Chapter Seven - Communications

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Chapter Seven - Communications

Unit 3Part of your ABQ and Q4

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Outcomes By the end of this chapter you will be able to: 1. Explain the central role of communications in business

and management; 2. Identify and explain the main barriers to effective

communications; 3. Demonstrate business data in the following written

forms: memos, reports, and business letters; draft a visual presentation from given data;

4. Identify the duties of a chairperson and secretary and draft an agenda and minutes of a meeting;

5. Distinguish between the methods of communication; 6 Discuss the importance of general communication skills

(HL);

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What is Communication

?

Barriers to communication

Principles of Good

CommunicationImportance

of Good Communicat

ion

Choosing a Method of

Communication Written, Verbal, Visual

Data Protection

Act 1988/2003

ICTMeetings

Methods: Internal/Ext

ernal

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Communication is concerned with the transferring of ideas, information, messages, etc. from a sender to a receiver, with the aim that the message is understood.

Formal Communication means it takes place through the approved channels of communication, e.g. written letter, formal meeting.

Informal Communication, refers to general informal networking within an organisation, e.g. chatting, gossiping.

What is Communication?

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Basic Elements of Communication:

What is Communication?

Sender

Message via

Medium

Receiver

Feedback

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Ability to speak clearly Ability to listen carefully Ability to give and receive feedback Ability to write clearly and concisely Ability to read and understand

communications Ability to select the best medium for

the communication Ability to use ICT effectively

Principles of Good Communication

You could be asked to discuss these in

relation to internal/external communications

P102/103

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Importance of good communication between levels in an organisation

• Offers the solution to conflict and misunderstanding in an organisation

• Improves staff morale • Good industrial relations • Effective decision-making • Feedback

Importance of Good Communication

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Methods: Internal/External Communication can be

between the internal stakeholders of a company:

E.g. employees and managers at a meeting. Managers giving instructions to subordinates. Entrepreneurs or managers providing the shareholders with accurate information on the company performance.

Communication can be between the external stakeholders of a company:

The business informing customers through advertising, a manager ordering goods from a supplier, the business applying for a grant from government.

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Therefore internal communications are used to communicate between staff in the same business.

External communications are used to communicate with people outside the business, such as customers, suppliers, investors, the government and the general public.

Methods: Internal/External

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Methods: Internal/External Internal communication can

flow upward, downward or horizontally.

1.Upward Communications

Upward communications allow complaints, difficulties or suggestions to be reported up the line to the superior by the subordinate. The messages may be either written or oral and move in both up and down directions between manager and worker.

2. Downward Communications

Occur when instructions, orders, directions, etc. are transmitted from a superior to a subordinate e.g. Manager to employee.

Usually designed to help the individual understand the task to be performed and avoid mistakes e.g. issuing detailed instructions on how to perform a particular job. One-way communication, no feedback from the receivers, no replies or responses.

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3. Lateral (Horizontal) Communications

Maintained between people with the same level of authority in the organisation. To ensure that the various sections of the organisation work together at all times in the general interest of all e.g. the marketing department and finance department meet.

4. Feedback Good information is the basis of

decision making. Successful communication of messages from and to decision-makers is vital. Everybody in the organisation should have the opportunity to influence decision making through providing feedback. By getting opinions through discussion, decision making may be slow but once a decision is reached then satisfaction with it is high. Feedback is important

because: It makes the message clear. It allows the subordinates to have a

say. It brings everyone closer together. It encourages a democratic style

leadership.

Methods: Internal/External

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Methods: Internal/ExternalWritten Oral Visual

Internal Letters, email, internet, intranet, text, memos, notice board, reports, newsletter, suggestion box

Meetings, internal phone, video conference, intercom, one to one conversation, informal conversation

Posters, graphs – pie charts, bar charts, body language,

External Letters, fax, email,internet, text,reports,brochures,ads,press releases, business documents e.g. invoice

Telephone, meetings, exhibitions, video conference, radio tv ads, WOM

Posters, graphs, internet- company website, ads, sponsorship, packaging, merchandising, maps.

