Communication in business

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Chap…6

Communications

Def: Communication is the

exchange of information in a firm. It involves sending messages through a

channel to a target group then receiving some feedback from the recipient that

the message has been understood & acted on.

Choosing the method of communication:

The following factors should be considered

when choosing a method of communication

Cost, how expensive is the method,

telephone call, letter, fax etc.

Speed, how fast can the information

be transformed

Secrecy, if the information is

confidential the method of communication is of utmost importance, e.g.

face to face meeting

Record kept, it is very important

to keep a record of all messages

Distance, if the communication has

to travel a long distance, speed, cost and confidentiality will be the

important factors.

Urgency, if the message is urgent,

the choice of method becomes limited to options such as phone calls, faxes

or e-mails.

Recipient has he/she a

computer/fax. Is a response required, is it important to see the other

person’s response, and is the language important.

Effective Communication is clear, understandable and the recipient must be able to respond.

Barriers to Communication

Language – if too much jargon is

used the message might get misunderstood.

Listening – if the receiver is not

listening/concentrating the message might be lost

Relationships – if the relationship

between the sender & receiver is poor, communication may be

ineffective.

No feedback – getting no confirmation

the message was received

Wrong method – for example using

the phone when a letter would be more appropriate.

Lack of planning – the message

& the reasons for sending the message were not planned in advance

Basic Communication skills

ü Speak in a language suitable to the listener

ü Write clearly and use visuals to clarify information

ü Listen to people & be able to obtain feedback

ü Read & understand body language

ü Be aware of the listeners needs

#INTERNAL COMMUNICATION

Is between the people in the organisation.

The following are the types of internal communication that operate within

firms.

Horizontal – managers dealing with managers

Upward –

workers dealing with supervisors/manager

Functional

– dept. managers dealing with other dept. managers

Downward –

MD giving orders to other lower level staff members

#EXTERNAL COMMUNICATION

Takes place between a business and other

parties (people, agencies, other firms).

This also includes, banks, suppliers,

customers, insurance companies, interest groups, revenue commissioners, and

Government depts. Etc.

Examples

Internal

Communication

External

Communication

Oral

Ø Face to face

Ø Internal phone

system

Ø Intercom

Ø Meeting

Oral

Ø Face to face

Ø Radio

Ø Telephone/answering

machine

Ø Public meeting

Ø Mobile phone

Ø Pager

Written

Ø Report

Ø Notice board

Ø Internal

magazine

Ø Suggestion box

Ø Internal

computer network

Ø Memorandum

Written

Ø Newspaper

Ø Post

Ø External

computer network

Ø Press statement

Ø Business

documents

Visual

Ø Flip charts

Ø Overhead

projector

Ø Slides

Ø Video

Ø Line graph

Ø Pie/Bar chart

Ø Pictogram

Ø Break even chart

Visual

Ø Internet/email/www

Ø Video-conferencing

Ø Teleworking

Ø Fax

Ø Electronic Data

Interchange (EDI)

#ORAL COMMUNICATION uses speech to convey meaning.

One of the principal forms of oral

communication within the business environment is that of meetings.

Meeting – is a gathering of people to

exchange ideas and make suggestions, enabling collective decision - making.

Reasons for holding meetings:

ü To give information about plans, events, decisions made

ü To receive information – people’s opinions, different opinions

ü To make decisions

ü To achieve co-ordination between different departments within a

organisation

Types of meetings:

A)

Ad hoc meetings – a once off meeting to help discuss & solve immediate

problem that has arisen.

B)

AGM – a meeting held once a year involving directors, shareholders of

a firm discussing events of the previous 12 months & future plans

C)

EGM (extraordinary general

meeting) – a meeting of shareholders to discuss

important matters that cannot wait until next AGM

D)

Formal meeting – such as staff meeting, meetings of BOD’s, this type of meeting

is pre – planned

E)

Informal Meeting – takes place regularly as staff members bounce ideas off each

other & listen to each others views

Meeting

Structure:

The chairperson

& the secretary are at the top table at meetings.

Chairperson - is responsible for the running of a meeting.

Duties

1)

Planning the meeting, time, date, place

2)

Drawing up the agenda in consultation with the

secretary

3)

Running the meeting, opening the meeting,

welcoming those present, calling the meeting to order, ensuring that a quorum

is present, making sure agenda is followed, maintaining order

4)

Ensuring that the minutes of the previous meetings

are read, adopted by those present, and signed.

5)

Allowing discussion on matters only on the agenda

6)

Allowing the present time to express their views

7)

Putting motions to a vote

8)

Summarising the main decisions made &

declaring the meeting closed

Secretary – responsible for all administration work in the company

Duties

1.

Drawing up the agenda in consultation with the

chairperson

2.

