Level 1 Business Studies AS90837 Demonstrate an understanding of internal factors of a small business

Communication Students will understand the nature and importance of how people communicate effectively, including methods, mediums, processes and barriers: Define business communication Describe the process of communication Identify types of communication eg internal and external, one way and two way, formal and informal

Communication (continued) Identify the methods of communication available to a business eg written, verbal and oral Identify the mediums ie , memos, face to face discussions, notice boards, meetings Appreciate the importance of effective business communication and barriers to communication Explain the advantages and disadvantages of the types and methods of communication

Communication the imparting or exchanging of information by speaking, writing, or using some other medium

Business Communication Communication within businesses is essential Without communication employees would be working as individuals with no links to other employees Communication allows management to guide, instruct, give warnings and encourage and support their staff

Business Communication Examples: Ensure ear-muffs are worn in noisy areas How much stock will we need to order to produce 100 units this week? Please don’t smoke in this area How many hours have you worked this week? Why have you been late for work three time this week? Well done on an excellent job.

Process of Effective Communication Four Features: A transmitter or sender of the message. This is the person who wants to send the message. The next two steps for this person are very important. A medium of communication or method, such as, telephone or A receiver of the information Feedback, where the receiver confirms the receiving the message and responds to it.

sender receiver Message (through a medium of communication) feedback Process of Effective Communication

Types of Communication lnternal With people in the same business or organisation External With people in other businesses, organisations or customers

Types of Communication Internal When messages or information is sent to people working in the same business or organisation e.g. an sent out a team or department, a manager talking to employees

Types of Communication External Methods used to send messages between one business or organisation and another, or to individuals, such as customers

Types of Communication External Examples: Orders sent to suppliers of stock Advertising goods or services ing pricing to potential customers

Receivers of Messages Internal Workers Directors Managers External Customers Local community Suppliers Shareholders Government Banks

External Communication Why is it so important? Efficiency of the business Image portrayed of the business To ensure correct information is communicated, such as, prices and delivery times.

Types of Communication One Way When a message is sent and the receiver has no opportunity to reply or respond. e.g. take these to the storeroom The receiver is unable to provide feedback to the sender.

Types of Communication Two Way When the receiver is able to reply or respond to the sender This could take the form of a simple or could involve a discussion. Sender and receiver both involved in the communication process Often leads to better and clearer communication

Types of Communication Two Way Advantages: Sender is able to see whether the receiver has understood the information being relayed and has acted on it. Both parties are involved in the process. Receiver feels a part of the process and will often feel more motivated by this involvement.

Types of Communication Formal Communication takes place through the formal channels of the organisation structure along the lines of authority established by the management. These are usually circulated regularly using preset methods Such communications are generally in writing and may take any of the forms; policy; manuals: procedures and rule books; memoranda; official meetings; reports, etc.

FormalCommunication Advantages of Formal Communication: Helps in clarifying responsibility Assists in clarifying the authority structure in an organisation.

FormalCommunication Disadvantages of formal communication are: Generally time consuming and cumbersome Leads to a good deal of distortion at times. It can fail to motivate employees, since it is usually impersonal and final. It often underestimates the intelligence of recipients by focusing on elementary or trivial matters.

Types of Communication Informal Built around the social relationships of members of the organisation/business. Informal communication does not follow lines of authority as is the case of formal communication. It arises due to the personal needs of the members of the organisation/business.

InformalCommunication Advantages of Informal Communication: Informal communication is less official and less intimidating. It can therefore enhance the flow of new ideas and plans without the fear of ridicule or punishment. Informal communication is personal, which encourages the enthusiasm of the employees. Since it is usually verbal, informal communication allows both parties to discuss and explore all areas of organisational matters using two-way communication.

InformalCommunication Advantages of Informal Communication: (continued) Informal communication can be a convenient way of explaining to workers why the department operates as it does. It promotes disclosure of underlying motives and pressures through an atmosphere of free, yet discreet, discussion. Informal communication can refute rumors and put an end to gossip that can otherwise sprout up in a formal environment filled with unanswered questions.

InformalCommunication Advantages of Informal Communication: (continued) Informal communication can unite workers and foster a spirit of camaraderie based on the discovery of shared concerns and interests. Informal communication can pave the way for a harmonious relationship between all employees, and can thus promote cooperation based on mutual understanding and concern.

