understanding the role of communication
TRANSCRIPT
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Business Communication
BTEC Business
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Importance of Communication
Communication is importantbecause it is about howinformation is sent and receivedwithin firms
The way information is
communicated is often governedby how firms are structured
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Forms of Business Structure Entrepreneurial - decisions made
centrally
Pyramid - staff have a role, shared
decision making, specialisation ispossible
Matrix - staff with specific skills joinproject teams, individuals have
responsibility Independent - seen in professions
where organisation provides supportsystems and little else
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Illustrating Structures 1
The Pyramid Traditionalview oforganisations
Decisions passdown formalchannels frommanagers to
staff
Information flowsup formal channelsfrom staff to
management
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Illustrating Structures 2Entrepreneurial
Most smallbusinesses have this
structure
One or twopeople make
decisions
Great reliance onkey workers
supporting decisionmakers
Quick to act butpressure on
decision makers
Decisionmaker
Keyworker
Keyworker
Keyworker
Keyworker
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Illustrating Structures 3
Matrix
Marketing Production Finance
Project A
Project teams
created
Staff with
specialist skills
Project B
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Illustrating Structures 4
Independent
Dr A
Dr B
Dr CDr D
Support systemsto professionals
such as doctors
Not suited to mostbusinesses due to
lack of control
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More on Business Structure
Centralisation
Managers keep
control Decisions are madein the interests ofthe whole business
Costs can be cut by
standardisingpurchasing and soon
Strong leadership
Decentralisation
Empowering and
motivating Freeing up senior
managers time
Better knowledge of
those closer tocustomers
Good staffdevelopment
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Channels of Communication Communication in organisations
follows paths or channels
Communication between managersand subordinates is known asvertical communication
This is because the informationflows up or down the hierarchy
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Vertical/Lateral CommunicationOrganisation chart shows vertical(black arrows) and lateral (green
arrows)
Finance Marketing Production
Board of Directors
FinanceOfficers
MarketingAssistants
FactoryOperatives
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Channels of Communication
Channels between departments orfunctions involve lateral communication
As well as formal channels ofcommunication, information also passesthrough an organisation informally
Communication is not complete untilfeedback has been received