1. Chapter 13 – COMMUNICATION IN BUSINESS
‘A process of creating and exchanging information between people that produces the required response of understanding.’
The communication Process:
The sender (individual or Group) sends a message to another in an encoded form, such as words, actions or a facial expression.
The receiver is exposed to the message in its encoded form and decodes it, (understands the meaning)
The receiver gives feedback to the sender to show that they have received and understood the message in the manner intended by the sender.
VCE Business Management Year 11

2. Chapter 13 – COMMUNICATION IN BUSINESS
EFFECTIVE COMMUNICATION:
Is when the intended receiver of the message obtains and interprets the message in the manner intended by the sender.
INEFFECTIVE COMMUNICATION:
Is when a message is either not received or is incorrectly decoded (inaccurately conveyed)
ONE WAY COMMUNICATION:
Is when information is passed on by a sender with no feedback
VCE Business Management Year 11

3. Chapter 13 – COMMUNICATION IN BUSINESS
EFFECTIVE COMMUNICATION:
An effective communicator:
Builds trust and positive relationships
Recognises that communication is an interactive process that involves listening as well as transmitting.
Works out the exact message they intend to send
Choose the most effective method of communication.
FILL IN THE GAPS
VCE Business Management Year 11

4. Chapter 13 – COMMUNICATION IN BUSINESS
EFFECTIVE COMMUNICATION:
Effective communication is usually
TWO WAY COMMUNICATION:
‘Communication that is open and encourages discussion and feedback’
KISS Principle
“Keep It Short & Simple”
VCE Business Management Year 11

5. Chapter 13 – COMMUNICATION IN BUSINESS
Table 13.1
Effective communication processes:
Step 1. Produce a message
Step 2. Put the message into the most appropriate form to achieve the desired result
Step 3. Send the message to the receiver, who then decodes it; how it is decoded will depend on the context of the message.
Step 4. Feedback is given to confirm intended meaning of how the message has been received.
VCE Business Management Year 11

6. Chapter 13 – COMMUNICATION IN BUSINESS
Factors that affect how a message is decoded:
The same message can have an entirely different meaning to two people. Factors such as age, education levels, cultural backgrounds, and even a persons mood can affect the way a message is decoded.
READ Pages
1. Cultural Differences: (table 13.2)
2. Body Language:
VCE Business Management Year 11

7. Chapter 13 – COMMUNICATION IN BUSINESS
Factors that affect how a message is decoded:
3. Mood and state of mind of the receiver:
4. Environment in which a message is delivered:
5. Language used and its accessibility to the receiver:
VCE Business Management Year 11

8. Chapter 13 – COMMUNICATION IN BUSINESS
Complete
Activity 13.1
Activity 13.3
VCE Business Management Year 11

9. Chapter 13 – COMMUNICATION IN BUSINESS
Types and purpose of information to be communicated: (page 228)
INTERNAL BUSINESS COMMUNICATION:
Can occurs between the following stakeholders:
- Employees - Management
- Owners/ Shareholders - Local trade union reps
Internal communication channel and patterns:
Is the means in which a message is sent. Internal business communication usually takes one of three patterns:
1. Downwards Communication
2. Upward Communication
3. Lateral Communication
VCE Business Management Year 11

10. Chapter 13 – COMMUNICATION IN BUSINESS
Types and purpose of information to be communicated: (page 228)
1. Downwards Communication
Flows from higher to lower level in the organisation. Most commonly involves boss giving instruction to employees.
2. Upward Communication
Occurs when information flows from lower to higher levels of the organisation, such as:
employee appraisals/reviews
suggestion boxes
staff meetings
3. Lateral Communication
Involves interaction between people at the same level of the organisation, eg teams/groups.
- Social chats - s between staff - Phone calls
VCE Business Management Year 11

11. Chapter 13 – COMMUNICATION IN BUSINESS
Types and purpose of information to be communicated: (page 228)
EXTERNAL BUSINESS COMMUNICATION:
Occurs between internal Management/Staff and:
- Suppliers - Customers
- General Public - Government agencies
External business communication can fall into 2 categories:
1. Business to Business communication (B2B)
2. Business to the wider community communication (B2WC)
VCE Business Management Year 11

12. Chapter 13 – COMMUNICATION IN BUSINESS
Types and purpose of information to be communicated: (page 228)
EXTERNAL BUSINESS COMMUNICATION:
1. Business to Business communication (B2B)
These communications encompass day to day interactions with other businesses such as:
Suppliers –
Business customers –
Professional Advisers –
Contractors – FILL IN THE DETAILS
Government Departments –
Wholesalers –
Retailers –
VCE Business Management Year 11

13. Chapter 13 – COMMUNICATION IN BUSINESS
Types and purpose of information to be communicated: (page 228)
EXTERNAL BUSINESS COMMUNICATION:
2. Business communication to the wider community (B2WC)
These interactions are vital. Businesses must effectively deal with a wide variety of external groups and individuals such as:
Customers/Clients –
Lobby Groups
Media –
The community in general –
VCE Business Management Year 11

