Cambridge IGCSE Business Studies 2.4 Internal and external communication

2.4.1 – Why effective communication is important and the methods used to achieve it

Communication – Process by which information or instruction is exchanged between one group or person to another.

Internal communication (Communication from and to people within the business)

e.g. Employees talking to each other. Director sending an email to employees, Noticeboard in office,

Poor internal communication leads to –

• Workers don’t understand what they have to do
• Poor motivation
• Wastage (e.g. 2 employees do the wrong task because of wrong instructions)

 

External communication (Communication from people inside the business to people outside the business)

e.g. Employees talking to customers, Ordering materials from suppliers, Advertisements

Poor external communication leads to –

• Unhappy customers (leads to fewer sales)
• Bad business reputation (lower sales)
• Problems with suppliers/customers due to incorrect information (e.g. wrong supplies being delivered)

Formal communication – Recognised and approved by business (e.g. formal emails, official meetings, reports)

Informal communication – Information is sent and received casually (e.g. employee talking during lunch break)

One way communication – Communication that does not allow for a response

Two-way communication – Communication where the receiver sends feedback to the sender about the topic.

Advantages of two way communications

• Receiver can tell the sender that they have understood the information/instruction
• Chance to ask for more information
• Allows the receiver to contribute ideas

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Methods of communication

• Verbal
• Visual
• Written

 

Verbal (oral) communication

• Discussions
• Telephone calls
• Meetings

Advantages of verbal comm

• Fast
• Opportunity for receiver to reply (2 way comm)
• Body language

Disadvantages of verbal comm

• Feedback from receiver slows process down
• No permanent record of the discussion

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Written communication 

• Emails
• Reports
• Newsletters
• Notices

Advantages of written comm

• permanent record of message
• May be required by law (e.g. legal information or safety notices)
• Can be easily sent to many people (e.g. emails to all employees)

Disadvantages of written comm

• Readers may find long letters boring and hard to read
• No feedback from receiver unless they reply
• No body language

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Visual communication 

• Posters
• Images
• Videos
• Graphs / Charts / Diagrams

Advantages of visual communication 

• Interesting (Readers may pay more attention to posters / videos than boring letters)
• Information can be clearer than other methods (e.g. Video instructions can be clearer than letter instructions)

Disadvantages of visual communication

• No feedback
• Some people may find charts / graphs difficult to read

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2.4.2 – Demonstrate an awareness of communication barriers

Some examples of communication barriers are

Problems with the sender 

• Difficult/technical language is used – The sender needs to use language that could be understandable by the sender
• The sender speaks too quickly or not clear enough – The sender should ensure that the message is clear
• The sender sends the wrong message or sends it to the wrong receiver – The sender must make sure that the right person is being sent the correct message

Problems with the communication channel

• The wrong communication channel was used (e.g. important letter placed on board that does not get seen) – The appropriate communication method must be selected
• No opportunity for feedback – Sender uses a one-way communication channel which does not allow receiver to contribute ideas
• Long chain of command – Message needs to be sent through a long chain of command where the message could be changed