how communication works within a business

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7.2 Business Communication – Channels of Communication

Objective

To understand how communication works within a business, to identify the purposes of communication, and to evaluate the effectiveness of different communication methods and channels.

Key Concepts

  • Definition of communication
  • Formal vs informal communication
  • One‑way and two‑way communication
  • Vertical, horizontal and diagonal communication
  • Downward, upward and lateral channels
  • Barriers to effective communication
  • Feedback and the importance of two‑way interaction
  • Management’s role in facilitating communication

7.2.1 Purposes of Communication

Communication is essential in a business because it enables the following functions. Each purpose supports specific business objectives and stakeholder outcomes.

Purpose Why it matters for the business Typical example
Transmitting information Ensures all parties have the same factual base – vital for compliance, safety and quality. Policy manual, health‑and‑safety notice
Co‑ordinating activity Aligns tasks across departments, keeping production schedules, marketing campaigns and supply‑chain flows on track. Weekly production‑planning meeting
Motivating staff Boosts morale and productivity, reducing turnover and improving service quality. Recognition awards, vision statement briefing
Building relationships Strengthens links with customers, suppliers and internal teams, fostering loyalty and smoother negotiation. Supplier partnership lunch, team‑building workshop
Supporting decision‑making Provides the data and insights managers need to choose the best strategic and operational options. Market‑research report, financial performance dashboard
Facilitating control and monitoring Allows managers to track progress, identify problems early and enforce standards. Progress report, audit checklist

7.2.2 Methods of Communication

Cambridge lists four standard methods. They are presented here in the order required by the syllabus, followed by an optional “Emerging/optional methods” row that reflects current practice.

Method (Syllabus order) Typical Uses Strengths (Why choose it?) Weaknesses (Limitations)
Spoken (Oral) – face‑to‑face, telephone, video call Meetings, briefings, negotiations, informal updates Immediate feedback; personal touch; rapid clarification; good for relationship‑building No permanent record; can be mis‑heard; affected by noise or language barriers
Written – letters, memos, reports, policies, minutes Formal instructions, record‑keeping, contracts, detailed explanations Permanent record; precise language; suitable for complex information; can be reviewed Time‑consuming to produce; tone may be unclear; slower to reach the receiver
Electronic – email, intranet, instant messaging, video‑conferencing Rapid distribution, collaboration across sites, sharing documents Fast, cost‑effective; searchable archives; reaches large audiences; supports multimedia Information overload; security/confidentiality risks; depends on reliable technology
Visual – charts, diagrams, slides, infographics, video Explaining complex data, training, marketing presentations Enhances understanding; memorable; useful for large groups Requires design skill; may oversimplify; not suitable for detailed textual information
Emerging/optional methods – social‑media & collaborative platforms (WhatsApp, Teams, Slack, internal social networks) Quick informal updates, project‑team coordination, knowledge sharing Instantaneous; encourages informal dialogue; integrates with other tools Blurred work/personal boundaries; risk of distraction; security concerns

7.2.3 Channels of Communication

Channels describe the direction and flow of messages within an organisation.

  • One‑way communication – sender transmits a message without expecting an immediate response (e.g., a policy memo).
  • Two‑way communication – sender and receiver exchange feedback (e.g., a team meeting).

Direction of Flow

Channel Direction (Syllabus terminology) Typical Example
Downward Vertical – senior → junior CEO’s email outlining new strategic objectives
Upward Vertical – junior → senior Staff suggestion form on improving workplace safety
Lateral (Horizontal) Horizontal – peer ↔ peer or department ↔ department (same level) Marketing and production teams sharing schedule via intranet forum
Diagonal Different levels & different functions (mix of vertical & horizontal) Project manager (mid‑level) consulting a senior engineer on a design issue

7.2.4 Barriers to Effective Communication

Each barrier type is paired with a practical mitigation tip.

Barrier Typical Cause Mitigation Tip
Physical Distance, noisy environment, inadequate facilities Provide quiet rooms, good lighting and reliable equipment; use video‑conferencing for remote sites
Psychological Attitudes, stress, perception differences Encourage an open culture, train staff in active listening, allow time for questions
Semantic Jargon, language or cultural differences Use plain language, include glossaries, offer translations where needed
Organisational Rigid hierarchy, unclear lines of authority Publish clear organograms, define reporting lines, empower middle managers to relay messages
Technological Outdated equipment, lack of digital skills Invest in up‑to‑date hardware/software and provide regular ICT training

7.2.5 Management’s Role in Facilitating Communication

Effective communication does not happen by itself; managers must actively create an environment where information flows freely.

  • Encourage informal networks – recognise the value of “water‑cooler” chats, cross‑departmental socials and internal social platforms.
  • Model two‑way communication – demonstrate active listening, ask for feedback and respond promptly.
  • Provide clear channels – set up standard procedures (e.g., when to use email vs. meeting) and ensure everyone knows them.
  • Monitor and review – use surveys or feedback forms to assess whether messages are understood and adjust channels as required.
  • Train and support – offer communication skills workshops, language support and ICT training.

7.2.6 Evaluating Communication Channels

When selecting a channel, ask the following questions.

Criterion Key Question(s)
Speed How quickly must the message reach the receiver?
Complexity Does the message contain technical or detailed information?
Record‑keeping Is a permanent, searchable record required?
Formality Is the message formal or informal?
Audience size How many people need to receive the message?
Confidentiality Does the information need protection from unauthorised access?
Feedback requirement Is immediate two‑way interaction essential?

Case Study: Launch of a New Product – Company XYZ

  1. Downward – electronic (fast, formal, record‑keeping): The CEO emails all managers the launch objectives and timeline.
  2. Downward – spoken (two‑way, immediate feedback): Managers hold team meetings to explain individual roles and answer questions.
  3. Upward – written (record‑keeping, encourages participation): Staff complete a feedback form on potential production issues; forms are archived for later analysis.
  4. Diagonal – electronic (collaborative, cross‑functional): A project team uses an intranet forum and video‑conferencing to coordinate marketing, design and production.
  5. Lateral – visual (clarifies complex data): Marketing presents sales forecasts with infographics in a shared slide deck.
  6. Failure example – Over‑reliance on email (one‑way, information overload): The technical team receives a lengthy specification email without a follow‑up meeting. Important design changes are missed, causing a two‑week delay. The lesson: for complex, high‑risk information a two‑way spoken or video channel is needed.

This mix of methods and channels demonstrates how speed, formality, record‑keeping, audience size and feedback needs are balanced, and how a poor channel choice can jeopardise a project.

Summary Checklist

  • Identify the purpose of the message (inform, coordinate, motivate, etc.).
  • Choose the most appropriate method (spoken, written, electronic, visual) and, if relevant, an emerging tool.
  • Decide the direction of flow (downward, upward, horizontal, diagonal) and whether the interaction should be one‑way or two‑way.
  • Check the evaluation criteria (speed, complexity, record‑keeping, formality, audience size, confidentiality, feedback).
  • Anticipate possible barriers and apply the mitigation tip for each.
  • Ensure a feedback mechanism is built in to make communication two‑way.
  • After delivery, review effectiveness (was the message understood? Were objectives met?) and note improvements for future communication.
Suggested diagram: Flow chart showing downward, upward, lateral and diagonal communication pathways within an organisational hierarchy, highlighting one‑way and two‑way loops.

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