Unit 2 - People in business (Good Communication)

Question 1

What is communication?

Answer 1

Communication is about sending and receiving information. It consists of:
- The Sender: Sends information.
- The Message: The information itself.
- The Receiver: Receives the information.
- The Feedback: The reply to the information.

Question 2

How communication takes place in a business

Answer 2

Inside a business communication can be passed vertically and horizontally. These routes are called communication channels.

Question 3

Downwards communication

Answer 3

Passing message from the top of the organisation to those at the bottom. Important because:
- Subordinates look to their managers for leadership and guidance.
- It allows the decisions made by management to be carried out by employees.
- It allows managers to command, control and organise.

Question 4

Upwards communication

Answer 4

Passing messages from the bottom of an organisation to those at the top. Important because:
- Helps managers to understand the views and needs of subordinates.
- May make managers aware of problems.
- Helps staff to feel that they are valued.
- Provides managers with information to help make decisions.

Question 5

Horizontal communication

Answer 5

Exchange of information between parties on the same level in an organisation’s hierarchy.

Question 6

Internal communication

Answer 6

Communication between people inside the business.

Question 7

External communication

Answer 7

Communication between the business and those outside such as customers, investors or the authorities.

Question 8

Formal communication

Answer 8

Use of recognised channels when communicating.

Question 9

Informal communication

Answer 9

Use of non-approved channels when communicating.

Question 10

Importance of good communication in a business

Answer 10

If internal communication is poor, problems can arise. As a result, efficiency and profitability may suffer. Can lead to mistakes, wasted resources and result in confusion and lack of motivation. Poor external communication could make a business look foolish and result is money loss. Poor communication with outsiders could ruin the business’s reputation.
Effects of poor communication:
- Mistakes occur
- Cost rise
- Decision making slows down
- Staff motivation suffers

Question 11

Face-to-face communication

Answer 11

When spoken information is exchanged between people who can see each other. It is effective.
Advantages:
- Allows immediate feedback
- Encourages cooperation
- Allows new ideas to be generated
- Save time
Disadvantages:
- Negative body language my create a barrier
- A record of the message may not be kept
- Non relevant information may be included
- In a meeting some people may not listen
- Limit to the number of people reached

Question 12

Written communication

Answer 12

Variety of methods:
- Letters
- Reports
- Memorandums
- Forms
- Noticeboards

Question 13

Letters

Answer 13

Written information. Flexible can be send to a variety of people. Can be record of communication and private information. Takes time and effort and some people have poor written skills.

Question 14

Reports

Answer 14

Communicate important information in a formal manner. May be short, complex and detailed. Should be concise and carefully structured and presented. Take time to research and write.

Question 15

Memorandums

Answer 15

Internal communication only. Short written notes containing brief messages and they are flexible.

Question 16

Forms

Answer 16

Communicate routine information. May become out of date and inflexible.

Question 17

Noticeboards

Answer 17

Cheap to use and can pass information on to a large number of people. Can become untidy, are open to abuse and are often overlooked.

Question 18

Electronic communication

Answer 18

Possible to deliver message instantly, all over the world and to a number of people at the same time. Examples:
- Email
- Internet
- Mobile phone
- Social media
- Intranets
- Videoconferencing and teleconferencing
- Public address (PA) systems
- Electronic noticeboards

Question 19

Email

Answer 19

Most common method and allows communication instantly by a computer. Problem is that emails might get ignored.

Question 20

Internet

Answer 20

Used for internal and external communication.

Question 21

Mobile phones

Answer 21

Valuable method of communication. Allows texts, short memos, access the internet and send images. They are cheap.

Question 22

Social media

Answer 22

Fast way to communicate externally and internally to provide/gather information.

Question 23

Intranets

Answer 23

Where all computer in a department are linked so everyone has access to and can edit common information.

Question 24

Videoconferencing and teleconferencing

Answer 24

Videoconferencing enables people to communicate Face-to-face from all around the world. Teleconferencing is the same but with telephones.

Question 25

Public address (PA) systems

Answer 25

Messages broadcasted over a loud speaker to everyone.

Question 26

Electronic noticeboards

Answer 26

Similar function to PA but written messages and somewhere everyone can see.