IGCSE BUSINESS STUDIES Form 4 notes
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The document discusses communication in business, covering topics such as the importance of communication, the communication process, types of communication (one-way vs two-way), barriers to communication, and different methods of communicating (verbal, written, etc.). Effective communication in business is important for maintaining unity within a company, getting feedback, improving customer relationships and employee relationships, enforcing rules, and boosting innovation and motivation. It involves a sender, medium, receiver, and feedback.
IGCSE BUSINESS STUDIES Form 4 notes
- 1. 7 Cs of Communication
- 2. COMMUNICATION DEFINITION(S) It is the meaningful exchange of information between two or more participants. Occurs when a message is transferred from one person to another, who understands the content of the message. IMPORTANCE OF COMMUNICATION IN BUSINESS. o Unity - A company that works to develop strong communication with each other is a united company. Each team member shares the same goals in this case, and everyone knows what their co-workers have on their plate. By simply keeping in touch on a regular basis, everyone remains united and working together. o Feedback - Feedback is a vital component of communication, and it works both ways. Management give feedback to the employees in regards to how well they’re faring at their duties, and employees feel safe giving feedback on how well the company’s policies and procedures are working. Communication is not communication if it only comes from one direction. o Improves Customer Relationships - No business would succeed without customers, and every company exists to serve them. Communicating with customers is every bit as important as communication within the workplace.
- 3. IMPORTANCE OF COMMUNICATION IN BUSINESS. o Improves Employee Relationships -No friendship is ever formed without a good level of communication. The more a company’s employees communicate with each other, the closer they will become naturally over time. o Enforcing Rules - Every business must have a code of policies and procedures that must be followed in order for everyone to succeed. Maybe there is a specific process for a task, for example, or maybe there are certain consequences for underperforming. Either way, you want to make all this very clear to your employees, and it isn’t possible to do this without strong communication skills. o Enhanced Innovation - No matter how skilled and talented the people at the top of your company are, you can never have too many ideas. By encouraging everyone at your business, whether big or small, to openly share their thoughts without fear of being shut down, you will quickly notice the employees that have the most to add. o Increased motivation - When company employees are well informed about the business plan, they will be more eager to effectively execute it.
- 4. THE PROCESS OF EFFECTIVE COMMUNICATION IN BUSINESS. Effective communication involves the following four features: o TRANSMITTER or SENDER of the message. This is the person who wishes to pass on the information to others. - The person has to choose the next two features carefully in order to make sure that communication occurs effectively. - This will prevent communication BARRIERS. - Sometimes the sender may be an ICT DEVICE. o Medium of communication or a method for sending the message - Messages may be sent through print letter or e-mail or a notice board. o RECEIVER of the information – the person to whom the message should be sent. o FEEDBACK – where the receiver confirms that the message has been received and responds to it.
- 5. THE PROCESSS OF BUSINESS COMMUNICATION MAY BE SUMMARISED BELOW -All the factors shown below have to be taken into account in order for effective communication to occur in business organizations. Information Sender Recipient How important is the message?
- 6. ONE-WAY AND TWO-WAY COMMUNICATION o The two primary forms of communication are one-way communication and two-way communication. ONE-WAY COMMUNICATION - One-way communication in business is when the business sends out a message to its customers or employees, but does not accept responses from the customers or employees. - One-way communication is important because it allows the business to share information with the customers who can benefit from the company’s products or services. - One of the most common forms of one-way communications in business is advertising, such as print ads in newspapers and magazines and on billboards. SENDER MESSAGE CHANNEL RECEIVER
- 7. ADVANTAGES AND DISADVANTAGES OF ONE-WAY COMMUNICATION Advantages Disadvantages ● Faster ● Orderly ● Learning of facts is authoritative ● Little audience PARTICIPATION ● No feedback ● Does not influence behaviour
- 8. TWO-WAY COMMUNICATION o Two-way communication - In a two-way communication process the information flows from the sender to the receiver and back from receiver to the sender again in the other direction. - Two-way communication is reciprocal, the communicant (receiver) becomes the communicator (sender) and the communicator (sender) in turn becomes a communicant (receiver). Most ordinary conversations are along the lines of this model. - Two-way communication is usually more appropriate for problem-solving situations. SENDER MESSAGE CHANNEL RECEIVER
- 9. ADVANTAGES AND DISADVANTAGES OF TWO-WAY COMMUNICATION Advantages Disadvantages ● More audience participation ● Learning is more democratic ● Open to feedback ● May influence behaviour change ● Slower, takes more time
- 10. Internal communication -Occurs when messages are sent between people working in the same organisation. The importance of internal communications o Operations and sales must agree delivery dates o Finance must know what has been sold o Sales staff must know credit limits o Customer service must know about problems and delays o Human resources must know about training requirements External communication - Occurs when messages are sent between one organisation and another or between the organisation and individuals other than employees, for example customers. The importance of external communications o Public Relations Although many companies focus on sales as a measure of business success, public perception is just as important to the organization's bottom line. Communication is one way to shape and define a corporation's image to the community, clients, and potential investors. o Product promotions Informs the public of a new product and how they can derive benefit from it.
