COLLEGE OF EDUCATION-RUKARA CAMPUS

SCHOOL OF LOWER SECONDARY EDUCATION

DEPARTMENT: ARTS AND SOCIAL SCIENCES

SECTION: ENTREPRENEURSHIP WITH EDUCATION
PROGRAMME: FT
ACADEMIC YEAR: 2016-2017

PART: I

LEVEL: II

SEMESTER: I

MODULE TITLE: BUSINESS COMMUNICATION

MODULE CODE: ENT2104
FACILITATOR: Mr. SINDAYIGAYA Aimable Benjamin & Mr. NDISANZE Onesme
NOTES
HISTORICAL BACKGROUND
Thousands years ago, people used to communicate orally. Greeks used a phonetic alphabet
written from left to right. After that, many books appeared on written communication principles.
As a result of this, Greek started her/his very first library.
Hence, todays principles of communication are founded on a mixture of ancient oral and
written traditions.

DEFINITION OF COMMUNICATION
It is not just the process of transmitting, neither is it merely the message itself. Communication is
not just a set of techniques.
The word Communication comes from the Latin word of communis, which means

to share is the activity of conveying information through the exchange of thoughts, messages, or
information, as by speech, visuals, signals, writing, or behavior.
Communication requires a sender, a message, and a recipient, although the receiver need not be
present or aware of the sender's intent to communicate at the time of communication; thus
communication can occur across vast distances in time and space. Communication requires that
the communicating parties share an area of communicative commonality. The communication
process is complete once the receiver has understood the message of the sender.
According to Fred Luthans: Communication means The flow of material information,
perceptions and understanding between various parts and members for smooth running of an
organization.
According to Mary Munter Communication is the process of sharing by which message
produces response.
According to Murphy, communication is the process of transmitting and receiving verbal and
non-verbal messages.
Communication is a process of sharing message from on party to another party i.e. from sender
to receiver.
The message indicates that communication is not only what is on a piece of paper but it is a lot
more, it includes all ideas in the senders mind, how it is transmitted, how it is received and how
it is perceived, meaning how it is understood, it also means that communication is not just verbal
it is also non-verbal. The last part produces response means it is not just sending the information
but getting a response from it and that too an effective one.

