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2.theory of communication



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  • 1. of Communication Nature & Role of Communication Copyright 2006 – Biz/ed
  • 2. Importance of Communication• Communication is important because it is about how information is sent and received within firms• The way information is communicated is often governed by how firms are structured Copyright 2006 – Biz/ed
  • 3. Forms of Business Structure• Entrepreneurial - decisions made centrally• Pyramid - staff have a role, shared decision making, specialisation is possible• Matrix - staff with specific skills join project teams, individuals have responsibility• Independent - seen in professions where organisation provides support systems and little else Copyright 2006 – Biz/ed
  • 4. Illustrating Structures 1 The Pyramid Traditional view of organisationsDecisions passdown formal Information flowschannels from up formal channelsmanagers to from staff tostaff management Copyright 2006 – Biz/ed
  • 5. Illustrating Structures 2 Entrepreneurial Key Key Quick to act but worker worker pressure on decision makers One or two Most small Decision people makebusinesses have this maker decisions structure Great reliance on key workers Key Key supporting decision worker worker makers Copyright 2006 – Biz/ed
  • 6. Illustrating Structures 3 Matrix Marketing Production FinanceProject A Project teams Staff with created specialist skillsProject B Copyright 2006 – Biz/ed
  • 7. Structures 4 Independent Not suited to mostDr A businesses due to lack of control Dr B Support systems to professionals such as doctorsDr D Dr C Copyright 2006 – Biz/ed
  • 8. More on Business Structure Centralisation Decentralisation• Managers keep • Empowering and control motivating• Decisions are made • Freeing up senior in the interests of the whole business managers’ time• Costs can be cut by • Better knowledge of standardising those closer to purchasing and so on customers• Strong leadership • Good staff development Copyright 2006 – Biz/ed
  • 9. Channels of Communication• Communication in organisations follows paths or channels• Communication between managers and subordinates is known as vertical communication• This is because the information flows up or down the hierarchy Copyright 2006 – Biz/ed
  • 10. Communication Organisation chart shows vertical (black arrows) and lateral (green arrows) Board of Directors Finance Marketing Production Finance Marketing Factory Officers Assistants Operatives Copyright 2006 – Biz/ed
  • 11. Channels of Communication• Channels between departments or functions involve lateral communication• As well as formal channels of communication, information also passes through an organisation informally• Communication is not complete until feedback has been received Copyright 2006 – Biz/ed