1. Human Resources

2. To understand what are meant by effective communication and feedback Analyse the advantages and disadvantages of different communication media Evaluate their application in different situations Understand the barriers to communication and how to overcome them Analyse the importance of informal communication Assess the importance of ICT in communication LEARNING OBJECTIVES

3.  Definition:  Process by which a message or information is exchanged from a sender to a receiver  Two-way communication  When feedback on message is given back from receiver to sender  Communication can be…  Internal: between people in the same business  External: with people outside the business COMMUNICATION

5. Name The Methods of Business Communication Can you think of any others?

6. Internal Communication When communications occur between employees of a business Internal communication links together all the different activities involved in a business Ensures all employees are working towards the same goal and know exactly what they should be doing and by when Effective internal communication is therefore fundamental to the success of a business Example: – A production manager (sender) sends a message to a sales manager (receiver) asking for sales forecasts for the next 6 months so they can plan production levels. The sales manager replies (feedback) to the production manager with the appropriate figures.

7. External Communication Where a business communicates with people & organisations outside of the business Closely linked with the idea of “stakeholders” – i.e. those who have an interest in the activities and results of the business Examples of external communication – Press releases – Marketing materials (e.g. adverts, brochures, direct mailings) – Published financial information (e.g. accounts) – Letters, emails and telephone conversations with customers and suppliers – Reports to government and other agencies (e.g. tax returns)

8. Effective Communication The exchange of information between people or groups, with feedback Communication is only effective if the message has been received and understood If the message has been sent but there has been no form of feedback then communication effectiveness cannot be judged

9. Importance of effective communication Motivates employees – helps them feel part of business Easier to control and coordinate business activity – prevents different parts of business going in opposite directions Makes successful decision making easier – decisions are based on more complete and accurate information Better communication with customers will increase sales Improve relationships with suppliers Improves chances of obtaining finance – e.g. keeping bank up-to-date about how business is doing

10. Communication Process: Sender or Instigator Channel Medium Receiver Change in payment systems Finance Dept E-mail Feedback

11. Communication Media Methods used to communicate a message Oral Written Electronic Visual Non verbal

12. Key terms Information overload – so much information and so many messages are received that the most important ones cannot be easily identified

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

14. Factors influencing choice of media Managers will consider some factors before deciding on the best communication method – Whether or not they require a written record – Advantages of staff input – Costs – Speed – Size of the business

15. Communication Transferring information from one part of the business to another that leads to some outcome, changed behaviour or changed practice Formal Communication – established and agreed procedures Informal Communication – channels not formally recognised – ‘the grapevine’

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

17. ICT & Communication AdvantagesDisadvantages 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

18. Barriers to Communication Too many intermediaries (e.g. too many layers in hierarchy through which message has to be passed) Geographical distance between a firm’s offices, production plants or outlets Communication overload – too much information can cause problems e.g. slow down decision making

19. 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

20. Task Analyse the benefits and drawbacks of Enterprise-Rent-A-Car’s communication methods to its internal and external stakeholders http://businesscasestudies.co.uk/enterprise- rent-a-car/communication-strategies-to- engage-a-variety-of-stakeholders/internal- communications.html#axzz2Vw0ejyGF http://businesscasestudies.co.uk/enterprise- rent-a-car/communication-strategies-to- engage-a-variety-of-stakeholders/internal- communications.html#axzz2Vw0ejyGF