Communication is any act by which one person gives to or receives from another person the
message about that persons needs, desires, perceptions, knowledge, emotional or affective
states. Communication may be intentional or unintentional meaning that it may involve
conventional or unconventional signals, may take linguistic or non-linguistic forms, and may
occur through spoken or other modes. In simple words; communication is the exchanging of
ideas, opinions, facts, feeling, taught, emotions and information through written or spoken
words, symbols or actions between two parties i.e. sender and receiver.
Note: In normal circumstance communication is a dialogue but it can be monologue where
someone might share ideas, opinions, facts, feeling, taught, emotions and information through
written or spoken words, symbols or actions between him and her (intrapersonal
communication).
Communication is considered to be effective if the messages shared mean the same thing to both
the sender and the receiver.
Therefore; Communication is a process of exchanging ideas, opinions, facts, feeling, taught,
emotions and information through speech, signals, writing, or behavior.
In communication process, a sender (encoder) encodes a message and then using a
medium/channel in sending it to the receiver (decoder) who decodes the message and after
processing information or responses to be sent back as appropriate feedback/reply using a
medium/channel.
COMPONENTS OR ELEMENTS OF COMMUNICATION
The following are eight core components of communication process:
1. Sender/Encoder
2. Encoding /scripting
3. Message
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4. Medium/ channel
5. Noise
6. Receiver/Decoder
7. Decoding
8. Feedback
1. Sender/Encoder
Encoder is the person who generates scripts and sends message. In oral communication the
encoder is speaker, and in written communication writer is the encoder. The first task of the
sender is to decide what you want to communicate and what would be the content of your
message. The second is to think about main points of your message and what other information
to include in? The third is to screen and decide the appropriate channel s/he should use in
sending message.
An encoder uses combination of symbols, words, graphs and pictures understandable by the
receiver, to best convey her/his message in order to achieve her/his desired response.
2. Encoding
The process of scripting or transforming ideas, opinions, facts, feeling, emotions, taught
and information into codes and figures to form message to be sent to the receiver.
3. Message
Message is a set of the information, ideas, opinions, facts, feeling, emotions, taught and
information that is going to be exchanged between sender and receiver.
4. Medium
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Medium/ channel are the route or way through which encoder will use to communicate or to
transmit her/his message to the receiver. How the message gets the receiver through channels?
Your medium to send a message may be print, electronic, or sound. Medium may be a person as
postman. The choice of medium totally depends on the nature of you message and contextual
factors discussed above. Choice of medium is also influenced by the relationship between the
sender and receiver. E.g.: News letter; application letter; C.V; telephone; postal; and etc.
NOTE: The oral medium, to convey your message, is effective when your message is urgent,
personal or when immediate feedback is desired. While, when your message is ling, technical
and needs to be documented, then written medium should be preferred that is formal in nature.
5. Receiver/Decoder
The receiver is the person to whom the message is being sent to. Receiver receives message and
prepares the feedback to the sender and decoding the message. Receiver may be a listener or a
reader depending on the choice of medium by sender to transmit the message. Receiver is also
influenced by the context, internal and external stimuli in her or his decisions.
6. Decoding
Decoding is a process of receives, analyses, criticizes, and interprets the received message by the
receiver to come up with comprehensive meanings.
7. Feedback
Feedback is the response or reaction of the receiver to a received message. Feedback may be
written or oral message, an action or simply, silence may also be a feedback to a message in case
one of either communicators or both are using non-verbal symbols.
Communication is said to be effective only when the sender receives some feedback. Therefore,
Feedback, actually, completes the loop of communication.

8. Noise
Noise is a set of all hinders/ obstacles or barriers that limit message or feedback to reach the
expected receivers. E.g.: Hall, long distance, emotions, etc.
THE MAIN STAGES OF COMMUNICATION PROCESS
The graphical presentation of communication process is as follows:

1. Developing idea: The sender or communicator develops an idea which

to be send. It is also known as planning stage of the communication process.
After developing an idea, the communicator determines the objectives or
subject matter of communication.
2. Encoding: Encoding is the act of putting an idea or thought of the
message into a code or into a symbolic form. A code is a systematic
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arrangement or comprehensive collection of symbols, letters or words that

have arbitrary meanings and are used for communication. Encoding means
converting or translating the idea into a perceivable form that can be
communicated to others.

3. Selecting Media/Channel: Media or channel is the means or ways of transmitting the

messages to the receiver. The media of oral communication are face to face conversation,
telephone/mobile, conference, meetings etc. the media of written communication are newspaper,
letter, report, memo, mail etc.
4. Transmitting message: After selecting media or channel the sender transmits the messages or
information to the receiver.
5. Receiving message: In this stage, the receiver receives the messages in the form of a hearing,
seeing, feeling etc. the receiver may be an individual, or group or an organization. The receiver
decides whether to decode the message or to make an effort to understand it.
6. Decoding: Decoding is the receivers interpretation of the senders message. Decoding is the
process by which the receiver assigns meaning to the symbols encoded by the sender.
7. Response: After decoding the receiver accept or reject the message.
It is the reaction of the receiver of the message knows as response. A message can create many
kinds of responses into the receiver depending on the context and the nature of message. The
response may be immediate, deferred, favorable or unfavorable. When the receiver accepts or
response the message in a favorable way the processes of communication continue.
8. Feedback: The receivers response to the senders message in called feedback. Feedback
ensures proper and mutual understanding between sender and receiver.

