Cambridge Syllabus Notes

2.4 Communication in Business

Objective

To understand why effective communication is vital for businesses, to become familiar with the main internal and external communication methods (including IT), to learn how to justify the choice of a method, and to identify and overcome common communication barriers.

Why Communication Is Important

Effective communication is the lifeblood of any organisation. It enables:

Quick and accurate decision‑making
Co‑ordination of activities across departments and locations
Higher employee morale and motivation
Reduced errors and re‑work
Better customer service and stronger relationships with external stakeholders
Improved productivity and profitability

Methods of Communication (including IT)

Method	Main Use (Internal / External)	Benefits	Limitations
Face‑to‑face meeting	Internal – discuss complex or sensitive issues; build relationships	Immediate feedback, non‑verbal cues, high personal touch	Time‑consuming, limited to participants in the same location
Email	Internal – routine information, documents, confirmations	Fast, written record, can be sent to many recipients	Risk of mis‑interpretation, information overload, spam filters
Telephone / VoIP	Internal – quick queries, urgent matters when face‑to‑face is not possible	Immediate interaction, no travel required	No visual cues, possible network problems, limited documentation
Video‑conferencing (Zoom, Teams, etc.)	Internal – remote meetings, presentations, training	Visual cues plus convenience of remote access; can record sessions	Requires reliable internet; technical glitches may occur
Intranet / Internal social media	Internal – share policies, news, project updates across the whole organisation	Centralised, searchable, promotes collaboration	Needs regular updating; can be ignored if not user‑friendly
Written reports / memos	Internal – detailed analysis, formal recommendations	Comprehensive, archivable, supports accountability	Time‑intensive to produce and read; may be too formal for routine matters
Formal written channels (statutory filings, financial statements)	Internal & External – legal/financial compliance, audit trails	Legally binding, provides transparent record for regulators and shareholders	Highly structured; preparation can be costly and time‑consuming
Press release	External – announce major events, product launches, crises to media	Fast public exposure, controls the message, reaches journalists and investors	Limited detail; may be mis‑quoted; requires media contacts
Corporate website / newsletter	External – provide ongoing information to customers, investors, community	Accessible 24/7, can host rich media, cost‑effective over time	Requires regular maintenance; information may become outdated
Advertising (online, TV, print)	External – promote products/services, build brand awareness	Broad reach, can be highly targeted, measurable impact	Expensive; message may be ignored or mis‑interpreted
Corporate Social Responsibility (CSR) statements	External – demonstrate ethical practice, sustainability, community involvement	Enhances reputation, attracts socially‑conscious stakeholders	Needs genuine action; risk of “green‑washing” accusations
Social media (external)	External – interact with customers, handle enquiries, brand building	Wide reach, real‑time interaction, cost‑effective	Public scrutiny, risk of negative feedback, requires constant monitoring

Choosing the Most Appropriate Method

Evaluation checklist (AO4)

Cost – financial and resource implications
Speed – how quickly the message reaches the audience
Reach – size and geographic spread of the audience
Feedback – ability to obtain and act on responses
Risk of mis‑interpretation
Legal / compliance requirements

Scenario 1 – Health‑and‑Safety Regulation (internal)
Situation: A new health‑and‑safety regulation must be communicated to all factory staff across three sites.

Possible methods:

Face‑to‑face briefings at each site
Email with the full regulation text attached
Video‑conferencing streamed to all sites

Evaluation (using the checklist):

Cost: Travel for briefings is moderate; video‑conference uses existing IT.
Speed: Email is instantaneous; briefings take time.
Reach: All three sites can be reached by any method.
Feedback: Face‑to‑face allows immediate questions; email relies on replies.
Risk of mis‑interpretation: Highest with email alone; lowest with face‑to‑face.
Legal compliance: Written record required – email provides this.

Best choice: A short face‑to‑face briefing at each site **followed by** a written summary emailed to all staff. This combines personal interaction (reducing psychological and language barriers) with a permanent record (meeting legal requirements). The video‑conference can be used as a backup if travel is impractical.

Scenario 2 – Global Product Launch (external)
Situation: A multinational company is launching a new smartphone to customers in Europe, Asia and the Americas simultaneously.

