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?