Copyright 2006 – Biz/ed Business Communication
Copyright 2006 – Biz/ed 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
Copyright 2006 – Biz/ed 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
Copyright 2006 – Biz/ed 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
Copyright 2006 – Biz/ed Illustrating Structures 2 Entrepreneurial Most small businesses have this structure One or two people make decisions Great reliance on key workers supporting decision makers Quick to act but pressure on decision makers Decision maker Key worker
Copyright 2006 – Biz/ed Illustrating Structures 3 Matrix MarketingProductionFinance Project A Project teams created Staff with specialist skills Project B
Copyright 2006 – Biz/ed Illustrating Structures 4 Independent Dr A Dr B Dr C Dr D Support systems to professionals such as doctors Not suited to most businesses due to lack of control
Copyright 2006 – Biz/ed 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
Copyright 2006 – Biz/ed 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
Copyright 2006 – Biz/ed Vertical/Lateral Communication Organisation chart shows vertical (black arrows) and lateral (green arrows) FinanceMarketingProduction Board of Directors Finance Officers Marketing Assistants Factory Operatives
Copyright 2006 – Biz/ed 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