Characteristics of Effective Business Communication

This article will help you to identify the top features and characteristics of business communication. In addition to the importance and purpose of business communication.

What Is Business Communication?

Business communication refers to any transaction of business-related information between a sender and receiver, wherein the information retains its original essence and generates feedback. These elements also form the major components of communication in any business.

For instance, holding business meetings, planning strategies, interacting with clients and customers, instructing employees, and taking their interviews, etc., fall under business communication. 

Characteristics of Business Communication

It’s crucial to understand the characteristics of good business communication in order to implement it efficiently. Given below are such features that make business communication different from any normal conversation.

1) Business communication is formal:

The nature of business communication is formal most of the time. There are instances when it might take an informal turn (grapevine). Otherwise, it mostly remains formal with a predefined structure to communication including organization hierarchy, means of communicating information, specific time, etc.

It helps businesses adopt a systematic approach to how people communicate for maximum discipline and positive outcomes, alongside other merits of formal communication.

2) Objective or Goal-Oriented:

As stated previously, business communication comes with short- and long-term goals. This purpose is subject to change as and when the business grows. The object plays a vital role in initiating communication and remains the nucleus of the entire process. 

Any business communication without a goal or an object proves to be meaningless and leads nowhere. It’s thus important to clarify the intent of the communication beforehand to avoid the wastage of time and other resources.

3) Brief, Clear, and Factual:

Another feature of business communication is that it’s clear, concise, and does not beat around the bush. This is necessary for the receiver to understand the information without any failure/hindrance and provide the right feedback in turn. A crisp and brief message also helps save time and achieve the desired goal successfully.

Besides being clear about the message, it’s important to be clear about the communication channel and other elements to avoid any confusion. All the required details must be covered in the message, especially figures, statistics, time, place, names, and so on. 

4) Dynamic and Continuous:

A striking quality of good corporate communication is that it is dynamic in nature. The tone and speaking style change as per the elements in the communication process. For example, a manager communicating with a subordinate might adopt an instructive style. On the other hand, when with an executive, the manager might stick with a more courteous tone.

The term “continuous” means that as soon as one line of business communication gets completed, another is initiated. For example, holding meetings for different projects, creating new strategies timely, etc. 

5) Internal or External:

Internal business communication means sharing of information within an organization. This includes all the activities taking place within the physical bounds of an organization. For example, administrative and managerial tasks, meetings, training, interviews, planning, and so on. 

External business communication, on the other hand, refers to the communication that takes place outside an organization. Client pitches, meetings with legal advisors and other experts, government-related tasks, customer interactions, groundwork, and physical labor fall under external business communication.

6) Persuasive and Pervasive:

The sender must have the qualities of a good communicator because business communication is essentially persuasive. It’s meant to convince the receiver and introduce assurance, especially when dealing with customers or clients. However, that does not mean one needs to manipulate the information; it’s not intended to “impress” someone.

Processes of communication are inevitable in business and thus, pervasive. They can be found everywhere, between employees, managers, and executives. It’s impossible for a business to exist without proper communication.

7) Practical and Unbiased

For any business communication to be effective some principles are to be followed. Thus it’s crucial to remain unbiased and prevent one’s personal feelings from affecting the communication. Any unnecessary information should be avoided and only relevant details must be shared.

Business communication is vital for explaining the “whats”, “whys”, and “hows” of various procedures and is thus practical in nature.

Importance of Business Communication 

Reasons why business communication is highly significant:

1) Assist in Decision-making:

Without proper and timely information, it’s challenging for the managerial staff to take the right decisions and lead the project forward. Effective business communication helps collect opinions and suggestions necessary for decision-making. It aids in forming new plans and policies, as well as, updating the existing ones to achieve goals and earn success.

2) Solves Problems and Eliminates Misunderstandings:

Business communication teaches the senders and receivers proper communication skills. Everyone in an organization learns to communicate clearly and completely, as well as listen attentively. As a result, they gain a thorough understanding of the situation and can take the required action without any failure.

Effective business communication is essential in solving problems and eliminating misunderstandings, and a well-developed business communication skill set is crucial for achieving success in today’s competitive business environment.

3) Maintains Customer and Industrial Relations:

The significance of business communication lies in the strengthening of the internal and external relations of an organization. Be it building trust between workers, employees, management, and executive or between a company and its customers/clients. Business communication promotes fair and recorded interactions to simplify sharing of information.

This way, better teams are built that work on the core values of cooperation and coordination to achieve maximum efficiency.

4) Increases Employee Satisfaction and Efficiency:

Business communication offers scope for an upward flow of sharing information, which provides employees the freedom to initiate communication. They can connect with their superiors with much ease and express their thoughts, takes, opinions, and feedback to the management. 

Downward business communication helps the employees to understand various procedures and processes through management’s instructions and guidelines. Lateral or horizontal communication allows them to hold informal conversations, promising a change from monotonous working lifestyles.

Must Read: Check our detailed guide on 10 importance of business communication to know more.

Purpose of Business Communication 

Let’s look at the main objectives of business communication:

1) Instruction and Direction:

Business communication aims to provide instructions to subordinates. The higher-level staff gives out commands and directives to complete a task within a certain period. 

2) Persuasion and Influence:

Business communication, as mentioned previously, is meant to persuade and win deals. It’s necessary for the growth of a business by landing more customers and building its clientele.

3) Exchanging Information and Facts:

The only way to share information within an organization is through business communication. It assists in informing employees about their daily tasks, providing feedback, getting updates, etc. By communicating, managers of various departments can work together on a single project and integrate their inputs to gain the desired outcome.

4) Employee Orientation:

New interns and employees can be acquainted with the company’s infrastructure, staff, and work through business communication. Be it allocating their first tasks, holding counseling sessions to get them started, or evaluating their performances. Business communication is the backbone of connecting employees with their workplace.

Must Read: To know more check out our detailed article on 20 essential objectives of business communication 

Frequently Asked Questions 

Q1) What are the types of business communication?

Ans: Business communication is broadly categorized as follows:

1. Internal Communication

The exchange of information taking place within an organization is termed internal business communication. Depending on the flow of information, this is further divided into:

2. External Communication

The exchange of information taking place outside an organization, but in relation to it, is termed external communication.

Q2. What are the functions of business communication?

Ans: The main functions of business communication are to inform, control and motivate the employees. It also serves the purpose of collecting data from the subordinates to facilitate decision-making. 

Q3. What are the 7 characteristics of communication?

Given below are the seven characteristics of communication:

  1. Clarity
  2. Feedback
  3. Target-oriented
  4. Dynamic
  5. Persuasive
  6. Practical
  7. Factual

Aditya Soni

Aditya is the head of content at clearinfo and is responsible for improving the site's organic visibility. He is a certified SEO trainer and has worked with SaaS companies and startups to enhance their digital marketing presence. He is also an ahref fanboy. Click to connect with him on Twitter, and LinkedIn.  

Leave a Reply