2.3.1

Communication in Businesses

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Communication in Businesses

Communication is the transfer of messages within or across organisations.

Forms of communication: internal and external

Forms of communication: internal and external

  • Internal communication is communication within a business.
    • Such as memos, team meetings, or emails.
  • External communication is communication between businesses or between a business and its customers, suppliers, or other stakeholders.
Forms of communication: vertical and horizontal

Forms of communication: vertical and horizontal

  • Vertical communication is communication sent between employees at different levels in the organisational structure.
    • e.g., manager to team member
  • Horizontal communication is communication between employees at the same level in the organisational structure.
    • e.g., peer-to-peer discussion
Methods of communication

Methods of communication

  • Face-to-face communication allows immediate feedback and clarification but can be time-consuming.
  • Telephone communication is quick and allows direct interaction but can be impersonal and prone to miscommunication.
  • Email communication is efficient and leaves a record, but messages can be misunderstood and lack tone.
  • Video conferencing enables remote collaboration, but technical issues can interfere with communication.
  • Written reports provide detailed information, but they are time-consuming to produce and may not be read carefully.
Effective communication

Effective communication

  • Effective communication is vital for the overall efficiency of a business. Communication is needed for the following:
  • Customer satisfaction.
    • Customers are happy with their relationship with the business.
  • Clarity for staff.
    • Employees understand their position in the business clearly.
  • Motivation for staff.
    • Employees become more motivated if they know their senior staff are actively listening to their input.
Barriers to effective communication

Barriers to effective communication

  • Too little communication can make staff feel ignored and uninformed.
  • Too much communication can overwhelm staff and create confusion.
  • Vague or confusing messages make communication ineffective.
  • Other barriers include language differences, cultural misunderstandings, technological failures, and physical distractions.
  • Removing barriers can involve:
    • Using clear and concise language, providing training, checking for understanding, and choosing the correct communication method.
Methods to improve communication

Methods to improve communication

  • If communication is ineffective, the business will suffer from increased costs and overall inefficiency.
  • To improve communication, staff should be trained in how they should send a message.
    • Types of media, e.g. e-mail, phone call, face-to-face. -Staff should also be trained in how to convey their message clearly.
  • Feedback loops should be used to ensure messages are understood.
  • Regular meetings and open-door policies can improve communication flow and reduce misunderstandings.
Role of Information Communication Technology (ICT)

Role of Information Communication Technology (ICT)

  • ICT can connect people from across the globe and make existing processes quicker and easier.
  • E-commerce means products are more accessible to the customer.
    • Businesses could use e-commerce to penetrate international markets.
  • The developments in ICT means it is easier to send messages than before.
    • But, businesses should be wary that ICT does not lead to too much information. This could be overwhelming.
  • However, excessive ICT usage can lead to information overload, reducing clarity and productivity.
Jump to other topics
1

Understanding Business Activity

1.1

Business Activity

1.2

Classification of Businesses

1.3

Enterprise, Business Growth & Size

1.4

Types of Business Organisation

1.5

Business Objectives & Stakeholder Objectives

2

People in Business

3

Marketing

3.1

Marketing & the Market

3.2

Market Research

3.3

Marketing Mix

3.4

Legal Controls

4

Operations Management

5

Financial Information & Decisions

6

External Influences on Business Activity

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