situations in which communication is essential

7.2 Business Communication – Purposes of Communication

Objective

Identify and analyse the situations in which communication is essential for the effective operation of a business, linking each situation to the relevant purpose, method, channel, stakeholder group and possible barriers.

Why Communication Is Essential

• Ensures information is shared accurately and promptly.
• Facilitates coordination of activities across departments and external partners.
• Supports decision‑making by providing relevant data and feedback.
• Builds and maintains relationships with internal and external stakeholders.
• Enables implementation, monitoring and control of strategies, policies and legal requirements.

7.2.1 Purposes of Communication

Cambridge expects the following purposes to be identified and analysed. Each purpose is illustrated with a typical business situation and the principal stakeholder(s) involved.

7.2.2 Methods of Communication

Methods describe the *type* of media used to convey a message. The four standard methods are:

7.2.3 Channels of Communication

Channels describe the *direction* or *path* a message takes through the organisation.

• Vertical – between different hierarchical levels
  • Downward: policies, instructions, performance targets (e.g., memo from senior manager to staff).
  • Upward: reports, suggestions, risk alerts (e.g., sales forecast submitted by a team leader to senior management).
• Horizontal (Lateral) – between peers or departments at the same level (e.g., coordination meeting between marketing and production).
• One‑way – sender transmits information without expecting an immediate response (e.g., company newsletter, press release).
• Two‑way – interactive exchange allowing feedback (e.g., team briefing followed by Q&A, online forum discussion).
• Formal vs. Informal
  • Formal channels: official letters, intranet announcements, board minutes.
  • Informal channels: water‑cooler talk, instant‑messaging groups, social media chats.

7.2.4 Barriers to Effective Communication & How to Overcome Them

Common barriers

• Language & terminology differences
• Physical noise or technical glitches
• Cultural misunderstandings
• Information overload or ambiguous messages
• Emotional states (stress, distrust)
• Hierarchical distance – fear of speaking up
• Technological barriers (poor internet, incompatible software)
• Information security & privacy concerns (unauthorised access, data‑protection regulations)

Mitigation strategies

• Use plain language; define specialised terms; provide glossaries where needed.
• Choose the most appropriate medium (e.g., face‑to‑face for sensitive topics, written for legal matters).
• Offer cultural awareness training and use inclusive examples.
• Keep messages concise; structure with headings, bullet points, and visual aids.
• Encourage an open climate – managers should actively solicit feedback and acknowledge concerns.
• Establish clear escalation protocols so junior staff feel safe raising issues.
• Maintain up‑to‑date IT infrastructure; provide training on required software.
• Implement security measures (passwords, encryption) and communicate data‑privacy policies clearly.

7.2.5 Role of Management in Facilitating Communication

Managers are responsible for creating an environment where communication supports business objectives.

• Select the most suitable method and channel for each purpose.
• Establish and enforce clear communication policies and protocols (e.g., escalation routes, record‑keeping standards).
• Build two‑way feedback loops into meetings, reports and electronic platforms.
• Model effective communication – clear, concise, respectful language; use appropriate non‑verbal cues.
• Monitor the effectiveness of channels (e.g., intranet usage analytics, email open rates) and adjust where necessary.
• Identify and remove barriers – provide training, update technology, revise procedures, and address cultural issues.
• Evaluate communication effectiveness through surveys, performance data, stakeholder feedback and audit results.

Key Situations Requiring Effective Communication (Expanded)

1. Strategic Planning & Goal Setting
   • Purpose: Clarify objectives, facilitate decision‑making, build commitment.
   • Method: Written (strategy document) + spoken (presentation with visual aids).
   • Channel: Downward & two‑way (town‑hall with Q&A).
   • Stakeholders: Senior management, department heads, all staff.
2. Operational Coordination
   • Purpose: Coordinate daily operations, monitor performance.
   • Method: Electronic (ERP alerts), spoken (shift briefings).
   • Channel: Horizontal & vertical, two‑way.
   • Stakeholders: Operations managers, shop‑floor staff, suppliers.
3. Human Resource Management
   • Purpose: Motivate & develop employees, communicate policies.
   • Method: Written (policy handbook), spoken (training), visual (e‑learning videos).
   • Channel: Downward (policy), two‑way (appraisals), informal (team chats).
   • Stakeholders: HR team, line managers, employees.
4. Marketing & Sales
   • Purpose: Promote products, gather market feedback.
   • Method: Visual (advertisements), electronic (social media), spoken (sales pitch).
   • Channel: One‑way (ads) & two‑way (customer service, online reviews).
   • Stakeholders: Marketing, sales team, current & potential customers.
5. Financial Management
   • Purpose: Report performance, support decision‑making.
   • Method: Written (annual report), electronic (online dashboards).
   • Channel: Downward (shareholder letters) & two‑way (budget meetings).
   • Stakeholders: Finance department, shareholders, lenders, regulators.
6. Crisis Management
   • Purpose: Rapidly disseminate accurate information, protect reputation.
   • Method: Spoken (press conference), written (press release), electronic (website alerts, social media).
   • Channel: One‑way (public statements) & two‑way (customer enquiries, internal briefings).
   • Stakeholders: PR team, legal advisors, customers, regulators, employees.
7. Innovation & Change Management
   • Purpose: Explain rationale for change, encourage ideas, reduce resistance.
   • Method: Spoken (town‑hall), visual (process maps), electronic (intranet forums).
   • Channel: Horizontal & two‑way; formal (policy rollout) + informal (idea‑sharing platforms).
   • Stakeholders: R&D, cross‑functional teams, external partners, all staff.
8. Performance Monitoring & Evaluation
   • Purpose: Track progress against targets, provide feedback.
   • Method: Visual (dashboards), written (performance reports).
   • Channel: Downward (reports) & two‑way (review meetings, feedback surveys).
   • Stakeholders: Managers, employees, auditors.
9. Compliance & Legal Reporting
   • Purpose: Meet statutory obligations, demonstrate good governance.
   • Method: Written (regulatory filings), electronic (compliance portals), spoken (briefings).
   • Channel: Downward (policy updates) & upward (incident reports).
   • Stakeholders: Compliance officer, legal team, regulators, senior management.
10. Knowledge Sharing & Organisational Learning
    • Purpose: Disseminate best practices, foster continuous improvement.
    • Method: Electronic (internal webinars, forums), visual (infographics), spoken (workshops).
    • Channel: Horizontal & two‑way; informal networks (communities of practice) complement formal channels.
    • Stakeholders: All staff, R&D, external experts.

Summary Table – Purpose vs. Situation (with Stakeholders)