2015 (Revised) BUSINESS COMMUNICATION STUDY TEXT ICAP Study Text P Business communication Second (Revised) edition published by Emile Woolf International Bracknell Enterprise & Innovation Hub Ocean House, 12th Floor, The Ring Bracknell, Berkshire, RG12 1AX United Kingdom Email: info@ewiglobal.com www.emilewoolf.com © Emile Woolf International, August 2015 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, without the prior permission in writing of Emile Woolf International, or as expressly permitted by law, or under the terms agreed with the appropriate reprographics rights organisation You must not circulate this book in any other binding or cover and you must impose the same condition on any acquirer Notice Emile Woolf International has made every effort to ensure that at the time of writing the contents of this study text are accurate, but neither Emile Woolf International nor its directors or employees shall be under any liability whatsoever for any inaccurate or misleading information this work could contain © Emile Woolf International ii The Institute of Chartered Accountants of Pakistan Assessment of Fundamental Competencies Business Communication C Contents Page Syllabus objective and learning outcomes v Chapter The communication process Business communications 29 Seven Cs of effective communication 59 Intra-personal and interpersonal skills 79 Forms of business communication 103 Written business messages 147 Letters and circulars 163 Business reports 197 Electronic communication 231 Answers to self-test questions Index © Emile Woolf International 263 267 iii The Institute of Chartered Accountants of Pakistan Business Communication © Emile Woolf International iv The Institute of Chartered Accountants of Pakistan Assessment of Fundamental Competencies Business Communication S Syllabus objective and learning outcomes ASSESSMENT OF FUNDAMENTAL COMPETENCIES BUSINESS COMMUNICATION Objective To ensure that candidates can communicate effectively while performing their professional responsibilities Learning Outcome On the successful completion of this paper candidates will be able to: comprehend concepts of business communication demonstrate awareness of intra-personal and interpersonal skills understand formats of basic business messages and message-writing etiquette understand the utility of the internet with respect to business communication Grid Weighting Concepts 10-15 Intra-personal and Interpersonal skills 20-25 Communication via the internet 10-15 Total © Emile Woolf International v 50 The Institute of Chartered Accountants of Pakistan Business Communication Syllabus Ref Contents Level Learning Outcome Business Communication A Concepts Introduction to business communication LO1.1.1: Define business communication LO1.1.2: Describe with simple examples the goals, patterns (formal and informal), and channels of business communication Communication process LO1.2.1: Define “communication process” LO1.2.2: Explain and illustrate the components of the communication process, namely: context, sender, message, medium, recipient and feedback LO1.2.3: Identify the information needs of the organization and its sources, levels and usefulness for effective communication LO1.2.4: Explain with simple examples the barriers to effective communication LO1.2.5: Describe different methods of communication and also state its appropriate medium LO1.2.6: Classify different types of communication networks and describe their influence on the communication process within an organization Seven C’s of effective communication LO1.3.1: Describe with simple examples the seven C’s of effective communication LO1.3.2: Identify weaknesses in a given simple communication process applying the Seven C’s concept and suggest corrections © Emile Woolf International vi The Institute of Chartered Accountants of Pakistan Syllabus and study guide Intra-personal and interpersonal skills B Nature of Intra-personal communication LO2.1.1: Develop an awareness and appreciation of the importance of intrapersonal communication LO2.1.2: Identify the basic aspects of intra-personal communication including self-concept, perception and expectation Nature of Interpersonal communication LO2.2.1: Identify the axioms of interpersonal communication LO2.2.2: Specify the purposes of interpersonal communication LO2.2.3: Determine the role of stereotypes in the communication process LO2.2.4: Identify the role of communication conflict in intercultural relationships LO2.2.5: Explain the key ways to improve interpersonal skills LO2.2.6: Identify the elements