Unit 1 – Communicate in a business environment

1 – Understand business communication models, systems and processes

1. Analyse the communication needs of internal and external stakeholders

Communication in a business environment has a purpose, an audience (stakeholders) and the

context. It is used to inform, to obtain, to persuade or to request action. It should be clear,
courteous and effective. Communication involves the sender of a message and the receiver,
the receiver of the message need to understand the message. Messages are often
misinterpreted and causes unnecessary confusion and is counterproductive.

The communication cycle

Source

Channels
Receiver Encode

Decode

Before communicating, figure out what needs to be communicated and why. Communication
should be planned. Below is what a communication plan looks like:

 Understand the objective, why are we communicating

 Understand the audience, with whom are we communicating and what they need to know.
 Plan what will be said and how the message will be sent.
 Seek feedback to know how the message was received
Now we shall look at who the message should be communicated to. Message should be
communicated to stakeholders. Who are the stakeholders? Stakeholders are individuals or
groups that are involved with an organisation. We have two types of stakeholders:

 Internal Stakeholders
 External stakeholders

Internal stakeholders include people who work from within the organisation, such as
employees, volunteers, managers and owners. In my organisation, these would include line
managers, the senior managers and support staff and department managers, as well as the
directors. Internal stakeholders need to know the type of business the organisation is in,
specific details regarding the products/services offered, and the correct procedures to
follow in case of a problem. In my role, I need to know certain procedures specific to the
admin department, as well as within the organisation in general; these include procedures
regarding the production of minutes/letters etc, as well as codes of conduct as a member of
staff across the organisation, such as appropriate dress and adhering to data protection.
These procedures are communicated using the staff handbook and updates are given
verbally, via email or the intranet.

External stakeholders are the people who are affected by the work and activity of the
organisation such as; shareholders, investors, customers, clients and suppliers. These groups
need to be informed on branding, sale and publicity of a product, as well as any events and
sponsorship involved. At the Insolvency Service, these would include; customers, other
institutions providers, the local community and companies in which the organisation buys
from e.g. stationery suppliers. Customers will need to know information regarding changes
to procedures e.g. how to file for bankruptcy, what forms to use etc. Other institutions may
require personal information about a bankrupt etc; they may also require any information.

2. Analyse the different communication models that support administration

There are several methods of communication used in an organisation. They differ due to the
direction and flow of the information. Communication within administration can involve
letters, meetings, emails, presentations, and memos. The quality of communication
influences many different areas of the business, such as working relationships between
colleagues and effectiveness within a team.

Senior Manager

Line Manager

Support Team
The chain model represents a hierarchical pattern of communication which can sometimes
be found in military organisations where information is passed down the chain of command.
In my organisation, this is a regular flow of information.

An ideal communication model would be the star model and the all-star network. In this
model, each member can freely share information with each other. This model encourages
participation and communication within a team, and help build up healthy working
relationships between colleagues.

5 2

4 3

The star model should be found in all organisations involving teams of people; this will ensure
consistent communication, and in turn improve overall efficiency of the organisation. If I were
a manager of a team, I would encourage and implement this model always to ensure my team
are as cooperative as possible.

Other models of communication include the wheel, which is used in autocratic leadership
styles, where an individual in a managerial role takes charge of communication between all
other individuals. A more unusual model of communication is the called Y model. This model
is like the wheel; however, there are 3 individuals/groups who communicate through the
person in the managerial role.

3. Evaluate the effectiveness of different communication systems

7. Explain ways of overcoming barriers to communication

Communication within business can be in many different ways, the method depends on the
information being delivered, its importance and the individual receiving it.
Effective communication relies on how clear the message is and making sure the appropriate
method is used. It is also important to consider any potential barriers, and know how to
reduce them. When selecting an appropriate method of communication, it is important to
adapt and meet the needs of the audience to overcome barriers. Factors to consider include:
age range, background and culture, status of the audience, health issues, language
differences, learning difficulties, breakdown of technology and prejudice. Barriers may also
include human error, such as poor listening skills, lack of discussion, and misinterpretation.

Communication in business can be divided into three different categories: verbal, written and
online. Verbal communication includes face-to-face meetings, over the phone, voicemail
messages etc. Communicating verbally can be very effective and has its advantages as
information can be transmitted and discussed straight away. However, it can be very easy to
face barriers over the phone as individuals cannot rely on body language or visual cues. This
may make it hard to speak to someone of a different language or someone with learning
difficulties. In my role, verbal communication is a key part. I always ensure when speaking on
the phone to be clear and direct, and to ask the caller to repeat if I am unsure about what
they said. This is especially important when arranging meetings/room bookings, as well as
when taking details such as names and phone numbers.