14. Chapter 13 – COMMUNICATION IN BUSINESS
Types and purpose of information to be communicated: (page 228)
EXTERNAL BUSINESS COMMUNICATION:
2. Business communication to the wider community (B2WC)
The purpose of this form of communication may be to:
Pass on information, usually to help with decision making
Persuade
Motivate
Entertain/amuse
Negotiate
Give emotional satisfaction
Seek/gain information
Monitor and evaluate
Reflect
Influence
VCE Business Management Year 11

15. Chapter 13 – COMMUNICATION IN BUSINESS
FORMAL & INFORMAL CHANNELS OF BUSINESS COMMUNICATION: (page 230)
Business communication can be further broken into 3 categories:
1 – Formal Channels
FILL IN
2 – Semi Formal Channels
3 – Informal Channels
VCE Business Management Year 11

16. Chapter 13 – COMMUNICATION IN BUSINESS
FORMAL & INFORMAL CHANNELS OF BUSINESS COMMUNICATION: (page 230)
Business communication can be further broken into 3 categories:
1 – Formal Channels
2 – Semi Formal Channels
3 – Informal Channels
Complete:
Make your own notes on the 3 channels of communication above
Activity 13.4
Activity 13.5
VCE Business Management Year 11

17. Chapter 13 – COMMUNICATION IN BUSINESS
METHODS OF COMMUNCIATION: (Page 233)
An effective business operator not only needs to possess strong communication skills, they must also be able to select which method of communication is best for a given situation.
Each method has its strengths and weaknesses. A business operator must recognise this and be able to implement the method that is likely to be the most effective in any given situation.
Communication
NON-VERBAL Communication
VERBAL Communication
Body Language
Visual Imagery
Oral
Written
VCE Business Management Year 11

18. Chapter 13 – COMMUNICATION IN BUSINESS
METHODS OF COMMUNCIATION: (Page 233)
VERBAL COMMUNICATION:
Is the communication that involves the use of language or actual words. This can be categorised into 2 areas:
1. Written Communication
2. Oral Communication
VCE Business Management Year 11

19. Chapter 13 – COMMUNICATION IN BUSINESS
METHODS OF COMMUNCIATION: (Page 233)
VERBAL COMMUNICATION:
1. Written Communication
VCE Business Management Year 11

20. Chapter 13 – COMMUNICATION IN BUSINESS
METHODS OF COMMUNCIATION: (Page 233)
VERBAL COMMUNICATION:
2. Oral Communication
VCE Business Management Year 11

21. Chapter 13 – COMMUNICATION IN BUSINESS
METHODS OF COMMUNCIATION: (Page 233)
NON-VERBAL COMMUNICATION:
is any form of communication that does not rely on words to convey a message. This method usually involves visuals. Some forms of non verbal communication include but limited to:
The problem with non verbal communication is that the sender has little control over the message being conveyed. People are often unaware of non verbal communication taking place.
It is estimated the impact we make on others depends on what we say (7%), how we say it (38%) and our body language (55%)
VCE Business Management Year 11

22. Chapter 13 – COMMUNICATION IN BUSINESS
METHODS OF COMMUNCIATION: (Page 233)
NON-VERBAL COMMUNICATION:
some of the main forms of non verbal communication include:
Body Language:
A form of non-verbal communication that includes messages and communication conveyed by facial expressions and other gesture.
Some body language signs:
VCE Business Management Year 11

23. Chapter 13 – COMMUNICATION IN BUSINESS
METHODS OF COMMUNCIATION: (Page 233)
NON-VERBAL COMMUNICATION:
some of the main forms of non verbal communication include:
Personal Space:
Humans have a need for personal space. This is the distance we like to keep from others in a given situation.
Table 13.3 (page 240) Personal Space Zones
Zone Distance Reasons
Public 3 + mts feel safe at a distance
Social 1.5 – 3 mts start to connect with people
Personal – 1.5 mts Ok dist for person conversation
Intimate mts feel confortable / can intimidate
VCE Business Management Year 11

24. Chapter 13 – COMMUNICATION IN BUSINESS
METHODS OF COMMUNCIATION: (Page 233)
NON-VERBAL COMMUNICATION:
some of the main forms of non verbal communication include:
Dress:
How we dress also plays a role in determining messages sent to others. Inappropriate dress can lead to other people to form opinions about us that are extremely difficult to alter.
VCE Business Management Year 11

25. Chapter 13 – COMMUNICATION IN BUSINESS
METHODS OF COMMUNCIATION: (Page 233)
NON-VERBAL COMMUNICATION:
some of the main forms of non verbal communication include:
Symbols:
Are an important communication tool in business. Graphics such as letterheads and logos communicate much about the business they present
Letterheads:
Stationary printed or engraved, usually with the sname and address of the organisation
Logos:
Graphic representation signifying a business
VCE Business Management Year 11

26. Chapter 13 – COMMUNICATION IN BUSINESS
METHODS OF COMMUNCIATION: (Page 233)
COMBINATION COMMUNICATION:
Several forms of communication contain both verbal and graphical features:
Brochures, Pamphlets and signage
Are forms of external communication that utilise both language and symbol communication such as text, pictures, colour and design
Stationary and letterhead
Also convey messages about the business, both in the form of a symbol or logo and in actual written content
Business cards
Are small cards distributed to clients in order to promote the business, details include:
- Name of business - Name & position of person
- Business address - Logo & Graphic of business
- Web address - operating hours
VCE Business Management Year 11