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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
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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
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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
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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
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Illustrating Structures 3
Matrix
Marketing
Production
Finance
Project A
Project teams
created
Staff with
specialist skills
Project B
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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
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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
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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
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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
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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