This document discusses the importance of communication in businesses and different forms of business structure and communication channels. It explains that the way information is communicated in a business depends on how the business is structured, whether decisions are made centrally in an entrepreneurial structure, through shared decision making in a pyramid structure, or through project teams in a matrix structure. The document also covers centralization vs decentralization of decision making and describes vertical and lateral formal and informal communication channels within an organization.
This document discusses the importance of communication in businesses and different forms of business structure and communication channels. It explains that the way information is communicated in a business depends on how the business is structured, whether decisions are made centrally in an entrepreneurial structure, through shared decision making in a pyramid structure, or through project teams in a matrix structure. The document also covers centralization vs decentralization of decision making and describes vertical and lateral formal and informal communication channels within an organization.
This document discusses the importance of communication in businesses and different forms of business structure and communication channels. It explains that the way information is communicated in a business depends on how the business is structured, whether decisions are made centrally in an entrepreneurial structure, through shared decision making in a pyramid structure, or through project teams in a matrix structure. The document also covers centralization vs decentralization of decision making and describes vertical and lateral formal and informal communication channels within an organization.
how information is sent and recieved within firms.
-The way information is communicated is often
governed by how firms is structured. FORMS OF BUSINESS STRUCTURE
INTREPRENEURIAL - decisions made
centrally PYRAMID - staff have a role, shared decisions making, speciallysation is possible MATRIX - staff with specific skills join project teams, individual have resposibility INDEPENDENT - seen in professions where organization provide support systems and little else More on Business Structure CENTRALISATION • Managers keep control • Decisions are made in the interests of the whole business • Costs can be cut by standardising purchasing and so on • Strong leadership DESENTRALISATION • Empowering and motivating • Freeing up senior manager's time • Better knowledge of those closer to costumers • Good staff developement Channels of Communication • Communication in organisations follows paths or channels • Communication between managers and subordinates is known as vertical communication • This is because the information flows up or down the hierarchy Channels of Communication • Channels between departments or functions involve literal communication • As well as formal channels of communication, information also passes through an organisation informally • Communication is not complete until feedback has been recieved