LESSON 1

COMMUNICATION SKILLS
OBJECTIVES
By the end of this chapter, you are expected to;
•• Understand the communication process and various modes of communication
•• Identify the various components that make up a communication system
•• Identify the advantages and disadvantages of the various media of communication
•• Know what communication skills are essential for the entrepreneur to acquire
•• Identify the barriers to effective communication
INTRODUCTION
The entrepreneur will deal with all sorts of business associates in the course of running his
business.
At the same time, he will interact a lot with his employees, giving them instructions on what he
expects from them as far as meeting their individual goals is concerned. The entrepreneur should
ensure that he is working with a team that shares his vision for the business. This ensures that
there is no one holding the course behind. For this to be effectively accomplished, it is important
that the ideas the entrepreneur has are well communicated to his staff. There are various means
of doing this, as we shall see in this chapter. The entrepreneur is not just the boss who gives
instructions and expects them to be followed to the letter. He should also be a good listener. He
should develop skills that will enable him have a good working relationship with all the people
he
deals with, both internal and external to the business. He will also need to identify barriers that
may hinder the communication process and address them. Effective communication, a vital tool
in running the business, is a two way process and should not be ignored by the entrepreneur.
KEY TERMS
Communication: This is the process of exchanging ideas amongst two or more persons. It is
the process of giving, receiving or exchanging information, opinions or ideas by writing, speech
or visual means, so that the material communicated is completely understood by everyone
concerned.
Communication Channel: The route that a message will traverse before it reaches its intended
destination.
Receiver: This is the desired destination of the message that is intended to action. The receiver
can either be a person or a location that has been identified in advance
Sender: This is the originator of the message or information that needs to be sent to a
predetermined destination. The sender can be a person or a machine at a particular location.
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INDUSTRY CONTEXT
The entrepreneur will be seeking business from the network he will have established as a result
of interacting with other entrepreneurs in his industry. For him to succeed in this, he should
develop good relations with all his business associates. Effective communication is important in
helping him achieve this end. He will also be looking for essential communication skills from his
staff and this may be an important criterion for recruiting his staffrough which the message
Effective communication is a two-way process. Messages are sent by the Transmitter (Tx) and
received by the Receiver (Rx) who sends back some form of confirmation that the message has
been received and understood.
The sender needs to decide how to transmit the message.
The particular route or path via which the message is sent connecting the sender and receiver
is called the channel of communication. Examples would include postal, telecom or computer
systems. The entrepreneur will need to identify a channel that is most appropriate for his type of
business. He will need to carry out a feasibility study to choose a channel that will be economical
to install and maintain. The tool or instrument used is the medium e.g. gesture, picture, letter,
report, telephone conversation etc.
The choice of media will depend on:
1. T he time necessary to prepare and transmit the message considering its urgency.
2. T he complexity of the message. What channel will enable it to be most readily
understood.
3 T he distance the message is required to travel and in what condition it must arrive.
4. The need for a written record e.g. confirmation of transactions, legal documents.
5. T he need for interaction or immediate exchange e.g. question and answer, instant feed
back etc.
6. The need for confidentiality
7. T he need to distribute the information widely and quickly
8. S ensitivity to the effect of the message on the recipient. The need for tact, personal
involvement, etc
9. Cost, in relation to the above factors, for the best possible result at the least possible
expense.
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LESSON 2

Written Communication
Here the information to be communicated is written down on paper. The sender and receiver
should both be in a position to read and write. Written communication can take any of the
following
forms;
1. Letter
2. M emorandum
3. R eport
4. M inutes
5. P ress Release
Advantages
•• Provides Written Record
•• Can be used to communicate complex ideas
•• Provides analysis and evaluation
•• Spreads information to dispersed receivers.
•• Can confirm oral reports
•• Forms basis of contracts or agreement
Disadvantages
•• Can take time to produce
•• Can be expensive
•• Communication tends to be informal and distant
•• Can cause problems of interpretation
•• Instant feedback not possible
•• Takes time for opinions, ideas or views to be exchanged.
