Types of Communication Methods | Business Studies for GCSE/IGCSE - Year 11 PDF Download

The Importance of Effective Communication

• Communication entails effectively conveying messages between senders and receivers.
• Internal communication involves the exchange of messages among members within the same organization. For instance, a phone call between a sales manager and a finance team member exemplifies this.
• External communication, on the other hand, pertains to the exchange of messages between an organization and external entities like customers, suppliers, or investors. An example could be sending an online order form to a supplier.
• One-way communication refers to transmitting a message that does not necessitate any feedback, such as a sign in a supermarket cautioning 'wet floor' to customers and staff.
• Two-way communication occurs when the receiver responds to the message received. For example, an email exchange between staff members discussing the success of a new promotional campaign embodies two-way communication.
• Formal communication follows the organizational structure of a business and is typically documented. An instance of this is the minutes recorded during an appraisal meeting.
• Informal communication, conversely, transpires outside official channels and is usually not formally documented. This could include a casual lunchtime conversation with a colleague regarding workload.

Process of Communication

Effective Communication

• Effective communication ensures that messages are sent, received, understood, and acted upon as intended.
• Communication should be clear, unambiguous, and appropriate to the context and sender.
• Messages should be sent to the correct receiver in an accessible format and be timely with the required level of detail.

The Benefits of Effective Communication

Effective communication brings various advantages:

• Enhanced productivity: When messages are clear, tasks are understood better, leading to efficient outcomes.
• Stronger relationships: Clear communication fosters trust and understanding among individuals.
• Conflict resolution: Effective communication helps in resolving conflicts by ensuring all parties understand each other's perspectives.
• Improved decision-making: Clear information allows for better-informed decisions to be made.

Importance of Effective Communication in Business

• Helps managers and employees to minimize mistakes
• Supports everyone involved in a business to understand their role and know what is expected of them
• Ensures that the business's values and objectives are clear
• Provides customers with the information they need to understand goods and services
• Minimizes business costs
• Helps businesses to effectively exploit new opportunities
• Managers should ensure organized and controlled communication between key stakeholders
  • A 2021 survey of US workers found that more than one-third reported email overload that might lead them to resign from their jobs

Methods of Communication

• Businesses employ various methods for both internal and external communication, although the options may be constrained under certain circumstances. For instance, the necessity for a written legal contract of employment for a new employee or a notice of termination of employment may limit the choice of communication methods.

Communication Methods

• The effectiveness of each method relies on the business context, the nature of the communication, and the individual preferences of both the sender and receiver.

Evaluating Communication Methods 

Recommending a Method of Communication

• Businesses tend to evolve their communication methods and style as they progress.
  • Smaller businesses may initially rely on cost-effective channels like posters, leaflets, and social media for customer communication.
  • Larger enterprises, with more substantial budgets, often leverage mediums such as television and billboard campaigns for promotional activities.

Factors Which Impact the Communication Method Used