B.Com 1st Year Introducing Business Communication Long Question Answers Notes

B.Com 1st Year Introducing Business Communication Long Question Answers Notes :- Study Material Notes Sample papers Unit wise Notes To B.A B.Sc B.Com M.A And Success In The Examinations Of M.Com Previous Year Question Answer Notes Is Available.

Section B


Q.1. What do you mean by business communication? Discuss the theories of communication. (2014)

Ans. Business Communication: It is well-known that the life of business enterprise depends on effective communication. It is also termed as ‘life-line! Ideas, messages and information are transmitted through the vehicle of communication. In any business organisation, there is always a need to establish, to maintain and to sustain rapport with various kinds of people, viz. customers, employees and so many others. The process of communication takes the business ahead towards the anticipated targets.

“The total-sum of all the things one person does, he wants to create an understanding in the mind of another which is a bridge of meaning. It involves a systematic and continuing process of telling, listening and understanding.                                                                                    -Allen

Theories of Communication: A theory is a set of statements, including some lawlike generali-sations. So far as social sciences are concerned, we do not have fully formalised, well-articulated theories, but we do have some partially formalised theories.

in communication, we have many theories. The atmosphere, limitations and assumptions under which message is transmitted are known as theories of communication. Theories of communication can be classified in two ways:

1. Theories propounded to create socio-cultural environments.

2. Theories based on the ideas of different scholars.

1. Theories Propounded to Create Socio-cultural Environments

(a) Communist Theory of Communication: This theory follows the principles of communism. It was propounded in 1917 in USSR. This theory is based on the following principles:

(i) The voice of workers will be heard prominently.

(ii) Opposition should be made against the exploitation of man by man.

(iii) Public will play supreme role in construction of a strong nation. (iv) Interest of nation will remain supreme.

This theory was not only followed in USSR, but in China, Korea, Cuba and many other countries also.

(b) Islamic Theory of Communication: This theory follows the conservative principles of Muslims. It is based on ‘Quran’ the religious book o muslims. This theory follows the preachings of Mohammed Sahib. This theory is popular mostly in middle east and other Muslim countries.

(c) Chinese Theory of Communication: This theory laid focus on respect, dedications and faithfulness towards the nation. Instead of revolution, peace is the main story of the whole communication policy. Chinese theory of communication is based on India’s principles of Panchsheel.

(d) Christian Theory of Communication: This theory is based on free thinking, personal freedom and dedication towards God. It is a very popular theory which serves as the foundation communication system in the European countries. It is based on human sensitivity and service quality in a man. This theory emphasises that any new thing conducive to human welfare should be communicated to the people.

(e) Vedic Theory of Communication: This theory is based on ‘Vedas’ the supreme religious books of Hindus. It is also known as the oldest theory of communication. This theory considers and recognises Indian culture and traditions and is based upon traditional values. It is based on ‘Gurukul’ ‘Guru-Disciple’ form of education.

(f) Conservative Theory of Communication: This theory emphasises one way communication based on the pretext of religion and caste. Many restrictions are imposed on communication and people cannot express their ideas freely. Restriction is also imposed on people’s movements, their education and their way of living. The women are not allowed to act on their own.

(g) Liberal Theory of Communication: This theory supports the full freedom of communication. The people have full freedom to communicate their ideas and message against government and society. The women are allowed to act on their own.

2. Theories based on the Ideas of Different Scholars

(a) Aristotle’s Theory of Communication: This theory was propounded by social scientist, Aristotle. This theory states that persuasive techniques of communication can change the thinking process of the receiver. Sender, message and receiver are the main components of communication. This theory gave main importance to sender who is the source of communication. Thus, it is a onesided theory.

(b) Laswell’s Theory of Communication: This theory was supported by Laswell and is also considered as one-sided theory. It also laid emphasis on sender. This theory states that the sender can change the thinking process of the receiver by using appropriate channel of communication.

(c) Shannon and Weaver’s Theory of Communication: This theory was introduced by Shannon and Weaver. This theory says that message should never be transmitted in its raw form. Message should first be encoded and then transmitted to the receiver so that he is in a position to understand the message. This theory also laid emphasis on feedback and realised the presence of noise.

(d) Katz-Lazarsfeld Theory of Communication: This theory was introduced mainly for mass communication, therefore it is also known as mass communication theory. According to this theory sender encodes the message and transmits it by some appropriate channel to an opinion leader leader relays this message to the public. Message, sender and the group leader are the three main components of this theory.