Oral Communication
In oral communication, the two or more parties communicating with each other have to use
words to communicate. The importance of good listening skills becomes vital in this mode of
communication. Some of the ways in which oral communication can be carried out include;
1. Face-to-face
2. I nterview
3. M eetings
4. P ublic address
5. O ral presentation
6. T elephone calls
7. Conferences
Advantages
•• There is Physical proximity
•• Allows for instant exchange of ideas
•• Feedback immediate
•• Easier to persuade
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Disadvantages
•• More difficult to control when a large number of people are involved.
•• Lack of time to think things out
•• Sometimes no written record of what was said.
LESSON 3
Visual Communication
Communication here is achieved by means of drawn images and representations of real life
objects. These images are presented to the audience for them to apply their visual skills to
decipher the message
1. N on-verbal e.g. gestures, posture
2. D iagrams
3. Charts/Graphs
4. T ables
5. Film
Advantages
•• Reinforces oral communication
•• Simplifies written or spoken word
•• Quantifies – provides ideas in number form
•• Illustrates techniques and procedures
•• Provides visual record.
Disadvantages
•• May be difficult to interpret without written or spoken word.
•• Can be costly and expensive to produce
•• May be costly to distribute
•• Does not always allow time for evaluation
Computerized Communication
Here there is involvement of ICT infrastructure to facilitate communication between two or more
parties. These machines cost a lot of money and are mostly used by medium scale to large
businesses. Examples include;
1. Fax
2. T elex
3. T eleconferencing
4. Computer conferencing
Advantages
•• Speed of transmission. Takes a few seconds to connect large areas.
•• Versatile - Fax can transmit text, graphics, artwork, photographs.
•• Accuracy
•• Feedback-Allows for almost simultaneous exchange of information and responses.
Disadvantages
•• Costs – could be quite high.
•• Faxed messages not readily accepted for legal purposes – but telexes are.
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•• Instant delivery can cause upsets if sender does not pause to think and sends messages
in a moment of anger.
LESSON 4
Stages in the Communication Cycle
The following diagram represents the communication model that is used to explain the stages
involved in the communication cycle
Sender
This is the originator of the message. He is the person who releases the information for the
intended recipient from one end of the communication system. He is the one who conceives the
message: The sender should consider the recipient carefully and aim the message to suit the
recipient’s specific needs.
Before releasing the message, it has to be encoded. This involves putting the information into
an appropriate form suitable to the sender, the recipient and the purpose. This means choosing
whether words will be sufficient, whether a printed record and/or graphics are necessary.
In selecting the appropriate channel aspects such as speed, cost, quick receipt, printed record,
confidentiality, etc must be considered while choosing the telecommunication method.
Receiver
This is the intended recipient of the message. At his end the message will be decoded. This
involves putting the message in a format that will be understood by the receiver. The same
rules used in encoding it are the same ones that will be used to decode the message. When a
message arrives in the office, it is important to ensure that they are routed promptly and are given
the attention they deserve. It is also important for the Sender to have ensured that the recipient
will understand the language and vocabulary used.
Interpret the message: This is where the recipient interprets the message. It is important
to ensure that the correct message is received. Distortion of the message may occur if the
sender has not carefully encoded the communication, in which case the recipient will interpret
the message differently from how it was intended.
Feedback: Feedback must be provided from the Recipient. For successful communication, the
response of the recipient must be the one intended by the sender.
Medium/channel of communication.
Encode the
message
Decode the
message
Sender
(Transmitter)
Recipient
(Receiver)
Feedback
Noise
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LESSON 5

Channels
For people to be able to communicate with each other there must be some sort of communication
between them - a path through which the medium can travel. Such connections between people,
making communication possible, are called channels of communication.
In olden days, the communication channel was a path. This is a track along which a messenger
would walk or run to deliver a message. From paths, there developed roads, railways, sea, air
routes, Post Office services etc.
Channels of communication are not just over distances. When two people are in the same room
a channel of communication opens as soon as one starts to speak. If the person you are talking
to considers that the matter you are raising is not his concern, your attempt to open up a channel
of communication will fail.
