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CMA Foundation · Fundamentals of Business Laws and Business Communication

Features of Effective Business Communication: formula sheet

Full chapter guide

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.