8 Factors Influencing the Business Communication

Communication is the exchange of facts, ideas, wishes, and attitudes between or among persons. Communication in business is same in nature. Business communication is the expression, channeling, receiving and interchanging of ideas in commerce-and industry.

This exchange becomes fruitful when the receiver understands the meaning of message in the way sender encoded. However, several factors distort the meaning of a message in business.

8 Factors Influencing the Business Communication are;

  1. Cultural Diversity.
  2. Misunderstanding of Message.
  3. Emotional Difference.
  4. Past Experiences.
  5. Educational and Intellectual Difference.
  6. Group Affiliations.
  7. Positional Differences among the Personnel.
  8. Functional Relationship between Sender and Receiver.

These are some factors that influence the meaning of business communication.

1. Cultural Diversity

When people from different cultural background communicate the chance of misunderstanding and wrong interpretation of message is higher. Large corporations and MNC’s usually have a culturally diverse workforce.

Also they deal with many nationalities. Misunderstanding of messages can lead to a very troubling situation for a company. Companies can take some measures to avoid this problem.

2. Misunderstanding of Message

Communication in business also fails when people assign different meanings to same word. Such misunderstanding happens when technical words or jargons are used. Moreover, people may intentionally misinterpret the inner meaning of words.

Misunderstanding of message is a common thing in a communication but it could create a problem for company. So, messages must be prepared properly and there should be feedback system.

3. Emotional Difference

Emotions and feelings of the parties involved in communication significantly affect the meaning of communication. For example, physicians are usually less emotional to patient than those of the relatives of the patients.

4. Past Experiences

Experience of previous communication strongly determines the effectiveness of further communication between the same sender and receiver. If either of the party has bitter experience, further communication between them is likely to be ineffective.

5. Educational and Intellectual Difference

Difference in formal educational and intellectual level of sender and receiver also influence the meaning of communication.

If they have similar educational qualifications, communication will be effective. Because they are likely to hold similar perception, understanding, feeling, thinking, view etc.

6. Group Affiliations


Differences in group-affiliation also affect communication in business. If sender and receiver belong to different formal or informal groups, communication between.

They may become less effective. For example, communication between trade union leaders and managers may fail simply because of their hostile attitude to each other.

Similarly, informal group relationship based on religion, gender, and region, age, etc. can affect business communication.

7. Positional Differences among the Personnel

If sender and receiver hold different positrons in the hierarchy, communication between them may fail. Sometimes we see that for the purpose of maintaining the formality it the organization, some people goes too far.

For example, superiors usually pay less attention to any message of their subordinates.  Also subordinates tries to avoid any instruction from the superiors to avoid the workload and responsibilities.

8. Functional Relationship between Sender and Receiver

Functional relationship between sender and receiver significantly affects the meaning of communication in business. If sender and receiver belong to different functional departments or areas, the receiver may not understand the sender’s message.

For example, the finance manager may not clearly understand the message of product design manager; quality control manager may not understand the message of accountants.

Business communication is the expression, channeling, receiving and interchanging of ideas in commerce-and industry. In many ways the meaning of business communication can be influence. This influence can be positive or negative.

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