Ways-Of-Communicating

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Exam code:J204

The importance of communication

Communication is the successful transfer of messages between sender(s) and receiver(s)
Effective communication ensures that clear messages are sent, received, understood and acted upon in the way intended

The communication process

process-of-communication-cie-igcse-business-rn — **A sender passes the information to the receiver using a medium of communication such as email**

Effective communication should be
- Clear and unambiguous
- Appropriate to the context and to the sender
- Sent to the correct receiver in an accessible format
- Timely and contain only the required amount of detail

Internal and external communication

Internal communication is the exchange of message(s) between two or more members of the same organisation
- E.g. Telephone call between a sales manager and a finance team member
- Vertical communication occurs between workers on different levels of a business hierarchy
  - E.g. A line manager emails a weekly task list to a subordinate employee
- Horizontal communication occurs between workers on the same level of a business hierarchy
  - E.g. The marketing manager shares a promotional costs presentation with the finance manager
External communication is the exchange of message(s) between an organisation and external entities such as customers, suppliers or investors
- E.g. Sending an online order form to a supplier

One-way and two-way communication

One-way communication transmits a message which does not require any feedback
- E.g. Sign in a supermarket stating ‘wet floor’ to customers and staff
Two-way communication occurs when the receiver gives a response to the message received
- E.g. Email between two members staff discussing the success of a new promotional campaign

Formal and informal communication

Formal communication is channelled through the businesses organisational structure and is likely to be recorded in some way
- E.g Minutes of an appraisal meeting are a formal record of employee performance
- Other examples of formal communications include:
  - Business letters
  - Financial reports
  - Invoices and receipts
Informal communication is any communication that takes place outside of the official channels and is unlikely to be formally recorded
- E.g. a short lunchtime conversation about workload with a colleague

Examiner Tips and Tricks

A common misconception is that informal communication is not as important as formal communication. In reality, informal communication forms the bulk of communication in most organisations and plays an important role in supporting formal communication, such as clarifying instructions, motivating staff and allowing for important feedback that may not be capable of being communicated formally.

Recommending suitable methods of communication

Businesses are likely to develop their communication methods and styles over time
- Smaller business may only be able to afford to communicate with customers through brochures and social media
- Larger businesses are likely to have greater budgets, which allow for the use of television and billboard promotional campaigns

Factors impacting the choice of communication method

Factor and explanation	Example
Cost How important is it to keep costs down? Is communication vital, regardless of cost?	Customers need to be informed about a serious safety problem with a children’s toy An announcement in national newspapers would reach many affected people quickly An announcement via social media channels would be low-cost
Speed Does the message need to transmitted quickly?	A manager from a foreign division of a company must be told about a cancelled sales meeting before he catches his flight from the US to China A telephone call would be quick and direct An internal email may not read in time
Receiver How many/what type of person needs to receive the message?	All 300 staff in a factory need to be told about a change in working hours An internal email would be an effective way to inform all staff An announcement on a staff noticeboard may be missed/ignored by some workers
Leadership Style Democratic leaders are likely to encourage two-way communication, whilst autocratic leaders would prefer one-way communication	A business is making arrangements for a staff social event A democratic leader may hold a meeting with the workplace social committee An autocratic leader may send written invitations to staff
Message Details Is the message technical or detailed? Does it contain images or data?	A manager needs the sales team to review the monthly revenue figures before the next meeting Sending the sales report via email or placing it in a shared online folder allows colleagues to access/interact with the report before the meeting
Need for a written record/formality Is a record of the communication needed for future reference? Is the communication related to a formal matter?	A customer wishes to place an order An order form is a permanent written record that can be placed on file and provides a financial record A telephone call may not record all important details about the order
Feedback Does the receiver need immediate feedback?	Two colleagues are concerned a customer has not paid for the goods they have and is leaving the store A quick verbal discussion can establish situational facts quickly so that appropriate action can be taken A text message may not be received in time

Business GCES OCR