The Importance of Good Communication (Edexcel IGCSE Business)
Revision Note
Written by: Lisa Eades
Reviewed by: Steve Vorster
Benefits of Effective Communication
Effective communication means that the information or message being sent is 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
Effective communication is important to any business as it affects many key stakeholders including employees, managers, suppliers and customers
Overall, effective communication helps a business meet it's objectives by making it easier to control and coordinate business activity
As poor communication leads to higher costs, demotivated workers and a lack of cooperation, it is essential businesses establish effective communication channels
Diagram: The Importance of Good Communication
Effective communication prevents problems from arising and builds a positive culture
Explanation of the Importance of Effective Communication
Factor | Explanation | Real World Example |
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Increased worker motivation |
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Improves efficiency |
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Encourages innovation |
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Builds a positive company culture |
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Reduces costs |
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Promotes customer satisfaction |
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Problems of Ineffective Communication
Ineffective communication occurs if communication is not received or understood properly
This may reduce business efficiency and increase mistakes or wastage
Ineffective communication may also confuse customers or stop them receiving a message
This can negatively impact a business’ sales and profitability
Many businesses invest heavily in trying to improve communication in and outside of the business to experience all of the benefits that good communication provides
E.g. more motivated employees
The Effects of Poor Communication
Less Motivated Employees | Increasing Costs |
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Inefficiency & poor Business Performance | Inaccuracy & Mistakes |
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Examiner Tips and Tricks
In your exam you may need to explain one reason why poor communication causes problems for business. These questions are worth 3 marks. The table above provides a good structure for your response.
Example
Poor communication leads to inefficiency in a business. If messages are delayed, or not sent to the correct receiver, decision-making can be slowed down. This might mean a business misses opportunities such as securing a deal with a new supplier.
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