Human Resources

To understand what are meant by effective communication and feedback

Analyse the advantages and disadvantages of different communication

mediaEvaluate their application in different

situationsUnderstand the barriers to

communication and how to overcome themAnalyse the importance of informal

communicationAssess the importance of ICT in

communication

LEARNING OBJECTIVES

Definition: Process by which a message or information is exchanged

from a sender to a receiverTwo-way communication

When feedback on message is given back from receiver to sender

Communication can be… Internal: between people in the same businessExternal: with people outside the business

COMMUNICATION

Name The Methods of Business Communication

Can you think of any others?

Internal Communication• When communications occur between employees of a business• Internal communication links together all the different activities

involved in a business• Ensures all employees are working towards the same goal and

know exactly what they should be doing and by when• Effective internal communication is therefore fundamental to

the success of a business• Example:

– A production manager (sender) sends a message to a sales manager (receiver) asking for sales forecasts for the next 6 months so they can plan production levels. The sales manager replies (feedback) to the production manager with the appropriate figures.

External Communication• Where a business communicates with people &

organisations outside of the business• Closely linked with the idea of “stakeholders” – i.e. those

who have an interest in the activities and results of the business

• Examples of external communication– Press releases– Marketing materials (e.g. adverts, brochures, direct mailings)– Published financial information (e.g. accounts)– Letters, emails and telephone conversations with customers and

suppliers– Reports to government and other agencies (e.g. tax returns)

Effective Communication

• The exchange of information between people or groups, with feedback

• Communication is only effective if the message has been received and understood

• If the message has been sent but there has been no form of feedback then communication effectiveness cannot be judged

Importance of effective communication• Motivates employees – helps them feel part of business• Easier to control and coordinate business activity – prevents

different parts of business going in opposite directions• Makes successful decision making easier – decisions are

based on more complete and accurate information• Better communication with customers will increase sales• Improve relationships with suppliers• Improves chances of obtaining finance – e.g. keeping bank

up-to-date about how business is doing

Communication

• Process:

Sender or Instigator

Channel Medium Receiver

Change in payment systems

Finance Dept

E-mail

Feedback

Communication Media

• Methods used to communicate a message

Oral Written Electronic

Visual Non verbal

Key terms• Information overload – so much information

and so many messages are received that the most important ones cannot be easily identified

Communication• Medium:– Letters– Memo– Report– Notice board– Faxes– Telephone– E-mail– Face to face– Body language– Video/video conferencing– Internet

Factors influencing choice of media

• Managers will consider some factors before deciding on the best communication method– Whether or not they require a written record– Advantages of staff input– Costs– Speed– Size of the business

Communication

• Transferring information from one part of the business to another that leads to some outcome, changed behaviour or changed practice

• Formal Communication – established and agreed procedures

• Informal Communication – channels not formally recognised – ‘the grapevine’

ICT & Communication

The use of information and communicationstechnology (ICT) has grown in businesses. Examplesinclude:• Email• Graphics software• Word processing• Presentation packages• Internet and intranet

ICT & CommunicationAdvantages Disadvantages

•Presentations and reports can be more professionally produced•Information can be passed on quickly and to a large number of people•ICT allows employees to work in alternative places e.g. at home, on the train•Workers may be more productive because communication is quicker

•Risk of information overload•Technology is expensive to implement initially•Training may be needed to use the ICT•Maintenance is required•Security issues of storing personal and bank details•Health and safety issues of using computers and VDUs

Barriers to Communication

• Too many intermediaries (e.g. too many layers in hierarchy through which message has to be passed)

• Geographical distance between a firm’s offices, production plants or outlets

• Communication overload – too much information can cause problems e.g. slow down decision making

Problems of poor communicationPoor communication can lead to:– Low morale and poorly motivated workers– Difficulty implementing change– Lack of overall direction for the firm– Slow decision making– Pressures from stakeholders who wish to be kept

informed– Missed opportunities

Task

• Analyse the benefits and drawbacks of Enterprise-Rent-A-Car’s communication methods to its internal and external stakeholders

• http://businesscasestudies.co.uk/enterprise-rent-a-car/communication-strategies-to-engage-a-variety-of-stakeholders/internal-communications.html#axzz2Vw0ejyGF