TYPES OF COMMUNICATION
People communicate with each other in a number of ways that depend upon the message and its
context in which it is being sent. Choice of communication channel and your style of
communicating also affect communication. So, there is variety of types of communication.
Types of communication based on the communication channels used are:
i. Verbal Communication
ii. Nonverbal Communication
I.
Verbal Communication
Verbal communication is communication where message are transferred by using voice, words
and sound.
Verbal communication refers to the form of communication in which message is transmitted
verbally; communication is done by word of mouth and a piece of writing. Objective of every
communication is to have people understand what we are trying to convey. In verbal
communication remember the acronym KISS (keep it short and simple).
When we talk to others, we assume that others understand what we are saying because we know
what we are saying. But this is not the case, usually people bring their own attitude, perception,
emotions and thoughts about the topic and hence creates barrier in delivering the right meaning.
So in order to deliver the right message, you must put yourself on the other side of the table and
think from your receivers point of view. Would s/he understand the message? How it would
sound on the other side of the table?

Verbal Communication is further divided into:

i. Oral Communication
ii. Written Communication
1. Oral Communication
Oral communication is a situation where message is shared between two or more parties by using
voice, words through mouth.
In oral communication, Spoken words are used. It includes face-to-face conversations, speech,
telephonic conversation, video, radio, television, voice over internet. In oral communication,
communication is influence by pitch, volume, speed and clarity of speaking.
Advantages of Oral communication are:

It brings quick feedback.

In a face-to-face conversation, by reading facial expression and body language one can
guess whether he/she should trust whats being said or not.
Etc.
vvvv
Disadvantage of oral communication

In face-to-face discussion, user is unable to deeply think about what s/he is

delivering.
It doesnt have facts and evidences

 It is no easy to keep and document

Etc.

2. Written Communication
Written communication is a situation where message is shared among two or more parties by
using writings.
In written communication, written signs or symbols are used to communicate. A written message
may be printed or hand written. In written communication message can be transmitted via email,
letter, report, telephone, memo etc. Message, in written communication, is influenced by the
vocabulary & grammar used, writing style, precision and clarity of the language used.
Written Communication is most common form of communication being used in business. So, it
is considered core among business skills.
Memos, reports, bulletins, job descriptions, employee manuals, and electronic mail are the types
of written communication used for internal communication. For communicating with external
environment in writing, electronic mail, Internet Web sites, letters, proposals, telegrams, faxes,
postcards, contracts, advertisements, brochures, and news releases are used.
Advantages of written communication include:

Messages can be edited and revised many time before it is actually sent.
Written communication provides record for every message sent and can be saved for later
study.
A written message enables receiver to fully understand it and send appropriate feedback.
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 Etc.

Disadvantages of written communication include:

Unlike oral communication, written communication doesnt bring instant feedback.

It takes more time in composing a written message as compared to word-of-mouth and
number of people struggles for writing ability.
It is expensive because it requires more
Etc.
II.

Non verbal Communication

Non-verbal communication is a type of communication where message are transmitted by use of

signs, symbols, and gesturers.
Nonverbal communication is the sending or receiving of wordless messages. We can say that
communication other than oral and written, such as gesture, body language, posture, tone of
voice or facial expressions, is called non verbal communication. Nonverbal communication is
all about the body language of speaker.
Nonverbal communication helps receiver in interpreting the message received. Often, nonverbal
signals reflect the situation more accurately than verbal messages. Sometimes nonverbal
responses contradict verbal communication and hence affect the effectiveness of message.
Nonverbal communication has the following three elements:
i.

Appearance
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Speaker: clothing, hairstyle, neatness, use of cosmetics

Surrounding: room size, lighting, decorations, furnishings
ii.

Body Language

Facial expressions, gestures, postures

iii.

