1. Communication

2. What is communication Communication refers to the transmission of
information from a sender to a receiver, via a given
medium.
Two-way communication involves some kind of
feedback from the receiver back to the sender.

3. Importance of effective communication
Effective communication is necessary for:
Business decision making – without the relevant information decision making can be hindered
Motivating workers – team-working, praise and recognition all require clear communication for example
Co-ordinating the activities of organisations
Promoting an organisation and its products, services and brands

4. Methods of communication
Within businesses a huge range of information is
communicated using a range of methods e.g.
The financial performance are communicated through formal, written reports
Instructions are passed through face-to-face conversations
Orders are sent via
Future plans are introduced using presentation software
Warnings are given using signage and images

5. Classifying communication
Verbal e.g. face-to-face and telephone conversations. Understanding may be checked straight away and body language may be used, but there is no permanent record of the communication for future reference
Written e.g. letters and s. Written communications can be kept and re-read if necessary however meaning can sometimes be misconstrued as it is not possible to check understanding or convey any body language
Visual/Images e.g. signs and posters. Visual communications may have more impact than written messages.

6. Classifying communication
Internal communication – occurs within the firm e.g. between the marketing and finance departments
External communication – occurs between the firm and someone outside the business e.g. with a customer or supplier
Formal communications – these use methods which are officially recognised by the organisation e.g. the weekly newsletter, letters and reports
Informal communications – these methods are not officially recognised e.g. a chat by the water cooler

7. ICT & Communication The use of information and communications
technology (ICT) has grown in businesses. Examples
include:
Graphics software
Word processing
Presentation packages
Internet and intranet.

8. ICT & Communication Advantages Disadvantages
Presentations and reports can be more professionally produced
Information can be passed on quickly and to a large number of people
ICT allows employees to work in alternative places e.g. at home, on the train
Workers may be more productive because communication is quicker
Risk of information overload
Technology is expensive to implement initially
Training may be needed to use the ICT
Maintenance is required
Security issues of storing personal and bank details
Health and safety issues of using computers and VDUs

9. Barriers to communication
Lack of clarity – perhaps a poorly explained message or use of jargon
Incorrect timing of messages e.g. s sent at the very end of a working day
Problems with the communication medium e.g. mobile phone runs out of credit
Attitudes of sender or recipient – a lack of trust can result in a message not being taken notice of
Language & cultural barriers e.g. translation errors
Problems with the message itself e.g. it is incorrect

10. Communication as businesses grow
Communication can become more difficult as a
business grows because:
There are more employees
There may be more levels in the hierarchy
They may experience information overload – workers receive info that is not relevant to them.
To combat this, firms may introduce more formal
communication systems.

11. Problems of poor communication
Poor communication can lead to:
Low morale and poorly motivated workers
Difficulty implementing change
Lack of overall direction for the firm
Slow decision making
Pressures from stakeholders who wish to be kept informed
Missed opportunities.