Communication in Business A2 Business Studies - People

Communication Transferring information from one part of the business to another that leads to some outcome, changed behaviour or changed practice Formal Communication – exchange of information through official channels. E.g. board meetings, memos Informal Communication – information exchange outside of official channels E.g. gossip

Communication process Sender or Instigator Channel Medium Receiver Change in payment systems Finance Dept E-mail Feedback

Communication Good quality communication is essential for a business to function effectively. Good communication co-ordinates, motivates, enables feedback, and clarifies roles and responsibilities of staff in a business. It enables all staff in a firm to work towards a common goal. Communication overload may result in large organisation with many layers of hierarchy

The Communication Process The sender (Initiates the communication) Message (the information that is transmitted) Feedback (was the message received and understood?) Medium (how the message is passed on e.g. e-mail) Receiver (the audience at whom the message is targeted)

Communication Methods Verbal – face to face Written Electronic Visual Audio Group meetings Notice boards Text!

Communication Medium: Letters Memo Report Notice board Faxes Telephone E-mail Face to face Body language Video/video conferencing Internet

Choice of Medium used is affected by: Need for a record Direction of the information flow - one-way/two-way? Number of people to be reached Confidentiality Nature of the information – length, complexity, speed of transfer Cost of the medium

Barriers to Successful Communication Ability of the sender – how much the sender understands of the message they are trying to send Content – including technicalities and jargon (word with technical or special meaning) Method of communication – including style and body language where appropriate! Skills and attitude of the receiver Organisational factors – complexity of the organisation, scope of the organisation Cultural attitudes Noise - any interference which makes the message difficult to receive Perceptions, prejudices and stereotypes Inappropriate target for the message Technical capabilities – ICT!

Improving communication Train employees in communication skills Avoid the danger of generating too much information and evaluate information needs for a task Recognise that cultural and linguistic differences exist Delayering the organisation – the removal of middle management Decentralisation – the delegation of decision-making authority from head office to local branches. Reduces the volume of communication and empowers local managers.

Improving communication Information and communication technology – ICT can make the communication process quicker and cheaper. However ICT can be expensive, often needs replacing due to technological change and staff may need training to use it. E.g. the internet,email, intranet, mobile phones, answer phones, videoconferencing ICT can lead to information overload, and an increase in time workers spend on tasks

Communication Complete the communication worksheet Read pages 188 - 191 about communication in large organisations Ensure you understand the terms: Communication overload Decentralisation And the importance of ICT in communication Answers the case study questions page 193 - 194 AQA A2 textbook