and traits of ethics in interpersonal communication Critical Thinking LO2.3.1: Explain the difference between creative thinking and critical thinking LO2.3.2: Assess the effect of critical thinking over communication Non-verbal communication LO2.4.1: Identify forms of non-verbal communication including facial expressions, posture, gestures, eye contact, voice and touch LO2.4.2: Explain the uses of non-verbal messages Verbal communication LO2.5.1: Contrast between oral and written communication LO2.5.2: Explain and account for the basic forms of oral communication including; face to face communications, interviews, telephone conversations, © Emile Woolf International vii The Institute of Chartered Accountants of Pakistan Business Communication grapevine, negotiations, meetings, lecture/speech LO2.5.3: Contrast between speaking and listening skills LO2.5.4: Develop a personal, constructive approach to dealing with conflict situations though speech communication strategies of conflict resolution LO2.5.5: Explain the principles of preparing and delivering an effective public speech LO2.5.6: Explain the importance of listening in effective business communication LO2.5.7: Describe types and barriers to listening Visual communication LO2.6.1: Assess the role of visual communication in simplifying and comparing information and illustrating trends and ideas Written Communication LO2.7.1: Classify the types of business letters and circulars LO2.7.2: Determine the qualities of an effective letter and circular LO2.7.3: Describe the different components of a business letter LO2.7.4: Explain the salient features of the persuasive letters and circulars LO2.7.5: State the meaning and purpose of a short business report LO2.7.6: Describe the contents of a business report LO2.7.7: Differentiate between different types of reports LO2.7.8: Explain the contents of different types of reports © Emile Woolf International viii The Institute of Chartered Accountants of Pakistan Syllabus and study guide Communication via the internet C Website hosting (types and services) LO3.1.1: State meaning, types and services of web hosting Types of electronic communication LO3.2.1: Explain the main features and practical use of social networking forums, blogs, podcasting, discussion boards, messaging, video conferencing and email LO3.2.2: Discuss the benefits and limitations of various types of electronic communication © Emile Woolf International ix The Institute of Chartered Accountants of Pakistan Business Communication ‰ Keep it simple – avoid using overly intricate colours and fonts: x Using overly intricate colours and fonts tends to clutter an email and detract from the core message 2.8 Video conferencing What is video conferencing? Video conferencing is a system used by people in different physical locations to hold a meeting (called a virtual meeting) Simple videophone calls are aimed at enhancing a phone call between two individuals with video imaging However, full video conferencing aims to serve multiple locations with greater flexibility and functionality For example, the sales team of an international company which has operations in London, Hong Kong and Karachi wants to hold a meeting to discuss sales strategy One option is for the delegates from say London and Hong Kong to board a plane and meet the rest of the team in Karachi However, this would be expensive as it would require flights, accommodation and other expenses to be incurred An alternative option is to set up a video conference This might involve the teams in the three locations sitting in meeting rooms that have a camera, microphone and speakers providing a live link directly to the meeting room in the other location Why is video conferencing becoming so popular in commercial organisations? A number of factors have contributed to the rapid increase in demand for video conferencing in businesses over recent years including: ‰ Improved lower-cost technology with greater bandwidth ‰ Wider variety of video conferencing tools available associated with increasingly more powerful PCs ‰ Environmentally friendly IT initiatives such as reduced air travel ‰ High travel costs combined with austerity related cost saving initiatives ‰ Such is the success of video conferencing some companies even use video conferencing for intra-business as well as inter-business communications Types of video conferencing At its simplest, video conferencing will provide the transmission of static images and text between two locations However, at its most sophisticated, video conferencing