(e) Berlo’s Theory of Communication: This theory gave emphasis on perception. This them states that sender encodes the message and transmits it with the help of suitable channel. How th message is received depends upon the knowledge and perception of the receiver. Perception of receiver plays a vital role in this theory.

(f) Modern Theory of Communication: Modern theory of communication presents the communication process in a cycle form. Accordingly to this theory, message is transmitted to receiver and receiver expresses his response after receiving the message. In such a way, information or message is transmitted to sender from receiver in the form of feedback. However, some obstacles in communication process may cause communication loss. These obstacles create problems in understanding the message.

Q.2. Explain in detail the various functions of business communication.

Ans. Communication is the lifeline of any organisation. It serves four major functions that can be stated as follows:

1. Information: The first and foremost function of communication is to provide information. This function is performed in many ways. Before providing or passing an information, one has to receive, collect or sift information from various sources, both external and internal, and through various media, verbal or non-verbal, body language or paralanguage, sign language or audiovisual aids, books, journals, newspapers, advertisements and brochures, etc.

The information thus gathered is of vital importance to individuals and groups. It helps them to make decisions by identifying, analysing and evaluating the data and considering alternative choices. In other words, policy decisions can be taken only when information is available.

Education, research and development depend on information. Education is an ongoing process. No organisation can really grow unless the people vitally involved in it have some kind of ‘continuing education. All senior managers now-a-days keep abreast of the latest developments in their respective areas. It is also to be noted that no information is insular. In one way or another, directly or indirectly, all different areas of interest, specially in the business world, are interrelated. That is why almost all people in business, whether entrepreneurs or managers, organise and participate in seminars, conferences and refresher courses.

Proper transmission of information is also of great educational value to employees. Unless they are given useful information from time to time, they are likely to remain ignorant, uncultivated, or inadequately equipped.

Information made available to the world outside the organisation also educates the public. Advertisements, special articles, information talks, etc. play an important role in this regard.

2. Control: The next very important function of communication is to control ‘member behaviour in several ways. Every organisation has a hierarchical system and formal guidelines that the employees are supposed to follow. When for example, the employees are required to follow their job description or instructions, or to comply with company policies, communication is performing a control function. This very function also gives the employees their code of conduct. It is generally expected of the emplovees to first communicate their grievances or complaints to their immediate boss They have in this way, to follow the formal channel of communication.

But, at the same time, it must also be pointed out that informal communication also controls behaviour. By talking informally in groups the workers lay down the norms to be followerd. It is not always necessaru  for the bosses to formally issue instructions, impose do’s and dont’s or chalk out norms of behaviour. In fact, it is now becoming more and more explicit that informal communication exercises greater control than formal communication.

3. Motivation: In the words of Robbins, ‘Communication fosters motivation by clarifying to what is to be done, how well they are doing, and what can be done to improve performance if it’s subpar…The formation of specific goals, feedback on progress towards the goals, and reinforcement of desired behaviour all stimulate motivation and require communication.’

All business is goal-oriented. All possible efforts have to be made to achieve a target within a well thought-out framework of time. For this purpose, it is necessary that the team of workers puts in their very best efforts. In other words, they have to be motivated. According to ‘Collins Cobuild Dictionary’, ‘If one is motivated to do something, he is caused to feel determined to achieve something and willing to work hard in order to succeed. So one has first got to motivate the children and then to teach them. The same logic applies to the workers in an organisation.

The employees/workers have first of all to be told what they are expected to do and how. And then, merely telling is not enough. After all, actions speak louder than words.

The concept of rewards and punishment immediately become relevant here. It, however, must be noted that rewards and incentives prove more effective and productive than punishments. If the workers are kept happy, given encouragement and suitably rewarded both in cash and kind, they ensure the success of the enterprise. Every modern entrepreneur/manager knows the importance of positive attitude, empathic listening, words of encouragement and cash rewards, and rewards given in the form of holiday trips, furnishing allowances, quick promotions and so on. Many Indian as well as multinational companies in India are now taking their workers to holiday resorts and sending managers along with their families to Europe, Far East and such other scenic places. All this is geared to motivate them to ‘earn’ their perks, bonuses and holidays. It enhances the value and the image of the organisation,

4. Emotional Expression and Interdependence: The work group is a primary source for social interaction. The communication that takes place within the group is of vital importance in the sense that it gives them the best opportunity to share their frustrations as well as feelings of satisfaction. Communication, in this way, provides them a release for their feelings, and that is the fulfilment of an important social need.

