Communication in Business

A2 Business Studies - People

CommunicationTransferring information from one part of the business to another that leads to some outcome, changed behaviour or changed practice

Formal Communication – exchange of information through official channels. E.g. board meetings, memos

Informal Communication – information exchange outside of official channels E.g. gossip

Communication process

Sender or Instigator

Channel Medium Receiver

Change in payment systems

Finance Dept

E-mail

Feedback

Communication

Good quality communication is essential for a business to function effectively.

Good communication co-ordinates, motivates, enables feedback, and clarifies roles and responsibilities of staff in a business. It enables all staff in a firm to work towards a common goal.

Communication overload may result in large organisation with many layers of hierarchy

The Communication Process

Message (the information

that is transmitted)

Receiver (the audience at

whom the message is targeted)

The sender (Initiates the

communication)

Feedback (was the message

received and understood?)

Medium (how the message is

passed on e.g. e-mail)

Communication Methods

– Verbal – face to face– Written– Electronic– Visual – Audio– Group meetings– Notice boards– Text!

Communication Medium:

– Letters– Memo– Report– Notice board– Faxes– Telephone– E-mail– Face to face– Body language– Video/video conferencing– Internet

Choice of Medium used is affected by:

Need for a record

Direction of the information flow - one-way/two-way?

Number of people to be reached

Confidentiality

Nature of the information – length, complexity, speed of transfer

Cost of the medium

Barriers to Successful Communication Ability of the sender – how much the sender understands of the message they

are trying to send

Content – including technicalities and jargon (word with technical or special meaning)

Method of communication – including style and body language where appropriate!

Skills and attitude of the receiver

Organisational factors – complexity of the organisation, scope of the organisation

Cultural attitudes

Noise - any interference which makes the message difficult to receive

Perceptions, prejudices and stereotypes

Inappropriate target for the message

Technical capabilities – ICT!

Improving communication Train employees in communication skills

Avoid the danger of generating too much information and evaluate information needs for a task

Recognise that cultural and linguistic differences exist

Delayering the organisation – the removal of middle management

Decentralisation – the delegation of decision-making authority from head office to local branches. Reduces the volume of communication and empowers local managers.

Improving communication

Information and communication technology – ICT can make the communication process quicker and cheaper.

However ICT can be expensive, often needs replacing due to technological change and staff may need training to use it.

E.g. the internet,email, intranet, mobile phones, answer phones, videoconferencing

ICT can lead to information overload, and an increase in time workers spend on tasks

Communication Complete the communication worksheet

Read pages 188 - 191 about communication in large organisations

Ensure you understand the terms: Communication overload Decentralisation And the importance of ICT in communication

Answers the case study questions page 193 - 194 AQA A2 textbook