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iGCSE Business Studies
2.4 Internal and External Communication
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Learning Outcomes Why Effective Communication is important and the methods used to achieve it: Effective Communication and its importance Benefits and limitations of different communication methods Recommend and Justify which communication method to use in given circumstances Demonstrate an awareness of communication barriers: How communication barriers arise and problems of ineffective communication, how communication barriers can be reduced or removed.
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What is Communication? One Way Communication
Communication is messages passed between a sender and a receiver. Message SENDER RECEIVER One Way Communication
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Message RECEIVER SENDER Feedback Two Way Communication
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One way or 2 way? Look at the pictures on the next slide. Are they one way or two way communication
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Task - Experiment We are going to see whether one way or two way communication is better. First you are going to have a diagram described to you using one way communication. You may ask no questions We will then repeat the process using two way communication
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The purpose of communication
To provide information about the business To collect information about the business To give instructions To coordinate different functions of the business
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Effective Communication
Clear and Easy to understand Accurate Complete Appropriate Via the right medium With a chance for feedback
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Consequences of poor communication
Misunderstandings Wasted time Increased costs Inefficiency Poor Staff Motivation Lost Profits Disputes
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Describing Communication – What do these terms mean
Describing Communication – What do these terms mean? Can you give an example? Formal Informal Internal External One to One One to Many Verbal Written Visual One way Two way Upward Downward Lateral
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Outside the firm Inside the firm
Banks Customers Managers Internal Communication External Communication Potential Investors Inside the firm Employees Suppliers Directors Media Tax Authorities
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Communication in the Hierarchy
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Task Brainstorm all the methods of communication that could be used by businesses. Write them onto the whiteboard
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Communication Methods
Letters Meetings Memorandum Agendas Reports Website Note Voic Fax Mobile Phone Call News Letters Presentations s Meeting Minutes Telephone call Text Messages Face to Face Discussions Notice Video Conferencing Videos Posters Brainstorm methods that businesses use to communicate Brochures/Leaflets
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TASK - WRITE DOWN AS MANY AS YOU CAN….
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1. Methods of communication that would only be used for internal communication
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2. Communication methods which would be used for urgent messages
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3. Communication methods which are verbal
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4. Written methods of communication
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5. Methods that might be used to communicate with customers
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Choosing the right medium/method of communication
What factors would businesses consider when choosing how to send their message? Choosing the right medium/method of communication
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Choosing the right medium for communication.....
Speed Cost Reliability Impact Opportunity for Feedback Complexity of message The number of required recipients Formality of the message
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Face to Face Discussions
Task Letters Meetings Memorandum Agendas Reports Website Note Voic Fax Mobile Phone Call News Letters Presentations s Meeting Minutes Telephone call Text Messages Face to Face Discussions Video Conferencing Videos Notice For your allocated method of communication identify 2 advantages and 2 weaknesses. Use appropriate terminology. Add to the Google Doc Posters Brochures/Leaflets
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Which medium would you choose?
Informing all staff details about the Christmas party A manager informing an employee that if they are late one more time they may be dismissed Letting customers know that there will be a sale starting on Monday Finding out why an expected delivery from the suppliers hasn’t been received Arranging an overdraft extension with the bank An employee letting his line manager that he is sick and will not be in work that day Letting customers know that you are recalling a childrens toy due to a potential choking hazard
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When it all goes wrong!!! Barriers to Communication
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Some Communication Barriers
Language The communication message might not use vocabulary that is understood by the receiver – e.g. too much use of technical or financial jargon, or different languages, accents Noise Various things stop a message from getting through or being heard – e.g. poor connection, background noise, distractions, too many people speaking Overload Too much information can cause problems Emotion/ Interpretation The relationship between the sender and receiver of communication might adversely affect the message – which could be ignored or misinterpreted Distortion/ Prevention Too many intermediaries (e.g. too many layers in hierarchy through which message has to be passed) might prevent or distort the message Inconsistency If people receive conflicting or inconsistent messages, then they may ignore or block them Technical Failure The failure of electronic equipment which causes messages to be delayed or lost.
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Reducing communication barriers
Language Noise Overload Emotion/ Interpretation Distortion/ Prevention Inconsistency Technical Failure What could be done in an organisation to minimise these barriers to communication?
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