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The Building Societies Association - Summary

The importance of effective communication

Introduction
The Building Societies Association (BSA) is the trade association for the UKs building societies. These are financial institutions that mainly offer savings accounts and mortgages. They are mutual organisations with no shareholders and therefore do not need to pay dividends. In the 1990s some building societies became banks. Banks need to provide returns to shareholders which has costs, so building societies can often offer better rates. The BSA represents its members in a wide variety of areas, playing a key role in communications.

The communication process

Effective communication is vital to all businesses and means the right message must reach the right people, in the right format. The communication process involves: sender receiver message content message format communication channel choice of medium. It is essential that each part is chosen correctly to fit with the target audience and message. If not, the message may not be received or understood. BSAs members chiefly communicate with three groups: members needing information about the societys aims and performance local communities in which they operate potential new customers through TV, radio or press advertisements.

Communication media
Businesses need to provide messages in various formats or media, depending on the intended receivers and whether messages are internal or external: Internal communications take place within the business. The BSA uses detailed policy briefs and updates, a newsletter and a magazine to communicate with its members. External communications take place with people or bodies outside the business. Examples are regulators, the government or the press. Messages may also move in different directions in an organisation. Vertical communication is up or down the organisation; lateral is across, for instance between building societies. Some messages need to be formal with a set format and a record made. Others can be informal such as the internal office grapevine.

Communication networks
There are numerous methods of organising communication networks. They may be: centralised a leader directs the flow of communication decentralised each member of the group has access to all other members ideas.
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The types of networks are: Chain information is passed straight up and down. A leader decides what messages are passed on and how. Circle information is equally shared between members. This structure may provide members with more involvement and greater satisfaction. Wheel the leader is central - communication is separate through each spoke. Y information from the leader is shared simultaneously through two or more channels. This spreads information faster.

Barriers to communication
Barriers or noise can make communication difficult, less efficient and less cost-effective. The key to effective communication is to keep all aspects relevant to the audience.

wrong format w wrong target

technical breakdown

receiver unable to understand attitude towards sender

unclear message

Barriers
poor timing no feedbcak

use of jargon

wrong channel

Conclusion
The BSA represents the interests of its member building societies. In turn, these building societies serve the interests of their members, their customers. The BSA must send clear messages about the benefits of mutuality. This helps building societies to distinguish themselves from other financial providers in a highly competitive market.

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