1. Level 1 Business Studies
1.1 - AS90837
Demonstrate an understanding of internal factors of a small business

2. Communication
Students will understand the nature and importance of how people communicate effectively, including methods, mediums, processes and barriers:
Define business communication
Describe the process of communication
Identify types of communication eg internal and external, one way and two way, formal and informal

3. Communication (continued)
Identify the methods of communication available to a business eg written, verbal and oral
Identify the mediums ie , memos, face to face discussions, notice boards, meetings
Appreciate the importance of effective business communication and barriers to communication
Explain the advantages and disadvantages of the types and methods of communication

4. Communication
the imparting or exchanging of information by speaking, writing, or using some other medium

5. Business Communication
Communication within businesses is essential
Without communication employees would be working as individuals with no links to other employees
Communication allows management to guide, instruct, give warnings and encourage and support their staff

6. Business Communication
Examples:
Ensure ear-muffs are worn in noisy areas
How much stock will we need to order to produce 100 units this week?
Please don’t smoke in this area
How many hours have you worked this week?
Why have you been late for work three time this week?
Well done on an excellent job.
Business Communication

7. Process of Effective Communication
Four Features:
A transmitter or sender of the message. This is the person who wants to send the message. The next two steps for this person are very important.
A medium of communication or method, such as, telephone or
A receiver of the information
Feedback, where the receiver confirms the receiving the message and responds to it.

8. Message (through a medium of communication)
Process of Effective Communication
sender
Message (through a medium of communication)
receiver
feedback

9. Types of Communication
lnternal
With people in the same business or organisation
External
With people in other businesses, organisations or customers

10. Types of Communication Internal
When messages or information is sent to people working in the same business or organisation
e.g. an sent out a team or department, a manager talking to employees

12. Types of Communication External
Methods used to send messages between one business or organisation and another, or to individuals, such as customers

13. Types of Communication External
Examples:
Orders sent to suppliers of stock
Advertising goods or services
ing pricing to potential customers

14. Receivers of Messages Internal External Customers Workers
Directors
Managers
External
Customers
Local community
Suppliers
Shareholders
Government
Banks

15. External Communication
Why is it so important?
Efficiency of the business
Image portrayed of the business
To ensure correct information is communicated, such as, prices and delivery times.

16. Types of Communication One Way
When a message is sent and the receiver has no opportunity to reply or respond.
e.g. take these to the storeroom
The receiver is unable to provide feedback to the sender.
Types of Communication One Way

17. Types of Communication Two Way
When the receiver is able to reply or respond to the sender
This could take the form of a simple or could involve a discussion.
Sender and receiver both involved in the communication process
Often leads to better and clearer communication

18. Types of Communication Two Way
Advantages:
Sender is able to see whether the receiver has understood the information being relayed and has acted on it.
Both parties are involved in the process. Receiver feels a part of the process and will often feel more motivated by this involvement.

19. Types of Communication Formal
Communication takes place through the formal channels of the organisation structure along the lines of authority established by the management. These are usually circulated regularly using preset methods
Such communications are generally in writing and may take any of the forms; policy; manuals: procedures and rule books; memoranda; official meetings; reports, etc.

20. FormalCommunication Advantages of Formal Communication:
Helps in clarifying responsibility
Assists in clarifying the authority structure in an organisation.

21. FormalCommunication Disadvantages of formal communication are:
Generally time consuming and cumbersome
Leads to a good deal of distortion at times.
It can fail to motivate employees, since it is usually impersonal and final.
It often underestimates the intelligence of recipients by focusing on elementary or trivial matters.

22. Types of Communication Informal
Built around the social relationships of members of the organisation/business.
Informal communication does not follow lines of authority as is the case of formal communication.
It arises due to the personal needs of the members of the organisation/business.

23. InformalCommunication
Advantages of Informal Communication:
Informal communication is less official and less intimidating. It can therefore enhance the flow of new ideas and plans without the fear of ridicule or punishment.
Informal communication is personal, which encourages the enthusiasm of the employees.
Since it is usually verbal, informal communication allows both parties to discuss and explore all areas of organisational matters using  two-way communication.

24. InformalCommunication
Advantages of Informal Communication: (continued)
Informal communication can be a convenient way of explaining to workers why the department operates as it does. It promotes disclosure of underlying motives and pressures through an atmosphere of free, yet discreet, discussion.
Informal communication can refute rumors and put an end to gossip that can otherwise sprout up in a formal environment filled with unanswered questions.