provides the transmission of video images (full-motion) and highquality audio between multiple locations Another variable is the number of people (or connections) that can be supported in each meeting Commercial video conferencing companies offer a range of options supporting different number of log-ins, quality and speed of transmission Some will even allow you to record a meeting Equipment Participants only require minimal equipment including: ‰ Video input: camera or webcam ‰ Video output: computer monitor, projector or television ‰ Audio input: Microphone © Emile Woolf International 256 The Institute of Chartered Accountants of Pakistan Chapter 9: Electronic communication ‰ Audio output: loudspeakers or headphones ‰ Data transfer: Internet or other communications connection (preferably high speed) such as a digital telephone network or LAN (local area network) ‰ Computer with video conferencing software including video and audio compression and decompression Video conferencing systems broadly fall into two categories: ‰ Dedicated systems: All the necessary components are packaged into a single piece of equipment – typically a console with high quality remote controlled video camera ‰ Desktop systems: These are add-ons to regular PCs which transform them into videoconferencing devices Benefits and limitations of video conferencing Benefits Benefits of video conferencing can be summarised as follows: ‰ Next best option when face-to-face meeting are not possible: Cost-effective solution where a live conversation is needed and non-verbal (i.e visual) information is an important component of the conversation but a face-toface meeting is not possible ‰ Reduced travel costs ‰ Increased productivity across dispersed workforces and teams – video conferencing helps ensure delegates capture the up to 80 per cent of communication consisting of non-verbal visual cues ‰ Short-notice meetings: Enables individuals in distant locations to participate in meetings at short notice ‰ No need to leave the desk: Technology such as VoIP can be used in conjunction with desktop video conferencing to enable low-cost face-to-face business meetings without leaving the desk ‰ Telecommuting: Greatly assists the facilitation of telecommuting (home working) enabling businesses to embrace diversity of workforce and flexible working This helps improve work-life balance, particularly with the reduction in lengthy commutes ‰ Hiring and retention: Improved hiring and retention of top talent by extending the geographical scope of the early recruitment phase ‰ Competitive advantage: Sustained competitive advantage from: x improved sharing of knowledge; x faster and more informed decisions that reduce time to market for new products and services; x improved relationships with suppliers and customers; and x good public relations through promoting video conferencing as proof of environmental initiatives © Emile Woolf International 257 The Institute of Chartered Accountants of Pakistan Business Communication Limitations Limitations of video conferencing can include: ‰ Eye contact: Camera positioning and interaction are highly important yet frequently overlooked Video conferencing can often give the incorrect impression that the remote participant is avoiding eye contact when in fact they are not ‰ Appearance consciousness: This describes the psychological problem where delegates change their behaviour or feel uncomfortable because they are on camera The problem may well be exacerbated if the session is recorded There has been some research performed that suggests that communication is in fact impaired by the addition of camera ‰ Technology: The video conference experience is entirely reliant on stable technology and communications links with large bandwidth Unexpected variations in signal quality or technology issues can destroy the video conference unexpectedly ‰ Limited non-commercial take-up: Mass adoption and use of video conferencing in non-commercial environments remains relatively low due to the perceived complexity of systems, lack of common technology standards, highly variable bandwidth and quality of service in different countries and relative expense of commercial systems ‰ Anxiety: The stress and anxiety present in some participants due to appearing on camera can have a negative impact on their health and social wellbeing © Emile Woolf International 258 The Institute of Chartered Accountants of Pakistan Chapter 9: Electronic communication CHAPTER REVIEW Chapter review Check that you now know how to: „ Describe different types