iGCSE Business Studies

2.4 Internal and External Communication

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.

What is Communication?

• Communication is messages passed between a sender and a receiver.

SENDER RECEIVER

Message

One Way Communication

SENDER RECEIVER

Message

Two Way CommunicationFeedback

One way or 2 way?

Look at the pictures on the next slide. Are they one way or two way

communication

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

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

Effective Communication

• Clear and Easy to understand• Accurate• Complete• Appropriate• Via the right medium• With a chance for feedback

Consequences of poor communication

• Misunderstandings• Wasted time• Increased costs• Inefficiency• Poor Staff Motivation• Lost Profits• Disputes

Describing Communication – What do these terms mean? Can you give an

example?

Internal

Informal

External

Formal

One to ManyOne to One

Verbal Written Visual

One way Two way

Upward Downward Lateral

Inside the firm

Outside the firm

Managers

Employees

Customers

Suppliers

Banks

Tax

Authorities

External Communication

Internal Communication

DirectorsMedia

Potential Investors

Communication in the Hierarchy

Task

• Brainstorm all the methods of communication that could be used by businesses.

• Write them onto the whiteboard

Communication Methods

Mobile Phone Call

PresentationsE-mails

Fax

Note

Text Messages Face to Face Discussions

News Letters

Telephone call

Voicemail

Meeting Minutes

Video ConferencingNotice

AgendasMemorandum

Reports

Letters

Website

Meetings

Videos

PostersBrainstorm methods that businesses use to

communicateBrochures/Leaflets

TASK - WRITE DOWN AS MANY AS YOU CAN….

1. Methods of communication that would only be used for

internal communication

2. Communication methods which would be used for

urgent messages

3. Communication methods which are verbal

4. Written methods of communication

5. Methods that might be used to communicate with

customers

CHOOSING THE RIGHT MEDIUM/METHOD OF COMMUNICATION

What factors would businesses consider when choosing how to send their message?

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

Task

Mobile Phone Call

PresentationsE-mails

Fax

Note

Text Messages Face to Face Discussions

News Letters

Telephone call

Voicemail

Meeting Minutes

Video Conferencing

Notice

AgendasMemorandum

Reports

Letters

Website

Meetings

Videos

PostersFor your allocated method of communication identify 2 advantages and 2 weaknesses. Use appropriate

terminology. Add to the Google Doc

Brochures/Leaflets

Which medium would you choose?

A manager informing an employee that if they are late one more time they may be dismissedInforming all staff details about the Christmas partyFinding out why an expected delivery from the

suppliers hasn’t been receivedLetting customers know that you are recalling a childrens toy due to a potential choking hazard

An employee letting his line manager that he is sick and will not be in work that day

Letting customers know that there will be a sale starting on MondayArranging an overdraft extension with the bank

WHEN IT ALL GOES WRONG!!!BARRIERS TO COMMUNICATION

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.

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?