The Importance of Communication in doing Business

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Subject- Business Communication and Etiquette


Communication is very important in today’s scenario to operate Business effectively.Communication is required for planning, forecasting, organizing, coordinating and controlling business. Thus Communication should be transparent and clear among the employees and every individual working in company. Communication is an unseen infrastructure of an organisation and it helps in maintaining control and peace in firm. Healthy communication skills is given more priority than knowledge as it helps in maintaining and developing relations. Communication is either formal communication or informal communication.Formal communication is sharing and receiving information officially. Formal communication is majorly required in organisation to pass information through predefined channels. Informal communication is the unofficial and casual form of communication where the information is shared spontaneously among two individuals or group of people. Informal communication is observed generally with friends, peers, family members depending on your relations with them. In Organisations, Informal communication is called as ‘grapevine’. InLarge Organizations people working closely create unofficial and informal channels of communication and this communication is called grapevine communication. This communication among the individuals working in company is essential to develop relationships among them , ultimately it helps a particular individual to enhance his/her skills. It helps in maintaining a good working environment as it increases bond between them.

The words grapevine means gossips. Human beings are an social creature on earth and they are habitual of doing gossips with their friends, peers, neighbours, family members and even sometimes with your seniors and Boss. Generally all the mentioned people are known to an individual. Humans even have tendency to do gossips with strangers. Eg. While standing in queues for tickets of a cricket match, it is generally observed even in queue people starts gossiping about who will win the game, who will play today or any such kind of discussions. Also it is observed while travelling in a train we often start gossips with peoples in our compartment. This gossip at above mentioned point helps us mentally and boost our capacity to suffer while standing in queue or to pass the time of journey. Similarly people working in large or small organisation does gossips which help them to satisfies the social needs and even it brings different people together who do not fall under same common chain. Grapevine communication can be observed while conversation or even by electronic mails, text messages and by phone calls between any of the employees. The people in the groups have same likings, disliking or something common that links them together to have gossips. This helps the individual to develop corporate identity, and perform team work. It also gives happiness and mental satisfaction of timely transmitting new information to their groups. For an Organisation it helps them to collect feedbacks about a particular employees and its working capability. In grapevine messages are circulated very fast so it may help organisation to convey message on certain conditions. Thus grapevine communication is beneficial to every individuals and even organization in certain cases.


There are basically four different types of grapevine communication.

1. Single Strand Chain

2. Gossip Chain

3. Probability Chain

4. Cluster Chain

Single Strand Chain- In this type of a chain, information is transmitted from person to person in a linear manner or chain.

Eg. A shares information to B and B shares with C and so on to D. (A-B-C-D)

This type of chain is generally inaccurate. It takes time for information to spread and reach everyone. There is no assurance of message receiving to the last person is same as shared by the 1st person.

Eg. While playing Chinese whisper game in which an individual speaks something in ear of next guy and whole information is whispered in circle manner. The information received by the last guy is inaccurate generally.

Gossip Chain- a person who has received or obtained any information goes and tell to its peers or group or everyone in firm. Time taken to spread the message is less compared to single strand chain. This is also called wheel chain.

Eg. A shares information with B,C,D,E.

Probability Chain- Information received is shared and passed to only selected and few individuals who are indifferent. Generally this type of information is interesting but it is not essential. This is an Free flow type of chain.

Cluster Chain- In this chain a particular individual shares information with few selected individuals and from those few individuals shares information to another few individuals, thus information is share in cluster form and called as cluster chain.

Cluster chain is most dominant grapevine pattern in an organistain.

Drawbacks of Grapevine communication

  • Irrelevant gossips
  • Distort meanin
  • Misunderstanding
  • Lack of control
  • Spreading of rumours
  • Channels cannot be eradicated
  • Maintaining Secrecy isn’t possible
  • Affect productivity

The grapevine is more a product of situation rather than it is of the person. In general It can be concluded that communication skills are very essential in any firm may it be formal or informal communication. Informal communication or grapevine has many benefits to organisation and even individuals working in company as it majorly helps in reducing emotional reactions by creating a major bond between the employees. Although there are certain drawbacks which can create rumours and affect an individual personality or character. It is dangerous for an organisation if it grows rapidly without monitoring.(890)


Communication skills are very important for successful future of any particular student or an individual. Verbal communication and Non-Verbal communication both are essential for an individual to send and receive message. Verbal communication is process of transmitting or receiving message through words may it be by Oral communication or Writtencommunication.Non-Verbal communication is the process of sharing and receiving information without using words may it be spoken or written. Non-verbal communication has been given at most importance in today’s era. In non-verbal communication information messages are sent by voice modulation, changing tone of voice, gestures, facial expression, body movement, touch and sometimes even by inoring. In this communication the receiver should be very attentive and smart to understand the message through opponents way of talk, movement and expressions. Attitude and feelings can also be predicted through this type of communication. Mostly appearance, body language and sound give the hint to an receiver receiving message.