Informal Communication Disadvantages of informal communication are: At times, in informal communication, it is difficult to fix responsibility about accuracy of information. Such communication is usually oral and may be covered even by simple glance, gesture or smile or silence. If carried to an extreme, it can result in second- and third-hand information being presented as original, factual, and trustworthy. It can lead to the indiscriminate disclosure of classified information. It is too often emotional which can distort or change its meaning.

The Right Mixture The most useful method of communication is one based on an appropriate mixture of formal and informal communications. While there is no magic formula for arriving at this mixture, a proper blend can be achieved by good leadership familiar with the environment of the department and the needs of its employees. For instance, formal communication could be limited to official business and presented in meaningful, trustworthy language. Informal communication could then be used as a supplement to the formal method, for the purpose of reassuring workers, maintaining their interest, improving their attitudes, and deepening their commitment to the department.

Methods of Communication 1. Verbal2. Written3. Visual

Methods of Communication Verbal Involves the sender of the message speaking to the receiver, e.g: Telephone conversation One-to-one conversations Meetings Video conferencing, such as Skype

Advantages of Verbal Communication It is an efficient way of communicating especially to large groups as information can be given out and shared quickly. There is an opportunity for immediate feedback and a two-way conversation. Seeing the speaker helps to reinforce the message. Able to see the speaker ‘s body language and facial expressions which can be helpful.

Disadvantages of Verbal Communication There is no way of telling in a big meeting if everyone is paying attention and understand what is being discussed. It can take longer than other form of written communication Sometimes an accurate written record of a meeting is required.

Methods of Communication Written LettersMemos ReportsNotices Faxes

Advantages of Written Communication Hard evidence of the message can be referred to in the future. This can sometimes help reduce arguments. Some messages require complicated details so it essential that they are in writing. Some countries require certain messages to be in writing, e.g. safety information A written message can be copied and sent to many people, which is efficient and time saving. Electronic communication is quick and cheap and an excellent way to reach large numbers of people.

Disadvantages of Written Communication Difficult to check whether a message has been received, unlike verbal messages. Direct feedback is not always possible, unless e- mails are used. The language used is sometimes difficult for people to understand. It may be too long or too complicated. Unable to use body language to reinforce the message.

Methods of Communication Visual FilmsVideosPowerpointsPostersCharts / Diagrams

Advantages of Visual Communication Information can be presented in an attractive and appealing way People are often more prepared to look at a visual message than a written one They can be used to make a written messages clearer by adding a chart.

Disadvantages of Visual Communication There is no feedback. Sender may need to use other forms of communication to ensure the message is understood. Some people find it difficult to understand or interpret information on charts and graphs.

Mediums of Communication How do Businesses communicate? MeetingsDiscussionFace-to-face Memos Video conferencing PostersPowerpoint FaxesReportsLettersVideos Telephone Charts / diagrams One-to-one Notice Boards

Effective Communication why is it so important? Good communication has many advantages for a business: strong communication: Motivates employees – helps them feel part of the business Easier to control and coordinate business activity – prevents different parts of the business going in opposite directions Makes successful decision making easier for managers– decisions are based on more complete and accurate information

Effective Communication why is it so important? (continued) Better communication with customers will increase sales Improve relationships with suppliers and possibly lead to more reliable delivery Improves chances of obtaining finance – e.g. keeping the bank up-to-date about how the business is doing

Barriers to Effective Communication Research suggests that, amongst the many reasons why information fails to be communicated, the following are the main barriers: Different status of the sender and the receiver (e.g. a senior manager sends a memo to a production supervisor - who is likely to pay close attention to the message. The same information, conveyed in the opposite direction might not get the attention it deserves) Use of jargon - employees who are "specialists" may fall for the trap of using specialist language for a non- specialist audience (e.g. the IT technician who tries to explain how users should log onto a network, in language that sounds foreign to most users of the network)

Barriers to Effective Communication (continued) Selective reporting - where the reporter gives the recipient incorrect or incomplete information Poor timing - information that is not immediately relevant (e.g. notice of some deadline that seems a long way off) is not always actioned straightaway Conflict - where the communicator and recipient are in conflict; information tends to be ignored or distorted