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7/27/2019 Understanding the Role of Communication - Effective Business Communication
http://slidepdf.com/reader/full/understanding-the-role-of-communication-effective-business-communication 1/11
http://www.bized.co.uk
Copyright 2006 – Biz/ed
Business Communication
BTEC Business
7/27/2019 Understanding the Role of Communication - Effective Business Communication
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Copyright 2006 – Biz/ed
Importance of Communication
• Communication is importantbecause it is about howinformation is sent and receivedwithin firms
• The way information is
communicated is often governedby how firms are structured
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Forms of Business Structure• Entrepreneurial - decisions made
centrally
• Pyramid - staff have a role, shared
decision making, specialisation ispossible
• Matrix - staff with specific skills joinproject teams, individuals have
responsibility• Independent - seen in professions
where organisation provides supportsystems and little else
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Illustrating Structures 1
The Pyramid Traditionalview of organisations
Decisions passdown formalchannels frommanagers to
staff
Information flowsup formal channelsfrom staff to
management
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Illustrating Structures 2Entrepreneurial
Most smallbusinesses have this
structure
One or twopeople make
decisions
Great reliance onkey workers
supporting decisionmakers
Quick to act butpressure on
decision makers
Decisionmaker
Keyworker
Keyworker
Keyworker
Keyworker
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Illustrating Structures 3
Matrix
Marketing Production Finance
Project A
Project teams
created
Staff with
specialist skills
Project B
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Illustrating Structures 4
Independent
Dr A
Dr B
Dr CDr D
Support systemsto professionals
such as doctors
Not suited to mostbusinesses due to
lack of control
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More on Business Structure
Centralisation
• Managers keep
control• Decisions are madein the interests of the whole business
• Costs can be cut by
standardisingpurchasing and soon
• Strong leadership
Decentralisation
• Empowering and
motivating• Freeing up senior
managers’ time
• Better knowledge of
those closer tocustomers
• Good staff development
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Channels of Communication • Communication in organisations
follows paths or channels
• Communication between managersand subordinates is known asvertical communication
• This is because the informationflows up or down the hierarchy
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Vertical/Lateral CommunicationOrganisation chart shows vertical(black arrows) and lateral (green
arrows)
Finance Marketing Production
Board of Directors
FinanceOfficers
MarketingAssistants
FactoryOperatives
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Channels of Communication
• Channels between departments orfunctions involve lateral communication
• As well as formal channels of communication, information also passesthrough an organisation informally
• Communication is not complete untilfeedback has been received