Formal & Informal Communication (DP IB Business Management)

Revision Note

Written by: Lisa Eades

Reviewed by: Steve Vorster

The aim of communication is to exchange or transfer information
Formal communication is channeled through a businesses formal organisation structure and is likely to be capable of being recorded in some way
Informal communication is any communication that takes place outside of the official channels and is unlikely to be formally recorded

The effectiveness of each method depends on the business context, the nature of the communication and the personal preferences of both the sender and receiver of information

Strengths & Weaknesses of a Range of Communication Methods

Method of Communication	Strength	Weakness
Face-to-Face Communication	Face-to-face communication allows for the exchange of facial expressions, body language, and tone of voice which enhance understanding	Face-to-face communication may not always be feasible due to geographical distances or time constraints
Written Communication	Written communication provides a paper trail that can be referred to in the future for clarity	Without facial expressions and tone of voice, written messages can sometimes be misinterpreted or lack emotional context
Phone Calls	Phone calls allow for real-time communication, enabling quick exchange of information and resolution of queries	Without seeing the other person, it can be challenging to interpret their body language and facial expressions accurately
Video Conferencing	Video calls allow people in different locations to connect	Unreliable internet connections or audio/video problems can hinder effective communication
Instant Messaging & Chat Applications	Instant messaging (WhatsApp, Slack) enables fast and real-time communication making it ideal for brief exchanges or urgent matters	Text-based communication lacks non-verbal cues, increasing the chances of misunderstandings or miscommunication

Barriers to communication hinder the flow of information leading to potential misunderstandings, conflicts and inefficiency

An Explanation of Barriers to Communication in Business

Barrier	Explanation
Language and jargon	The use of technical terminology or industry-specific jargon can be misunderstood Industry- or business-specific acronyms can confuse new staff Staff in businesses that operate across international borders may speak different languages
Noise and distractions	Loud machinery or a crowded workspace can interfere with effective communication Distractions including phone notifications and email alerts which can divert attention
Lack of feedback	The absence of feedback can affect understanding and lead to misunderstandings Messages may require urgent clarification or correction to avoid mistakes being made
Cultural differences	Cultural norms and expectations can affect communication style
Lack of time	Busy work schedules and competing priorities can limit the time available for communication
Technological barriers	Technical issues such as poor internet connections, malfunctioning equipment or unfamiliarity with platforms can slow communication

Organisations can overcome these obstacles in a variety of ways:
- Encourage open communication
- Providing training on effective communication techniques
- Encourage a culture of transparency and collaboration

Last updated: 16 June 2024

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