Effective Communication Piyath Jayasundara

INDIVIDUAL ASSIGNMENT

Effective Communication

DONE BY: Piyath Jayasundara 10/09/DHRM/108

LECTURER: Mr. Rumy Sakaf

INTAKE CODE: 10/09/DHRM

MODULE CODE: DHRM

HAND IN DATE: 30th April 2011

April 30, 2011

1 EXECUTIVE SUMMARY

Organisations functions by means of the collective action of people, yet each individual is

capable of taking independent action which may not be in line with policy or instructions, or

may not be reported properly to other people who ought to know about it. Good

communications or effective communications are required to achieve coordinated results.

Organizations are subject to the influence of continuous change which affects the work

employees do, their well-being and their security. Change can be managed only by ensuring

that the reasons for and the implications of change are communicated to those affected in

terms which they can understand and accept.

Individuals are motivated by the extrinsic reward system and the intrinsic rewards coming

from the work itself. But the degree to which they are motivated depends upon the amount of

responsibility and scope for achievement provided by their job, and upon their expectations

that the rewards they will get will be the ones they want, and will follow from the efforts they

make. Feelings about work and the associated rewards depend very much on the effectiveness

of communications from their managers or team leaders and within the company.

Above all, good two-way communications are required so that management can keep

employees informed of the policies and plans affecting them, and employees can react

promptly with their views about management’s proposals and actions. Change cannot be

managed properly without an understanding of the feelings of those affected by it, and an

efficient system of communications is needed to understand and influence these feelings.

In this document discuss how important is good communication method for an organisation

using the Building Societies Association case study. It is a good way to understand how

important the communication for an organisation is.

Effective Communication Page 1

April 30, 2011

2 ACKNOWLEDGEMENTS

I would like to thank Mr. Rumy Sakaf for his support and dedication he gave us towards to

completion of this project. This project would have been impossible without the support

offered from him.

I would also like to thank all my friends who supported me morally.


April 30, 2011

3 TABLE OF CONTENTS

1 EXECUTIVE SUMMARY................................................................................................1

2 ACKNOWLEDGEMENTS................................................................................................2

3 TABLE OF CONTENTS....................................................................................................3

4 LIST OF TABLES..............................................................................................................4

5 LIST OF FIGURES............................................................................................................5

6 INTRODUCTION..............................................................................................................6

6.1 Why effective communication so important?..............................................................7

6.2 What is Building Societies Association (BSA)?.........................................................7

7 COMMUNICATION TYPES..........................................................................................10

8 Internal and External Communication..............................................................................11

9 COMMUNICATION MEDIA.........................................................................................13

9.1 Vertical Communication...........................................................................................15

9.2 Lateral Communication.............................................................................................15

9.3 Formal Communication.............................................................................................15

9.4 Informal Communications.........................................................................................16

10 BARRIERS TO COMMUNICATION.........................................................................17

11 REFERENCES..............................................................................................................18


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4 LIST OF TABLES

TABLE 1: INTERNAL AND EXTERNAL COMMUNICATION USER GROUPS..........................................11


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5 LIST OF FIGURES

FIGURE 1: COMMUNICATION PROCESS.........................................................................................................6

FIGURE 2: BUILDING SOCIETIES ASSOCIATION (BSA) LOGO...................................................................8

FIGURE 3: COMMUNICATION TYPES............................................................................................................10

FIGURE 4: WEBSITE...........................................................................................................................................13

FIGURE 5: MEDIA CENTRE...............................................................................................................................14

FIGURE 6: BARRIERS.........................................................................................................................................17


April 30, 2011

6 INTRODUCTION

Effective communication is vital to all businesses. The communication process involves:

Figure 1: Communication Process

If the right message does not get to the right person, in the right format, then this could affect

the overall efficiency of the business. Worse still, the wrong messages might be passed on to

the wrong people. This could actually harm the business.

There are a number of parts to any communication. For instance, sending a text message

involves:

the sender - the person writing the text

the receiver - the person to whom the message is addressed

the content of the message - for example, news, information, an invitation

the format of the message - in this example it is text but many other different ways

are possible

the communication channel through which the message is sent - in this case a

mobile phone network

the medium - how the message will be sent, in this case it is in writing.