Sounds

Voice Tone, Volume, and Speech rate

TYPES OF COMMUNICATION BASED ON PURPOSE AND STYLE
Based on style and purpose, there are two main categories of communication and they both bears
their own characteristics. Communication types based on style and purpose are:
I. Formal Communication
II. Informal Communication
1. Formal Communication
In formal communication, certain rules, conventions and principles are followed while
communicating message. Formal communication occurs in formal and official style. Usually
professional settings, corporate meetings, conferences undergoes in formal pattern.
In formal communication, use of slang and foul language is avoided and correct pronunciation is
required. Authority lines are needed to be followed in formal communication.
2. Informal Communication
Informal communication is done using channels that are in contrast with formal communication
channels. Its just a casual talk. It is established for societal affiliations of members in an
organization and face-to-face discussions. It happens among friends and family. In informal
communication use of slang words, foul language is not restricted. Usually, informal
communication is done orally and using gestures.
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Informal communication, unlike formal communication, doesnt follow authority lines. In an

organization, it helps in finding out staff grievances as people express more when talking
informally. Informal communication helps in building relationships.
Apart from the stated types of communication we have:
1. Organizational communication
Organizational communication is a subfield of the larger discipline of communication studies.
Organizational communication, as a field, is the consideration, analysis, and criticism of the role
of communication in organizational contexts.
2. Interpersonal Communication
It communication within an individual or it is monologue where people communicate her or
himself.
3. Business communication
Business communication is the communication between the people in the organization for the
purpose of carrying out the business activities.
A business can flourish when all objectives of the organization are achieved effectively. For
efficiency in an organization, all the people of the organization must be able to convey their
message properly.

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LEVELS OF COMMUNICATION
Intrapersonal

within one person

Communication
Interpersonal

between two people

Communication
Small

Group

groups up to 25 people

Communication
Large

Group

groups of 25 or more

Communication
Organizational

within business, administration

Communication
Public

or

Mass

Communication

special media directed to a large

audience

International

involving cross borders and cultures

Communication

DAILY FORMS OF COMMUNICATION

Forms
Interpersonal

face

to

Examples
Casual

face
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conversations,

interviews,

communication
Group communication
Speaker-audience
Telephonic communication
Written communication

student-student negotiations.
Meetings,
conferences,

discussions
Seminars,

debates
Personal, business, interactions.
Letters, e-mails, reports, proposals.

workshops,

group
speeches,

ROLE OF COMMUNICATION WITHIN AN ORGANIZATION

Organization is an arrangement between individuals and groups in human society that structure
relationships and activities (Business, Political, Religious or social, charity, etc). In other words,
an organization is a group of people identified by shared interests or purpose, for example, a
school, government unit or organ, church, NGOs, bank, etc.
Therefore Communication is the lifeblood of an organization. If we could somehow remove
communication flow from an organization, we would not have an organization.
It is needed because it:
1. Helps in business organisation planning
2. Helps in coordination of organisation resources
3. Helps in organizing the business organisational resources
4. Helps in staffing the business organizations human resources
5. Helps in recruitment process
6. Helps in motivating all business organizations resources e.g.: Thanks
7. Helps in monitoring and evaluating the business organizations activities
8. Helps in decision making
9. Helps in conflict management
10. Helps in sharing the profits and dividends
11. Helps in market identification and any product
12. Helps in price determination
13. Helps in planning processes
14. Helps in career and skills development
15. Helps in building good and close relationship among employees and outsiders
16. Helps in screening weakness and straightness of competitors
17. Helps in attracting foreigners
18. Helps in description of products and production processes
19. Helps in compliance with law
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20. Helps in determining the value and volume of products produced

