Business Communication in Financial Institutions 6th BPE: Understanding Terminology
(i) Encoding vs. Decoding
(1) Encoding is the process by which the sender converts thoughts and ideas into a communicable message.
Decoding is the process by which the receiver interprets and understands the received message.
(2) Encoding aims to express ideas clearly. Decoding aims to understand the sender’s message correctly.
(3) Example:Encoding: A manager writing an email to assign a task. Decoding: An employee reading the email and understanding the instructions.
(ii) Perception vs. Prejudice
(1) Perception is the process of interpreting and understanding information received from the environment.
Prejudice is a preconceived opinion formed without adequate knowledge or evidence.
(2) Perception is based on personal experiences and can change with new information. Prejudice is usually biased and difficult to change.
(3) Example: Perception: Two employees interpret the same feedback differently. Prejudice: A manager assumes a junior employee’s idea is poor because of their position.
(iii) Webinar vs. Physical Seminar
(1) A webinar is a seminar conducted online through digital platforms. A physical seminar is a face-to-face meeting held at a specific venue.
(2) Webinar allows participants to join from anywhere at a lower cost. Physical Seminar provides direct interaction and better networking opportunities.
(3) Example: Webinar: An online training session for bank employees. Physical Seminar: An IBB training workshop held in Dhaka.
(iv) Agreement vs. Contract
(1) An agreement is a mutual understanding between two or more parties. A contract is a legally binding agreement enforceable by law.
(2) An agreement may or may not be legally enforceable. A contract creates legal rights and obligations for the parties.
(3) Example: Agreement: Two colleagues agree to swap work shifts. Contract: A loan agreement between a bank and a borrower.
(v) Annual Report vs. Audit Report
(1) An annual report is a report that presents a company’s financial performance and overall business activities for a financial year.
An audit report is a report in which an independent auditor expresses an opinion on the company’s financial statements.
(2) The Annual Report aims to inform shareholders and investors about the company’s performance.
Audit Report aims to verify the accuracy and fairness of the financial statements.
(3) Example: Annual Report: A bank’s yearly report showing financial results and plans. Audit Report: An auditor’s opinion confirming whether the bank’s financial statements are fairly presented.
(vi) Letters vs. Memo
(1) Letters are formal written communications sent to external parties. A memo is a written communication used within an organization.
(2) Letters are mainly used for external communication. A memo is mainly used for internal communication.
(3) Example: Letters: A claim letter sent to a supplier. Memo: A memo informing employees about a new policy.
(vii) Mobile Banking vs. Conventional Banking
(1) Mobile Banking is banking conducted through a mobile device or app. Conventional Banking is banking conducted through physical branch offices.
(2) Mobile Banking provides banking services anytime and anywhere. Conventional Banking requires customers to visit a bank branch.
(3) Example: Mobile Banking: bKash, Nagad, Upay, Rocket, etc. Conventional Banking: Sonali Bank PLC, Bangladesh Development Bank PLC, etc.
(viii) Persuasive Letter vs. Regret Letter
(1) A persuasive letter is a letter written to convince the reader to take a specific action.
A regret letter is a letter written to politely refuse a request or application.
(2) A persuasive letter aims to influence the reader’s decision. A regret letter aims to communicate a refusal while maintaining goodwill.
(3) Example: Persuasive Letter: A letter promoting a bank’s deposit scheme. Regret Letter: A letter declining a customer’s loan application.