6.2 Essential Communications Skills
Fast forward: Certain essential skills are important for the communication process to achieve
its purpose.
Everybody working for an organization has to know what he is supposed to be doing and how to
do it. People work better if they know why they are doing something, so management needs to
explain their policy to them. Most organizations also recognize that the most committed and
loyal
response comes from employees who have had an opportunity to shape policy, to decide how a
job should be tackled how equipment ought to be selected etc.
Thus efficient systems need to be established by the entrepreneur to test employee’s reactions.
Through this process it will be possible to assess the essential communication skills and how
they contribute to the success of his business
6.2.1 The importance of conveying the message
Effective communication is all about conveying your messages to other people clearly and
unambiguously. It's also about receiving information that others are sending to you, with as little
distortion as possible.
Doing this involves effort from both the sender of the message and the receiver. And it's a
process
that can be fraught with error, with messages muddled by the sender, or misinterpreted by the
recipient. When this isn't detected, it can cause tremendous confusion, wasted effort and missed
opportunity.
In fact, communication is only successful when both the sender and the receiver understand the
same information as a result of the communication.
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By successfully getting the message across, the sender conveys his thoughts and ideas
effectively.
When not successful, the thoughts and ideas that are actually sent do not necessarily reflect the
sender’s thoughts, causing a communications breakdown and creating roadblocks that stand in
the way of the sender’s goals – both personally and professionally.
In spite of the increasing importance placed on communication skills, many individuals continue
to struggle, unable to communicate their thoughts and ideas effectively – whether in verbal or
written format. This inability makes it nearly impossible for them to compete effectively in the
workplace, and stands in the way of career progression.
Being able to communicate effectively is therefore essential if an entrepreneur wants to build
a successful career. To do this, he must understand what his message is, what audience he is
sending it to, and how it will be perceived. He must also weigh-in the circumstances surrounding
his communications, such as situational and cultural context.
The entrepreneur should learn the skills needed to effectively communicate with all those he
comes into contact with. There are common communication traits that all successful
entrepreneurs
use in their daily interactions with others. Because they are common they can integrate them into
their style of communications to become more effective and successful.
Part of the entrepreneur’s role is having tough conversations. When there is bad news or change,
these conversations should be delivered directly and respectfully. Important as these types of
communications are, they are frequently not handled well.
These tough conversations can be an opportunity to show appreciation, build morale, and help
people positively move through challenging times and situations—if your managers have the
skills.
The following are some of the essential communication skills that the entrepreneur should be
familiar with. The list is not exhaustive but can be used as a guideline
LESSON 6
Effective Listening
To be a good listener is as important as being a good speaker. Speaking in itself is useless unless
someone is prepared to listen to us. Listening is not something that happens to us whether we
like it or not. It is an active process. We choose to listen or not to listen.
This explains how we can have a conversation while the radio is blasting loud. It also explains
why some of us are very bad at remembering names, dates, times of meeting etc. It is mainly
because we did not listen well enough.
Being a good listener is one way of earning the respect and affection of those you are with every
day. At work, slack listening means that you do not fully understand the instructions given to
you or the information you have requested. You will distort telephone messages, misunderstand
customer complaints etc. A high standard of listening efficiency is required whenever you are
receiving information.
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Listening is not about just nodding one's head in understanding while the other person is talking.
No, true listening requires that you maintain eye contact with the one you are listening to. Make
you're your eyes are not looking side to side or over the other's shoulder, but instead are focused
on the eyes and face of the person you are talking with. The listener does this with the intention
of understanding exactly what the other person has to say. When you really listen to people,
not only do you get to know them, but they might provide you with some information to help
you
farther along toward future success.
As the other person is speaking the listener will, during the other person's pauses, paraphrase
what he has heard. Paraphrasing is repeating, to the one you're communicating with, what you
just heard them say, but in your own words. Paraphrasing clarifies that you understand what the
other person means. This is engaging and interactive communication skill and every successful
person uses it.