Written communication (letters, emails, memos, agendas) is a very effective way to

communicate formally as messages can be edited and revised before they are sent, as well as
being edited to suit the needs of the audience, e.g. larger print, changed font/background
colours, Braille etc. This means the chance of misinterpreting the information is reduced, and
a wider audience can be reached by modifying the text. Written communication, whether it
is in a letter or an email, also provides a permanent record, whereas a verbal conversation
will be lost unless it is recorded. Whilst letters are professional and formal, they are time-
consuming to send and could take a while to be received; this is not ideal if information needs
to be received as soon as possible. Producing letters for a large audience could also be very
expensive. To overcome barriers regarding letters, important information should be given
either over the phone or in person. Emails are a very effective way of communicating because
they are easy and quick to use, can be both formal and informal, and can contain detailed
information, as well as attachments and documents. In my organisation, emails are regularly
sent out to all staff, or specific groups of people such as the Senior Leadership Team. Emails
can be quickly replied to, and saved for future use.

In my organisation, the most used method of communication to customers is via letters and
email. It is important letters and email messages are always professional in order to
maintain the high standards of the organisation.

For communication to a wide audience, online methods could be used such as social media
or websites. Applications such as Twitter are very effective as messages can be relayed to
many people very quickly. This is especially useful for making short announcements. Similarly,
information can also be displayed on the organisation intranet; these messages could be
regarding what is happening in the organisation, who is doing what and sharing of
experiences. We have events in our organisations and a blog was created, and colleagues
could post short messages addressed to others. This is effective as colleagues can check back
to the blog regularly to see if it has been updated.
5. Explain the importance of using correct grammar, sentence structure, punctuation,
spelling and conventions in business communications
6. Explain the factors to be considered in planning and structuring different
communication media

It is important in business communication that there is structure, use of the correct

grammar and spelling, and that the text is fit for purpose.

Written communication must be suited to its intended audience, presented in a way that is
appropriate and should adhere to organisational standards and formality. Sometimes
communication also needs to be completed within a deadline.

In written communication, the first thing that should be considered is structure. Structure
refers to how the text is set out and formatted. It also refers to making sure the content is
organised appropriately and in a logical order. Grouping information about a topic, and
using subheadings and short sentences will all help improve how easy it is to read and
understand the information. Typically, a letter or email etc should have a strong
introduction and a conclusive last paragraph.

It is important to consider the audience with business communication. For example, using
technical jargon and abbreviations won’t be effective if they audience won’t understand
them; it is important all text is clear, direct and to the point.

Even when communicating informally to a colleague, it is vital spelling, punctuation and

grammar is correct. Punctuation helps make it easier to read information by telling the
reader when to pause etc. If text is poorly punctuated, it may not make sense and read
incorrectly. The most important punctuation marks are full stops, commas and apostrophes.
Grammar refers to making sure the correct word and tense has been used in a sentence. For
example, using “are” instead of “is” for plurals, or making sure the correct pronouns have
been used. Most written communication is completed on Microsoft Word where there is a
built-in feature to spell check the document.

Poor writing skills, especially when communicating to customers and other organisations,
will give a bad impression and discourage custom. In my organisation, there are conventions
that set out a standard letter. These include the position of the header, the address and the
date, as well as proof-reading all correspondence.

Verbal communication, such as presentations, should be planned and rehearsed beforehand

to ensure they are professional. It is important to consider the audience with presentations
as they need to be able to see the presentation, as well as hear the speaker. Any hand-outs
produced with the presentation will also need to be suited to the audience in order to meet
their needs.

8. Explain the use of communications theories and body language

This is the basic model of communication between two people developed by Schramm. It
suggests that communication is a two-way process where the sender (encoder) and receiver
(decoder) take turns to relay messages. The theory suggests that communication is a
continuous cycle and each message needs interpreting before a new message can be sent.
 Message
Encoder Decoder
Intrepreter Intrepreter
Decoder Message Encoder

This model is dynamic as it suggests a circular process of communication and highlights that
messages can be sent and received by the same person. It also takes interpretation into
consideration with the use of encoding and decoding.

However, due to how basic this model is, it does not consider any interference or “noise”
receive between messages. The Shannon and Weaver model of communication develops
Schramm’s model to include this aspect of communication.