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Written Advantages It provides a

permanent record and therefore proof of the communication, NB contracts.

Can be read again if difficult to understand.

E-mail has made this a fast form of communication.

Disadvantages Feedback is slower

than with verbal communication.

There is a risk of information overload.

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Verbal Advantages Instant feedback Problems can be

explained at the time.

Personal. Body language and

emotions can be very telling.

Disadvantages No record May not be

prepared in advance

Receiver may not be listening e.g. in class…

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Visual Useful for analysing

statistics. Much clearer and

easier to understand, especially for numerical information.

Effective way of showing trends.

Usually needs to be accompanied with another form of communication, e.g. a written explanation of a graph.

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Agenda of an AGM of a Private Limited Company: 1. Minutes of the 2011 AGM 2. Matters Arising from the Minutes 3. Chairperson’s Report 4. Auditors report and accounts 5. Declaration of Dividend 6. Appointment of Auditors 7. Election/reappointment of Directors 8. Motions 9. A.O.B.

Written

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Notice to each Board member: A meeting of the Board of Directors of Kilbay Ltd

will take place in the Boardroom on 9th of June 2009 at 7.30 p.m. Agenda: 1. Minutes of the last Board Meeting 2. Matters arising from the minutes 3. Effects of economic downturn on Kilbay Ltd 4. Possible introduction of a three-day week 5. Future sources of finance for the company 6. A.O.B.

Written

Agenda is a summary list of all the items to be dealt with at the

meeting

A Notice is a document setting out the date, time and venue of the

meeting

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Minutes of the AGM of Seaview Club 1. Minutes of the last AGM were read, approved and

signed by the chairperson. 2. There were no matters arising from the minutes. 3. The Chairperson presented his report. 4. The Auditors presented his report. 5. A dividend of 10% was proposed and approved by the

shareholders. 6. The Board of Directors were elected for the next year. 7. There was no A.O.B. Signed: J. Thomas

Club Chairperson

Written

Minutes are a summarised written

record of what happened at the

meeting

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MEMO To: Mary O’Brien, Managing Director Subject: Sales Promotion Incentives From: Peter Murphy, Marketing Manager Date: 9th June 2009 Sales promotion incentives are short term

marketing techniques designed to increase sales of a product, e.g. Buy one get one free and a loyalty card scheme.

Signature: Peter Murphy, Marketing Manager

Written

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Church View, Navan, Co. Meath.

9th June 2009

Miss Kate Quinn, 47. Quay Lane, Dun Laoghaire, Co. Dublin.

Dear Kate, Re: Insurance Query

In response to your query, concerning the two main types of car insurance cover, the following is my advice:

Third Party Insurance provides compensation to people injured while in or by your car and to the owners of property damaged by your car, but it does not compensate for any damage to your car.

Comprehensive Insurance provides compensation to all parties injured by your car and also compensation for any damage to your car. Due to the extra benefit provided by comprehensive, the

premium will be higher but may be worth it, since it’s your first car.

I hope this is of some help to you and feel free to contact me any time.

Yours sincerely, Michelle Hughes Insurance Consultant

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Reports: a written document in which one person sets out the findings of her investigation into a certain issue.

Objectives 1. To give information. 2. To investigate an incident. 3. To come up with solutions to a problem. 4. To investigate the impact of decisions. 5. To convince the reader to take a particular

course of action.

Written

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Layout of a report Title: sets out objectives, the names of the people who

commissioned and who wrote the report. Table of Contents Executive Summary: major findings and conclusions. Terms of Reference: issues asked to investigate,

instructions given. Findings/Main Body of the report: sets out the facts and

information collected and analysed and interpreted. Conclusions & Recommendations: lessons to be learned

and what should be done in the future. Appendices: extra information such as relevant statistics

used in the report. Bibliography: list of sources used to write the report.

