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TOPIC 2: COMMUNICATION | COMMERCE FORM 3 

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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.

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