Chapter 10.

CHAPTER 10.1
COMMUNICATION

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 Chapter 10.1

COMMUNICATION

Communication: it is the process of conveying information from a sender to a receiver with the use of a
medium. Example: We are using Zoom Cloud Meetings to communicate throughout the class.

Effective communication: in which the communicated information is understood the same way by both
sender and receiver.

IMPORTANCE OF COMMUNICATION IN COMMERCE

• Need for exchange of documents in trade.

• Minimize confusion and misunderstanding between buyer and seller.
• Ensure better business control.
• Businesses can get reliable and cheap information about their markets & customers through
surveys and feedbacks.
• Frequent travelers need to develop a contact with their offices.
• International trading is not possible without efficient communication system.
• Modern banking is also dependent on communication system.

CHARACTERISTICS OF EFFECTIVE COMMUNICATION

• Rapid
• Accurate
• Suitable for Global Transmission

FACTORS AFFECTING THE CHOICE OF COMMUNICATION

1) The nature of the communication

2) The number of people that need to communicated with
3) Whether speed of delivery is important
4) Whether the cost is significant
5) Details of information being communicated
6) Whether a record is required
7) The importance of visual appeal

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 Chapter 10.1

METHODS OF COMMUNICATION

• Internal Communication: This is the range of communications that take place within the
organization. This may include telephone messages, emails, memos or even verbal instructions.

• External Communication: This is the range of communications that take place between the
employees of a company and customers or suppliers outside. This may also include telephone
messages, emails etc.

FORMS OF COMMUNICATION

• Oral/Verbal Eg: Meetings, instructions

• Written Eg: Memo, Letter
• Visual Eg: Video, Displays, Signs, Graphs, Charts
• Electronic Eg: Email, Internet

ORAL/VERBAL COMMUNICATIONS

• Face to face communication is a direct oral communication (Office Meetings)

Advantage Disadvantage

Discussions can take place which should improve
decision making
Immediate feedback is possible if participants are
willing Immediate feedback is received
Opportunity to ask question on the message
communicated
It encourages team work
Detailed information can be shared and
understood much more clearly
Meetings can sometimes become to lengthy with
lot of discussions but very less achieved
Some people in meetings are very unresponsive
and does not participate and share their views
Some people become very dominating and
controlling in the meetings
People who dislike meetings have a very bad
influence on others
No written proof is kept if the discussions are not
kept noted

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 Chapter 10.1

• Teleconferencing is an indirect oral communication (Zoom, Skype, Google Meets)

Advantage Disadvantage

Discussing sensitive issue might not feel as

Sharing new ideas instantly with colleagues
Immediate feedback is possible if participants are
willing
Opportunity to ask question on the message
communicated
comfortable as felt in a face-to-face meeting
Facial expressions & body language cannot be seen
if video is not turned off.
No written proof is kept if the discussions are not
kept noted

It encourages team work Limited to a group of people only.

Detailed information can be shared and

understood much more clearly
It can save a lot of time and cost as there is no
need to travel
Very quick method to get a response to an urgent
problem

WRITTEN COMMUNICATIONS

• Majority of the communications within organizations are in written form.

Examples:
- Reports
- Memos
- Letters
- Notices

When using written forms of communication, the communicator must ensure the following:

- Whether it is suitable for the recipient to understand the message.

- It is presented and written in a proper professional format.

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Their uses
Excellent for providing detailed
information that can be referred
to frequently.
Example: Financial Reports,
Project Progress Reports,
Research Findings Report etc.
Their uses
Fastest method of
communication internally in an
organization to ask for specific
information, instruction or
action.
Memos usually contain the
names of the people being
communicated to, the subject
and the date it is being sent.
Chapter 10.1
REPORTS
Advantages Disadvantages
Provide structured, logical and May be difficult for some people
detailed information presented to use as it might need specialist
in an easy to use format language skills or knowledge.
It may become very long and
may never be referred to
properly.
MEMOS
Advantages Disadvantages
They may get delivered to the
Provides the person receiving
wrong person and end up in
the memo with a written
information being never
permanent record.
communicated.
It is a fairly quick way of
Slower than other forms of
communication in a written
communication such as emails.
format.
THANK YOU!
LECTURER: N. NEWAZ KARIM. ACCA AFFILIATE