communication tutor2u ™ gcse business studies revision presentations 2004

Communication

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GCSE Business GCSE Business StudiesStudiesRevision Presentations 2004Revision Presentations 2004


GCSE Business GCSE Business StudiesStudies

Communication

Definition:

Process by which a message or information is exchanged from a sender to a receiver

Two-way communication

When feedback on message is given back from receiver to sender

Communication can be…

Internal: between people in the same business

External: with people outside the business



Internal Communication

When communications occur between employees of a business

Internal communication links together all the different activities involved in a business

Ensures all employees are working towards the same goal and know exactly what they should be doing and by when

Effective internal communication is therefore fundamental to the success of a business

Example:

A production manager (sender) sends a message to a sales manager (receiver) asking for sales forecasts for the next 6 months so they can plan production levels. The sales manager replies (feedback) to the production manager with the appropriate figures.



External Communication

Where a business communicates with people & organisations outside of the business

Closely linked with the idea of “stakeholders” – i.e. those who have an interest in the activities and results of the business

Examples of external communication

Press releases

Marketing materials (e.g. adverts, brochures, direct mailings)

Published financial information (e.g. accounts)

Letters, emails and telephone conversations with customers and suppliers

Reports to government and other agencies (e.g. tax returns)



Need for Effective Communication

Motivates employees – helps them feel part of business

Easier to control and coordinate business activity – prevents different parts of business going in opposite directions

Makes successful decision making easier – decisions are based on more complete and accurate information

Better communication with customers will increase sales

Improve relationships with suppliers

Improves chances of obtaining finance – e.g. keeping bank up-to-date about how business is doing



Communication and Motivation

Good communication is an important part of motivating employees

Several of motivational theorists recognise this:

Mayo emphasised importance of communication in meeting employees’ social needs

Maslow and Herzberg stressed importance of recognising employee’s achievements and self-esteem needs

Other reasons:

Ensures that everyone is working towards same company goals

Enables employees to be involved in decision-making

Employees can offer feedback and give suggestions

People are motivated by having clear targets set for them

Recognise employee achievements



Methods of Obtaining Feedback

Face to face

Telephone

E-mail

Meetings

Video-conferencing



Factors Determining Method of Communication

Content of message (e.g. is it confidential or lengthy)

Speed required

Amount of feedback wanted

Type of feedback required – e.g. is a decision required?

Cost



Barriers to Communication

Too many intermediaries (e.g. too many layers in hierarchy through which message has to be passed)

Geographical distance between a firm’s offices, production plants or outlets

Communication overload – too much information can cause problems e.g. slow down decision making

communication tutor2u ™ gcse business studies revision presentations 2004

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