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UnderstandingBusiness

communication

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• Dimensions of communication

• Channels of communication

• patterns of communication

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Formal Communication

• The process of sharing official informationwith others who need to know it,

according to the prescribed patternsdepicted in an organization chart

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4

Downward 

Formal communication network

CEO

VP-1

MGR-1 MGR-2

VP-2

MGR-3 MGR-4

Upward 

Horizontal 

Cross-Channel 

OBER, CONTEMPORARY BUSINESS COMMUNICATION, 5/E. COPYRIGHT © HOUGHTON MIFFLIN COMPANY. ALL RIGHTS RESERVED. 1.5

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Organizational Charts

Source: Skript BWL II

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Formal Communication

• downward communication: – instructions, directions, orders

 – feedback

• upward communication: – data required to complete projects

 – status reports

 – suggestions for improvement, new ideas• horizontal communication:

 – coordination of cooperation

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Centralized Networks

• One central person

• Unequal access to information

• Central person is at the “crossroads” of the

information flow

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Communication StructuresCentralized

Y

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Communication StructuresCentralized

Wheel

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Communication StructuresCentralized

Chain

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Decentralized Networks

• Information can flow freely

• No central person

• All members play an equal role in the

transmittal of information

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Communication StructuresDecentralized

Circle

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Communication StructuresDecentralized

Comcon

t

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n orma ommun cat onStructures

• Deviation from the planned communicationstructure

 – Direction of the flow of information

 – Leaving out people in the communication line

 – Integrating people into the communication line

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Informal Networks

 Y 

D

C

B

 A

Chain

 A

JB

D H I

K 

F

GE

C

Gossip

 A

F B D

J

H

CE

K 

G I

 X 

Probability

 A

C

D

F

J

IB

Cluster

 McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

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Formal Media

• Company newsletters

• Employee handbooks

• Company magazines

• Formal meetings

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Formal Media

• Letters

• Flyers and bulletins

• Memos

• Faxes

• All-employees mailings

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Informal Media

• Face-to-face discussions

• Telephone

• Voice messaging (voice mail)• E-mail

• Instant messaging (chat)

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Differences

• Informal

 – Usually used withfriends and family

 – Contains shortenedversion of words

 – Contains slang words

• Formal

 – Used in a ProfessionalSetting

 – No Slang

 – Pronounce words

correctly

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Social Behavior

• Varies from Location

• Proper Etiquette

• Proper Conversation

 – Please, Thank You, May I, I’m Sorry, ExcuseMe

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First Impressions

• Firm Handshake

• Proper Introduction

• Proper Appearance

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 Things that AffectCommunication

• Location

• Attitude

• Age

• Employment