Communication is a social activity and every organisation is above all, a social entity. The members of the group or organisation are human beings who have so much to share, gather, or pass on. Newman and Summer point out that the content of communication is not just fact and figures, or objective ideas but also feelings, attitudes and interpretations. An adequate understanding of this aspect of communication is of immense help to the management.

Emotional expression is associated with emotional intelligence. Emotional intelligence is to do with how well we manage our own inner lives and get along with people? It is profoundly concerned with self-awareness, the ability to manage one’s own and other people’s emotions, self motivation and empathy. These characteristics or qualities enable one to climb higher in the corporate ranks than colleagues having superior IQs.

Everyone agrees that a good strategic planner/manager needs analytical skills, but the star performers among them have the ability to understand and empathise, persuade and build alliances, and are astute in reading organisational policies.

Q.3. What do you understand by downward communication and upward communication? Discuss the importance and limitations of downward and upward communication.

Ans.Downward Communication

Downward communication flow from a higher authority to a lower authority. For example, the message of a branch may communicate next year’s deposit targets of the branch to his employees. Orders, instructions policy statements, notices, circulars, job sheets and employee handbooks are the main form of downward communication.

Downward communication is very common. It is based on the assumptions that at high level Individual has the authority to communicate to lower level persons. It is also known as ‘down stream communication. Both oral and written media are used for downward communication. Face-to-face talks, telephone and public address are the main sources of oral message.


Importance of downward communication are as follows:

1. To give specific instructions and directions about the job entrusted to a subordinate so that the job is performed efficiently.”

2. To explain the policies, procedure and programmes of the organisation to employees.

3. To educate and train employees so as to improve their knowledge and skills.

4. To explain the subordinates the rationals of their jobs so that they understand the significance of their works in relation to organisation goals.

5. To inform the employees about their performance and achievements.

6. To strengthen the authorisation structure of the organisation.


Orders Downward communication suffers from the following problems:

1. Delay: As the line of communication is very longer, downward communication is time-consuming process. A message sent by the chief executives might reach the clerical staff when it is.no longer significant or relevant.

2. Too much or too less Information: Some superiors talk too much while others talk too less. When a manager transmits too much information to his subordinates, he may create confusion or may leak confidential information.

3. Filtering: Most of the downward communication is oral. A large part of 4the information is lost during transit because some of it is being retained at every level. Research reveals that 80 per cent of the information is lost when transmitted downward through five level of management hierarchy. The lowest level worker does not receive the complete message sent by chief manager.

4. Distortion: In downward communication, lines of communication are often long. The message is screened at every successive level. Frequent twisting distorts the message and by the time it reaches its destination, its meaning may not be what the sender intends.

5. Built-in-Resistance: Downward communication often require change in the work routine attitudes of subordinates. It is also authoritarian in nature as subordinates do not participate in deciding it. Therefore, downward communication generally causes resentment and faces resistance from employees.

Upward Communication

Upward or upstream communication means the flow of information and ideas from lower level of authority (subordinates) to higher level (superiors).

For Example: A branch manager may send quarterly reports to the regional manager on the performance of the branch. Upward communication can be in the form of both written and oral message which contain suggestions, grievances, complaints, appeals, etc.


Unward communication plays a vital role in the successful functioning of an organisation in the following ways:

1. Feedback: Upward communication provides valuable feedback to managers. With the help of this feedback they can judge whether the subordinates have understood and followed the orders are instructions issued to them. Managers also receive useful information.

2. Release of Tension: Upward communication provides the employees, an outlet to ventut pent up emotions and grievances. When managers patiently and sympathetically listen to the problems and complaints of employee, the employee feels happy and satisfied.

3. Suggestions: Managers can get constructive suggestions and innovative ideas through upward communication. When these suggestions are implemented and rewarded, employees get a feeling of participation.

4. Mutual Co-operation: Upward communication helps to create greater harmony and mutual understanding between management and employees. Cohesion and mutual trust result in cordial industrial relations.

5. Change: When employees communicate freely with their suppliers, they do not resist new ideas as their attitudes become positive. They not only accept new schemes readily but even work to make them successful.


Upward communication suffers from the following drawbacks:

1. Status: Quite often subordinates are reluctant to speak freely to their superiors due to fear of authority. Upward communication does not have a smooth flow as it has to move against the force of gravity.

2. Reflection on Efficiency: Employees hesitate to communicate their problems to their superiors as such communication might be considered as a siege of their incompetence. For instance, if a branch manager complains to the area manager that the staff at the branch is hostile, the area manager might feel that the branch manager himself is incompetent in handling his staff.

3. Inattention: Superiors might be too impatientortoo proud to listen carefully to their subordinates. When the employees find that the superiors do not listen them patiently and sympathetically, the employees stop talking or writing freely to the superiors.

