What is communication?

Communication is the sending of information between individuals and can be in the following forms:

If poor communication takes place the following problems can arise:

• Products not produced in time.

• Managers will not know what progress is being made.

• Staff may be unclear of what tasks they are supposed to do or are responsible for.

• Customers will not know when they are likely to receive their goods.

Communication falls into TWO main categories:

• Internal

This is communication between workers within a business. Individuals within a company must communicate in order for it to function successfully as an organisation.

• External

This is communication to customers or suppliers of that business, i.e. communication to outside agencies that are not directly connected to that business, but play a vital role in its function.

Sender.

Person who makes the request, e.g. customer.

Message.

Order of stock.

Channel.

By order form or telephone.

Medium.

Paper, spoken word.

Receiver.

The person to whom it is intended, e.g. stock manager.

Internal Communication

Before a business can expect to communicate with the outside world, it must ensure that communication is effective within the business. Below are some examples of the main types of internal communication you should understand:

• Written: memorandum to inform teachers of the arrival of a new student

• Notice Boards: year 11 notice board to sell year 11 photographs

• Newsletters: weekly bulletin to let students know about a school trip

• Handbooks: upper school handbook to help students pick subjects to study at ‘A’ level

• Telephone: very useful for contacting other staff quickly which enables swift reply

• Meetings: student council to discuss how to spend student council funds

• E-mail: this enables people to send text and picture messages to other people in the business

If a business practices good communication internally there is a high probability that they will do so with people outside of the business. The main types are:

• Direct Advertising: television advert

• Indirect Advertising: a well presented job advert may promote the business to potential applicants

• Exhibitions and Conferences: enable businesses to talk to customers, eg The Clothes Show

• Company Annual Reports: give performance and financial information about a business

• Sponsorship: a business gives support to an event in return for publicity, eg Cadbury sponsors Coronation Street

• The Internet/E-Mail: enables businesses to access information and to communicate with customers and suppliers quickly and cheaply, eg buying goods over the Internet.