🎓 Business (9609) A Level Study Notes: Business Communication (7.2)
👋 Welcome to Business Communication!
Think of communication as the nervous system of a business—it’s how all the different parts (departments, employees, managers) talk to each other to ensure the body functions correctly. In Human Resource Management (HRM), effective communication is critical for everything from motivating staff to implementing major change.
This chapter is short but vital! The skills you learn here are essential for strong analysis in case studies, especially when discussing management decisions and employee relations.
7.2.1 Purposes of Communication
Communication is about transferring information from a sender to a receiver, with the message being understood. But why is this so essential in a business?
Why Communication is the Backbone of Business:
- Giving Instructions and Direction: Managers need to tell employees what needs to be done to achieve organisational objectives.
- Sharing Information: Providing data (e.g. sales figures, budget reports, safety warnings) necessary for decision-making.
- Motivation and Feedback: Communicating targets, rewarding success, and providing constructive criticism keeps employees engaged (linking back to Motivation, 2.2).
- Implementing Change: If a business is merging or restructuring, clear communication prevents fear, rumours, and resistance.
- Coordination: Ensuring different departments (Production, Marketing, HR) work together seamlessly.
Situations Where Communication is Essential:
Communication is always important, but it is essential when the business outcome depends entirely on clarity and speed:
- Crisis Management: During a disaster or major public relations issue, quick, accurate, and consistent messages must be sent to stakeholders (staff, media, investors).
- Setting Objectives: When the management team sets new SMART objectives, they must be clearly communicated vertically down the hierarchy so everyone knows their role.
- Collective Bargaining: Negotiations between management and trade unions require open, clear communication channels to reach an agreement.
- Performance Appraisal: Discussing an employee's performance requires two-way, constructive communication.
Key Takeaway: Communication is not just sharing data; it’s about influencing behaviour, coordinating actions, and ensuring alignment with objectives.
7.2.2 Methods of Communication
Businesses choose a method based on the urgency, formality, and need for a permanent record.
1. Spoken (Verbal) Communication
This involves the exchange of information through words, sounds, and tone (face-to-face, telephone calls, meetings).
| Strengths | Weaknesses |
|---|---|
| Instant Feedback: You can immediately see if the message is understood (or misunderstood). | No Permanent Record: Difficult to prove what was said later on. |
| Personal and Encouraging: Better for motivating or discussing sensitive issues. | Misinterpretation: Message relies heavily on context and tone; easy to forget details. |
| Time-Saving: Quick calls or instructions are often faster than writing. | Difficult for Complex Data: Hard to explain detailed financial or technical concepts verbally. |
2. Written Communication
This includes letters, reports, memos, and internal company documents.
| Strengths | Weaknesses |
|---|---|
| Permanent Record: Provides a clear audit trail and legal evidence. | Lack of Feedback: Slower response time; the sender doesn't know if the message was received or understood. |
| Complex Details: Necessary for contracts, financial statements, and detailed policies. | Time Consuming: Writing, formatting, and proofreading takes time. |
| Wide Reach: One document can be distributed to hundreds of people consistently. | Impersonal: Less effective for motivational or emotional subjects. |
3. Electronic Communication (IT/Digital)
This uses technology like email, video conferencing, internal instant messaging, and company intranets. Note: Much written communication is now electronic (email), but the syllabus treats the *mode of delivery* (electronic) as distinct due to its speed and reach.
| Strengths | Weaknesses |
|---|---|
| Speed and Global Reach: Information transfer is instantaneous across geographical boundaries. | Information Overload: Too many emails/messages can lead to important details being missed. |
| Cost Effective: Cheaper than printing or physical postage. | Technical Failure: Dependent on working systems, software, and connectivity. |
| Versatility: Allows for multimedia (videos, links, files). | Security and Privacy: Risk of hacking, data breaches, or accidental sharing. |
4. Visual Communication
This uses non-verbal cues, diagrams, charts, graphs, posters, and company branding.
| Strengths | Weaknesses |
|---|---|
| Engagement: More engaging and memorable than plain text. | Requires Context: A graph needs a title and explanation to be understood. |
| Breaks Down Complexity: Simplifies complex numerical data quickly (e.g., showing a budget breakdown in a pie chart). | Passive: Posters may be overlooked if the environment is busy. |
Quick Review: The 4 Ms of Method Choice
When choosing a method, managers should consider: Money (Cost), Message (Complexity), Memory (Record Needed), and Moment (Urgency).
7.2.3 Channels of Communication
The channel refers to the route or pathway the message travels. We look at two key dimensions: feedback and direction.
One-Way vs. Two-Way Communication
The difference here is the presence of feedback.
- One-Way Communication: The sender transmits a message, but the receiver cannot respond or provide feedback. Example: A manager sending a compulsory email notice or a safety poster.
- Advantage: Fast, ensures everyone gets the exact same message.
- Disadvantage: No confirmation of understanding; often leads to lower morale and resistance, as staff feel unheard.
- Two-Way Communication: The sender transmits a message and invites feedback or response from the receiver. Example: A staff meeting, performance appraisal, or customer service chat.
- Advantage: Improves understanding, facilitates problem-solving, and boosts morale (employees feel valued).
- Disadvantage: Slower and requires more resources (time for meetings, analysis of feedback).
