BUSINESS STUDIES (0450)
COMMUNICATION
LESSON NOTES
BY: MR. KOROMA
Objectives
Students should be able to:
uDefine communication.
uExplain the process of communication.
uUnderstand one-way and two-way communication.
uExplain internal, external, formal and informal communication.
uUnderstand the need for effective communication.
uIdentify and explain the different methods of communication, and
be able to select and justify which method to use in given
circumstances.
uIdentify the main barriers to effective communication and be able
to explain how the barriers to communication can be overcome.
Definition of Communication
Communication is the transfer of information from the sender to the
receiver with the information being understood by both the sender
and the receiver.
Refers to the passing of information between two or more parties.
Effective communication refers to the successful exchange of
information between people, including some kind of feedback
Role of Communication
uIt provides information.
uIt provides clear instructions.
uIt allows for activities to be coordinated.
uIt clarifies issues and points.
uCan improve customer service.
Benefits of Good Communication
uIncreased motivation amongst employees.
uIncreased productivity.
uImproved quality.
uSatisfied customers.
uA good business image.
uEffective links with the outside world eg banks, suppliers.
The Communication Process
uSender of the message: Communication begins with the sender
who has a thought or and idea which is then encoded in a way that
can be understood by both the sender and the receiver.
uMessage: The information sent or what the sender intends to say.
uTransmission of message/ Medium/ Media: The information is
transmitted over a channel that links the sender with the receiver.
The message may be oral, written or visual.
uReceiver of the message: The receiver has to be ready for the
message so that it can be decoded. Accurate communication can
only occur when both the sender and the receiver attach the same
meaning to the message.
uFeedback: We can never be sure whether or not a message has
been effectively encoded, transmitted, decoded and understood
until it is confirmed by feedback.
One-way Versus Two-way
Communication
One-way communication occurs when information only moves in
one direction, which is usually from top to bottom of the
organisation. Feedback is not required. It is usually for the giving of
information, orders or directions .
Two-way communication refers to the successful exchange of
information between people, including some kind of feedback. Thus
information can travel vertically both upwards and downwards and
in both directions between people on the same level of the
hierarchy. Two-way communication can improve the co-ordination
and co-operation between departments or divisions within a
business
Internal and External Communication
Internal Communication: This takes place within an organisation
e.g. a manager and supervisor, two employees.
External Communication: This takes place between the
organisation and the outside world e.g. a business ordering from
suppliers, asking customers to pay bills on time or advertising goods
or services etc.
Formal and Informal Communication
Formal communication is when messages are sent through
established channels using professional language. Eg: reports, emails,
memos, official meetings.
Informal communication is when information is sent and received
casually with the use of everyday language. E.g. staff briefings.
Managers can sometimes use the ‘grapevine’ (informal
communication among employees usually where rumours and
gossips spread!) to test out the reactions to new ideas (for example, a
new shift system at a factory) before officially deciding whether or
not to make it official.
Methods of Communication
uWritten communication method.
uOral communication method.
uVisual communication method.
Written Communication
It includes letters, memos, reports, notices, faxes and e-mails.
Letters: -they are used when applying for a job, requesting for
something, informing employees of any impending redundancies etc.
Advantages
uProvides records and references. The receiver can re-read.
uMessage can be carefully drafted and directed to large audience
through mass mailing.
Disadvantages
uIt may long time to receive and properly understood.
uInformation can be misinterpreted.
Reports: Are formal means of communication, they are used to give
information. Some are issued by companies i.e. annual reports. Some
are used when a managers wants a stubborn employee to narrate his
or her case.
Advantages
uReports can be very detailed and can include diagrams to illustrate
some information.
uProvides a permanent record of information.
Disadvantages
uSome information might not be read if the report is too long.
uInformation can be misinterpreted.
Notice boards: It can be used for a planned social event or meeting.
It also includes posters.
Advantages
uThe information is available to many people at the same time.
uIt is cheaper to use.
Disadvantages
uThere is no guarantee that the intended recipients will see the
information.
uThe reactions of some people to the information will be unknown.
Emails: it’s a quick means of communicating both internally and
externally.
Advantages
uA fast way of communicating regardless of where in the world the
sender and recipient.
uSupporting documents can be attached so that a lot of information
can be transmitted quickly.