This are various forms of Non-Verbal communication.

1. Gestures

Gesture is a movement of part of body, especially by hand or head and it’s a way of expressing idea or a meaning. There are 3 types of gestures geneally

a. Adaptors- It is touching behaviour or movement that indicates internal state of an individual particularly uneasiness or anxiety.

b. Emblems- They have specific agreed meaning.

Eg. ‘Thups up’ sign indicates ‘OK’.

c. Illustrators- They are used for illustrating the verbal message.

Gestures meaning can be different for two different individual observing the movement. Gestures generally create misunderstanding if not attentive.

2. Body movements and postures

Body movements include head movements like nodding head, shaking head ,hand movements and etc. Postures include way of standing, sitting position etc.

Eg. Shaking head in side ways means NO or rejecting opponents idea or question.

3. Eye Contact-

Vision of eyes are most important for understanding non verbal communication and similarly for sending message. Communication can be done by eyes by the way you look at someone’s eye. Eye contact is useful for regulating information and also for conveying message and intimation.

4. Facial expressions-

Human faces are the most expressive part of our body. By just observing an photo humans can interpret the happiness or sadness of that individual. Smiles are generally used for communication. Through smiles human can show their acceptance and rejection. Expressions are also seen by varying movements of eyes. Blinking of eye is used as sign of acceptance and it is also used to flirt someone.

5. Haptics-

Haptics or Kinesthetic communicationis sense of touch by applying force, vibrations or pampering.

Communication through touch is used to show affection, sympathy, familiarity and emotions. Tapping on shoulder, hand shake, slapping, Hug are various ways by which one can communicate.

6. Vocalics-

Vocalics refers to the study of paralanguage, that includes vocal modulation , vocal volume, vocal quality that go with verbal message. Pitch also plays a vital role for conveying a particular message as we generally observe speaker emphasizing on particular word or phrases. Voice quality and modulation can generate different meaning of a same sentence.

7. Space-

We generally express on looking at 2 individuals who are standing together that they are ‘very close’ to each other. Depending upon culture and situation we can predict affection, attraction, aggression and intimacy through space.

Apart from this there may be different forms through which Non-Verbal communication is possible. Above mentioned forms impact cultural aspects of communication. Generally Culture creates context and contact creates meaning, without common contact or cultural background it is difficult to communicate effectively.

Relation between Verbal communication and Non-verbal communication

Communication is a complex process of exchanging information that involves different ways of sending and receiving messages. Words, speech, letter draft, symbols, body movement, gestures, haptic, facial expressions, appearance etc. are means of sharing information. Verbal and Non-verbal communication goes had in hand in all means of communication.

Following are the relations in which they are further explained as-

1. Substitution Relationship

When there is use of non-verbal symbols or signs as a response to verbal means or sign, this is generally termed as substitution relationship.

Eg. While teacher delivering speech in a class, students raise hands and asks for permission to drink water(this happens through eye contact) and then teacher nods head to give reply to student.

2. Complementing Relationship

Normally we observe while saying NO we generally shake our head in side wise direction, while describing someone besides you or pointing at direction of certain object we generally point our fingers. The above two examples shows that non-verbal sign goes had in hand with verbal message. This is termed as complementing Relationship.

3. Conflict relationship

When physical movement conflicts with verbal message, we often rely on Non-verbal communication. Eg.Sarcasm is a conflict relationship. While appreciating someone , facial expression shows the inner character of that person.

4. Accenting Relationship

Body language is used to accent our spoken language. This shows Non-verbal activities lay emphasis on verbally spoken words.

Eg. While teacher shouting in a class to keep quiet, teacher keeps 1st forefinger near mouth saying ‘assh’.

During everyday communication, we generally experiences that face to face interaction, visible behaviours and vocal action typically coordinate in such a way that it gives mutual boosting effect to an receiver. Thus Verbal communication and Non-verbal communication both are essential means of communication depending on appropriate environment and situation.

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The Importance of Communication in Doing Business. (2021, Oct 07). Retrieved April 23, 2024 , from

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