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CMA Foundation · Fundamentals of Business Laws and Business Communication

Process of Communication: formula sheet

Full chapter guide

Key formulas

Core definition
Communication = exchange of information, ideas or feelings + common understanding
Exchange alone is not enough. Understanding by the receiver is the test of successful communication.
Minimum elements
Sender + Message + Receiver (+ Feedback)
Feedback makes communication two-way and confirms understanding.
Origin of the word
Communication ← Latin 'communis' = common
Often asked directly. It means to make common or to share.
Order of the communication process
Sender → Message → Encoding → Channel → Receiver → Decoding → Feedback
Some books place encoding before message or add noise as an extra element. Follow the order in your study material, but the sequence of sender, encoding, channel, decoding, feedback is the one to remember.
Encoding
Encoding = converting the idea into words, symbols or signs
Done by the sender, before sending.
Decoding
Decoding = converting the received symbols back into meaning
Done by the receiver, after receiving.
Feedback
Feedback = receiver's response to the sender
It completes the cycle and confirms understanding.
The 7 Cs
Clarity, Conciseness, Concreteness, Correctness, Consideration, Courtesy, Completeness
Learn all seven in this order. Questions often ask which one is NOT part of the 7 Cs.
Objectives of business communication
Inform, Persuade, Instruct, Build goodwill, Support decisions and records, Motivate and coordinate
Wording varies between books. Focus on the idea behind each objective.
Consideration (you-attitude)
Write from the receiver's viewpoint: stress 'you', benefits and needs of the reader
This is the most commonly tested C because it is easy to confuse with courtesy.
Concise vs complete
Conciseness = fewer words, same meaning; Completeness = all needed facts present
Being short must never mean leaving out facts the reader needs.
Formal communication
Formal = official structure + recognised channel + usually recorded
Examples: memo, circular, report, official email.
Informal communication
Informal = personal relationships + no official structure + rarely recorded
Grapevine is the main example.
Verbal vs non-verbal
Verbal = words (oral or written); Non-verbal = signals without words
Written words are verbal, not non-verbal.
Direction of flow
Downward: superior → subordinate; Upward: subordinate → superior; Horizontal: same level; Diagonal: different level and department
Decide by the rank of sender and receiver.
Grapevine chains
Single strand, gossip, probability, cluster
Cluster chain is often cited as the most common pattern.
Semantic barrier
Semantic barrier = problem with words, language or meaning
Examples: jargon, ambiguous words, technical terms, poor translation, different meanings of the same word.
Psychological barrier
Psychological barrier = problem in the mind or emotions of sender or receiver
Examples: fear, anger, prejudice, stress, inattention, mistrust, premature evaluation.
Organizational barrier
Organizational barrier = problem in structure, rules or flow of information
Examples: long hierarchy, rigid rules, overload, no feedback channel, status differences.
Physical barrier
Physical barrier = problem in environment, distance or medium
Examples: noise, faulty phone or network, distance, poor lighting, closed cabins.
Core remedy
Remedy = remove the cause + confirm with feedback
Match the remedy to the barrier type, then check understanding through feedback.

Quick revision

  • Communication is the exchange of information, ideas or feelings so that the message is understood.
  • Understanding by the receiver is what makes communication complete, not just sending.
  • The sender starts the process; the receiver is the person for whom the message is meant.
  • Encoding turns the idea into words, symbols or signals; decoding is the receiver interpreting them.
  • The channel is the medium that carries the message, such as a call, email or letter.
  • Feedback is the receiver's response and makes communication two-way.
  • Noise is anything that disturbs the message in the process.
  • Formal communication follows the official structure; informal communication, such as the grapevine, does not.
  • Verbal communication uses words (spoken or written); non-verbal uses gestures, tone, posture and similar signals.
  • Barriers can be semantic (language and meaning), physical, psychological or organisational.
  • Clarity, completeness, conciseness and courtesy are common principles of effective communication.
  • There is no negative marking, so attempt every question.

Common mistakes

  • Treating communication as only sending a message. Fix: Remember that the message must reach and be understood by the receiver. Understanding completes communication.
  • Calling communication a one-way process. Fix: Link communication with feedback. Feedback makes it two-way.
  • Confusing encoding with decoding. Fix: Remember: the sender encodes (en = put in code), the receiver decodes (de = take out of code).
  • Treating the message and the channel as the same thing. Fix: The message is what is said. The channel is how it travels. The text of the email is the message; email is the channel.
  • Confusing Consideration with Courtesy Fix: Consideration is about the reader's needs and viewpoint. Courtesy is about polite, respectful words and manners.
  • Treating Conciseness as 'as short as possible' Fix: Conciseness removes unnecessary words only. If facts are missing, the message fails on Completeness.
  • Calling written communication non-verbal. Fix: Remember verbal means words. Both oral and written messages are verbal.
  • Treating grapevine as formal communication. Fix: Grapevine has no official channel, so it is always informal.
  • Calling jargon a psychological barrier Fix: Confusion caused by words or terms is semantic. Psychological means emotions, attitudes or attention.
  • Treating information overload as a physical barrier Fix: Overload comes from how the organization handles information, so it is organizational.

Exam tips

  • Learn the one-line definition with both words: exchange and understanding.
  • Memorise the Latin root communis meaning common. It is a favourite direct question.
  • Expect feature questions such as two-way, continuous and involving two or more parties.
  • Be ready for 'which is NOT a feature' style questions. One-way only and written only are usually the wrong features.
  • There is no negative marking, so always attempt every question.
  • Questions are usually situation based, so practise naming the element from a short example rather than only learning definitions.
  • Learn the exact sequence, because options often shuffle the order to test you.
  • Keep encoding (sender) and decoding (receiver) clearly separate; many wrong options swap them.