Did you know? Two-way communication is crucial for democratic or paternalistic leadership styles, as it supports participation.
Vertical vs. Horizontal Communication
This defines the direction of the message flow within the organisational hierarchy.
- Vertical Communication: Flows up or down the chain of command.
- Downward: Instructions, policies, and objectives from management to subordinates (e.g., CEO announcing new strategy).
- Upward: Feedback, reports, suggestions, and grievances from subordinates to management (e.g., worker using a suggestion box).
- Horizontal Communication: Flows between individuals or departments at the same level of the hierarchy.
- Purpose: Essential for coordination and cooperation (e.g., the Marketing Manager discussing a new product launch date with the Production Manager).
- Advantage: Speeds up decision-making by cutting through bureaucracy.
Problems Associated with Different Channels
No channel is perfect, and issues often arise, especially in large, hierarchical organisations:
- Filtering: Information is deliberately manipulated or withheld as it travels up or down the hierarchy. Employees might filter out bad news before sending reports upward.
- Information Overload: Too much data being sent too quickly, causing the receiver to miss critical points.
- Chain Complexity: In tall (narrow) hierarchical structures, messages take too long to travel down, leading to delays and distortion.
- Lack of Formal Horizontal Channels: Departments might work in isolation ("silos"), leading to miscoordination between teams.
Key Takeaway: Effective communication requires managers to select channels that suit the message's direction and the need for feedback.
7.2.4 Barriers to Communication
A barrier is anything that prevents a message from being received and understood accurately. Recognizing these barriers is the first step to overcoming them.
Common Barriers to Effective Communication:
- Language and Jargon: Using overly technical terms (jargon) that the receiver doesn't understand, or poor translation in multinational businesses.
- Noise (Physical and Psychological): Physical interference (bad phone line, loud machinery) or psychological distractions (stress, lack of interest).
- Filtering and Distortion: As the message passes through different levels of hierarchy, it gets intentionally or unintentionally changed (like the game of 'Telephone').
- Channel Inappropriateness: Using the wrong medium (e.g., announcing a major redundancy via a quick internal email instead of a face-to-face meeting).
- Lack of Trust or Relationship: If employees don't trust management (or vice versa), they may ignore or dismiss messages.
- Timing: Sending an urgent memo late on a Friday afternoon, knowing it won't be read until Monday.
How to Overcome Communication Barriers (Application Focus):
- Simplify the Language: Use plain, clear, and unambiguous terms.
- Use Two-Way Channels: Encourage feedback to check understanding (e.g., asking "Do you have any questions?" after giving instructions).
- Reinforce Messages: Use multiple methods (e.g., a spoken instruction followed up with a written summary email).
- Train Staff: Provide training on effective writing, listening, and presentation skills, especially for managers.
- Build Trust: Promote an open culture where employees feel safe reporting issues (upward communication).
- Reduce Hierarchy: Delayering can shorten the chain of command, reducing filtering and distortion.
7.2.5 The Role of Management in Facilitating Communication
Management doesn't just send messages; they design the system and culture that allows information to flow freely and efficiently.
The Role of Informal Communications (The Grapevine)
Informal communication flows outside the formal organisational chart. It often takes the form of conversations around the water cooler or during lunch breaks—this is the grapevine.
- Pros: It's fast, can build social relationships, and is crucial for measuring employee morale. Managers can tap into it to gauge reactions to policies.
- Cons: It often spreads rumours, gossip, and inaccurate information, which can harm productivity and morale.
Managers must acknowledge the grapevine and try to counter misinformation with clear, formal communication before rumours spread.
Ways in which Communication Influences Business Efficiency:
Good communication directly impacts how quickly and accurately tasks are completed (efficiency).
- Reduced Errors: Clear instructions mean fewer mistakes in production or service delivery.
- Faster Decision-Making: Efficient horizontal communication allows rapid coordination between teams, speeding up new product launches or crisis responses.
- Improved Productivity: Motivated staff (due to clear objectives and feedback) work harder and smarter.
- Better Customer Relations: Clear internal communication ensures external staff (sales/customer service) have the correct information to pass to customers.
Ways of Improving Communication in a Given Situation:
When asked to improve communication (a common AO3/AO4 question), you must link the solution to the specific problem identified in the case study.
- Audit the Channels: Regularly assess which channels are most effective for specific tasks. If coordination is poor, implement mandatory inter-departmental meetings (horizontal).
- Use Communication Policies: Define when email is appropriate versus when a formal report is needed. Set rules on response times to combat information overload.
- Invest in IT Systems: Implementing a centralised intranet or Enterprise Resource Planning (ERP) system ensures everyone accesses the same, accurate information (reducing filtering).
- Implement Suggestion Schemes: Formal upward channels (like quality circles or team briefings) encourage non-management staff to provide feedback and suggestions.
Final Key Takeaway: Managers facilitate communication by choosing the right method and channel, minimising barriers, and creating a culture of openness and trust.
💡 Communication Quick Review Checklist
Can you define and distinguish between these concepts?
Methods: Spoken, Written, Electronic, Visual.
Channels: One-Way vs. Two-Way | Vertical vs. Horizontal.
Barriers: Jargon, Filtering, Noise, Lack of Trust.
Management Role: Monitoring the Grapevine, Designing Formal Channels, Training.