Possible methods (choose two to evaluate):

Press release distributed through news‑wire services
Corporate website landing page with video demo
Social‑media teaser campaign (Twitter, Instagram, TikTok)
Live‑streamed launch event (video‑conference) broadcast worldwide

Evaluation (using the checklist):

Cost: Press release and website are relatively low; live‑stream and high‑production video are higher.
Speed: Social media provides immediate buzz; press release reaches journalists within hours.
Reach: Social media and live‑stream have the widest global reach.
Feedback: Social media enables real‑time comments; press release offers limited direct feedback.
Risk of mis‑interpretation: Highest on social media (short messages); lowest in a well‑prepared press release.
Legal/compliance: Any claims must be supported – press release and website allow detailed, vetted information.

Suggested answer: Use a **press release** for controlled, accurate information that satisfies legal requirements, complemented by a **social‑media teaser** to generate excitement and immediate feedback. The live‑stream can be added if budget permits, offering a high‑impact visual experience.

What Is a Communication Barrier?

A communication barrier arises when any factor prevents the sender’s message from being received, understood, or acted upon by the receiver.

Common Types of Barriers and Their Business‑Performance Impacts

Physical barriers – distance, noise, faulty equipment.
Impact: Delayed information → ↑ lead time, higher inventory holding costs.
Psychological barriers – attitudes, emotions, stress.
Impact: Low morale → ↑ staff turnover, ↓ productivity.
Language barriers – jargon, technical terms, different native languages.
Impact: Misunderstanding of instructions → ↑ re‑work cost, ↓ product quality.
Cultural barriers – values, customs, social norms.
Impact: Inappropriate messaging → ↓ customer satisfaction, potential market loss.
Organisational barriers – hierarchy, unclear structures, poor information flow.
Impact: Slow decision‑making → ↑ opportunity cost, reduced competitiveness.
Personal barriers – lack of confidence, poor listening skills.
Impact: Missed ideas or feedback → ↓ innovation, lower employee engagement.

How to Reduce or Remove Barriers

Barrier Type	Strategies to Reduce / Remove
Physical	Provide quiet work areas, adequate lighting and ventilation. Maintain phones, computers, video‑conferencing tools and other equipment. Use clear signage, colour‑coding and visual aids.
Psychological	Promote a supportive workplace culture and recognise achievements. Offer stress‑management workshops and employee‑assistance programmes. Encourage open feedback, active listening and regular check‑ins.
Language	Use simple, plain language; avoid unnecessary jargon. Provide translations, glossaries or bilingual staff for multilingual teams. Confirm understanding by asking the receiver to paraphrase the message.
Cultural	Offer cultural‑awareness training and celebrate diversity. Respect local customs, holidays and working patterns when scheduling. Adapt tone, formality and communication style to suit the audience.
Organisational	Clarify reporting lines, roles and responsibilities. Use regular briefings, newsletters, intranet updates and dashboards. Implement standard operating procedures for information flow.
Personal	Provide training in listening, presentation and written communication. Encourage confidence‑building activities such as role‑play and public‑speaking clubs. Offer mentoring or coaching for less experienced staff.

Practical Steps for Managers

Conduct a communication audit to identify existing barriers.
Set clear objectives for each communication channel (email, meetings, reports, intranet, social media, etc.).
Choose the most appropriate medium for the message, weighing cost, speed, reach, feedback, risk of mis‑interpretation and any legal requirements.
Provide training and resources to staff on effective communication techniques.
Monitor feedback regularly and adjust strategies as needed.

Suggested Diagram

Suggested diagram: A flowchart of the communication process showing where each type of barrier can occur and the corresponding mitigation actions.

Summary

Communication is essential for smooth business operation, enabling rapid decision‑making, teamwork, and strong customer relationships. Understanding a wide range of internal and external communication methods—and being able to justify the most suitable one for a given situation—helps managers convey messages effectively. When barriers—physical, psychological, language, cultural, organisational or personal—arise, targeted strategies can reduce or remove them, leading to higher morale, fewer errors, measurable improvements in performance (e.g., lower re‑work cost, higher customer satisfaction) and overall better business outcomes.

how communication barriers can be reduced or removed