost nothing is written here.
Very careful attention is given here in encoding the message and sending the message through formal way. Due to this seriousness, there is less chance of placing mistakes or errors.It is personal in nature and therefore less attention is involved which can cause many errors or mistakes.
It is bound to follow the formal rules of communication.There is no pressure here to follow any rules.
Formal communication is necessary to achieve organizational goal.Informal communication is necessary to improve personal relation.
Authority can be delegated through formal communication.Authority cannot be delegated through such communication.

Grapevine Communication

Grapevine communication can be described as a casual and unofficial communication system within the organization.

Types of Grapevine communication:

  1. Single strand chain
  2. Gosip chain
  3. Probability chain
  4. Cluster chain

Advantages and disadvantages of Grapevine communication:

Advantages of Grapevine CommunicationDisadvantages of Grapevine Communication
Grievance redressalRisk of misunderstandings
Improved relationshipsDifficult to control
Increased efficiencySpread irrelevant gossip
Quick FeedbackUnexpected reactions
Group CohesivenessNo rules and monitoring
Propagate QuicklyIgnites Non-cooperation

Verbal communication

Verbal communication stands for both the spoken and written word used in the communication process. It can be further divided into Oral adn Written communication.

  • Oral communication : A face-to-face interaction between the sender and receiver. Presentations, meetings, seminars are part of oral communication.
  • Written communication : Sender uses the written mode to transmit his messages. Reports, letters, memos, e-mails come under this category.

Nonverbal Communication

When a message is communicated without using a word, the process requires non-verbal cues to be transmitted and received. It can be further categorized into two parts Body language and Paralinguistic features.

  • Body language : Personal appearance , walk, gestures, facial expressions, hand movements, postutes and eye contact.
  • Paralinguistic features: A person’s voice, volume, pitch, rate, pauses, articulation, voice modulation, etc.



Listening is the ability to accurately receive and interpret messages in the communication process.

Types of Listening:

  1. Active Listening : Active listening not only means focusing fully on the speaker but also actively showing verbal and non-verbal signs of listening.
  2. Passive Listening : Passive Listening occurs when a listener doesnot verbally respond to the speaker. The listener may deliberately or unintentionally send non-verbal messages through eye contact, smiles, yawns or nods.

Barriers to Listening:

  1. Excessive Talking
  2. Prejudice
  3. Distractions
  4. Misunderstanding
  5. Interrupting
  6. Bringing in Emotions
  7. Noise
  8. Previous experiences
  9. Having a Closed Mind


Cover Letter

A cover letter is a one-page document that you submit as part of your job application (alongside your CV or Resume).

Its purpose is to introduce you and briefly summarize your professional background. On average, your cover letter should be from 250 to 400 words long.

Format of a cover letter:

First paragraph

  • State the job you’re applying for.
  • Where you found out about it.
  • When you’re available to start work.

Second paragraph

  • Why you’re interested in that type of work
  • Why the company attracts you.

Third paragraph

  • Summarise your strengths and how they might be an advantage to the organisation.
  • Relate your skills to the competencies required in the job.

Last paragraph

  • Mention any dates that you won’t be available for interview
  • Thank the employer and say you look forward to hearing from them soon.

Guidelines to write a cover letter



Business memos are internal documents sent to employees to convey information about the company.

Sample Memo


TO: Suresh Agarwal, Store Manager
FROM: Deepak Dutta, Assistant Manager
DATE: March 18, 2014

RE: Dress Code Issues

A number of our clients have expressed their concern over the way certain sales associates are dressed. Clients complain their clothing does not reflect our store’s good image and quality of service, and instead makes them look trashy and unprofessional.

I think it is necessary for us to establish and enforce a dress code for all our store employees. Some of the items that can no longer be considered appropriate are excessively baggy pants and T-shirts, low cut blouses, and any garment that exposes the chest and back.

I would like to discuss this issue with you at your convenience, and also answer any questions you may have. Please contact me at XXX-XXXX.


Resume/ CV Writing

Sample Resume Format

Type of Resume:

  1. Functional Resume : This type of CV mainly focuses on your skills and experience.
  2. Chronological Resume : A chronological CV gives your work history in the chronological order, that is in the sequence of occurrence.