Business Communication BTEC Business Copyright 2006 – Biz/ed
http://www.bized.co.uk Business Communication BTEC Business Copyright 2006 – Biz/ed http://www.bized.co.uk Importance of Communication • Communication is important because it is about how information is sent and received within firms • The way information is communicated is often governed by how firms are structured Copyright 2006 – Biz/ed http://www.bized.co.uk Forms of Business Structure • Entrepreneurial - decisions made centrally • Pyramid - staff have a role, shared decision making, specialisation 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 Copyright 2006 – Biz/ed http://www.bized.co.uk Illustrating Structures 1 The Pyramid Decisions pass down formal channels from managers to staff Traditional view of organisations Information flows up formal channels from staff to management Copyright 2006 – Biz/ed http://www.bized.co.uk Illustrating Structures 2 Key worker Entrepreneurial Most small businesses have this structure Key worker Quick to act but pressure on decision makers Decision maker Great reliance on key workers supporting decision makers Key worker One or two people make decisions Key worker Copyright 2006 – Biz/ed http://www.bized.co.uk Illustrating Structures 3 Matrix Marketing Production Finance Project A Project teams created Staff with specialist skills Project B Copyright 2006 – Biz/ed http://www.bized.co.uk Illustrating Structures 4 Independent Dr A Not suited to most businesses due to lack of control Dr B Support systems to professionals such as doctors Dr D Dr C Copyright 2006 – Biz/ed http://www.bized.co.uk More on Business Structure • • • • Centralisation Managers keep control Decisions are made in the interests of the whole business Costs can be cut by standardising purchasing and so on Strong leadership • • • • Decentralisation Empowering and motivating Freeing up senior managers’ time Better knowledge of those closer to customers Good staff development Copyright 2006 – Biz/ed http://www.bized.co.uk Channels of Communication • 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 Copyright 2006 – Biz/ed http://www.bized.co.uk 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 Copyright 2006 – Biz/ed http://www.bized.co.uk 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 Copyright 2006 – Biz/ed
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