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Orgcomms
BTEC Business
Importance of Communication
Communication is important because it is
about how information is sent and received
within firms
The way information is communicated is
often governed by how firms are structured
Forms of Business Structure
Entrepreneurial - decisions made centrally
Pyramid - staff have a role, shared decision
making, specialisation is possible
Matrix - staff with specific skills join project
teams, individuals have responsibility
Independent - seen in professions where
organisation provides support systems and
little else
Illustrating Structures 1
The Pyramid
Traditional
view of
organisations
Decisions pass
down formal Information flows
channels from up formal channels
managers to from staff to
staff management
Illustrating Structures 2
Entrepreneurial
Key Key
Quick to act but
worker worker
pressure on
decision makers
One or two
Most small Decision people make
businesses have this maker decisions
structure
Great reliance on
key workers
Key Key
supporting decision
worker worker
makers
Illustrating Structures 3
Matrix
Project A
Project teams Staff with
created specialist skills
Project B
Illustrating Structures 4
Independent
Not suited to most
Dr A businesses due to
lack of control Dr B
Support systems
to professionals
such as doctors
Dr D Dr C
More on Business Structure
Centralisation Decentralisation
Managers keep Empowering and
control motivating
Decisions are made in Freeing up senior
the interests of the
whole business managers’ time
Costs can be cut by
Better knowledge of
standardising those closer to
purchasing and so on customers
Strong leadership Good staff
development
Channels of Communication
Board of Directors