21. Helps in designing and naming the products
22. Helps in attracting and retaining customers and suppliers
23. Helps in identification of customers behaviours
24. Works as source of information for reporting
25. Helps in advertising
26. Helps in choose of business to be started
27. Increases the goodwill or reputation of the business through report
28. Facilitates the capital formulation and investment
29. Helps in determination of creditors and debtors of the business and compare them.
30. Helps in deciding the location of the business
31. Helps in setting strategies and tactics to achieve the set objectives of the business
32. Helps in determining and presenting the position of the business through balance sheets
33. Helps in screening customers preferences and decide how to meet them
34. Helps in indicating manufacturing date and expired date of the products
35. Helps in market research to assess the customers problems
36. Helps in conflict-resolution
37. Helps in identification of internal and external factors that influences the business
activities
38. Helps in determining the effects of national and internal currency changes to the business
39. Helps in market segmentation
40. Helps in prevention and correction of frauds, errors and mistakes aroused in business
41. Helps in determining products uses and users
42. Helps in increasing business stake holders welfare and awareness
43. Helps in expending business activities
44. Helps in specifying duties and responsibilities of each and every stakeholder
45. Helps in promoting business creditworthy
46. Helps in promoting accountability with stakeholders
47. Etc.
When communication stops, organized activity ceases to exist. Individual uncoordinated activity
returns in an organization. So, Communication in an organization is as vital as blood for life.
The seven cs of effective business communication
The message is said to be effective when the receiver understands the same meaning that the
sender was intended to convey. For any communication in business, in order to be effective, it
must have seven qualities. These seven attributes are called seven Cs of effective business
communication. (All these attribute starts with the alphabet C so are called 7 Cs)
1. Correctness
2. Clarity
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3.
4.
5.
6.
7.

Conciseness
Completeness
Consideration
Concreteness
Courtesy

1. Correctness
At the time of encoding, if the encoder has comprehensive knowledge about the decoder of
message, it makes the communication an ease. The encoder should know the status, knowledge
and educational background of the decoder. Correctness means:

Use the right level of language

Correct use of grammar, spelling and punctuation

Accuracy in stating facts and figures

Correctness in message helps in building confidence.

2. Clarity
Clarity demands the use of simple language and easy sentence structure in composing the
message. When there is clarity in presenting ideas, its easy for the receiver/decoder to grasp the
meaning being conveyed by the sender/encoder.
Clarity makes comprehension easier.
3. Conciseness
A concise message saves time of both the sender and the receiver. Conciseness, in a business
message, can be achieved by avoiding wordy expressions and repetition. Using brief and to the
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point sentences, including relevant material makes the message concise. Achieving conciseness
does not mean to lose completeness of message.
Conciseness saves time.

4. Completeness
By completeness means the message must bear all the necessary information to bring the
response you desire. The sender should answer all the questions and with facts and figures. and
when desirable, go for extra details.
Completeness brings the desired response.
5. Consideration
Consideration demands to put oneself in the place of receiver while composing a message. It
refers to the use of your attitude, emphases positive pleasant facts, visualizing readers problems,
desires, emotions and his response.
Consideration means understanding of human nature.
6. Concreteness
Being definite, vivid and specific facts and events rather than vague, obscure and general lead to
concreteness of the message; facts and figures being presented in the message should be specif.
Concreteness reinforces confidence.
7. Courtesy
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In business, almost everything starts and ends in courtesy. Courtesy means not only thinking
about receiver but also valuing his feelings. Much can be achieved by using polite words and
gestures, being appreciative, thoughtful, tactful, and showing respect to the receiver. Courtesy
builds goodwill.
Courtesy strengthen relations.
SUMMARY OF COMMUNICATION MAXIMS
Completeness (context)

Conciseness (style)

to answer all questions asked

to give something extra, when desirable

to check for the five W's and any other essentials

to shorten or omit wordy expressions

to include only relevant statements

Consideration

to avoid unnecessary repetition

to focus on "you" instead of "I" or "we"

(context/delivery)

to show reader benefit/interest in the reader

to emphasize the positive, pleasant facts

Concreteness

to apply integrity and ethics

to use specific and accurate words, facts and figures

(style/sources)

to put action in your verbs

to choose vivid, image-building words

to choose short, familiar, conversational words

to construct effective sentences and paragraphs

to achieve appropriate readability (through headings and

Clarity

(organization/

sources)

transitions) and listen ability

Courtesy (delivery)