- 11. o Suppliers Organisations need to communicate with their product suppliers and service providers as well. Customer and supplier problems must be resolved quickly o Corporate responsibility Organisations sometimes involve themselves in helping the communities around them. This mutually benefits the organisation and the community. (in terms of taxations) o Competition - In order to have a competitive advantage over its rivals, a business needs to know about what its competitors are doing, charging and that necessitates external communication. o Informed about the law Business customers need to know about the enforcement of the minimum wage. o Enquiries Customer enquiries must be handled promptly o Branding Product/service information must be accurate/attractive o Sales Customer invoices must be correct
- 12. DIFFERENT WAYS OF COMMUNICATING o Verbal/Oral, e.g. telephone, face-to-face, meetings, telephone conferencing o Video, e.g. video conferencing and Internet video link o Written, e.g. letter, memo, financial documents, advertisements, emails and attachments o Visual/Graphical, e.g. production drawings, computer graphics, posters, charts. CHOOSING THE MOST APPROPRIATE METHOD Depends upon; The reason (e.g. important = written) The recipient (e.g. internal/external) The technology available The urgency of the message (e.g. fast = courier or ICT) The complexity of the message (e.g. very complex = written) Whether instant feedback needed
- 13. Computer-Aided Communication Includes electronic mail (e-mail), intranet and extranet links, and video-conferencing. E-mail Uses the Internet to transmit and receive computer-generated text and documents. A recent study found that the average U.S. employee receives thirty-one e-mail messages daily. Benefits Message can be quickly written, edited, and stored. Messages can be distributed to one person or thousands. Messages can be read, in their entirety, at the convenience of the recipient. The cost of sending formal e-mail messages is a fraction of the cost to print, duplicate, and distribute a comparable letter or brochure. Drawbacks Information overload. Time consuming to read, absorb, and respond to messages daily. Messages lack emotional content. The nonverbal cues in a face-to-face message or the tone of voice doesn’t come across in e-mail. Messages tend to be cold and impersonal. Not the best means to convey certain information such as layoffs, plant closings, or other messages that might evoke emotional responses and require empathy or social support.
- 14. Instant Messaging Instant messaging is essential real-time email. The advantages over email include no delay, no in-box clutter, and no uncertainty as to whether the message was received. Intranet and Extranet Links Intranets are private, organization-wide information networks that look and act like a Web site but to which only people in an organization have access. Extranet links connect internal employees with selected suppliers, customers, and strategic partners. Video conferencing Permits employees in an organization to have meetings with people at different locations. Live audio and video images of members allow them to see, hear, and talk with each other. Unlike previous specially-equipped rooms, cameras and microphones are now being attached to individual computers, allowing people to participate without leaving their desks.
- 15. The Impact of Computerized Electronic Communication on Organizations and Organizational Behaviour o Changing the nature of interpersonal communication o More impersonal o Increase in flaming/lack of social constraints o Lack of non-verbal cues o Privacy, internet loafing, and internet love affair o Changing the nature of groups o Equalize participation o The negation of traditional status hierarchy o More time to reach consensus o Less influence from any one dominant person o Changing the nature of organization: virtual organization o The blurring of boundaries within the organization o The blurring of boundaries between organizations o More flat organizations o Networked organizations o More empowerment
- 16. Use ORAL if . . . You need an instant response You want to use your tone of voice or body language to show feelings You want to keep checking the other person’s reaction *The telephone is only suitable for straight-forward information. Use VIDEO if . . . The person is some distance away Travel costs would be saved Seeing the person would help the communication You have the technology Use WRITTEN if… It is important there is a permanent record The information is important The information is complex If urgent – use email or fax If non-urgent – write letter or send memo NOTE: good writing skills are vital!
- 17. ADVANTAGES AND DISADVANTAGES OF DIFFERENT WAYS OF COMMUNICATING o PLEASE FIND ATTACHED A .PDF FILE CONTAINING ADVANTAGES & DISADVANTAGES OF DIFFERENT WAYS OF COMMUNICATING. o PRINT IT OUT AND MAKE USE OF IT.
- 18. FORMAL COMMUNICATION This refers to Communication takes place through the formal channels of the organization structure along the lines of authority established by the management. Such communications are generally in writing and may take any of the forms; policy; manuals: procedures and rule books; memoranda; official meetings; reports, etc. Advantages of Formal Communication They help in the fixation of responsibility and Maintaining of the authority relationship in an organization. Disadvantages of Formal Communication The disadvantages of formal communication are: Generally time consuming, cumbersome and Leads to a good deal of distortion at times.
