Chapter 12
- Communication is the transferring of a message from the sender to the receiver, who understands the message
Process of Effective Communication
| Transmitter | the person starting off the process by sending the message |
| Medium of Communication | the method used to send a message |
| Receiver | the person who receives the message |
| Feedback | the reply from the receiver which shows whether or not the message has arrived, been understood & acted upon |
One-Way & Two-Way Communication
- One-way communication occurs when the receiver of the message has no chance to reply or respond to the message
- Two-way communication occurs when there is a reply or response from the receiver
- Advantages of Two-Way Communication:
The receiver feels part of the process
No room for misunderstanding
Internal and External Communication
- Internal communication is when messages are sent between people working in the same organization
- External communication is when the messages are sent between one organization and an outsider
- It is important for a business to have good external communication as well as good internal communication
- External communication builds the image and efficiency of the business
Methods of Communication
| Type | Examples | Advantages | Disadvantages |
| Verbal | One-to-one Telephone Video conferencing Meetings | Quick messages can be sent Immediate response Two-way communication Body language can be considered | No way of telling if a person has understood or listened Longer response time Accurate and permanent record cannot be kept |
| Written | Letters (formal; not used within firm) Memos (informal; used within a firm) Reports (detailed written communications on a specific subject) Notices (provide information to the staff) Faxes Annual Report (company’s financial performance & plans for the future) Newsletter (sent to customers; information on company) Minutes (summary of meeting) Agenda for Meeting (issues to be discussed at meeting) | Evidence present Details aren’t missed out Copies can be sent to many people Quick and cheap
| Direct feedback is not always possible Not so easy to tell if the message has been received Language (jargon) can be hard to understand No opportunity to consider body language
|
| Visual | Films, videos Posters Charts and diagrams | Appealing and attractive Clarity
| No feedback Difficult for some to interpret
|
Formal & Informal Communication
- Formal: channels of communication set up and recognized by an organization
- Informal: grapevine
Communication Nets
- The ways in an organization in which members of a group communicate with each other
- Chain Network:
Upper to lower levels
Strategic Decisions
Lacks accuracy due to the confusion and one-way communication
- Wheel Network:
Upper level speaks to different departments or regions
Tactical Decisions
No opportunity to communicate directly between departments
- Connected Network:
Create and discuss new ideas through two-way communication
Operational Decisions
Time consuming
No clear leader
Direction of Communications
- Downward communication:
from managers to subordinates
instructions or statements
does not allow for feedback
original meaning could get distorted
- Upward communication:
from subordinates to managers
feedback is given
- Horizontal communication:
Same levels of organizations communicate
Why Communication is Important
- Employees need to know what they are expected to do
- Managers need to know how employees are getting on
- Shareholders should know how the firm is performing
- Suppliers needs to know what the company wants
- Customers need to know what the firm has to offer and why they should buy from them
Barriers to Effective Communication
| Barrier | Description | Solution |
|
Sender | Jargon may be used, making the message hard to understand | Understandable language to be used |
| He may speak too quickly | Message should be clear and feedback should be given | |
| Wrong message or wrong receiver | Right message should be given to right person | |
| Too long or too detailed | Brief message with main points | |
|
Medium | ||
| Message may be lost | Insist on feedback | |
| Wrong channel used | Appropriate channel used | |
| Too long a chain of command | Shortest possible channel used | |
| No feedback received | ||
| Breakdown of medium | Other forms of communication to be made available | |
| Receiver | ||
| May not be listening | Feedback demanded | |
| May not like or trust sender | Trust between the two | |
|
Feedback | ||
| No feedback | Feedback to be demanded and facilitated | |
| Slow or distorted feedback | Direct lines of communication available |
Business Studies IGCSE