Body Language
In addition to the ability to listen, effective communicators possess excellent non-verbal
communications, or body language. As one is communicating with another, the posture should
be relaxed. The hands should be free, maybe at the side, but seldom kept in the pockets. The
hands should not be tightly wrapped around each other in a closed gesture, nor should they
scratch the head, arms or face while they are either listening or talking. All those things make the
listener nervous
Effective communicators have a posture which is erect, but yet relaxed. They don't stand stiffly,
nor do they slouch over while either standing or sitting. In a sitting position, legs can be crossed
or comfortably side-by-side.
Tone of Voice
The tone of voice should be even. Also, one should be very careful in the words chosen to
express oneself. The communicator should take his time as he speaks so as not to use wrong or
inappropriate language. The person communicating should have a good command of language
and knows how to use it effectively
Interactive
One should not assume they know everything and therefore should be very inquisitive, even
when communicating with others. This means they ask questions, truly interacting with others.
They know that others possess knowledge too. Asking questions educates them, and successful
people know the value of being educated. It helps them make better decisions and choices in
their life and work.
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6.3 Barriers to Effective Business
Communication
Fast forward: There are inherent limitations, both interpersonal and technical in the
communication
process which should be eliminated for there to be effective message conveyance.
Certain psychological and physical barriers between people may distort the communication
process and cause misunderstanding and confusion.
Hierarchical barriers
Communication between superiors and subordinates tend to be rather cautious. The superior
wishing to maintain authority and the subordinate protecting himself from criticism. A formal
and rigid line relationship may funnel the process of communication too narrowly, restricting the
dissemination of information.
Educational/Social Background
Differences sometimes cause feelings of inferiority/superiority. Differences in educational
standards could also hinder understanding of some information.
Age, Sex, Culture
Natural differences may affect outlook and perception.
Language
Misunderstanding and incorrect interpretation may result from the use of inappropriate or
ambiguous language. This is especially the case where technical and specialist language is
used.
Background Knowledge
Lack of expertise or knowledge of a subject may impair understanding.
Manner/Tone
Tone, gestures, facial expressions and mannerisms may convey disapproval, disbelief, aggression
etc.
Preconceived Judgment
Either party may already have made up his mind about the outcome or made judgments on the
topic. He will therefore be unreceptive or only hear what he wants to hear.
Personality clashes
Guarding of one's own area of work may affect objectivity and the degree of co-operation given.
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Perception
Sometimes people view situations in a completely different light. This affects their
understanding
or acceptance of the matter at hand.
Poor Listening
Inattention results in lack of knowledge and misconceptions.
Lack of Time
Executives may always be ‘too busy’ to talk except by appointment. This leads to a feeling of
remoteness and lack of involvement.
Physical Surroundings
Lack of privacy could inhibit free discussion. Visual/oral distractions or poorly arranged
furniture
could do the same.
Distance
Where offices are spread out, it is often impracticable to communicate verbally except by
telephone. Closed doors also inhibit would-be communicators.
Self-esteem
People may be afraid to speak their mind in case they expose a weakness.
Chain Distortion
As information passes along a communication chain it is affected by coding/decoding distortion.
People on the chain are constantly changing from the receiver’s role to the sender’s role and
vice versa
Sender A M anaging Director
R eceiver B D irectors receive from above/transmit below
C D epartment managers receive from above/transmit below
D supervisors, etc
Each time an Rx switches to the Tx role he has to re-code the message. Sometimes the media
is changed. It is inevitable; there will be distortion of the message.
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Suspicion
In a vertical chain distortion occurs because of suspicion aroused by the differences in rank
between those on the chain. Thus a new system introduced by management intended to improve
productivity and possibly reduce workload may come out at the bottom looking like a reduction
of
privileges. By the time these feelings from the bottom are expressed to top management it could
come out as “workers being unnecessarily stubborn” and produce the reaction. “They have no
choice!” It is not difficult to see how quickly management and workforce can get out of step with
each other this way.
Noise
Noise is any unwanted signal. Noise, in this context, is constituted by buzzes on the telephone
line or public address system, physical noise from traffic, heavy machinery, manual typewriters
or even other people talking. It could be distractions such as the fact that you have a headache,
or received very bad news that morning or had a quarrel with a close friend. All types of noise
reduce the efficiency with which we communicate.
