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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
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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

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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

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Illustrating Structures 2
Key worker

Entrepreneurial
Quick to act but pressure on decision makers Decision maker Great reliance on key workers supporting decision makers

Key worker

Most small businesses have this structure

One or two people make decisions

Key worker

Key worker

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

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Illustrating Structures 4
Independent
Dr A Not suited to most businesses due to lack of control Support systems to professionals such as doctors Dr D Dr C Dr B

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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

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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

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