Disadvantages
uMay provide no immediate feedback. Some open their emails after
a long time.
uInformation overload where too many emails are send.
Websites: Many businesses convey information about their activities
on a business website. The business can display mission, products
offered, jobs, prices on the website.
Advantages
uA lot of information can be made available on a website.
uIt allows businesses to make contact with people who they are not
yet in formal contact with.
Disadvantages
uThe information made available on a website is accessible to
everyone who visits the site. Thus competitors can have
information which can be used to their advantage.
uThere is the potential for malicious individuals to gain access to
the website and to add harmful information or comments.
Social media: Social media include face-book, twitter. Many
people invite people to follow them on social media so that up-todate information can be given out about business activity.
Advantages
uFaster communication with people outside the business.
uImmediate reaction from people can be obtained through
responses posted on social media.
Disadvantages
uThere is a danger that information might be released through
social media that was not intended for public knowledge.
uSomeone within the business will have to allocate time to manage
the face-book or twitter communications.
Oral Communication Method
Oral communication includes one to one conversations, interviews,
appraisal sessions, group meetings or team briefings.
Meetings
Advantages
uIt allows two way communication and feedback.
uIt is fast and feedback can be received instantly.
Disadvantages
uBody language of both the sender and receiver may have a
negative impact.
uMeetings can be time consuming.
Telephone/ Mobile phones
Advantages
u It allows two way communication and feedback.
u It is fast and feedback can be received instantly.
Disadvantages
u There is no record of what was said.
u The body language of the people involved cannot be seen.
Visual Communication Method
Visual communication usually includes diagrams, pictures, charts
and pictorial representation of the message.
Advantages
u Easy to understand and retain the information.
u May be more interesting than simple written communication.
Disadvantages
uIt is not always clear and the may be misinterpreted by the
receiver.
uTime consuming.
Flow of Communication
Downward communication: Messages from managers to
subordinates i.e. from top to bottom of an organization structure.
Upward communication: Messages/feedback from subordinates to
managers i.e. from bottom to top of an organization structure
Horizontal communication occurs between people on the same
level of an organization structure.
Diagonal communication flow between persons at different levels
who have no direct reporting relationships.
Barriers to Effective Communication
Barriers to effective communication mean the reasons for a
breakdown in communication.
It refers to anything that prevents the receiving and understanding of
information. These breakdowns may be for arising due to:
uProblem with the sender.
uProblem with the medium.
uProblem with the receiver.
uProblem with the feedback.
Problem With The Sender
uThe sender may use to technical language or may use ‘jargons’
which are difficult to understand.
uThe sender may speak too quickly which makes it difficult to
interpret what he is saying.
uThe sender initiates a wrong message.
uThe message send by the sender may be too long and due to this
the main point to be emphasized may get lost.
uThe sender may have a wrong opinion or perception of the
receiver and may not put effort to put across the message in an
effective way.
Problem With The Medium
uThe message may be lost while transmitting.
uUsing an inappropriate medium may result in the less effective
communication.
uA longer channel of communication will result in distortion of the
message and it may lose its original meaning.
uThere is lots of physical disturbances in channel of communication
used.
Problem With The Receiver
uThe receiver might not be paying attention and thus the message
may lose its impact.
uIn many cases, the sender might not be trusted by the receiver and
may not act in the intended way.
uThe receiver may not have the necessary skills to understand the
message.
Problem With The Feedback
uThe feedback may be missing or distorted.
Steps to Overcoming Barriers to
Effective Communication
Sender
uMessage should be as brief as possible and to the point.
uMain points of the message should be highlighted.
uLanguage used should be understood by the receiver.
uAvoid using technical jargons.
uUse of appropriate facial expression while delivering verbal
messages.
Medium
uSelect appropriate channel for communication.
uMedium used should be free from distortions such as telephone
failure etc.
uUse the shortest possible channel in order to avoid distortion.
Receiver
uFeedback should be asked from the receiver.
uTrust between the sender and receiver is an important requirement.
uReceiver should pay attention to the message received.
Feedback
uThere should be response to the message given.