- 19. INFORMAL COMMUNICATION Communication arising out of al those channels of communication that fall outside the formal channels is known as informal communication. Built around the social relationships of members of the organization. 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 n organization. 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. Advantages of informal communication Speedy transmission Feedback value Support to other channels Psychological satisfaction Uniting force Creation of ideas Good personal relations Disadvantages of informal communication •Cannot be taken seriously •Does not carry complete information •Distorts information •It may prove counter productive •Chances of misinterpretation •Lack of accountability
- 20. COMMUNICATION NETWORKS OR PATTERNS OF COMMUNICATION Given below are the most important patterns of communication or ‘communication nets’ Connected Wheel network Y network Chain network All channel Kite Slash
- 22. Which network is best? There is no one answer to this question. - Different networks have different advantages and concomitant disadvantages. - It is likely that organisations will use all forms of networks at different times or for different groups and purposes. The chain network could be used to communicate important company policy. The wheel network could be used to send different messages to different regional offices of the business.
- 23. COMMUNICATION ON THE BASIS OF DIRECTION/ DIMENSION Communication is multidimensional or multidirectional. There are various directions in which it flows. Within the organization, communication may flow inter scalar or intra scalar, upward or downward. Communication with the outside world may be Inward or Outward. Let's understand these dimensions are : a) Downward b) Upward c) Horizontal or lateral d) Diagonal or crosswise e) Inward f) Outward
- 24. DIRECTION OF COMMUNICATION Direction Communication can flow vertically or laterally. The vertical dimension can be further divided into downward and upward directions. Downward Communication that flows from one level of a group or organization to a lower level. Managers communicating with subordinates. Used by group leaders and managers to assign goals, provide job instructions, and inform underlings of policies and procedures, point out problems that need attention, and offer feedback about performance. Not only oral or face-to-face; letters, e-mails, and so on, sent to employees are also downward communication.
- 25. Upward • Communication that flows to a higher level in the group or organization. • Used to provide feedback to higher-ups, inform them of progress toward goals, and relay current problems. • Upward communication keeps managers aware. Examples of upward communication are performance reports prepared by lower management for review by middle and top management, suggestion boxes, employee attitude surveys, grievance procedures, superior-subordinate discussions, and informal gripe sessions in which employees have the opportunity to identify and discuss problems with their boss or representatives of higher management. Lateral • Communication among members of the same work group, among members of work groups at the same level, among managers at the same level, or among any horizontally equivalent personnel. • Horizontal communications are often necessary to save time and facilitate coordination. • Lateral relationships are formally sanctioned. • Often, they are informally created to short-circuit the vertical hierarchy and expedite action. • Lateral communications can, from management’s viewpoint, be good or bad.
- 26. Common Barriers to Effective Communication The use of jargon. Over-complicated, unfamiliar and/or technical terms. Emotional barriers and taboos. Some people may find it difficult to express their emotions and some topics may be completely 'off-limits' or taboo. Lack of attention, interest, distractions, or irrelevance to the receiver. Differences in perception and viewpoint. Physical disabilities such as hearing problems or speech difficulties. Physical barriers to non-verbal communication. Not being able to see the non-verbal cues, gestures, posture and general body language can make communication less effective. Language differences and the difficulty in understanding unfamiliar accents. Expectations and prejudices which may lead to false assumptions or stereotyping. People often hear what they expect to hear rather than what is actually said and jump to incorrect conclusions. Cultural differences. The norms of social interaction vary greatly in different cultures, as do the way in which emotions are expressed. For example, the concept of personal space varies between cultures and between different social settings.
- 27. A Categorization of Barriers to Communication Language Barriers Language and linguistic ability may act as a barrier to communication. However, even when communicating in the same language, the terminology used in a message may act as a barrier if it is not fully understood by the receiver(s). For example, a message that includes a lot of specialist jargon and abbreviations will not be understood by a receiver who is not familiar with the terminology used. Regional colloquialisms and expressions may be misinterpreted or even considered offensive. Psychological Barriers The psychological state of the communicators will influence how the message is sent, received and perceived. For example, if someone is stressed they may be preoccupied by personal concerns and not as receptive to the message as if they were not stressed. Anger is another example of a psychological barrier to communication, when we are angry it is easy to say things that we may later regret and also to misinterpret what others are saying. Physiological Barriers Physiological barriers may result from the receiver’s physical state. For example, a receiver with reduced hearing may not grasp to entirety of a spoken conversation especially if there is significant background noise.
- 28. Physical Barriers An example of a physical barrier to communication is geographic distance between the sender and receiver(s). Communication is generally easier over shorter distances as more communication channels are available and less technology is required. Although modern technology often serves to reduce the impact of physical barriers, the advantages and disadvantages of each communication channel should be understood so that an appropriate channel can be used to overcome the physical barriers. Systematic Barriers Systematic barriers to communication may exist in structures and organizations where there are inefficient or inappropriate information systems and communication channels, or where there is a lack of understanding of the roles and responsibilities for communication. In such organizations, individuals may be unclear of their role in the communication process and therefore not know what is expected of them. Attitudinal Barriers Attitudinal barriers are behaviors or perceptions that prevent people from communicating effectively. Attitudinal barriers to communication may result from personality conflicts, poor management, resistance to change or a lack of motivation. Effective receivers of messages should attempt to overcome their own attitudinal barriers to facilitate effective communication.