ch. 9: internal & external communication

• Communication: the process by which information and message is transferred from one person to another.
• Internal Communication: a process of exchanging information between one group and another inside the business.
• External Communication: involves communicating with people and organisations outside the business.
• Effective communication and its importance to the business:

  • If the communication is poor it won’t function effectively.
  • Transmitter or sender of the message: which is the person who wants to pass the information to others.
  • Communication medium: the methods used to communicate a message.
  • Feedback: the receiver’s response to a message.
• Benefits of effective communication:

  • It improves efficiency, as motivation will increase so workers feel involved in business decisions so they are more productive which will increase the production.
  • It reduces the risk of mistakes, as it will avoid confusion or misunderstanding so preventing faults and reduce waste.
  • Enabling faster decision making, as employees are more aware of the business’s objectives and ensure that the right orders are passed to the right people so orders are completed on time.
• Reasons for poor Internal communication:

  • Tall hierarchy and long chain of command as there is distance from top to bottom of organisation.
  • Choosing the wrong method of communication.
  • Barriers to effective communication exist such as language issues.
• One-Way communication: Occurs when the receiver of the message has no chance to respond to the message. It does not allow the receiver to provide a feedback.

  Disadv:

  • No feedback, so unsure whether message has been understood and received.
  • No generation of ideas internally within business, as employees aren’t encouraged to give any ideas.
• Two-way communication: There is a reply or a response from the receiver.

  Adv:

  • It ensures that the receiver has received and understood the message, so increasing effective communication.
  • Both people are involved in the communication process, so increasing the motivation of the receiver of the message.
• Methods of communication:

  • Verbal Methods
  • Written Methods
  • Electronic Communication
  • Visual Methods
• Oral communication - advantages:

  • Personal contact between sender and receiver.
  • Allows for immediate feedback so able to check if the receiver understood the message.

  Disadv:

  • No permanent record, so can’t be looked at several times to check understanding.
  • Receiver might not listen, so won’t be sure whether everyone understand the message.
• Written communication - advantages:

  • It provides a permanent record, so can be used by the receiver more than once to check understanding.
  • Can be sent to many receivers.
  • The message can’t be changed.

  Disadv:

  • No personal contact.
  • Feedback is slower.
  • Might not be understood because the language is too complex, or the message is too long.
• Electronic communication - advantages:

  • Some methods such as emails provides a permanent record and can be looked at more than once to check understanding.
  • Can be sent to many receivers at the same time.

  Disadv:

  • Not everyone has the equipment needed.
  • Equipment and software can be expensive.
• Visual communication - advantages:

  • Can simplify complex data so it is more easily understood.
  • Creates interest and grabs the attention of receivers.

  Disadvantages:

  • Some details might be lost.
  • Different receivers might interpret the message differently.
• Letter - adv:

  • Can be kept for future reference and personalised for each receiver, so maintain their loyalty.
  • Having a record of the letter, so less likely to make mistakes.

  Disadv:

  • The receiver may not receive it.
  • It might be slow to arrive.
• Meeting - adv:

  • Everyone gets the same message.
  • Able to ask questions and get a feedback and see the reactions to ideas.

  Disadv:

  • It is difficult to arrange as not everyone might be able to attend.
  • It will take people away from their work which will lead to loss of production.
• Email - adv:

  • Can be sent to everyone at the same time and include attachments.
  • A written record so they can have it for future reference.

  Disadv:

  • Some people may not read it or receive it if they don’t have internet connection so they can’t open it.
  • No guarantee that the message has arrived and read unless has been asked for a reply.
• Video conference - adv:

  • They are able to see non verbal signs.
  • Reduce travel cost as they don’t have to travel to attend meetings atdifferent countries.

  Disadv:

  • Cost of equipment.
  • Problems with different time zones.
• Phone calls - adv:

  • It allows immediate feedback and quicker to provide information to a single receiver as it is one-to-one communication.
  • Discuss the message to make sure it is understood.

  Disadv:

  • No written record, may be misunderstood and takes a longer period of time if there is a large number of receivers.
  • Might not be able to reach the worker so may need to keep trying to contact them so wasting time.
• Text messages - adv:

  • It is quick to send.
  • Can be send at any time.

  Disadv:

  • May not be able to receive the message because of loss of signal or no power on the phone.
  • It has a word limit so can only send a short message.
• How information technology has affected how the business communicate:

  • Greater speed of communication, as they are able to use the internet.
  • Reduced the cost of communication, as they can use video conference instead of meeting.
• How to improve communication between managers and workers:

  • Making sure that the language used is appropriate, so everyone can understand the message.
  • Keep the channel of communication short, to reduce the risk of the message being changed before it gets to the final receiver.