Business Communication BTEC Business

Importance of Communication Communication is important because it is about how information is sent and received within firms The way information is communicated is often governed by how firms are structured

Forms of Business Structure Entrepreneurial - decisions made centrally Pyramid - staff have a role, shared decision making, specialisation is possible Matrix - staff with specific skills join project teams, individuals have responsibility Independent - seen in professions where organisation provides support systems and little else

Illustrating Structures 1 The Pyramid Traditional view of organisations Decisions pass down formal channels from managers to staff Information flows up formal channels from staff to management

Illustrating Structures 2 Entrepreneurial Key worker Key worker Quick to act but pressure on decision makers One or two people make decisions Most small businesses have this structure Decision maker Great reliance on key workers supporting decision makers Key worker Key worker

Illustrating Structures 3 Matrix Marketing Production Finance Project A Project teams created Staff with specialist skills Project B

Illustrating Structures 4 Independent Not suited to most businesses due to lack of control Dr A Dr B Support systems to professionals such as doctors Dr C Dr D

More on Business Structure Centralisation Managers keep control Decisions are made in the interests of the whole business Costs can be cut by standardising purchasing and so on Strong leadership Decentralisation Empowering and motivating Freeing up senior managers’ time Better knowledge of those closer to customers Good staff development

Channels of Communication Communication in organisations follows paths or channels Communication between managers and subordinates is known as vertical communication This is because the information flows up or down the hierarchy

Vertical/Lateral Communication Organisation chart shows vertical (black arrows) and lateral (green arrows) Board of Directors Finance Marketing Production Finance Officers Marketing Assistants Factory Operatives

Channels of Communication Channels between departments or functions involve lateral communication As well as formal channels of communication, information also passes through an organisation informally Communication is not complete until feedback has been received