Business Communication

Foundations

Benefits of Effective Communication

• Stronger decision-making and problem-solving
• Upturn in productivity
• Convincing and compelling corporate materials
• Clearer, more streamlined workflow
• Enhanced professional image
• Sound business relationships
• Successful response ensured

Characteristics of Effective Communication

• Fostering an open communication climate
• Committing to ethical communication
• Understanding intercultural communication
• Becoming proficient in communication technology
• Using an audience-centered approach
• Creating and processing messages efficiently

Barriers Between People

Barriers Within Organization

• Clear — one idea per sentence, easy to understand.
• Concise — sticks to the point, stays brief.
• Concrete — vivid, specific, focused details.
• Correct — fits the audience and is error-free.
• Coherent — logical, connected, consistent tone.
• Complete — gives the audience everything needed to act.
• Courteous — friendly, open, honest, empathetic.

Listening

• Active listening — listen carefully, paraphrase, check understanding, give feedback.
• Empathic listening — mindfulness + empathy to see the speaker's worldview.
• Critical listening — evaluate accuracy, meaning, and usefulness of the message.
• Listening for enjoyment — relaxing, fun, or emotionally stimulating listening.

Reducing Listening Barriers

• Control physical barriers where possible
• Avoid selective listening; focus and analyze
• Keep an open mind, avoid prejudgment
• Paraphrase to confirm understanding
• Record or write down information rather than relying on memory
• Improve short-term memory (repetition, patterns, shorter lists)
• Improve long-term memory (association, categorization, visualization, mnemonics)

Teams

Team: two or more people working together to serve a common project, service, or goal.

• Select collaborators carefully
• Agree on project goals before starting
• Give the team time to bond before diving in
• Clarify individual responsibilities
• Establish clear processes
• Make sure tools/techniques are compatible across the team
• Avoid writing as a group
• Check progress along the way

Group dynamics are the interactions and processes among team members as they work toward shared goals.

Culture & Intercultural Communication

Multicultural Workforce

A workforce where men and women from a variety of cultural and racial backgrounds work together toward a common goal.

• Language barriers
• Behavior differences
• Emotional display
• Grouping

• Contextual difference — physical cues, environmental stimuli, and implicit understanding that convey meaning; can cause misunderstanding across cultures (high-context vs. low-context).
• Legal & ethical difference — in low-context cultures the written word binds like a contract; in high-context cultures a personal pledge is a point of honor, sometimes valued above a legal contract.
• Social differences — informal, observed rules around work attitudes, roles and status, manners, and concepts of time.
• Nonverbal differences — greetings, personal space, touching, facial expressions, eye contact, posture, formality.
• Age differences — e.g. young employees openly disagreeing with elders is accepted in America but avoided publicly in many Asian cultures.
• Gender differences — opportunities and communication styles for men and women vary by culture.
• Religious differences — a major source of cultural difference and potential workplace friction between expressing belief and avoiding controversy.

High-Context vs. Low-Context Culture

Memo

Objectives of an Office Memo

• To issue instructions to staff
• To use as future reference
• To exchange ideas
• To seek explanation on a matter of conduct
• To grant or withhold permission to do something
• To confirm a decision reached on the telephone
• To request help or information
• To communicate policy changes to staff
• To give or seek suggestions to/from subordinates

Format of an Office Memo

• Company name
• Date
• Ref.
• To
• From
• CC
• Subject
• Summary
• Discussion
• Conclusion

Memo vs. Letter

Report

Guideline for a Short Report

• Title page
• Report text — Introduction
• Description of incident
• Date & time of incident
• Causes
• Parties related
• Loss from the event
• Terminal section — Recommendation
• Conclusion

Business Letter, Meetings & Correspondence

Dunning (Collection) Letter

A letter used to collect past-due accounts and get its recipient to pay an overdue debt.

Types: Reminder letter, Stronger reminder letter, Discussion letter, Urgency letter.

Circular Letter

A letter written for a large number of readers to convey a single message.

Situations Requiring a Circular Letter

• Introducing a new product
• Announcing a price reduction
• Opening a new business center or branch
• Admission of a new partner
• Introducing new technology
• Convincing consumers of product quality
• Building confidence in the company
• Publicizing any matter

Meetings

A meeting is a gathering of two or more people to make decisions through discussion — one of the key forms of oral communication.

Types: Public, Private, Formal, Informal, Committee, Command.

Claim & Adjustment Letters

Business Letter vs. Personal Letter

Glossary of Business Terms

Account payable

A debt owed by an enterprise that hasn't been paid yet.

Account receivable

A debt owed to an enterprise on which payment hasn't been received.

Amortization

Reduction of a debt through periodic payments of principal and interest.

Arbitration

Settling disputes through mediation by an impartial third party.

Bankruptcy

A legal means for a debtor to relinquish assets and relieve financial obligations.

Blue chip

A stock whose products and financial record are high quality.

Boycott

Refusal to have commercial dealings with someone or an organization.

Bull market

A stock market period when prices are rising.

Creditor

One to whom a debt is owed.

Debtor

One who owes a debt to another.

Domicile

The one place a person declares to be home, though they may have many residences.

Equity

The amount of one's actual ownership in a piece of property.

Fixed asset

Business property not consumed or converted to cash during operations.

Franchise

A right granted to carry on a certain business in a certain location.

Gross national product

The money value of a nation's total output of goods and services over a period.

Inflation

A period when the purchasing power of money is falling.

Inventory

All saleable goods on hand at a company, or a list of those goods.

Joint venture

A business project carried out by individuals joined for that purpose.

Letter of credit

A letter authorizing credit to its bearer, with the signer guaranteeing payment.

Manifest

A shipping document recording value, count, origin, and destination of cargo.

Margin

The difference between a purchase price and the resale price.

Mortgage

A legal claim on property arising from a loan to its purchaser.

Notary public

An official who administers oaths and certifies documents.

Obsolescence

Decrease in value from lessened demand or new invention, not wear.

Overdraft

A draft drawn beyond the amount a person has on deposit.

Par value

The stated value printed on a stock or bond certificate.

Patent

The exclusive right to a new and useful invention or improvement.

Power of attorney

A written instrument empowering someone to act as your agent.

Proxy

A written authorization for someone else to cast your vote.

Quick asset

Assets convertible to cash immediately with minimal loss.

Quorum

The number of people legally needed to conduct a valid meeting.

Real estate

An interest in land or things attached to land.

Stock split

Issuing new shares to replace each outstanding share.

Common Abbreviations

Trade & Economic Organization Abbreviations