According to businessdictionary.com communication is two-way process of reaching

mutual understanding, in which participants not only exchange (encode-decode)

information but also create and share meaning.1

1 BusinessDictionary.com(© 2011). What is communication? definition and meaning .[Online]. Available

from: http://www.businessdictionary.com/definition/communication.html.[Accessed 10 April 2011].


April 30, 2011

Effective communication defined according to effective-communication.net, Effective

communication is a two-way process - sending the right message that is also being

correctly received and understood by the other person/s.2

6.1 Why effective communication so important?

Departments don’t work in isolation, info flow increases performance of the firm.

Fast info exchange increase firm's reaction towards internal and external environment

changes.

Information exchange encourages knowledge exchange which is critical for long term

survival.

Fast communication contributes to better crisis management.

Fast communication improves individual productivity and thus contributes to firm's

performance.

6.2 What is Building Societies Association (BSA)?

The Building Societies Association is a trade association, representing mutual lenders and

deposit takers in the UK including all UK building societies. There are 53 mutual lenders and

deposit takers in the UK including 48 building societies. Mutual lenders and deposit takers

have total assets of over £365 bn and, together with their subsidiaries, hold residential

mortgages of almost £235 bn, 19% of the total outstanding in the UK. They hold over £245bn

of retail deposits, accounting for 21% of all such deposits in the UK. Mutual deposit takers

account for about 36% of cash ISA balances. They employ approximately 50,000 full and

part-time staff and operate through approximately 2,000 branches.

2 Effective-communication.net (© 2008-2011). Effective Communication.[Online]. Available from: http://www.effective-communication.net/.[Accessed 10 April 2011].


April 30, 2011

The BSA was established in 1869. It has two principal functions - to act as the central

representative body for building societies and to provide information to its members. The

BSA puts forward the industry view to government, parliament, regulators, the media and

other interested bodies. It also provides information and advice to building societies on a

range of relevant subjects.

There was substantial change in the building society sector in the mid to late 1990s, with a

number of large societies giving up their mutual status and becoming banks, owned by

shareholders. Mutual societies have only the interests of their member-customers to consider

and have no shareholders to whom they need to pay dividends. Paying dividends generally

adds about 35% to the overall costs of running a savings and mortgage business. Generally,

this means that committed mutual building societies can offer more competitive rates of

interest on mortgage and savings products.

The BSA offers advice and assistance on the whole range of issues affecting the operation of

building societies. The BSA is not a regulator - that is the role of the Financial Services

Authority, nor does it deal with complaints about building societies - which are looked after

by the Financial Ombudsman Service, if they cannot be resolved by the society itself.

(The Building Societies Association (BSA), © 2011 )

Figure 2: Building Societies Association (BSA) Logo3

3 The Building Societies Association (BSA), © 2011. Building Societies Association (BSA) Logo, [Online].

Available from: www.bsa.org.uk/.[Accessed 10 April 2011].


April 30, 2011

The BSA is a central point of contact and represents its members in a wide variety of areas.

Examples include lobbying government when changes in legislation are discussed and in

interpreting current legislation. It gathers the views of its members and expresses them with

more strength than each individual society can. For example, instead of speaking to every

building society separately, financial regulators and other stakeholders speak to the BSA. The

BSA, therefore, has a key communications role. It communicates a detailed policy to its

members so they can communicate with their own members their customers. It also provides

research and guidance on issues of interest to societies. This case study shows how building

societies communicate with their own members on many different levels.


April 30, 2011

7 COMMUNICATION TYPES

Figure 3: Communication Types

By looking at this figure we can identify there is many ways to communicate within the

organisation and the outside the organisation. Any organisation can implement a good

communication method to communicate internally and externally.


April 30, 2011

8 Internal and External Communication

The two main categories of communication in an organisation is communicate within the

organisation and outside of the organisation. By considering the BSA’s scenario they are

mainly communicates with many user groups.

Table 1: Internal and External Communication User Groups

Communication Category User Group Description

Internal 1) Members, Employees Members and employees

who require information

about the society's aims and

performance. Members are

legally entitled to receive

certain information from

their society, such as a copy

of the annual summary

financial statement on the

society's business and notice

of the Annual General

Meeting. Employees must

know about the

organisation’s goals and

objective in their day to day

work.