of web hosting services and the underlying building blocks of the internet needed to support web hosting „ Give further context to web hosting by explaining key considerations when selecting a web host „ State the main features, limitations and practical use of various types of electronic communication including: „ x Social networking sites x Blogs x Podcasting x Discussion boards x Messaging x Video conferencing x Email Describe when to use different channels of communication © Emile Woolf International 259 The Institute of Chartered Accountants of Pakistan Business Communication SELF-TEST Q1 The definition of an Internet Protocol (IP) address is: Q2 Q3 Q4 Q5 Q6 A Another name for an email address B A code that uniquely identifies a particular computer on the Internet denoted by four sets of numbers from to 999 C A physical computer dedicated to running one or more services to serve the needs of users and other computers on a network D A code that uniquely identifies a particular computer on the internet denoted by four sets of numbers from to 255 Key considerations when selecting a web host would least likely include which of the following: A VHF compatibility B Bandwidth C Number of domains required D Up-time percentage Which of the following is not a type of Web hosting? A Dedicated B Weblog C Two-dimension D Clustered Which of the following is considered a benefit of email? A Email overload B Emails may carry viruses which spread rapidly C An absence of non-verbal communication such as body language might lead to misinterpretation of an email D The sending and receiving of emails is virtually instantaneous anywhere in the world Which of the following situations would be best suited to using a memo? A Authentic signatures of the sender are important B Interactive communication requiring the prompt exchange of information is needed C A company wants to advise all employees of the latest Director promotions D Non-verbal cues are important Which of the following is safe to be posted on a social networking site? A Your location B Your cell number C An alias D A picture of you with your friends © Emile Woolf International 260 The Institute of Chartered Accountants of Pakistan Chapter 9: Electronic communication Q7 Podcasts, in many ways are similar to which of the following? A proposals B RSS feeds C wikis D radio programs Q8 Which of the following is not an objective of business blogging? A Criticising competitors B Pursuing feedback from customers C Rectifying misinformation and rumours across the company D Building brand image Q9 A web blog can be best defined as _ A a web site about a single person or company B a recognized website for carrying out international trade C method for safe sharing of information on Facebook D a portal supporting online payments between a buyer and seller Q10 Possibly _are the biggest drawbacks associated with use of electronic communication A lack of firewalls B slow internet connections C privacy concerns D instances of information overload © Emile Woolf International 261 The Institute of Chartered Accountants of Pakistan Business Communication © Emile Woolf International 262 The Institute of Chartered Accountants of Pakistan Assessment of Fundamental Competencies Business Communication A Answers to self-test questions CHAPTER – THE COMMUNICATION PROCESS Q1 D Q2 B Q3 C Q4 D Q5 A Q6 C Q7 A Q8 D CHAPTER – BUSINESS COMMUNICATIONS Q1 D Q2 A Q3 D Q4 B Q5 C CHAPTER – SEVEN CS OF EFFECTIVE COMMUNICATION Q1 C Q2 B Q3 D © Emile Woolf International 263 The Institute of Chartered Accountants of Pakistan Business Communication Q4 A Q5 C CHAPTER – INTRA-PERSONAL AND INTERPERSONAL SKILLS Q1 D Q2 A Q3 D Q4 B Q5 B Q6 B Q7 A Q8 A Q9 B Q10 A Q11 B Q12 B Q13 D Q14 A Q15 D Q16 A Q17 C CHAPTER – FORMS OF BUSINESS COMUNICATION Q1 A Q2 B Q3 A Q4 C Q5 B Q6 D Q7 D © Emile Woolf International 264 The Institute of Chartered Accountants of Pakistan Answer to self-test questions Q8 B Q9 B Q10 C Q11 A Q12 D Q13 D Q14 B Q15 B Q16 A Q17 D Q18 B Q19 D Q20 C Q21 A Q22 C Q23 D Q24 A CHAPTER – WRITTEN BUSINESS MESSAGES Q1 B Q2 D Q3 A Q4 C Q5 B CHAPTER – LETTERS AND CIRCULARS Q1 A Q2 C Q3 B Q4 D Q5 A © Emile Woolf International 265 The Institute of Chartered Accountants of Pakistan Business Communication CHAPTER – BUSINESS REPORTS Q1 C Q2 B Q3 A Q4 D Q5 B Q6 A Q7 A Q8 C CHAPTER – ELECTRONIC COMMUNICATION Q1 D Q2 A Q3 C Q4 D Q5 C Q6 C Q7 D Q8 A Q9 A Q10 C © Emile Woolf International 266 The Institute of Chartered Accountants of Pakistan Assessment of Fundamental Competencies Business Communication I