6.3.1 The Importance of Removing Barriers
Problems with communication can pop-up at every stage of the communication process (which
consists of the sender, encoding, the channel, decoding, the receiver, feedback and the context
– see the diagram below). At each stage, there is the potential for misunderstanding and
confusion.
Removing Barriers at All These Stages
To deliver messages effectively, the communicator must commit to breaking down the barriers
that exist within each of these stages of the communication process.
Let’s begin with the message itself. If a message is too lengthy, disorganized, or contains errors,
the message is likely to be misunderstood and misinterpreted. Use of poor verbal and body
language can also confuse the message.
Barriers in context tend to stem from senders offering too much information too fast. When in
doubt here, less is oftentimes more. It is best to be mindful of the demands on other people’s
time, especially in today’s ultra-busy society.
Source Encoding Channel Decoding Receiver
Msg Msg Msg Msg
Feedback Context
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Once one understands this, he needs to work to understand his audience’s culture, making sure
he can converse and deliver his message to people of different backgrounds and cultures within
his own organization, in his country and even abroad
To be an effective communicator and to get the point across without misunderstanding and
confusion, the goal should be to lessen the frequency of problems at each stage of this process,
with clear, concise, accurate, well-planned communications. We follow the process through
below:
At the Source
As the source of the message, one needs to be clear about why he is communicating, and what he
wants to communicate. One also needs to be confident that the information he is communicating
is useful and accurate.
On the Message
The message is the information that one wants to communicate.
While Encoding
This is the process of transferring the information to be communicated into a form that can
be sent and correctly decoded at the other end. The success in encoding depends partly on
one's ability to convey information clearly and simply, but also on the ability to anticipate and
eliminate sources of confusion (for example, cultural issues, mistaken assumptions, and missing
information.)
A key part of this is knowing one's audience: Failure to do this will result in delivering messages
that are misunderstood.
On the Channel
Messages are conveyed through channels, with verbal channels including face-to-face meetings,
telephone and videoconferencing; and written channels including letters, emails, memos and
reports.
Different channels have different strengths and weaknesses. For example, it's not particularly
effective to give a long list of directions verbally, while one can quickly cause problems if he
gives
someone negative feedback using email.
While Decoding
Just as successful encoding is a skill, so is successful decoding (involving, for example, taking
the time to read a message carefully, or listen actively to it.) Just as confusion can arise from
errors in encoding, it can also arise from decoding errors. This is particularly the case if the
decoder doesn't have enough knowledge to understand the message.
At the Receiver
The message is delivered to individual members of your audience. No doubt, the sender has
in mind the actions or reactions he hopes his message will get from this audience. One should
keep in mind, though, that each of these individuals enters into the communication process with
ideas and feelings that will undoubtedly influence their understanding of the message, and their
response. To be a successful communicator, one should consider these before delivering the
message, and act appropriately.
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On the Feedback
The audience will provide feedback, as verbal and nonverbal reactions to the communicated
message. One should pay close attention to this feedback, as it is the only thing that can give
confidence that the audience has understood the message. Should there be a misunderstanding,
at least one has the opportunity to send the message a second time.
On the Context
The situation in which the message is delivered is the context. This may include the surrounding
environment or broader culture (corporate culture, international cultures, and so on).
Solving personal barriers
The entrepreneur should be aware that despite ensuring that the above technical hitches are
prevented from happening, there are other personal barriers that may force him to get involved
in a different way as the head of his organization. He may use the following strategies in solving
the problems;
Open door policy
This policy ensures that the employees are free to come to him and present any problems they
may be having in their work place. The entrepreneur should develop an approachable character
and should not be too autocratic.
Giving employees their space
The entrepreneur should also strive to give his employees space from which to operate. He
should not be too overbearing in demanding to know what they are doing each and every second
of their work time. He should give them the independence they need to deliver results. This
comes after assessing their work attitudes and knowing how each employee works.