Correctness (style)

to include examples, illustrations, and other visual aids, when

desirable
to be sincerely tactful, thoughtful, and appreciative

to omit expressions that irritate, hurt, or belittle

to grant and apologize good-naturedly

to use the right level of language

to maintain acceptable writing mechanics

to choose nondiscriminatory expressions

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to apply all the other pertinent "C" qualities

(From Murphy and Hildebrandt's Effective Business Communications, 1991,

Modifications/additions by Bob Corey 2005)

FLOW OF COMMUNICATION BETWEEN THE BUSINESS ORGANISATION
PARTNERS
i. Upward Communication Flow
ii. Downward Communication Flow
iii. Horizontal/Literal communication Flow
iv. Diagonal Communication Flow
v. Grapevine Communication Flow
I.

Upward Communication flow

Upward communication flow is a situation where information moves from subordinates to

superiors or from employees to management. Without upward communication flow, management
works in a vacuum, not knowing if messages have been received properly, or if other problems
exist in the organization.
By definition, communication is a two-way affair. Yet for effective two-way organizational
communication to occur, it must begin from the bottom.
Upward Communication flow is a mean for staff to:
Exchange information
Offer ideas
Express enthusiasm
Achieve job satisfaction
Provide feedback
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Illustration of downward communication flow

II.

Downward Communication flow

In downward communication flow information or message flows or moves from the top of the
organizational management hierarchy to the bottom of the organisation hierarchy by telling
people in the organization what is important (mission) and what valued (policies) is?
Downward communication flow generally provides information which allows a subordinate to
do something. E.g.: Instructions on how to do a task.
Mostly downward communication flow comes after upward communication flows have been
successfully established because it is feedback. This type of communication is needed in an
organization to:
Transmit vital information
Give instructions
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 Encourage 2-way discussion

Announce decisions
Seek cooperation
Provide motivation
Boost morale
Increase efficiency
Obtain feedback
Illustration of downward communication flow

Note: Both Downward & Upward Communications are collectively called Vertical
Communication flow
III.

Horizontal/Literal communication flow

Horizontal communication flow is a situation where message is shared by people of the same or
similar levels of management hierarchy within a business organisation.

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It normally involves coordinating information, and allows people with the same or similar rank
in an organization to cooperate or collaborate. Communication among employees at the same
level is crucial for the accomplishment of work.
Horizontal Communication flow is essential for:
Solving problems
Accomplishing tasks
Improving teamwork
Building goodwill
Boosting efficiency

Illustration of horizontal communication flow

IV.

Diagonal communication flow

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This is a situation where message are shared by people from different organs, sections, or
departments i.e. manager of one group is sharing message with a member of another group.
Example is communication between UR-CE, Rukara Campus Director with management of
cleaning company.
Note: Vertical, horizontal and diagonal communication flows both are done within business
organisation.
V.

Grapevine Communication flow

It is an external communication where insiders share message with outsiders of business

organisation.
This leads to better;
Sales volume
Public credibility
Operational efficiency
Company profits
It should also improve:
Overall performance
Public goodwill
Corporate image
Ultimately, it helps to achieve:
Organizational goals
Customer satisfaction
Illustration of grapevine communication flow
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SAMPLE QUESTIONS
1. What is communication?
2. By using examples, give and explain eight elements of communication.
3. Distinguish the following:
i.

Oral and written communication

ii.

Verbal and non-verbal communication

iii.

Hearing and listening

iv.

Interpersonal and intrapersonal communication

v.

Mass and public communication

4. By referring to Inyange Industries, give and explain twenty merits of

communication.
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5. Give and explain seven maxims or canons of effective communication.

6. Jane and Benoni are children of family of Benjamin and Florentine. Give
and explain how communication might move in the said family.
7. Etc.
End
Prepared by: Mr. SINDAYIGAYA Aimable Benjamin
Assistant Lecturer of Entrepreneurship
UR-CE.

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