Business Communication

6/17/2011

By BPP

Communication is neither transmission of message nor message itself.

It is the mutual exchange of understanding, originating with the sender. Communication needs to be effective in business. Communication is essence of management.
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The basic functions of management

Planning, Organising, Directing and Controlling Cannot be performed well without effective communication.
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Importance of Communication
y Communication

is important because it is about how information is sent and received within firms. information is communicated is often governed by how firms are structured
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y The way

Forms of Business Structure

y y y y

Entrepreneurial - decisions made centrally Pyramid - staff have a role, shared decision making, specialization 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
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The Pyramid

Traditional view of organizations

Decisions pass down formal channels from managers to staff

Information flows up formal channels from staff to management

Illustrating Structure 1
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Entrepreneurial
Key worker Quick to act but pressure on decision makers Decision maker Great reliance on key workers supporting decision makers Key worker

Most small businesses have this structure

One or two people make decisions

Key worker

Key worker

Illustrating Structure 2
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Matrix
Marketing Production Finance

Project A

Project B Project teams created Staff with specialist skills

Illustrating Structures 3
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Independent
Dr A Not suited to most businesses due to lack of control Support systems to professionals such as doctors Dr D Dr C Dr B

Illustrating Structures 4
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More on Business Structure

Centralisation Managers keep control y Decisions are made in the interests of the whole business y Costs can be cut by standardising purchasing and so on y Strong leadership
y y

Decentralisation Empowering and motivating y Freeing up senior managers time y Better knowledge of those closer to customers y Good staff development

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By BPP

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Channels of Communication
y y

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

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By BPP

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Vertical/Lateral Communication
Organisation chart shows vertical (black arrows) and lateral (green arrows)
Board of Directors

Finance

Marketing

Production

Finance Officers

Marketing Assistants

Factory Operatives

6/17/2011

By BPP

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Channels of Communication
Channels between departments or functions involve lateral communication As well as formal channels of communication, information also passes through an organisation informally Communication is not complete until feedback has been received

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By BPP

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Thank You ?????

6/17/2011

By BPP

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