Written

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Written Evaluate reports as a form of

communication: Advantages: 1. Can gather together all

relevant information on an issue.

2. Can provide detailed research, information and analysis.

3. Help managers to make informed decisions.

4. Can be compiled by outside experts leaving managers more time for more important tasks, also means it is independent and not biased.

Disadvantages: 1. Can discourage

readers if they are too long or badly laid out.

2. Requesting a report can be used as an excuse to postpone dealing with issues involved.

3. Report recommendations can be ignored by the receivers.

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2002: Draft a Report to the Managing Director about the four main barriers to effective communication

Title: Report to the Managing Director of A and B Ltd. on effective communications in the business.

Name: Prepared by J. Burke. Management Consultant. Terms of Reference: To explain the main barriers to

effective communications in the business The Executive Summary: For communications to be effective and successful

there must be no barriers to the process. Unfortunately, both people and situations cause some barriers to be built up.

Written

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Body of the Report/Findings: Effective Communication: A and B Limited

must have a plan to overcome the following barriers to effective communications:

Outline the main barriers… Conclusion & Recommendations: Write

a sentence or two to wrap it up. Appendices. Bibliography/Reference

Written

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Sales1st Qtr2nd Qtr3rd Qtr4th Qtr

Visual

Pie Charts compare different categories, and are a good way of showing fractions and percentages.

Catego

ry 1

Catego

ry 3

0246

Series 1Series 2Series 3

Bar Charts are useful for showing the relative sizes of

whatever is being measure.

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Catego

ry 1

Catego

ry 2

Catego

ry 3

Catego

ry 4

0246

Series 1Series 2Series 3

Visual

A line/trend graph is used to show how the value of an item can change over

time.

A pictogram is a good way of showing relative

sizes of the items in question.

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Distinguish between two types of meeting which are common in a business.

- AGM (Annual General Meeting). This is a meeting of the shareholders of a company. It is held once a year. At the AGM, shareholders can ask the directors questions, the chairperson gives an address, directors are elected, auditors are appointed and accounts are presented.

- EGM (Extraordinary General Meeting). This occurs when a matter of such importance arises that the business cannot wait until the next AGM to discuss the issue.

- Board Meeting. These are regular meetings held by the board of directors of the company. Tactical planning, strategic planning and review of company performance are often on the agenda of a board meeting.

- Management/executive meetings/ad hoc. Meeting held by various managers in the business to deal with operational issues/immediate problems.

Meetings

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Benefits of Meetings 1. Meetings allow discussions to take place on different proposals

which in turn allow for good, effective decision-making/ co-ordination of the work of various departments.

2. Meetings allow information to be disseminated to the various stakeholders in the company, e.g. a meeting of management and the employees of the firm regarding industrial relations issues.

3. Meetings are creative forums, e.g. a brainstorming session during the idea generation stage of the product development process.

4. Meetings are appropriate when sensitive or confidential issues are being discussed e.g. redundancy, dismissal of staff and business contraction/expansion.

5. Meeting allow for feedback to be given and received. 6. A written record (i.e. minutes) of decisions can be made for future

reference

Meetings

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State the advantages of meetings as a method of communication.

• They allow people to exchange ideas and information

• They allow decisions to be made by voting on proposals

• Problems can be discussed and solutions put forward

• People can report findings, etc. to other participants

• Face-to-face communication / less misunderstanding and conflict.

Meetings

Less formal language used here, suitable for outlining or

OL

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Disadvantages of meetings Cost: Time involved can make them more

costly than just exchanging information by e-mail.

Record: If minutes are not kept, then it can be easy to forget details.

Clarity: Complex and detailed information can be difficult to transmit verbally.

Accuracy: it can be easy to misunderstand something spoken if it is not clear.

Verbal - Meetings

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Outline the duties of a Chairperson at a meeting.