Open day/ Out of the office activities
From time to time, the entrepreneur can organize outdoor activities like sports, staff parties,
environmental cleanup exercises with the community e.t.c. This facilitates interactions across the
management hierarchy in an informal set up. He should also encourage them that they should
not fear victimization once they resume work sessions.
Knowing how to listen
Most importantly, the entrepreneur should be a good listener. He should not assume that he has
the answers to all the problems the employees may have. Some problems may simply require
good empathetic listening.
Code of ethics
The entrepreneur should ensure he has a code of ethics in place that is fair to all employees.
This is a set of rules that the staff are expected to follow as guideline on how to handle ethical
issues at the work place. For instance, the entrepreneur should consider whether barring office
relationships is likely to affect the work attitudes of his staff.
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CHAPTER SUMMARY
•• The communication process involves a sender of a message relaying some information
(message) to a predefined receiver. This is effectively achieved through a chosen
communication channel. The receiver responds by acknowledging receipt (feed back)
•• The entrepreneur should choose a communication media that suits his type of
business.
•• Effective listening is an important communication skill that the entrepreneur should
strive to acquire. Other important communication skills include; using the right tone of
voice, knowing how to use body language, being interactive.
•• There are barriers to effective communication in the work place and with external
business associates that the entrepreneur should also strive to alleviate
CHAPTER QUIZ
1. Define the following terms as applied in communication
•• Sender
•• Receiver
•• Communication medium
•• Communication channel
•• Encode
•• Decode
2. I dentify 4 communication media the entrepreneur can choose from in setting up his
communication system.
3. D escribe the communication model, identifying the various components involved in the
process
4. List 3 essential communication skills that the entrepreneur should strive to acquire.
5.
Identify four barriers to effective communication that the entrepreneur is likely to be faced with
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ANSWERS TO THE QUIZ
1. Sender
T his is the person who comes up with the message. He is the one who instigates the
communication session by releasing the information for the intended recipient from one end
of the communication system.
Receiver
This is the intended recipient of the message. The receiver would be a predefined party. This
ensures that the message does not land in the wrong person’s hands.
Communication Medium
T his refers to the communication tool that has been used to transmit the message. It refers
to the communication gadget that has been chosen. Examples include letter, telephone,
picture etc
Communication Channel
T his is the route that the message will traverse before it reaches its intended destination.
Examples include email, postal service, telecom, l etc
Encode
T his refers to the process of hiding the meaning of a message before sending. It ensures
that only the recipient can get the information contained in the message.
Decode
A t the recipient’s end, the meaning of the message will have to be revealed using the same
set of rules that were used to conceal the meaning of the message.
2.
•• Letter – This can either be hand delivered or sent by post
•• Picture – This can be used as a learning tool or information tool
•• Telephone – Telephone conversations can be used to relay information
•• Email – Through the internet, messages can be sent and received
3. T he communication model refers to the system that ensures communication takes place. It
refers to the interaction of several components that work together to ensure that a message
reaches its intended destination and feed back is relayed back to the sender. The components
involved include
•• Sender
•• Encoder
•• Communication Channel
•• Decoder
•• Receiver
•• Feedback
4. Essential communication skills
•• Good listening
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•• Right tone of voice
•• Use of body language
•• Being interactive
5.
•• Noise in the communication channel
•• Hierarchical barriers in the work place
•• Educational /Social Background
•• Language barrier
•• Personality clashes
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EXAM QUESTIONS
Question One
(a) Define the following terms;
•• Communication Channel (2 Marks)
•• Sender (2 Marks)
•• Receiver (2 Marks)
•• Encoding (2 Marks)
(b) U sing a diagram explain what the communication model is, clearly identifying the
components
that make up the model. (12 Marks)
Question Two
(a) What are barriers to effective communication (5 Marks)
(b) What is meant by the term ‘effective listening? Describe how this skill may be acquired and
developed. (10 Marks)
(c) Clearly explain 5 essential communication skills the entrepreneur should strive to acquire
(10 Marks)
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CHAPTER ONE
BUSINESS COMMUNICATION
STUDSTUDY YT ETXETX T
SEVEN