LISTENING SKILLS IN BUSINESS

Expressive skills and receptive skills make up the two skills
of communication. Speaking and writing are generally
referred to as expressive skills; they provide the means by
which people express themselves to others. The receptive
skills, listening and reading, are the ways in which people
receive information.
LISTENING IMPROVES
PRODUCTIVITY
It has been reported that senior officers of major North
American corporations spend up to 80 percent of their
working time in meetings, discussions, face-to-face conversations,
or telephone conversations. Most employees
spend about 60 percent of the workday listening. Since
such a large percentage of one’s waking time is consumed
by listening activities, it is clear that one’s productivity
could be increased through listening training.
Listening consumes about half of all communication
time, yet people typically listen with only about 25 percent
of their attention. Ineffective listening is costly,
whether it occurs in families, businesses, government, or
international affairs. Most people make numerous listening
mistakes every day, but the costs—financial and otherwise—
are seldom analyzed. Because of listening
mistakes, appointments have to be rescheduled, letters
retyped, and shipments rerouted. Any number of catastrophes
can arise from a failed communication, regardless of
the type of industry. Productivity is affected and profits
suffer.
Research indicates that people hear only 25 percent
of what is said and, after two months, remember only
one-half of that. This is not true at all stages of one’s life.
First graders listen to 90 percent of what is said, second
graders 80 percent, seventh graders 43 percent, and ninth
graders only 25 percent.
It is imperative that people strive to improve their listening
skills. When having difficulty understanding a document
while reading, it can be reread for clarification.
Oral messages, however, unless they are mechanically
recorded, cannot be heard more than once. The listener
may misunderstand, misinterpret, or forget a high percentage
of the original message. With proper training,
though, listening skills can be improved. It has been
proven that with extended, focused training in listening,
one can more than double one’s listening efficiency and
effectiveness.
RECEPTION AND
INTERPRETATION
Communication involves message reception and interpretation.
Studies of communication have routinely found
that almost all people listen more than they talk, read
more than they write, and spend a lot more time receiving
messages than sending them. The average person speaks at
a rate of 100 to 200 words per minute. An average listener,
however, can adequately process 400 words per minute.
Given this differential between what is normally heard
and what potentially can be processed, it is little wonder
that people tend to “tune out” at certain times. Mental
tangents are the obvious product of this differential, and
managers who believe that subordinates are listening
intently to every word they utter are deluding themselves.
Listening can be compared to exercising or wearing
seat belts: Everybody knows it is desirable, but everybody
finds it difficult to do on a regular basis. Most people
yearn to talk and want to be center stage. If one listens to
any casual conversation between friends, one will probably
note that most people spend much of the conversation
paying maximum attention to what they are going to say
next. As people listen to others, they spend much of the
time thinking about the next thing they will be saying.
SKILLED LISTENING
Listening is more than just hearing what a speaker says.
Hearing is simply the reception of sounds by one’s ears;
listening is interpreting, or making sense of, the sounds
that one hears. Hearing is a physical perception; listening
is a mental activity. Listening requires concentration,
cooperation, and an open mind.
Many situations at work demand skilled listening.
Conferences, interviews, receiving instructions, and handling
complaints, all call for alert, sensitive listening.
Whether one is listening in order to learn how to do a
task, make a decision, or achieve friendly relations with
one’s coworkers, it is important to make a concentrated
effort to understand what the speaker is saying.

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 463
Listening Skills in Business
TYPES OF LISTENING
Three types of listening exist. The first type is casual, or
informal. One usually does not need to remember details.
The second type of listening is active, or formal. This type
of listening takes concentration and requires that the listener
absorb details. The last type of listening is nonverbal
listening.
Speakers have the responsibility to communicate as
effectively as they can, but listeners also have responsibilities.
They cannot sit back and contentedly assume they
have nothing to do. Like speakers, listeners also need to
prepare themselves. As they listen, they must concentrate
on both the verbal and nonverbal message of the speaker.
Listeners are influenced by the speaker, the message, other
listeners, physical conditions, and their emotional state at
the time of the listening activity. While the first three cannot
be controlled by the listener, the last two can.
Body Language. To give complete attention to the
speaker and the speaker’s message, the listener should
choose a position that allows a full view of the speaker’s
gestures. Fifty-five percent of a person’s message involves
nonverbal communication, 38 percent of the message
derives from the speaker’s voice inflection, and only 7 percent
of the message involves the actual words spoken.
In addition to the verbal message, the listener should
also concentrate on the speaker’s nonverbal messages—
communicated through gestures, tone of voice, and physical
movements. Do the speaker’s gestures seem to
reinforce or contradict the words? If the speaker is trying
to paint herself as a sincere, dedicated woman, or do you
detect elements of dishonesty? Is the speaker actually
timid even though he is trying to play the role of a man
full of confidence? Only by carefully watching and analyzing
a presenter’s body language and thoughtfully listening
to his or her words can one receive the full impact of the
message.
As with the spoken word, body language has its own
special pace, rhythm, vocabulary, and grammar. Just as in
verbal language, there are “letters” that, when correctly
joined, form unspoken “words.” Such words are then
linked to create the “phrases” and “sentences” by which
messages are exchanged. Relaxed gesturing on the part of
the speaker, for example, is usually associated with confidence,
while jerking and abrupt motions display nervousness
and discomfort. Putting learned information about
nonverbal communication to practical use can spell the
difference between success or failure in many business and
social encounters.
BENEFITS OF ACTIVE LISTENING
Whether one is involved in a serious negotiation, job
interview, company meeting, or personal interaction, the
need to listen more effectively is vital. Active listening is
important because listening enables people to:
• Gain important information
• Be more effective in interpreting a message
• Gather data to make sound decisions
• Respond appropriately to the messages they hear
To become a better listener, one should:
1. Look the part: Face the speaker and display feedback
that the message is being heard and understood.
Lean toward the speaker to show interest. Maintain
eye contact at least 80 percent of the time. Do not
distract the speaker with strange facial expressions
and fidgeting.
2. Listen for nonverbal messages: Observe the speaker’s
body language, gestures, and the physical distance.
Observe the speaker’s facial expressions, eyes,
mouth, and hands for hidden messages.
3. Listen for the main points: Filter out the nonessential
and look for the principal message of the words.
4. Be silent before replying: Be certain that the speaker is
completely finished speaking before attempting to
speak. Resist the temptation to interrupt unnecessarily.
5. Ask questions: It is appropriate to question the
speaker in order to clarify meanings and reinforce
messages heard.
6. Sense how the speaker is feeling: To receive the complete
message, it is important to sift out any feelings
the speaker is trying to convey. Determine what the
speaker is not saying.
7. Take notes: Jotting down important ideas allows one
to review the message at a later time and reinforces
the information heard/learned.
8. Be available: To be spoken to, one must be available.
Stop working and concentrate totally on the speaker.
Encourage others to listen by doing the following:
• Do not speak loudly. It forces others to listen.
• Make what is said interesting. Focus on the listeners’
favorite subject—themselves. Encourage others to
participate by bringing them into the conversation.
• Create the right environment. Speak where one can
be easily heard and understood.
• Be human to the listeners. Address people by name
whenever possible; it helps to get their attention.

464 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION
Listening Skills in Business
Good listening habits are an important ingredient in
one’s journey to success. By practicing careful listening,
one will become more efficient in one’s job and more
knowledgeable about all topics. Responsible, patient listening
is a rare thing, but it is a skill that can be developed
with practice.