This model follows the same style as Schramm’s model as it includes a decoder and encoder,
as well as information returning to the sender. However, it also takes note of the fact that
communication is not always clear as “noise” may interfere with the message during the
process. This could be in the form of misunderstanding, messages being misconstrued along
the chain of command, or physical noises/technical problems in the case of communication
over the phone/voicemail messages.

As well as verbal, written and online, communication can also be non-verbal. This includes
body language, facial expressions, posture, tone of voice and physical space between
individuals (this is known as proxemics). Studies have shown that most of verbal
communication is made up of non-verbal cues; this is why it is important in business
communication that body language matches the professionalism and context of information
being delivered. Body language primarily includes facial expressions, gestures and tone of
voice. The face can express many different emotions, smiling shows the individual is friendly
and non-threatening, whereas raised eyebrows show confusion. Eye contact is also an
important part of body language. Consistent eye contact can show confidence and awareness,
whereas shifty eyes show dishonesty and uneasiness.
A person’s posture also has a big impact on the way they communicate. For example, crossed
arms may indicate that person is very defensive and disagreeable, looking down or hands on
head may show guilt or shame. Sometimes however body language can be ambiguous, for
example a tilted head may show interest or boredom. It depends on the culture and the
context of communication.

The voice is also another important part of body language, it includes timing, pace, rhythm,
pitch and inflection. Speaking very quickly and quietly may indicate the individual is nervous,
whereas a strong, clear voice suggests confidence and authority.

When talking to a colleagues or customers, it is important to maintain eye contact and be as

professional as possible. I make sure I pay attention to what is being said and have a friendly,
approachable posture. It is also important to ensure that my tone of voice is calm and clear,
and to not speak at the same time as the other person.

9. Explain proof-reading techniques for business communications

The best way to proof-read a document is to ask a colleague to read through it; this is useful
as they will pick up mistakes more easily. Alternatively, reading the text out loud will also
highlight any mistakes with punctuation and grammar.

When producing Word documents, it is important not to rely on a spell-check function as it

will not pick up incorrect grammar, for example words that are spelt correctly but in the
wrong context; for example, “their” and “there”. Similarly, it is important to check numerical
values such as dates and times, as spell-check will not highlight numbers if they are wrong.

A helpful technique when proof-reading is to reading sentences in the wrong order as this will
highlight any mistakes with missing words. Other techniques include double checking
punctuation such as apostrophes, for example a common mistake is using an apostrophe for
plurals; apostrophes should only be used for possession and contraction.

In my organisation, all documents (minutes/letters etc) all approved by my line manager who
proof-reads and checks for mistake before distribution to other members of the team

Bibliography

 http://www.bbc.co.uk/schools/gcsebitesize/business/environment/stakeholders1.shtml
 https://www.boundless.com/accounting/textbooks/boundless-accounting-
textbook/introduction-to-accounting-1/overview-of-key-elements-of-the-business-
19/business-stakeholders-internal-and-external-117-6595/
 https://www.nationalcollege.org.uk/transfer/open/dsbm-phase-2-module-3-
stakeholder-engagement/working-with-stakeholders/dsbm-p2m3-s2-t3.html
 https://www.nationalcollege.org.uk/transfer/open/dsbm-phase-2-module-3-
stakeholder-engagement/working-with-stakeholders/dsbm-p2m3-s2-t1.html
 http://www.praccreditation.org/resources/documents/APRSG-Comm-Models.pdf
 http://www.revisionguru.co.uk/business/communication3.htm
 http://www.inc.com/encyclopedia/communication-systems.html
 http://communicationtheory.org/list-of-theories/
 http://www.enkivillage.com/body-language-examples.html
 http://changingminds.org/techniques/body/parts_body_language/eyes_body_language
.htm
 http://www.helpguide.org/articles/relationships/nonverbal-communication.htm
 http://www.dailywritingtips.com/8-proofreading-tips-and-techniques/

Assessment criteria covered in this document:

[Unit 01] Communicate in a business environment

[Outcome 1] Understand business communication models, systems and processes

 [1.1] Analyse the communication needs of internal and external stakeholders

[1.2] Analyse the different communication models that support administration

[1.3] Evaluate the effectiveness of different communication systems

[1.4] Explain the factors that affect the choice of communication media

[1.5] Explain the importance of using correct grammar, sentence structure,

Assessment
punctuation, spelling and conventions in business communications
Criteria
[1.6] Explain the factors to be taken into account in planning and structuring
different communication media

[1.7] Explain ways of overcoming barriers to communication

[1.8] Explain the use of communications theories and body language

[1.9] Explain proof-reading techniques for business communications