• Ensure that there is a quorum, open the meeting and run it in an orderly manner

• Ensure that the agenda is followed / ensure compliance with standing orders

• Make sure that everybody gets a chance to participate and air their views

• Ensure that any voting is carried out according to standing orders.

• Chairperson may have casting vote in the event of a tie.

Meetings

A quorum is the minimum no. of

people that must be present at a

meeting

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Outline the duties of a Secretary at a meeting.

• Ensure that all entitled to attend have received the Notice and Agenda in advance

• Ensure all facilities are arranged and all necessary documentation is available

• Read the minutes of the last meeting • Read out any correspondence • Take notes of discussions and decisions

made in order to write the minutes.

Meetings

Ms. Marshall

ICT How can ICT help business

communications? ICT refers to the use of

computers, telecommunications and electronics to gather, store, process and distribute information.

The Internet: is an international network of computers connected through the telephone network. It can be used to transmit and receive data and information globally at a low cost. It allows companies to display websites for communicating information with customers and other stakeholders.

E-mail: allows documents and audio-visual files to be sent instantly at practically no cost.

Intranet are networks of computers within a business. They allow employees to send files to each other over the computer network, speeding up communications.

Electronic Data Interchange (EDI) is an automated stock ordering system that allows orders to be placed automatically from a computer in one business to a computer in another business, using the internet.

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Benefits of EDI Speeds up stock ordering and reduces

human error. Reduces costs by eliminating much of the

paperwork and stock management costs. Improves cash flow as invoices are sent out

accurately and on time. Increases customer satisfaction and

improves sales as the firm secures regular stock delivery.

ICT

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Video-conferencing: is a type of virtual meeting where participants can see and hear each other through the use of video cameras, telephone links and monitors. Therefore people can meet even when in different countries. This reduces travel costs and saves time for managers.

Software Applications: word-processing software allows for professional documents to be written up easily and at low cost. Database software stores a huge amount of customer details allowing for more targeted marketing. Spreadsheets allow users to do complicated mathematical calculations and display the results in graphs.

ICT

Ms. Marshall

ICT Benefits of ICT Faster Communication Advertising to a global

audience becomes easier

Stakeholders relations are enhanced

Reduced marketing costs

Reduced travel costs Staff motivation can be

increased.

Risks of ICT Information

security: vulnerable to viruses, hackers.

E-crime: credit card fraud, phishers.

Business disruption: if internet is down!

Can be expensive: initial capital investment + ongoing maintenance.

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ICT Problems of e-mail Technology availability Data security Business contracts Audit trail Authenticity Negligence - liability Incorrect address or data Viruses

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Factors to consider when choosing a method of communication: Cost: generally businesses aim to minimise costs, e.g. sending

an email instead of a letter. Urgency: if the message is urgent then you need to use the

quickest method available, e.g. telephone Confidentiality: if the message is private then you must make

sure another person cannot access it, e.g. a face to face conversation instead of a note on their desk.

Nature of the message: if the contents are very detailed a letter might be appropriate. If the news is distressing a face to face conversation or a telephone call may be appropriate.

Legal Requirements: some messages are required by law to be a certain format, e.g. a contract for buying a house must be written.

Choosing a Method of Communication

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technical jargon

noise

lack of feedback

timing

relationships wrong method

not listeningLanguage

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For communications to be effective and successful there must be no barriers to the process.

Unfortunately, both people and situations cause some barriers to be built up.

An organisation needs to be aware of common barriers to effective communications:


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Language If the language is too technical or too difficult for the

audience to understand then the message may be misinterpreted.

Need to choose language appropriate to the audience. Short clear sentences, visual supports etc.

Wrong Medium The medium chosen must be appropriate to the message

been given. A letter would be more appropriate than an e-mail if terminating employment. ‘Texting’ may be inappropriate for formal communications/medium chosen might be too slow for any action to occur. Using e media when personal communication is the most appropriate.


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Not Listening : If the intended recipient is not listening when a verbal message is being communicated the information will not be received correctly.

Synopsise, Summarise, Review, and Repeat the message.

