Types of Communication Methods (Cambridge (CIE) IGCSE Business)
Revision Note
Written by: Danielle Maguire
Reviewed by: Steve Vorster
The Importance of Effective Communication
Communication is the successful transfer of messages between sender(s) and receiver(s)
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
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 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 communication is channeled through the businesses organisational structure and is likely to be recorded in some way
E.g Minutes of an appraisal meeting
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
Diagram: the process of communication
Effective communication ensures that clear messages are sent, received, understood and acted upon in the way intended
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
The benefits of effective communication
Helps managers and employees to minimise mistakes
Supports everyone involved in a business to understand their role and know what is expected of them
Ensures that the businesses values and objectives are clear
Provides customers with the information they need to understand goods and services
Minimises business costs
Helps businesses to effectively exploit new opportunities
Managers should make sure that communication is organised and controlled to ensure that a suitable level of communication exists between key stakeholders
A 2021 survey of US workers found that more than one-third reported email overload that might lead them to resign from their jobs
Methods of Communication
Businesses have a range of ways in which internal and external communication can take place
In some circumstances, the choice of communication methods may be more limited
For example the need for a written legal contract of employment for a new employee or a notice of termination of employment
Diagram: the main communication methods
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
Evaluating Communication Methods
Method | Strengths | Weaknesses |
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Verbal |
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Visual |
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Written |
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Recommending a Method of Communication
Businesses are likely to develop their communication methods and style over time
Smaller business may only be able to afford to communicate with customers through posters, leaflets and social media
Larger businesses are likely to have greater budgets which allow for the use of television and billboard promotional campaigns
Factors Which Impact the Communication Method Used
Factor | Explanation | Example |
|---|---|---|
Cost |
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Speed |
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Receiver |
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Leadership Style |
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Message details |
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Need for a written record/formality |
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Feedback |
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Examiner Tips and Tricks
Communication methods in the workplace have changed rapidly due to advancements in technology. For example many organisations use social media to communicate. The speed of feedback from customers using these platforms can be both a positive and negative factor. Any errors are quickly posted across the internet, which can harm the business brand
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