Factors That Affect The Choice of an
Appropriate Communication Method
uSpeed: If the receiver has to get the information quickly, then a
telephone call or text message has to be sent. If speed isn’t
important, a letter or e-mail will be more appropriate.
uCost: If the company wishes to keep costs down, it may choose to
use letters or face-to-face meetings as a medium of
communication. Otherwise, telephone, posters etc. will be used.
uMessage details: If the message is very detailed, then written and
visual methods will be used.
uLeadership style: A democratic style would use two-way
communication methods such as verbal mediums. An autocratic
one would use notices and announcements.
uThe receiver: If there is only receiver, then a personal face-toface or telephone call will be more apt. If all the staff is to be sent
a message, a notice or e-mail will be sent.
uImportance of a written record: If the message is one that
needs to have a written record like a legal document or receipts of
new customer orders, then written methods will be used.
uImportance of feedback: If feedback is important, like for a
quick query, then a direct verbal or written method will have to
be used.
The Effects of Poor Communication in
Business
Here are 6 effects of poor communication commonly has in the
workplace:
uIncreased employee turnover.
uPoor customer service.
uLower shareholder return.
uGreater incidence of injury.
uLower employee productivity.
uIncreased absenteeism.
uReduced sales revenue and profit.
How to Overcome Communication
Problems in Large Business
uCreate a safe space for communication.
uProactively seek feedback.
uLeverage technology the right way.
uGet control of mobile communication.
uMake internal documents easily accessible.
uDelegate authority.
EXAM STYLE
QUESTIONS AND ANSWERS
Furniture Outdoors (FO)
FO has been a private limited company for 20 years. It is owned and
run by the Chan family and is located in country Z. In country Z the
secondary sector has become relatively more important as the country
has developed. FO is a manufacturer of wooden furniture that is
suitable for outdoor use. Its products include tables, chairs and other
outdoor furniture.
Customers order online from the FO website. The furniture is then
delivered to customers in country Z using FO’s own delivery vehicles.
However, FO is considering changing to selling its furniture through
either wholesalers or large retailers in country Z.
The Chan family have the business objective of contributing to
sustainable development. FO only uses sustainably sourced wood
when making furniture. This is from local forests in country Z and the
wood is more expensive than imported alternatives.
For many years FO shareholders have reinvested profits to provide
the finance for growth. FO recently took over 2 other furniture
businesses in country Z and plans further takeovers. The Chan family
plan to continue to control and manage FO after this expansion. The
leadership style of these two companies is very different to that of FO
and their factories are located several miles away from FO in
different regions of country Z.
FO need to manage all its resources effectively. It tries to use the
same components such as nails, brackets and paint for all its furniture
designs. It is important to not run out of raw materials and so orders
to suppliers must be carefully planned to avoid late deliveries. FO
want to keep wastage of materials to a minimum. FO also need to
consider how many employees are required to complete each order.
FO - the only business to go to when you need new outdoor furniture
for your garden. FO produce a range of high quality furniture to meet
all your needs for fashionable, well designed outdoor furniture. Be
reassured our furniture is only made from the highest quality wood
from sustainable forests.
Our furniture is only available online so order today and have your
furniture delivered in the next few weeks. Email any questions to us
and we will reply quickly.
Consider the benefits and limitations of the following three methods
of communication FO could use. Which method of communication
would be most suitable when contacting suppliers about a late
delivery? Justify your answer
uEmail.
uMobile (cell) phone.
uLetter.
ANS.
Email: Can be sent quickly (K) to the suppliers of wood (APP) and
this will lead to quick delivery (AN). However, no guarantee it has
been read (K) by suppliers of nails (APP).
Mobile (cell) phone: The caller can ask questions (K) about the
brackets (APP) and this will lead to accurate supply (AN).
However, time consuming (K) if need to contact many different
suppliers of wood (APP) and this will delay supply (AN).
Letter: A lot of detail (K) can be included about the late delivery of
nails and paint (APP) this provides more information(AN).
However, can be more expensive (K) than other two methods (APP)
which increases cost (AN).
Recommendation: Letter may be best if express delivery (K) could
be arranged about the late delivery (AN) of nails and paint (APP). It
is more formal (K) that the other two methods and they can be sure
it has been received if signed for (AN).
THANK YOU!!