Types of Communication Methods (Cambridge (CIE) IGCSE Business)

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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

**A sender passes the information to the receiver using a medium of communication such as email**

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

Diagram showing examples of verbal, visual and written communication methods — **The main forms of communication used by businesses**

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
Verbal	Video and phone calls allow people in different locations to connect Face to face verbal communication includes facial expressions, body language and tone of voice which can enhance understanding Allows for real-time communication and the quick exchange of information and resolution of queries/disputes	May not always be possible due to geographical distances or time constraints Requires listening skills Unreliable internet connections or audio/video problems can hinder effective verbal communication
Visual	Videos, charts, photographs and visual displays can simplify complex communications E.g. A manager showing sales figures using a pie chart in a meeting	Feedback may be limited so follow-up may be required to check understanding E.g. a training video on fire safety in the workplace may be followed by an assessment task to check employees understand risks Some diagrams/charts may need a verbal or written explanation to support them
Written	Written communication provide a record that can be referred back to in the future Instant messaging (WhatsApp, Slack) enables fast and real-time communication making it ideal for brief exchanges or urgent matters	Without facial expressions and tone of voice, written messages can be misinterpreted or lack context Requires literacy and/or technical skills

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	How important is it keep costs down? Is communication vital regardless of cost?	Customers need to be informed about a serious safety problem with a children's toy An announcement in national newspapers would reach many affected people quickly An announcement via social media channels would be low-cost
Speed	Does the message need to transmitted quickly?	A manager from a foreign division of a company must be told about a cancelled sales meeting before he catches his flight from the US to China A telephone call would be quick and direct An internal email may not read in time
Receiver	How many/what type of person needs to receive the message?	All 300 staff in a factory need to be told about a change in working hours An internal email would be an effective way to inform all staff An announcement on a staff noticeboard may be missed/ignored by some workers
Leadership Style	Democratic leaders are likely to encourage two-way communication whilst autocratic leaderswould prefer one-way communication	A business is making arrangements for a staff social event A democratic leader may hold a meeting with the workplace social committee An autocratic leader may send written invitations to staff
Message details	Is the message technical or detailed? Does it contain images or data?	A manager needs the sales team to review the monthly revenue figures before the next meeting Sending the sales report via email or placing it in a shared online folder allows colleagues to access/interact with the report before the meeting
Need for a written record/formality	Is a record of the communication needed for future reference? Is the communication related to a formal matter?	A customer wishes to place an order An order form is a permanent written record that can be placed on file and provide a financial record A telephone call may not record all important details about the order
Feedback	Does the receiver need immediate feedback?	Two colleagues are concerned a customer has not paid for the goods they have and are leaving the store A quick verbal discussion can establish situational facts quickly so that appropriate action can be taken A text message may not be received in time

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

Last updated: 23 October 2024

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