Communication of Business Objectives

8/8/2019 Communication of Business Objectives

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Communication of Business Objectives

The objectives of a business determine:

1) The labour required

2) Organisational structure of the business

People within organisations cannot act in isolation. All functions of a business are

dependant on each other.

E.g.: The pay of the employees is determined by the budget constraints laid down by the

Finance Department. The wages of the employees ultimately affects their morale and

motivation which in return affects the quality of the products. The higher the quality of

the products, the easier it is for theMarketing.

Effective communication is also vital for a business to operate in an efficient manner.

Information must be conveyed clearly. Reasons for importance of effective

communication:

1) Decreases mistakes made in the workplace. Mistakes are not only a financial cost

but also a cost in time. Any cost in time makes the business inefficient and will

inevitably cost money.

2) Clear and effective communication gives employees a sense of belonging andinvolvement. (Mayo/Maslow)

3) Makes decision-making faster. The faster a business can make decisions the moreit can progress and become more competitive.

4) Communication can be used as a marketing tool. If the business can communicate

with its target market more successfully this may generate more sales and

additional income for the business.

Types of Communication

Communication involves the exchange of information from one party to another. There

are many types of communication methods.

1) One-way Communication: The simplest form of communication, information issent from a transmitter and received by the receiver.

Advantages Disadvantages

Quick and Easy to use Less reliable as there is no way to check

Cheap May frustrate receiver

No pressure on transmitter to justify

information

2) Two-way Communication: Again Information is sent by the transmitter andreceived by the receiver but receiver can get feedback (response) and basically

transmit also.


More effective/reliable as receiver is able

to confirm/check information

Takes more time, therefore more costly

Reciever feels more involved as he/she can

confer and seek clarification

Transmitter is under pressure to justify

information being sent


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3) Formal Communication: In this style, information is usually transferred usingagreed rules or procedures. Most businesses have established procedures which

are usually made clear to an employee during induction, when the employee joins

the company.

This formality refers to the way in which information is transferred, i.e. thelocation, the language used or the media in which it is transferred.

Especially when communicating between levels of the hierarchy e.g. holiday

requests, appraisal or salary information, businesses will have set measures to do

this.

Legalities, business documents and contracts between businesses will all use

formal language.


Messages are taken seriously Can be de-motivating if no response isreceived

Information is usually kept a record of Employees feel their views remain unheard

4) Informal Communication: In this style, there are little or no formal procedures ofthe transfer of information. Again this applies to the location, language and media

used. The location for example will usually be outside the workplace.

The information and language used is unique to the people involved. Information

is usually passed on verbally rather than being documented or recorded.

Advantages DisadvantagesEmployees feel comfortable expressing

views

Information is not usually recorded, so may

be no record

No hierarchical restrictions, any one can

speak to anyone

Messages may not be taken seriously if

made informally

5) Open Communication: This style of communication is designed to be understoodby the vast majority of the population. Information is usually free of technical

terms or jargon.

Helps businesses to reach large audiences and convey businesses message. A

clear simple message is often better than a detailed technical message. Often usedwhen dealing with stakeholders outside of the business.


Reaches large audiences Technical message may not able to be

conveyed.

Message can be put together quickly

6) Closed Communication: This style of communication is designed to be used andunderstood by people within the company, any one outside would not be able to

understand.

Slang and abbreviations such as OCR or AS/A2 are examples of closed

communication; the general public would not know what they meant.


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7) Vertical Communication: This is communication between the different levels ofthe business (up and down the hierarchy). It provides an opportunity for

employees to feel involved and help alleviate frustrations within the working

environment.

E.g. shop workers can provide very useful information to managers such asconsumer trends/attitudes as they are ones who deal with customers on a day to

day basis.

8) Horizontal Communication: This is communication between employees that areon the same level of a hierarchical structure. E.g. Discussion between the research

and development team.


Employees feel involved, helps solve their

problems

No response may be received which can be

de-motivating

Very useful information can be gained byspeaking to different levels

Employees may feel neglected and thattheir views are not being heard

Channels of Communication

1) The Chain:

- Formal, vertical hierarchy

- Communication usually downwards


Messages are sent received quickly fromtop to bottom Opportunities for lower levels are low

Little or on consultation which is de-

motivating

Messages may become distorted due to the

number of hierarchical levels

2) The Wheel:

- Leader/chief at the centre of all communication

- All messages pass through him/her

- Centralised


Leader remains in touch with all aspects of

business

Employees dont have chance to use

initiative or take responsibility

No delegation

3) The Circle:

- Restricted communication

- Usually only between employees, within a department or same hierarchical level


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4) All Networks:

- No restrictions between communication

- Anyone can communicate with anyone in a business

- Employees feel more comfortable

- Communication is made quicker- Not good for large businesses, these need an organised structure

Communication Media

The communication media is how the message is sent and received, i.e. Television,

Radio, Text Message, Telephone, Email etc. These all have their advantages and

disadvantages in terms of accuracy, speed and cost.

Advancements in IT have significantly enhanced communication and made it faster.

Businesses have invested heavily in IT, therefore saving money and time. Video

conferencing has also decreased the cost of travelling for meetings.

In general:

Barriers to Communication

1) Technical:

Any interference that prevents the receiver from being able to receive a message is

described as a technical barrier.

For example, if there is too much noise then the receiver will not be able to hear the

message. A message made by the announcer at a railroad station whilst the train is

passing makes it difficult for the message to be heard, this is also a Technical Barrier.

2) Semantic:

Any interference that prevents the receiver from understanding what is being sent e.g.

Close Communication.

3) Effectiveness:

The final barrier is whether or not the message has been executed in an effective

manner. If it has this means that there is no technical or semantic errors, the message

has been received, understood and acted upon.

Communication

Channel/Network

Route of Message

Type of Communication

How Message is Told

Communication Media

How Message isSent


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Additional Barriers to Communication

4) The Skill of the Transmitter/Receiver:

An inexperienced sender/receiver of information can act as a Barrier to affective

communication if:

- The correct medium is not used for the nature of the message

- The right words or right timing is not used

- Inability to read or understand the message

5) Cultural Differences:

The words or the tone used by the sender may not be perceived the same way by the

receiver who is of a different culture and visa versa.

6) The size of the Business and the number of layers in the Hierarchy

As a business grows, affective communication becomes increasingly difficult. Due to

the increase in employees, layers in hierarchy, spans of control the

sending/receiving/managing of messages becomes very hard to maintain. For large

multi-national companies, communication becomes even harder due to the cultural

barriers that come into play.

Decentralisation is a good way to battle the effects of a growing organisation; it

would reduce communication chains and therefore improve effective communication.

7) Amount of Information:

The more information you try and send at one time the greater risk you have of

creating errors and overloading the receiver. How easy it will be for the

sending/receiving of large amounts of information depends on the skill of the

sender/receiver.

Documents

Communication of Business Objectives