CMA Foundation · Fundamentals of Business Laws and Business Communication
Features of Effective Business Communication: formula sheet
Key formulas
- Communication process chain
- Sender → Encoding → Message → Channel → Receiver → Decoding → Feedback
- Noise can disturb any stage. Feedback completes the cycle and shows whether the message was understood.
- Meaning of communication
- Communication = Transfer of message + Understanding by receiver
- If the receiver does not understand, communication is incomplete.
- Key objectives
- Inform, Persuade, Instruct, Build goodwill, Coordinate, Decide, Record
- Learn this list; questions ask which is NOT an objective or which fits a situation.
- Minimum parties
- At least one sender + at least one receiver
- Communication is a two-way process because of feedback.
- Clarity
- One message = one clear idea, in simple words
- Use familiar words, short sentences and a logical order. Avoid jargon and ambiguity.
- Conciseness
- Say the most in the fewest words
- Cut repetition and filler. Do not cut needed facts, or the message becomes incomplete.
- Concreteness
- Use specific facts, figures and dates
- Say 'deliver by 5 June' instead of 'deliver soon'.
- Correctness
- Right facts + right grammar + right level of language
- Covers spelling, figures, names and a tone suited to the receiver.
- Completeness
- Answer who, what, when, where, why and how
- The receiver should not need to ask again to act.
- Consideration
- Think from the receiver's point of view ('you' attitude)
- Focus on the receiver's needs, interests and feelings.
- Courtesy
- Respect, politeness and goodwill in words and tone
- Use thanks, please and a positive tone, even when refusing.
- Verbal vs non-verbal
- Verbal = uses words (oral or written); Non-verbal = communication without words (gestures, expressions, posture, eye contact)
- Written communication is also verbal because it uses words. Tone of voice goes with spoken words and is classed as paralanguage.
- Formal vs informal
- Formal = follows official structure; Informal = follows personal relationships
- Grapevine is the informal channel.
- Downward flow
- Superior → Subordinate
- Orders, instructions, policies, circulars.
- Upward flow
- Subordinate → Superior
- Reports, feedback, suggestions, grievances.
- Horizontal flow
- Same level ↔ Same level
- Used for coordination between peers or departments.
- Diagonal flow
- Different level AND different department
- Both conditions must hold.
- Semantic barriers
- Language problem = semantic barrier
- Jargon, ambiguous words, different meanings, poor translation, faulty expression.
- Psychological barriers
- Mind or emotion problem = psychological barrier
- Anger, fear, prejudice, stress, inattention, premature evaluation, distrust.
- Organisational barriers
- Structure or policy problem = organisational barrier
- Long hierarchy, rigid rules, unclear authority, information overload, poor channels.
- Physical barriers
- Surroundings or equipment problem = physical barrier
- Noise, distance, faulty devices, poor lighting, weak network.
- Overcoming barriers
- Clear language + active listening + open channels + feedback + good environment
- Match the remedy to the barrier type.
- Hearing vs listening
- Hearing = physical, effortless | Listening = mental, needs attention, understanding and response
- The most repeated comparison on this topic.
- Non-verbal terms
- Kinesics = body movement | Proxemics = space | Haptics = touch | Chronemics = time | Paralanguage = voice tone and pitch
- Match each term to its meaning. Examiners swap them in options.
- Active listening skills
- Attend → Understand → Remember → Respond (with feedback)
- Add: do not interrupt, keep eye contact, clarify, paraphrase.
- Etiquette essentials
- Punctuality + Courtesy + Proper dress + Respect for privacy + Polite tone
- Use as a checklist to judge which behaviour is correct.
Quick revision
- Communication is a two-way process: it is complete only when the receiver understands and feedback returns.
- The basic elements are sender, message, medium, receiver and feedback.
- Effective communication is clear, correct, complete, concise, courteous and considerate.
- Formal communication follows official channels; informal communication, often called the grapevine, does not.
- Verbal communication uses words, spoken or written; non-verbal uses gestures, posture, expressions and tone.
- Downward flows from superior to subordinate, upward from subordinate to superior, horizontal between peers.
- Barriers can be language, physical, psychological or organisational in nature.
- Noise, jargon and information overload are common barriers.
- Listening is different from hearing: listening needs attention and understanding.
- Body language includes eye contact, posture, gestures and facial expression, and it should match your words.
- Etiquette means polite, respectful and professional behaviour in speech, writing and conduct.
- Feedback confirms that the message was understood as intended.
Common mistakes
- Treating communication as one-way, from sender to receiver only. Fix: Remember that feedback completes the process. Communication is two-way.
- Confusing encoding with decoding. Fix: Encoding is done by the sender (idea into words). Decoding is done by the receiver (words into meaning).
- Confusing conciseness with completeness Fix: Conciseness removes unnecessary words. Completeness ensures necessary facts are present. Cut words, never needed facts.
- Treating concreteness as the same as clarity Fix: Clarity is about simple, unambiguous expression. Concreteness is about specific facts, figures and dates. 'Pay by 10 June' is concrete.
- Calling written communication non-verbal. Fix: Verbal means words. Spoken and written words are both verbal. Non-verbal means communication without words.
- Treating a memo from a manager to a clerk as upward. Fix: Follow the instruction. Manager to clerk is top to bottom, so it is downward.
- Calling jargon a psychological barrier. Fix: If the trouble is the words or their meaning, it is semantic. Psychological means emotion or attitude.
- Treating noise and distance as organisational barriers. Fix: Noise, distance and faulty equipment are physical. Organisational means hierarchy, rules and policies.
- Treating hearing and listening as the same thing. Fix: Remember that hearing is automatic and physical. Listening needs attention, understanding and response.
- Mixing up kinesics and proxemics. Fix: Kinesics links to kinetic (movement). Proxemics links to proximity (distance).
Exam tips
- Learn the process chain in order. Many questions simply ask which stage a given action belongs to.
- Watch for options that say communication is one-way or complete on sending. They are usually wrong.
- Know the difference between channel, message and feedback. Examiners use similar-sounding options.
- Remember objectives and importance as short lists so you can spot the odd one out.
- There is no negative marking, so always attempt every question after eliminating wrong options.
- Learn one-line meanings and one example for each C. Most questions are matching questions.
- Read whether the question asks which C is followed or violated before you look at the options.
- The pairs students confuse most are conciseness and completeness, and consideration and courtesy. Revise their differences just before the exam.