How Communication Works Within a Business
→ Communication involves sending information from a sender to a receiver.
→ The sender creates and sends a message through a communication channel.
→ The receiver receives and interprets the message.
→ The receiver may then provide feedback to show whether the message has been understood.
Sender → Message → Communication channel → Receiver → Feedback
Example
→ A production manager tells employees that the production target has increased.
→ The manager is the sender.
→ The production target is the message.
→ A staff meeting is the communication channel.
→ Employees are the receivers.
→ Employees ask questions or confirm the new target → feedback.
Effective communication
→ The message should be clear and appropriate for the receiver.
→ The correct communication channel should be selected.
→ The receiver should understand the message.
→ Feedback should be possible where necessary.
Clear message + appropriate channel + understanding + feedback → effective communication
One-Way Communication
→ One-way communication occurs when information is sent from the sender to the receiver without an opportunity for immediate feedback.
Sender → Receiver
Examples
→ Notice on a staff board
→ Poster
→ Recorded announcement
→ Written instruction
→ Advertisement
Advantages
→ Fast → information can be communicated quickly.
→ Efficient → useful when the same information needs to be given to many people.
→ Simple → no discussion is required.
→ Useful for straightforward information where questions are unlikely.
Disadvantages
→ No immediate feedback → the sender may not know whether the message has been understood.
→ Misunderstandings may remain.
→ Less opportunity for employee participation.
→ Not suitable for complex or controversial decisions where discussion is important.
Example:
→ A manager sends an announcement stating that working hours will change.
→ Employees receive the information but have no immediate opportunity to discuss it.
Two-Way Communication
→ Two-way communication allows information to flow between the sender and receiver.
Sender → Receiver → Feedback → Sender
Examples
→ Meetings
→ Interviews
→ Telephone conversations
→ Video conferences
→ Discussions
→ Question-and-answer sessions
Advantages
→ Immediate feedback → misunderstandings can be corrected.
→ Greater employee involvement → employees can contribute ideas.
→ Better understanding → questions can be answered immediately.
→ Useful for decision-making → different viewpoints can be considered.
Disadvantages
→ Takes more time than one-way communication.
→ More expensive if meetings or travel are required.
→ Discussion may delay decisions.
→ Conflict may occur if participants have different opinions.
Example:
→ A manager proposes a new working schedule.
→ Employees ask questions and suggest changes.
→ The manager considers the feedback before making the final decision.
Vertical Communication
→ Vertical communication takes place between different levels of hierarchy.
→ It can flow downwards or upwards.
Downward communication
→ Information flows from senior managers to lower levels.
Senior management → Middle management → Employees
Examples:
→ Instructions
→ Policies
→ Business objectives
→ Performance targets
→ Organisational changes
Upward communication
→ Information flows from lower levels to senior management.
Employees → Managers → Senior management
Examples:
→ Feedback
→ Complaints
→ Suggestions
→ Performance reports
→ Information about operational problems
Problems with vertical communication
→ Messages may become distorted as they pass through several levels.
→ Delays may occur because information must pass through the hierarchy.
→ Employees may be reluctant to communicate problems upwards.
→ Senior managers may receive incomplete information.
→ Too many hierarchical levels can make communication slower.
Tall hierarchy → more communication stages → greater risk of delay/distortion
Horizontal Communication
→ Horizontal communication takes place between people or departments at the same level of hierarchy.
Examples
→ Marketing manager ↔ Sales manager
→ Finance department ↔ Production department
→ Two department managers coordinating a project
→ Employees at the same level sharing information
Advantages
→ Improves coordination between departments.
→ Faster information sharing because fewer hierarchical levels are involved.
→ Supports teamwork.
→ Helps solve problems involving more than one department.
Problems with horizontal communication
→ Departments may have different objectives.
→ Employees may compete for resources.
→ Information may not be shared fully.
→ Departments may blame each other when problems occur.
→ Poor communication can result in duplication of work.
Example:
→ The sales department expects production to increase output immediately.
→ Production believes there is insufficient capacity to do so.
→ Different departmental priorities may create conflict.
Problems Associated with Communication Channels
Distortion
→ Information may change as it passes from one person to another.
Senior manager → middle manager → supervisor → employee
→ Each stage may interpret or communicate the message differently.
Delay
→ Messages passing through several levels may take longer to reach the intended person.
→ This can be particularly damaging when decisions need to be made quickly.
Information overload
→ Employees may receive too many emails, messages, reports and notifications.
→ Important information may be missed.
Filtering
→ Employees or managers may choose which information to pass on.
→ Negative information may sometimes be withheld from senior management.
Lack of feedback
→ One-way channels do not allow immediate clarification.
→ Managers may wrongly assume that employees have understood the message.
Poor choice of channel
→ Using an inappropriate method can reduce the effectiveness of communication.
Example:
→ Giving a complicated procedure only through a short verbal instruction may cause employees to forget important details.
Language and terminology
→ Technical language or complicated terminology may not be understood by all employees.
Geographical barriers
→ Employees working in different locations may find face-to-face communication difficult.
Cultural differences
→ International businesses may experience differences in language, communication styles and cultural expectations.
Technological problems
→ Internet failures, software problems or lack of digital skills can interrupt electronic communication.
Choosing the Appropriate Channel
→ Simple information → one-way communication may be sufficient
→ Complex information → two-way communication may be better
→ Instructions → downward vertical communication
→ Feedback and suggestions → upward vertical communication
→ Department coordination → horizontal communication
→ Important or sensitive decisions → two-way communication is often more appropriate
→ Urgent information → a fast channel such as spoken or electronic communication may be needed
Overall Communication Flow
Sender → message → appropriate channel → receiver → interpretation → feedback
→ If the channel is inappropriate, the message may be delayed, distorted, misunderstood or ignored.
→ Effective businesses therefore choose communication channels according to the purpose, urgency, complexity and people involved.