4. Distortion: Some managers get angry when unpleasant facts are communicated to them. In such cases, employee tends to communicate when the boss likes to hear rather than what is true.

5. Improper Channel: Some employees become too bold or impatient. They directly approach the top authorities with their complaints and suggestions by passing to their immediate boss. Officers who have been bypassed feel slighted and top authorities becomes suspicious of workers intentions. As a result, labour-management relation may be spoiled.

Q.4. ‘Communication is necessary to business as the blood stream is to a person.’ Discuss. (2018)

Ans. Communication plays an important role in business. It is through communication only that the manager informs the employees about what they have to do and how the work has to be done. The importance of effective communication system increases with the increase in the size of business, growing competition and advancement in technology.

Communication is necessary to business as the blood stream is to a person in the following ways:

1. Facilitates Planning: Communication facilitates planning in a number of ways. Participation of executives in planning is a precondition for getting the task done. This can be secured only through interaction and communication.

2. Basis for Decision-making: Communication helps management in arriving at vital decisions. If the right type of information is not available at the proper time due to lack of communication, it may not be possible for management to consider all the pros and cons before taking a decision.

3. Achieve Effective Coordination: Communication helps in synchronising activities of different individuals and groups to bring about unity of action. Liaison men who are employed to coordinate work of different individuals in the organisation need to evolve communication between different parts of the organisation.

4. Facilitates Better Administration: Communication is important in the performance of all managerial functions. Planning which is one of the primary functions of management requires detailed communication among the managerial and other personnels.

5. Creates Mutual Trust and Confidence: An effective communication system helps the manager to convey his ideas, views, decisions, suggestions and feelings to the employees. On the outher hand, the employees also get the opportunity to express their feelings and communicate their ideas and reactions.

6. Motivation of Employees: Motivation of employees largely depends upon the effectiveness of communication. Sharing of information with employees helps management to secure their willing cooperation

Q.5. What is business communication? Discuss the models and process of communication. (2015

Or Explain the concept of business communication. Discuss basic forms of communication process.(2016)

Or What do you mean by communication? Explain the important models of communication. (2017)

Ans. Communication: Refer to Sec A, Q.1.

Business Communications Refer to Sec-B, 01.

Models of Communication: Communication model is meant to follow the path for communication, There are many communication models to understand the process of communication. Some of the models are as follows:

1. Shannon and Weaver Model: Shannon and Weaver developed a model in 1949 in the field of electronic communication. Their model was popularly known as mathematical model. They gave the following basic elements of process of communication:

(a) Information Sources: Idea originating in the mind of sender is said to be source of information,

(b) Transmitter: The sender transforms his idea into a message and sends it to another person called the transmitter.

(C) Noise Source: All the obstacles distorting a message are known as noise.

(d) Receiver: The person who receives an information is called the receiver. He decodes the message to have a better understanding,

(e) Destination: Communication process comes to an end at this step and the sender of message gets some feedback from receiver.  However if no feedback is received, communication process comes to an end.

2. david Berlo’s SMCR Model: One of the best method widely used for communication model dal developed by Berlo. Although it is simple and versatile yet it presumes enormous background of behavioural science. This model Illustrates the four basic concepts:

3. Danne’s Model: This model was formulated by a scientist danne in 1967. According to him,communication process revolves in the form of a circle having no starting or end points.

4. Thill and Boven Model: This model states that communication process starts from the generation of idea and upto reaction. Ehwn an idea emerages in the mind of somebody, it changes into message. Then it is sent ot the receiver, who analyses it and sends his reaction to sender in the form of feedback.

5. Aristotle’s Model: The first step towards the development of a communication model had been taken by Aristotle. He had developed and easy, simple and elementary model of communication process. This model is based on the following three basic elements:

(a) The speaker (b) The speech (c) The audience (the person addressed)

Speaker Speech Audience

According to this model the person addressed’ is most important in shaping the message.

6. Indian Models: in india, communication models have been introduced from time to time. In earlier days, king used to send message to public and also used by kings to transmit their messages. Before freedom, Indians propounded different communication models for sending the message to different parties with the sole purpose of getting freedom.

Communication system in India during British period:

Process of Communitation

Communication is a process of transmitting information from one person to another. Communication process is the way through which a message is transmitted and responded. It starts from the origin of information and with the response of message.

The ways for sending information are known as communication models. Message sender, receiver and feedback are the important elements of communication process.

The following elements are essential for complete transmission of message: A brief description of these elements is as follows:

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