Ways of Communicating (OCR GCSE Business)

The Importance of Communication

• Communication is the successful transfer of messages between sender(s) and receiver(s) 

• Effective communication ensures that clear messages are sent, received, understood and acted upon in the way intended

Diagram: the communication process

• Effective communication should be

  • Clear and unambiguous

  • Appropriate to the context and to the sender

  • Sent to the correct receiver in an accessible format

  • Timely and contain only the required amount of detail

Internal and External Communication

• Internal communication is the exchange of message(s) between two or more members of the same organisation

  • E.g. Telephone call between a sales manager and a finance team member

  • Vertical communication occurs between workers on different levels of a business hierarchy

    • E.g. A line manager emails a weekly task list to a subordinate employee

  • Horizontal communication occurs between workers on the same level of a business hierarchy

    • E.g. The marketing manager shares a promotional costs presentation with the finance manager

• External communication is the exchange of message(s) between an organisation and external entities such as customers, suppliers or investors

  • E.g. Sending an online order form to a supplier

One-way and Two-way Communication

• One-way communication transmits a message which does not require any feedback

  • E.g. Sign in a supermarket stating 'wet floor' to customers and staff

• Two-way communication occurs when the receiver gives a response to the message received

  • E.g. Email between two members staff discussing the success of a new promotional campaign

Formal and Informal Communication

• Formal communication is channelled through the businesses organisational structure and is likely to be recorded in some way

  • E.g Minutes of an appraisal meeting are a formal record of employee performance

  • Other examples of formal communications include:

    • Business letters

    • Financial reports

    • Invoices and receipts

• Informal communication is any communication that takes place outside of the official channels and is unlikely to be formally recorded

  • E.g. a short lunchtime conversation about workload with a colleague

Recommending Suitable Methods of Communication

• Businesses are likely to develop their communication methods and styles over time

  • Smaller business may only be able to afford to communicate with customers through brochures and social media

  • Larger businesses are likely to have greater budgets, which allow for the use of television and billboard promotional campaigns

Factors Impacting the Choice of Communication Method