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Understanding the Role of Communication - Effective Business Communication

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Page 1: Understanding the Role of Communication - Effective Business Communication

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

Page 2: Understanding the Role of Communication - Effective Business Communication

7/27/2019 Understanding the Role of Communication - Effective Business Communication

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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

Page 3: Understanding the Role of Communication - Effective Business Communication

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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

Page 4: Understanding the Role of Communication - Effective Business Communication

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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

Page 5: Understanding the Role of Communication - Effective Business Communication

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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