Sending out the notice/agenda of the meeting to

all members

3.

Reading the minutes of the previous meeting

4.

Dealing with any administration work within the

company

5.

Writing up notes of the meeting in question

6.

Keeps a record of all new members/shareholders

Notice – give the date & time of meeting in question

Agenda – is a programme for the meeting, that is, the list of matters to

be discussed and the order in which it will be discussed

Minutes of a

meeting – are a brief & accurate record of the business

transacted at a meeting. It should contain details of proposals and decisions

made.

NB: for relevant examples of the three terms mentioned you will have to

look in your textbook

+ WRITTEN COMMUNICATION

This is used primarily if the information

to be communicated is detailed, complex and requires a copy. They should be accurate, brief & easily

understood.

Memorandums (Memos)

Used for internal communication. They are

used for giving information, reminding people of events, giving instructions

etc. there is usually only one topic and they may be typed or handwritten.

2.

Reports - this is a

formal presentation of written information about a specific topic sent to a

particular person or group. Reports are used for the following reasons

ü Information

about progress of a project

ü Providing a

written record of some event

ü Evaluating a

study and recommending a course of action to take

Types of reports:

ü Routine reports

– made at regular intervals during the year, e.g. sales reports etc

ü Special reports

– prepared on the instruction of management, requiring information about

decision making

Rules of report writing:

1.

Purpose of why report is needed must be clear

& have easily

Understood

objectives

2.

Simple language must be used

3.

Should be as brief as possible

4.

Should be presented in logical sequence

5.

Should be well researched and accurate

Structure

of a Formal Report

1.

Title - title of report, writers name, who report

is for, date

2.

Terms of reference – purpose of why report is

written

3.

Procedure – how the information was gathered, e.g.

interview, questionnaire etc

4.

Findings – outline of the main findings of report,

this takes up the bulk of the report

5.

Conclusion 6. Recommendations – the report writer

draws a conclusion to the main finding of the report & recommends

possible solutions to their business failings.

7. Closing Section – the writer signs off,

using his/her name and the date the report was presented

Business Letters

These are used for making

enquiries, requesting payment, disciplining employees, replying letters of

application of jobs etc.

Layout of letter

1.

Address of sender (centre or right side)

2.

Address of receiver (left side)

3.

Date

4.

Reference, one line summary of what letter is

about

5.

Dear Sir/ Madam, Dear Mr./Mrs. Smith, Dear

Peter/Joan

6.

One line introduction to letter

7.

Body of letter (all details to be included)

8.

Conclusion/Recommendations if appropriate

9.

Close, Yours faithfully (if person is not known to

sender), Yours sincerely (if known to sender)

10.

Signature (followed by name in print as well as

position or title)

11.

Encl. (details of any documents enclosed with the

letter)

+ DATA STORAGE

Businesses

nowadays now keep a lot of written records about customers. As a result the

business comes under following act:

Data Protection Act (1988)

The data protection act was passed to

deal with privacy issues arising from personal information about people kept

on a computer, as distinct from manual files.

The act gives rights to individuals and

puts responsibilities on those who keep personal information on computers.

Key terms:

Data – information

in a form in which it can be processed

Data subject – a

person who is the subject of personal data, e.g. employee

Data controller – a person/firm that controls the content & use of personal data,

e.g. a firm/company

Data processor – person/firm

that processes personal data on behalf of a data controller, e.g. a computer

bureau

Data commissioner –

appointed by the act to oversee the Act and to maintain a register of all

data controllers

Enforcement of the Act

The data protection act established the

data protection commissioner. His/her role is to ensure that those who keep

personal information on computer comply with the provisions of the act.

+ VISUAL COMMUNICATION

This refers to the use of pictures and

diagrams to communicate information. The following are main methods of

transferring information visually.

v Line graph

v Bar chart

v Pie chart

v Maps

v Gantt chart

v Pictogram

NB: for further information/examples on these types of visual

aids/written communication please use your textbook.

Key Terms:

ISDN – this is a network of telephone lines that can send & receive

information at higher speed than normal lines. ISDN applications include File

Transfer, Fax, Teleworking, and Video conferencing.

EDI – electronic data interchange, used by firms for intercompany

transactions. EDI relies on computers having compatible technology. It allows

documents to be sent from one computer to the next without having to print

document.

File Transfer – the ISDN line allows the computer files to be transferred quickly

and efficiently through the link up to computers in different companies.

Teleworking – ISDN makes it possible for computers to linked to telephone lines

and results in the person being able to work from home via the computer.

Video conferencing – a meeting between different people in

different places. Visual communication is done through camera and monitor usage

where as sound signals are transmitted over a telephone line.

E – commerce – is a method by which goods & services are bought & sold

over the Internet. This is done through two ways 1- Business to consumer

2- Business to business

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