1. Communication in Business A2 Business Studies - People

2. Communication
Transferring information from one part of the business to another that leads to some outcome, changed behaviour or changed practice
Formal Communication – exchange of information through official channels. E.g. board meetings, memos
Informal Communication – information exchange outside of official channels E.g. gossip

3. Communication process
Sender or
Instigator
Channel
Medium
Receiver
Change in payment systems
Finance Dept
Feedback

4. Communication
Good quality communication is essential for a business to function effectively.
Good communication co-ordinates, motivates, enables feedback, and clarifies roles and responsibilities of staff in a business. It enables all staff in a firm to work towards a common goal.
Communication overload may result in large organisation with many layers of hierarchy

5. The Communication Process
The sender
(Initiates the communication)
Message
(the information that is transmitted)
Feedback
(was the message received and understood?)
Medium
(how the message is passed on e.g. )
Receiver
(the audience at whom the message is targeted)

6. Communication Methods
Verbal – face to face
Written
Electronic
Visual
Audio
Group meetings
Notice boards
Text!

7. Communication Medium:
Letters
Memo
Report
Notice board
Faxes
Telephone
Face to face
Body language
Video/video conferencing
Internet

8. Choice of Medium used is affected by:
Need for a record
Direction of the information flow - one-way/two-way?
Number of people to be reached
Confidentiality
Nature of the information – length, complexity, speed of transfer
Cost of the medium

9. Barriers to Successful Communication
Ability of the sender – how much the sender understands of the message they are trying to send
Content – including technicalities and jargon (word with technical or special meaning)
Method of communication – including style and body language where appropriate!
Skills and attitude of the receiver
Organisational factors – complexity of the organisation, scope of the organisation
Cultural attitudes
Noise - any interference which makes the message difficult to receive
Perceptions, prejudices and stereotypes
Inappropriate target for the message
Technical capabilities – ICT!

10. Improving communication
Train employees in communication skills
Avoid the danger of generating too much information and evaluate information needs for a task
Recognise that cultural and linguistic differences exist
Delayering the organisation – the removal of middle management
Decentralisation – the delegation of decision-making authority from head office to local branches. Reduces the volume of communication and empowers local managers.

11. Improving communication
Information and communication technology – ICT can make the communication process quicker and cheaper.
However ICT can be expensive, often needs replacing due to technological change and staff may need training to use it.
E.g. the internet, , intranet, mobile phones, answer phones, videoconferencing
ICT can lead to information overload, and an increase in time workers spend on tasks

12. Communication Complete the communication worksheet
Read pages about communication in large organisations
Ensure you understand the terms:
Communication overload
Decentralisation
And the importance of ICT in communication
Answers the case study questions page AQA A2 textbook