Philosophy and Elements of Effective Business Communication

Introduction

Communication plays an important and fundamental role in the conduct of business. Business organizations have a variety of structures, and the dissemination of information within and outside these structural barriers is a complex task for employees and business managers. Organizations cannot communicate effectively until a guiding philosophy is adopted that directs the business communication process.

Philosophy is defined as the set of ideas and principles that guide conduct and practice in a particular discipline. As used in this paper, philosophy refers to the set of principles that an organization adopts for effective organizational communication. It is also referred to as "total business communication."

Communication is the two-way exchange of information, views, feelings, and thoughts occurring both formally and informally. The modes of communication can be verbal and non-verbal.

Philosophy of business communication refers to the underlying set of ideas and principles on which the process of communication within a business setting is based. The set of ideas that shapes business communication conduct and the resulting methods of working can be termed the philosophy of business communication. This concept implies that business communication spans the entire plane of organizational activity, and no organizational function lies beyond the reach of the communication function. In an organizational setting, the basic principles on which communication is based are completeness, conciseness, clarity, and correctness of the information, thoughts, and feelings portrayed in communication.

Elements of Effective Business Communication

Communication within an organization is carried out both intentionally and unintentionally. From formal to informal settings, communication occurs for interactional and transactional purposes. In order to assess the purpose, importance, and strategic significance of business communication, the following sections highlight the key elements of the business communication process.

The source of communication in an organizational setting is also known as the sender or encoder of the message. As noted above, communication is the two-way exchange of information, feelings, facts, and thoughts. Therefore, the most important elements in business communication are the sources of that communication. In organizations, managers and senior staff are the core actors in business communication, as most communication within and outside the organization takes place through them. Management delivers messages constantly in order to develop effective communication channels and rapport with the intended recipients.

The actual information to be delivered to other people, groups, or individuals is known as the message of the communication process. It is at this stage that the sender, through the use of effective language skills, text, and formal or informal mediums, approaches the receiver so that the message can be understood.

A communication channel is the medium through which communication is conducted within and outside the organization. Prior to the internet boom, companies had limited options for channel selection, relying primarily on press conferences and media events to communicate financial and other information. Currently, however, organizations use company websites, social media pages, and the Securities and Exchange Commission (SEC) online portal to disclose company information. The receiver is the person within or outside the organization toward whom the message relayed through the communication channel is directed. The sender intends to pass information to the receiver, and it is the receiver's function to decode that information (Guffey & Loewy, 2010).

Feedback is the most important aspect of business communication and can be understood as the desired outcome for which the encoder initiated the communication process. Feedback is the response generated by the receiver upon receiving the encoded message. It is the feedback that enables the sender to gauge the effectiveness of the communication that has taken place. When the receiver's response is effective and aligns with expectations, communication is considered successful. The response or feedback from the decoder also signals any adjustments required on the part of the sender.

A typical organizational example of this communication cycle is that carried out by marketing communication managers. These managers communicate the features and attributes of their company's products and services through channels such as advertising, public relations, and promotional campaigns. The response of consumers—usually gauged by changes in sales volume—provides feedback to the managers as to whether they have successfully created and obtained the desired response.

Conclusion

The role of the sender is vital in effectuating business communication, since it is at the stage of sending a message that the success of that message can be managed. For instance, when business managers design and communicate compensation and incentive plans for organizational employees, the message should clearly resonate with the capabilities, needs, and overall competency of the employees for whom the compensation package is designed. If the package exceeds or fails to meet the competency level of employees, it may ultimately fail to sustain a well-performing workforce.

In the context of communicating messages to external stakeholders, the role of the sender—that is, the organization itself—assumes even greater importance. Business managers should effectively map out the purpose of their communication and then execute it accordingly. If an organization fails to communicate what it intends to deliver to the target market—whether an image of cost leadership or quality leadership—the receivers (consumers) will ultimately not respond in the desired way. Weakening sales and a receding market share may be the ultimate outcomes of poorly planned and weakly delivered messages on the part of the sender.

The other two elements of the communication process within and outside an organization are the channel of communication that a firm adopts and the feedback it receives from the receiver. Channel selection is especially important when discussed in the context of marketing communication. Increasingly, business organizations are selecting non-traditional and below-the-line channels of communication.

Holm (2006) describes that Integrated Marketing Communication (IMC) is successfully used by some organizations, but a large number of organizations reviewed by the researcher do not use IMC. The IMC model enables business firms to adopt an integrated, all-inclusive communication model whereby a consistent message is delivered to all stakeholders of an organization, whether internal or external. The researcher also observes that since IMC is a strategic model of marketing communication, most firms tend to make decisions at the tactical level of advertising agencies, and few take such marketing communication decisions at the strategic management level.

In an IMC model, communication also provides an effective platform for organizations to receive feedback beyond sales volume. Social media marketing enables two-way communication in which potential and current consumers can make suggestions, leave comments, and co-create value (Desanctis & Monge, 1999; D'Urso & Rains, 2008). Therefore, channel selection in the communication process is the second most important factor that business managers and executives must consider.

Philosophy is the set of ideas that form the foundation of a system. Philosophy of business communication is the set of ideas and principles that form the base of communication within and outside the organization. The main elements of the business communication process are the sender, the message being sent, the channel of communication, and the feedback system. The sender is important because the message being sent to the receiver is conceived by the sender, and it is only the sender who fully understands the intended purpose of the communication as well as the desired response. While not disregarding the importance of the message itself, the channel of communication and the feedback system are the next most critical elements of the communication process. In the context of marketing communication, an Integrated Marketing Communication (IMC) model is more appropriate for contemporary organizations, as it enables business managers to send a consistent message across all receiver groups.

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