25. InformalCommunication
Advantages of Informal Communication: (continued)
Informal communication can unite workers and foster a spirit of camaraderie based on the discovery of shared concerns and interests.
Informal communication can pave the way for a harmonious relationship between all employees, and can thus promote cooperation based on mutual understanding and concern.

26. Informal Communication
Disadvantages of informal communication are:
At times, in informal communication, it is difficult to fix responsibility about accuracy of information. Such communication is usually oral and may be covered even by simple glance, gesture or smile or silence. If carried to an extreme, it can result in second- and third-hand information being presented as original, factual, and trustworthy.
It can lead to the indiscriminate disclosure of classified information.
It is too often emotional which can distort or change its meaning.

27. The Right Mixture
The most useful method of communication is one based on an appropriate mixture of formal and informal communications.
While there is no magic formula for arriving at this mixture, a proper blend can be achieved by good leadership familiar with the environment of the department and the needs of its employees.
For instance, formal communication could be limited to official business and presented in meaningful, trustworthy language.
Informal communication could then be used as a supplement to the formal method, for the purpose of reassuring workers, maintaining their interest, improving their attitudes, and deepening their commitment to the department.

29. Methods of Communication
1. Verbal
2. Written
3. Visual

30. Methods of Communication Verbal
Involves the sender of the message speaking to the receiver, e.g:
Telephone conversation
One-to-one conversations
Meetings
Video conferencing, such as Skype

31. Advantages of Verbal Communication
It is an efficient way of communicating especially to large groups as information can be given out and shared quickly.
There is an opportunity for immediate feedback and a two-way conversation.
Seeing the speaker helps to reinforce the message.
Able to see the speaker ‘s body language and facial expressions which can be helpful.

32. Disadvantages of Verbal Communication
There is no way of telling in a big meeting if everyone is paying attention and understand what is being discussed.
It can take longer than other form of written communication
Sometimes an accurate written record of a meeting is required.

33. Methods of Communication Written
Letters
Memos
Reports
Notices
Faxes

34. Advantages of Written Communication
Hard evidence of the message can be referred to in the future. This can sometimes help reduce arguments.
Some messages require complicated details so it essential that they are in writing.
Some countries require certain messages to be in writing, e.g. safety information
A written message can be copied and sent to many people, which is efficient and time saving.
Electronic communication is quick and cheap and an excellent way to reach large numbers of people.

35. Disadvantages of Written Communication
Difficult to check whether a message has been received, unlike verbal messages.
Direct feedback is not always possible, unless s are used.
The language used is sometimes difficult for people to understand. It may be too long or too complicated.
Unable to use body language to reinforce the message.

36. Methods of Communication Visual
Films
Videos
Powerpoints
Posters
Charts / Diagrams

37. Advantages of Visual Communication
Information can be presented in an attractive and appealing way
People are often more prepared to look at a visual message than a written one
They can be used to make a written messages clearer by adding a chart.

38. Disadvantages of Visual Communication
There is no feedback. Sender may need to use other forms of communication to ensure the message is understood.
Some people find it difficult to understand or interpret information on charts and graphs.

39. Mediums of Communication How do Businesses communicate?
Meetings
Discussion
Face-to-face
Memos
Video conferencing
Posters
Powerpoint
Faxes
Reports
Letters
Videos
Telephone
Charts / diagrams
One-to-one
Notice Boards

41. Effective Communication why is it so important?
Good communication has many advantages for a business: strong communication:
Motivates employees – helps them feel part of the business
Easier to control and coordinate business activity – prevents different parts of the business going in opposite directions
Makes successful decision making easier for managers– decisions are based on more complete and accurate information

42. Effective Communication why is it so important? (continued)
Better communication with customers will increase sales
Improve relationships with suppliers and possibly lead to more reliable delivery
Improves chances of obtaining finance – e.g. keeping the bank up-to-date about how the business is doing

43. Barriers to Effective Communication
Research suggests that, amongst the many reasons why information fails to be communicated, the following are the main barriers:
Different status of the sender and the receiver (e.g. a senior manager sends a memo to a production supervisor - who is likely to pay close attention to the message. The same information, conveyed in the opposite direction might not get the attention it deserves)
Use of jargon - employees who are "specialists" may fall for the trap of using specialist language for a non-specialist audience (e.g. the IT technician who tries to explain how users should log onto a network, in language that sounds foreign to most users of the network)   

44. Barriers to Effective Communication (continued)
Selective reporting - where the reporter gives the recipient incorrect or incomplete information
Poor timing - information that is not immediately relevant (e.g. notice of some deadline that seems a long way off) is not always actioned straightaway
Conflict - where the communicator and recipient are in conflict; information tends to be ignored or distorted