Chapter 9 - Communication in Business

Question 1

Definition of Communication

Answer 1

Communication is a basic process involving the exchange of information. A sender will pass a message to another individual (a receiver), who is expected to understand it.

Question 2

What are the benefits of effective communication?

Answer 2

• Encourages learning
• Improves employee satisfaction
• Reduces Conflict
• Generate Ideas
• Higher levels of production

Question 3

Communicating objectives and strategies

Answer 3

Business objectives, whether they are maximising profit, improving market share or developing a new product, must be communicated to employees if they are to be successfully realised. Businesses use strategies to achieve specific objectives, and these also need to be communicated to employees.

Question 4

What is internal communications?

Answer 4

Internal communications occur within the business; for example, between employees, between a manager and a supervisor, or between the owners of the business.

Question 5

Definition of Formal Communication

Answer 5

Formal communication: involves making use of the official communication channels of a business.

Question 6

What are the three different flows of internal communication

Answer 6

• Top Down
• Bottum Up
• Sideways

Question 7

Top Down Communication

Answer 7

Top-down (also called downward) communication involves messages sent from senior managers through supervisors to employees. Downward communication might include an instruction to employees, the delegation of responsibility or feedback on performance.

Question 8

Bottom-Up Communication

Answer 8

Bottom-up (also called upward) communication exists when messages originating with employees flow up to senior managers. Businesses use this method to access information related to the day-to-day operations, to solve production problems and to solve grievances in a proactive manner. Managers who listen to these messages can often prevent problems arising in the future.

Question 9

Sideway Communication

Answer 9

Sideway (also called horizontal) communication occurs when information flows between people operating at the same level within the organisation. This information is often about customer, supplier or teamwork issues.

Question 10

What is informal communication?

Answer 10

An informal communication: channel involves the business making use of unofficial means of exchanging information.

Question 11

Definition of “The Grapevine”

Answer 11

The grapevine: is the unofficial and informal communication system which is superimposed on the formal network.

Question 12

What is external communication?

Answer 12

External communication refers to a business’s communications with other businesses and stakeholders outside the business especially suppliers, and customers. Businesses can communicate formally, through official channels, and informally, through informal channels, with external stakeholders.

Question 13

What is the purpose of internal communication?

Answer 13

1. Provide information
2. Gather information
3. Share Idea’s
4. Clarify Issues
5. Get to know people
6. Persuasion
7. Appraise employee performance

Question 14

What is the purpose of external communication?

Answer 14

1. Improve Customer Service
2. Public Relations
3. Confirm Arrangements
4. Give Instructions
5. Provide Information

Question 15

Definition of Verbal Communication?

Answer 15

Verbal communication means using words, either spoken or written.

Question 16

What are written communications?

Answer 16

Written communications are used by managers to pass on ideas and information inside and outside a business. They can also be used to confirm verbal messages. Written communications can be more difficult than oral communication because the manager has to make the message clear the first time; she or he does not have the advantage of immediate feedback and body language.

Question 17

Some advantages of written communication?

Answer 17

Advantages of written communication

• There is a permanent record of the message.
• More time can go into its preparation and proofreading, ensuring greater accuracy.
• Messages can convey authority.
• Information can be easily distributed to a wide audience.
• Complex information can be read and re-read.
• Visuals can be embedded in the text to provide clarification.

Question 18

Definition of Oral Communication

Answer 18

Oral communication involves speaking to another person and is one of the most common communication methods used in business.

Question 19

Advantages of Oral Communication

Answer 19

Advantages of oral communication

• Communicators can get to know each other.
• Feedback is instantaneous.
• Nonverbal gestures may reinforce the spoken message.
• It is quick and usually accurate.
• Voice tone can be used to stress important points.
• It allows for the personal touch.
• There is flexibility to modify the approach depending on the response.
• Messages can be ‘off the record’ and ‘private’.

Question 20

Disadvantages of Oral Communication

Answer 20

Disadvantages of oral communication

• Usually, no permanent record is kept.
• Confusion can occur when messages are not clear.
• It can be time consuming.
• Sometimes it is difficult to terminate.
• It requires effective listening skills.
• Nonverbal gestures may give an opposite meaning.
• It is difficult to distribute to a wide audience.
• Messages cannot be proofread.

Question 21

Disadvantages of written communication

Answer 21

Disadvantages of written communication

• Feedback is often slower and/or difficult to receive.
• The message has an impersonal nature.
• Preparation is time consuming.
• It is relatively expensive to print and distribute.
• Information overload occurs as a result of increased paperwork.
• Hard or electronic copies incur high storage costs.
• Forgery is possible.

Question 22

What is non-verbal communication?

Answer 22

Nonverbal communication is any message that is not written or spoken. Nonverbal communication consists of body language (posture, facial expressions, placement of limbs and proximity to others) and visual symbols.