Timing (Wrong timing/inadequate amount of time) : Communications takes place with a purpose in mind. If the message is sent too late the recipient may not be able to act on the information.


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Plan the process. Enough time must be given to read/listen, understand, and respond to the

message. Reduce speed in the interest of understanding.

No Feedback The sender may be looking for feedback in order to

take further action, e.g. the sales manager may require information from the production manager before taking an order from a customer. Build in a feedback mechanism into the process e.g. a specific time slot for feedback /questionnaire etc.


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Relationships between people/Credibility Trust

A lack of trust between the parties acts as a barrier to effective communication.

Build long term ethical relationships to ensure a trusting relationship exists.

Use communications training to overcome all the barriers.

Information Overload. Too much information given / Main points may be lost. Reduce the volume of information so that issues can be dealt with effectively.


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The Rights of Data Subjects Right of Access – person has right to receive copy of data

held electronically relating to him/her, within 40 days of lodging a written request

Right of Correction – person has right to correction of errors/inaccurate information.

Right to Compensation – person has entitlement to be compensated for loss as a result of inaccurate information held.

The person also has the right to complain to the Data Protection Commissioner where a data controller is suspected to be in breach of the act.

Right of Removal- person has the right to have their name removed from direct marketing lists.

Data Protection Act 1988/2003

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The Obligations of Data Controllers To keep the data secure – data must be protected

against unauthorised access. To update the information – data should be accurate

and updated periodically To use the data for the purpose intended- information

should only be used for the specific purpose provided To obtain the information fairly and openly. To keep a register of data kept. To provide a copy of data held electronically within 40

days of receiving a written request from a person


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The Data Protection Commissioner is responsible for ensuring that the Data Protection Acts 1988 & 2003 are obeyed.

Duties: Providing information to the public about the Acts. Helping businesses develop codes of practice to keep

within the law. Investigating complaints from the public about

businesses that may be breaking the law. Maintaining a register of all organisations such as banks,

market researchers and debt collection firms that may hold sensitive information about members of the public.


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Recent Exam Questions 2012 Q4 (A) Illustrate the factors that a business needs to

consider when communicating with its various stakeholders. (20 marks.)

(b) Distinguish between the duties of a chairperson and a secretary in the organising and running of an Annual General Meeting (20 marks).

2011 SQ (10 marks) (a) Distinguish between two types of meetings

which are common in a business. (b) Outline two benefits of meetings as a method of communication.

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Recent Exam Questions 2009 Q4 C “There is often a legal requirement for

members of the public to hand over their personal information to public bodies”. Discuss the provisions of the Data Protection Act 1988 in relation to:

(i) the Rights of the Data Subjects (ii) The Obligations of Data Controllers

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Recent Exam Questions 2009 Q6 (A) Illustrate how the following developments

in ICT have impacted on business: (i) Electronic Data Interchange (ii) The Internet and the World Wide Web (iii) Video Conferencing 2008 SQ 10 marks Draft a typical agenda of a Private

Limited Company (5 items).

Recent Exam Questions2008 Q4 (B)Describe the barriers to effective communication in a business enterprise and suggest methods a business might consider to overcome two of these barriers. (25 marks).2007 Q4 (B) Discuss the importance of good communication between the levels of an organisation. (20 marks).(c) The Data Protection Act 1988 sets out the following:(i) The Rights of Data Subjects(ii) (ii) The obligations of Data Controllers and(iii) (iii) The functions of the Data Protection Commissioner.Explain any two of the above. (25 marks).2005 SQ 10 marksOutline three problems with email.

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Recent Exam Questions 2005 Q4 (A) Assume you are the secretary of a local

youth club. Draft the notice and agenda to be posted to all members of the youth club notifying tem of the AGM. The agenda must contain 5 items (10 marks).

Explain the factors that ensure managers communicate effectively. Use examples where appropriate. (25 marks).

Documents

Chapter Seven - Communications