External 2) Societies Societies believe it is


April 30, 2011

important to engage with the

local communities in which

they work.

3) New customers New customers may be

attracted by TV or radio

broadcasts and press

advertising. Societies also

use different forms of media

to promote their services and

the benefits of mutuality

4) Media groups BSA communicating with

media groups by press releases,

media conferences.

(THE TIMES 100 ,©1995-2011).


April 30, 2011

9 COMMUNICATION MEDIA

Communication media also categorised into two main categories that how the organisation

communicating internally and externally. By considering the BSA’s scenario they also using

many media types to communicate internally and externally.

Internal communications take place within the organisation. The BSA communicates

internally with its members using detailed policy briefs and updates, as well as a monthly

newsletter and quarterly magazine. The BSA also promotes career opportunities for

employees and potential employees on its website. (THE TIMES 100 ,©1995-2011).

Figure 4: Website4

4 The Building Societies Association (BSA), © 2011. Career opportunities :: BSA - Building Societies

Association, [Online]. Available from: http://www.bsa.org.uk/consumer/factsheets/careers.[Accessed 12 April

2011].


April 30, 2011

External communications take place with people or bodies outside the organisation such as

regulators, the government and the press. Any communication provides an opportunity for

good public relations. The BSA provides press releases and case studies through its own

media centre. To communicate effectively, the message needs the correct medium. This

depends on the nature of the communication and the direction of the message across, up or

down an organisation or group.

Figure 5: Media Centre5

5 The Building Societies Association (BSA), © 2011. Media Centre :: BSA - Building Societies Association, [Online]. Available from: http://www.bsa.org.uk/mediacentre/index.htm.[Accessed 12 April 2011].


April 30, 2011

9.1 Vertical Communication

Vertical communication up and down the organisation may be necessary when a particular

message must be delivered quickly and exactly, for example, a change to interest rates on a

product. This change needs to be understood throughout the society from the marketing

department who advertise through to the branch staff who sell it to members.

(THE TIMES 100 ,©1995-2011).

9.2 Lateral Communication

Lateral communication across the organisation may be within building societies or between

them and their customers. For example, when informing members of legal changes, a letter to

individual members would be the most appropriate route. If the society wanted to

communicate to new or prospective customers/members, then TV or leaflet advertising would

be effective. (THE TIMES 100 ,©1995-2011).

9.3 Formal Communication

Building societies deal with members' money and the purchase of their homes. They work

within a legal framework, which requires formal communications. Formal communication

uses a set format and has a record kept.

annual reports,

briefing notes,

leaflets,

factsheets,

letters,

seminars

training courses.


April 30, 2011

These are all effective in carrying the formal messages of the building society. Other media

include presentations, member groups and panels, newsletters and new technology.

(THE TIMES 100 ,©1995-2011).

9.4 Informal Communications

Informal communications, such as the office 'grapevine' can be effective channels. However,

they are more appropriate for non-urgent issues or for communication on a one-to-one basis,

for example, building society employees talking to each other in a branch.


April 30, 2011

10 BARRIERS TO COMMUNICATION

Barriers can get in the way of effective communication. This is known as 'noise'. Noise

makes communication less efficient and less cost-effective.

For example, if a change occurred to legislation, such as changes to deposit protection, the

message explaining this to building society staff would be different to that for its customers.

Each version would need to be written and presented to make it meaningful to the chosen

group. (THE TIMES 100, ©1995-2011)

Figure 6: Barriers

To avoid this barriers,

Senders has to understand what information has to be transmitted, to whom and when.

They know which channels of communication are most appropriate

Messages are in the right format.

Messages are written in clear English or in an understandable language.


April 30, 2011

11 REFERENCES

The Building Societies Association (BSA), © 2011. What is The Building Societies

Association :: BSA - Building Societies Association, [Online]. Available from:

http://www.bsa.org.uk/aboutus/whatisthebsa.htm.[Accessed 10 April 2011].

THE TIMES 100 (©1995-2011). The importance of effective communication, [Online].

Available from: http://www.thetimes100.co.uk/case-study--the-importance-of-effective-

communication--124-340-3.php.[Accessed 11 April 2011].











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Effective Communication Piyath Jayasundara