Index Cloud storage Colloquial language Communication model Communication patterns Communication Communication networks Components of a business letter Conflict Context Creative thinking Critical thinking a Active listening Agenda Analytical reports Audience Audit trail Axioms of interpersonal communication 88 111,185 203 39, 40 109 d b Bandwidth Barrier to communication Barriers to effective listening Benefits of effective listening Bottom-up Business communication Business language for reports Diagonal Direction of communication Distortion Domain name 236 18 135 124 211 31 213 © Emile Woolf International 5 9, 11, 51 235 e E-commerce Effective business messages Effective communication Electronic bulletin boards Electronic communication Email etiquette Email c Chairman’s annual report Channel Circulars Cliché 234 154 53 22 165 52 82 96 97 226 10 174 153 267 20 38 15 47 254 250 The Institute of Chartered Accountants of Pakistan Business Communication External communication External reports Interpersonal communication Internal reports 201 f j Face to face 15, 44 Fax 14 Feasibility report 224 Feedback 12, 51, 52, 131 Financial information 35 Follow-up letters 173 Formal and informal communication 36 Formal reports 202 Forms of written business communication 110 Jargon Keep it simple, stupid (KISS) Key reader KISS principle Lateral Lenders Letterhead stationery Letters and circulars Listening Media and channels Medium Memo Memoranda Message Methods of communication Minutes 35 209 122 233 i ICT Informal reports Information needs of organisations Informative report Internal communication Internet hosting Internet Protocol (IP) address Internet Service Provider (ISP) Internet Interpreting information Intra-personal communication © Emile Woolf International 149 110, 184 149 l h Hear Horizontal HTML 154 k g Goals of business communication Grouping 85 200 33 167 165 122 44 10 182 15 11 13 188 n 20 202 33 203 4, 13 234 234 235 233 132 81 Negative listening Networks Noise Non-verbal communication 138 37 10, 50 49, 105 o Objectives of a report Objectives of communication Objectives of written business messages 268 199 109 The Institute of Chartered Accountants of Pakistan Index Objectives Off-shoring helpdesks Operating report Oral Organisation Overcoming common challenges Completeness Conciseness Concreteness Considerate Correctness Courtesy Shareholders Sincerity and tact Sources of information Speaking skills Special reports Stakeholder Statutory reports Structure Style Synchronising email 39 20 227 45 22, 31 50 p Performance appraisal report Periodic reports Persuasive business messages Persuasive letters Planning a business message Principles of effective business writing Project progress report Proofing Proposal 223 202 158 172 38 149 223 156 220 t Teleconference 14 Thinking processes 96 Tone 154 Top-down 211, 213 Types of listener 123 Information-oriented 123 People-focused 123 Results-oriented 123 Types of electronic communication 241 Social networking sites 242 Blogs 244 Podcasting 245 Discussion Boards 247 Messaging 248 Email 250 Video conferencing 256 r Recipient Redundancy Report Drafting the final report Features of effective reports Generating ideas Layout Planning your time Structuring the information Request for proposal (RFP) Research reports 10 51 199, 213 214 206 208 213 207 209 220 203 s Sales and marketing report Salutation Screening Sender Server Seven-C’s Clarity © Emile Woolf International 61 63 68 65 74 72 32 158 35 139 202 32 202 41 42 250 u 225 168 209 8, 234 61 70 Universals of communication Useful information Users of information 269 16 34 33 The Institute of Chartered Accountants of Pakistan Business Communication v Vertical Verbal communication Videoconference Visual communication Voluntary reports 117 15 47, 112 200 w Website hosting Why we listen World Wide Web Written communication © Emile Woolf International 233 123 233 46, 109 270 The Institute of Chartered Accountants of Pakistan ... of Pakistan Business Communication Syllabus Ref Contents Level Learning Outcome Business Communication A Concepts Introduction to business communication LO1.1.1: Define business communication. .. Competencies Business Communication The communication process Contents Introduction to communication Communication systems Barriers to effective communication The impact of ICT in communication Communication... Accountants of Pakistan Business Communication COMMUNICATION SYSTEMS Section overview „ The communication model (‘process of communication ) „ Context „ Methods of communication „ Communication media