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Business Communication

BTEC Business

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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

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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 oforganisations

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 ofthe 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 staffdevelopment

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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 ofcommunication, information also passesthrough an organisation informally

Communication is not complete untilfeedback has been received