Business communication


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“If all my possessions were taken from me with one exception, I would hope to keep my power of communication

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Business communication

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