Business communication is communication that is intended to help a business achieve a fundamental goal, through information sharing between employees as well as people outside the company.[1][2] It includes the process of creating, sharing, listening, and understanding messages between different groups of people through written and verbal formats.[3] The way that people communicate and operate within a business is very vital to how successful the company will be in the business world. Business communication occurs internally, employee-to-employee, or externally, business-to-business or business-to-consumer. This internal and external communication can happen through verbal or non-verbal communication methods. Often these internal and external forms of communication come with barriers, which can prevent the receiver from understanding the information sent by the sender.
The word "communication" derives from the Latin word communis, which implies common. Thus, communication may be defined as the interchange of thoughts and information to bring about mutual understanding.[4] Thus, communication may be defined as the interchange of thoughts and information to bring about mutual understanding on the subject's significance.
Communication in general is valued even more in international business communications to allow for the understanding of cultures and the overall morale of the operation.[5]
Business communication focuses primarily on achieving goals and, in the case of a public company or organization, increasing the dividends of shareholders.[6]
In the past, organizational points and company policies were primarily communicated via paper documents. In the digital age, companies mostly exchange information virtually.[7] Face-to-face meetings and presentations increasingly feature audiovisual material, like copies of reports, or material prepared in Microsoft PowerPoint or Adobe Flash. In the 21st century, computer-mediated communication, such as video conferencing and email, has become increasingly prevalent in business.
Types of business communication
Internal
A group of people sit around an office conference table having a meeting.
Business-to-employee communication, also known as workplace communication, is the exchange of information within an organization. The purpose of some communications is to develop trust, and/or to increase productivity.[8]
This type of business communication includes the flow of information from one level of the business hierarchy to another. Communication that flows from the top of the hierarchy to the bottom ("top-down communication") has been shown to decrease the stress levels of employees if it provides clarification and reassurance to the worker.[9] The amount of information shared in this way is often dependent on a "need to know" basis.[2] This communication may take the form of memos and other internal documents.[10] Although a certain level of top-down communication is helpful, too much communication can be seen by the employee as micromanagement. Upward communication is any communication within the business that is passed through the business hierarchy from the bottom upwards.[2] A suggestion box, which allows low-level workers to communicate with management anonymously, is one example of upward communication. Horizontal communication occurs between individuals who are on the same level in the business hierarchy.[2]
Organizational communication involves meetings, exchange of email messages, or collaboration for projects. It is determined that the success of communication within the individuals of the organization underlines the company's success. It is important for business leaders to understand the role of communication in order to motivate employees in accomplishing goals for the company. Low engagement in an organization can cost the global economy trillions of dollars a year.[11]
Since information is being shared up and down the hierarchy of communication channels, it is shared in various forms, such as verbal, written, and digitally, within teams and the company as a whole.
External
Business-to-business communication is sharing information between different other companies, often done to benefit both parties. Business communication can help the company achieve its fundamental goals by informing, persuading, and building good relations with other companies to reach mutual goals.[12]
Methods of business communication
Internal and external types of business communication occur through verbal and non-verbal methods.[13]
Almost all businesses use technology to communicate outside and inside an organization.[14] Electronic communication includes emails, text messages, voice and video calls, and employee intranet and HR software.
Communication may also be non-electronic. There will be times that an organization requires physical documents and paperwork,[14] such as during face-to-face meetings.
Written forms of communication can be provided electronically and non-electronically,[14] such as emails, letters, and contracts. Written documents may save time and money, and keep a record of what was said.
Effective business communication
Effective communication mainly revolves around how employees and management interact with one another to reach organizational goals. They accomplish this by improve organizational practices and reduce errors. All organized activity in a company relies on the process of business communication and your communication strategy. The importance of effective business communication also lies in:
There are several barriers that a business might experience when communicating with business partners. Such barriers can prevent one from receiving or understanding messages others use to convey information, ideas, and thoughts.[16][17][18]
Business communication studies
Higher learning institutions offer communication courses, and many are now offering business communication courses. These courses teach students how to communicate more effectively.[19][20] Attending these courses help students understand the communication barriers they might experience when communicating with others. It is suggested that 93% of employers believe that clear communication skills are more important than the students' actual major area of study.[21] Communication competence is an ability that is sought after by employers and often leads to professional success.[22]
Application
Many scholars have analyzed employee performance and have come to find that positive performance includes far more than competence and skill, also involving the use of effective communication. Through better communication, employees stimulate productivity in their own work as well as their colleagues, and promote long-lasting improvement in the workplace environment.
From the manager's perspective, a relevant understanding of business communication allows them to guide the organization in a more effective and productive manner. Aan open communication line connecting departmental units is greatly reliant on business communication. Through sound practice, managers can portray and employees can understand a business's goals and objectives.
Associations
Founded in 1936 by Shankar,[who?] the Association for Business Communication (ABC),[23] originally called the Association of College Teachers of Business Writing, is "an international, interdisciplinary organization committed to advancing business communication research, education, and practice."
The IEEE Professional Communication Society (PCS)[24] is dedicated to understanding and promoting effective communication in engineering, scientific, and other environments, including business environments. PCS's academic journal[25] is one of the premier journals in Europe communication. The journal’s readers are engineers, writers, information designers, managers, and others working as scholars, educators, and practitioners who share an interest in the effective communication of technical and business information.
The Society for Technical Communication is a professional association dedicated to the advancement of the theory and practice of technical communication. With membership of more than 6,000 technical communicators, it is the largest organization of its type in North America.
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