1. Business Communication
BTEC Business

2. 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

3. 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

4. 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

5. 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

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

7. 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

8. 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

9. 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

10. 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

11. 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