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Communication of Business Objectives

The objectives of a business determine:


1) The labour required
2) Organisational structure of the business

People within organisations cannot act in isolation. All functions of a business are
dependant on each other.

E.g.: The pay of the employees is determined by the budget constraints laid down by the
Finance Department. The wages of the employees ultimately affects their morale and
motivation which in return affects the quality of the products. The higher the quality of
the products, the easier it is for the Marketing.

Effective communication is also vital for a business to operate in an efficient manner.


Information must be conveyed clearly. Reasons for importance of effective
communication:

1) Decreases mistakes made in the workplace. Mistakes are not only a financial cost
but also a cost in time. Any cost in time makes the business inefficient and will
inevitably cost money.
2) Clear and effective communication gives employees a sense of belonging and
involvement. (Mayo/Maslow)
3) Makes decision-making faster. The faster a business can make decisions the more
it can progress and become more competitive.
4) Communication can be used as a marketing tool. If the business can communicate
with its target market more successfully this may generate more sales and
additional income for the business.

Types of Communication

Communication involves the exchange of information from one party to another. There
are many types of communication methods.

1) One-way Communication: The simplest form of communication, information is


sent from a transmitter and received by the receiver.

Advantages Disadvantages
Quick and Easy to use Less reliable as there is no way to check
Cheap May frustrate receiver
No pressure on transmitter to justify
information

2) Two-way Communication: Again Information is sent by the transmitter and


received by the receiver but receiver can get feedback (response) and basically
transmit also.

Advantages Disadvantages
More effective/reliable as receiver is able Takes more time, therefore more costly
to confirm/check information
Reciever feels more involved as he/she can Transmitter is under pressure to justify
confer and seek clarification information being sent
3) Formal Communication: In this style, information is usually transferred using
agreed rules or procedures. Most businesses have established procedures which
are usually made clear to an employee during induction, when the employee joins
the company.

This formality refers to the way in which information is transferred, i.e. the
location, the language used or the media in which it is transferred.

Especially when communicating between levels of the hierarchy e.g. holiday


requests, appraisal or salary information, businesses will have set measures to do
this.

Legalities, business documents and contracts between businesses will all use
formal language.

Advantages Disadvantages
Messages are taken seriously Can be de-motivating if no response is
received
Information is usually kept a record of Employees feel their views remain unheard

4) Informal Communication: In this style, there are little or no formal procedures of


the transfer of information. Again this applies to the location, language and media
used. The location for example will usually be outside the workplace.

The information and language used is unique to the people involved. Information
is usually passed on verbally rather than being documented or recorded.

Advantages Disadvantages
Employees feel comfortable expressing Information is not usually recorded, so may
views be no record
No hierarchical restrictions, any one can Messages may not be taken seriously if
speak to anyone made informally

5) Open Communication: This style of communication is designed to be understood


by the vast majority of the population. Information is usually free of technical
terms or jargon.

Helps businesses to reach large audiences and convey businesses message. A


clear simple message is often better than a detailed technical message. Often used
when dealing with stakeholders outside of the business.

Advantages Disadvantages
Reaches large audiences Technical message may not able to be
conveyed.
Message can be put together quickly

6) Closed Communication: This style of communication is designed to be used and


understood by people within the company, any one outside would not be able to
understand.

Slang and abbreviations such as OCR or AS/A2 are examples of closed


communication; the general public would not know what they meant.
7) Vertical Communication: This is communication between the different levels of
the business (up and down the hierarchy). It provides an opportunity for
employees to feel involved and help alleviate frustrations within the working
environment.

E.g. shop workers can provide very useful information to managers such as
consumer trends/attitudes as they are ones who deal with customers on a day to
day basis.

8) Horizontal Communication: This is communication between employees that are


on the same level of a hierarchical structure. E.g. Discussion between the research
and development team.

Advantages Disadvantages
Employees feel involved, helps solve their No response may be received which can be
problems de-motivating
Very useful information can be gained by Employees may feel neglected and that
speaking to different levels their views are not being heard

Channels of Communication

1) The Chain:

- Formal, vertical hierarchy


- Communication usually downwards

Advantages Disadvantages
Messages are sent received quickly from Opportunities for lower levels are low
top to bottom
Little or on consultation which is de-
motivating
Messages may become distorted due to the
number of hierarchical levels

2) The Wheel:

- Leader/chief at the centre of all communication


- All messages pass through him/her
- Centralised

Advantages Disadvantages
Leader remains in touch with all aspects of Employees don’t have chance to use
business initiative or take responsibility
No delegation

3) The Circle:

- Restricted communication
- Usually only between employees, within a department or same hierarchical level
4) All Networks:

- No restrictions between communication


- Anyone can communicate with anyone in a business
- Employees feel more comfortable
- Communication is made quicker
- Not good for large businesses, these need an organised structure

Communication Media

The communication media is how the message is sent and received, i.e. Television,
Radio, Text Message, Telephone, Email etc. These all have their advantages and
disadvantages in terms of accuracy, speed and cost.

Advancements in IT have significantly enhanced communication and made it faster.


Businesses have invested heavily in IT, therefore saving money and time. Video
conferencing has also decreased the cost of travelling for meetings.

In general:

Communication
Communication Media Type of Communication
Channel/Network
How Message is Sent How Message is Told
Route of Message

Barriers to Communication

1) Technical:

Any interference that prevents the receiver from being able to receive a message is
described as a technical barrier.

For example, if there is too much noise then the receiver will not be able to hear the
message. A message made by the announcer at a railroad station whilst the train is
passing makes it difficult for the message to be heard, this is also a Technical Barrier.

2) Semantic:

Any interference that prevents the receiver from understanding what is being sent e.g.
Close Communication.

3) Effectiveness:

The final barrier is whether or not the message has been executed in an effective
manner. If it has this means that there is no technical or semantic errors, the message
has been received, understood and acted upon.
Additional Barriers to Communication

4) The Skill of the Transmitter/Receiver:

An inexperienced sender/receiver of information can act as a Barrier to affective


communication if:

- The correct medium is not used for the nature of the message
- The right words or right timing is not used
- Inability to read or understand the message

5) Cultural Differences:

The words or the tone used by the sender may not be perceived the same way by the
receiver who is of a different culture and visa versa.

6) The size of the Business and the number of layers in the Hierarchy

As a business grows, affective communication becomes increasingly difficult. Due to


the increase in employees, layers in hierarchy, spans of control the
sending/receiving/managing of messages becomes very hard to maintain. For large
multi-national companies, communication becomes even harder due to the cultural
barriers that come into play.

Decentralisation is a good way to battle the effects of a growing organisation; it


would reduce communication chains and therefore improve effective communication.

7) Amount of Information:

The more information you try and send at one time the greater risk you have of
creating errors and overloading the receiver. How easy it will be for the
sending/receiving of large amounts of information depends on the skill of the
sender/receiver.

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