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uk

Business Communication
BTEC Business

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http://www.bized.co.uk

Importance of Communication
Communication is important
because it is about how
information is sent and received
within firms
The way information is
communicated is often governed
by how firms are structured
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Forms of Business Structure

Entrepreneurial - decisions made
centrally
Pyramid - staff have a role, shared
decision making, specialisation is possible
Matrix - staff with specific skills join
project teams, individuals have
responsibility
Independent - seen in professions where
organisation provides support systems
and little else

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Illustrating Structures 1
The Pyramid
Decisions pass
down formal
channels from
managers to
staff

Traditional
view of
organisations

Information flows
up formal channels
from staff to
management

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Illustrating Structures 2
Key
worker

Entrepreneurial

Most small
businesses have this
structure

Key
worker

Quick to act but

pressure on
decision makers
Decision
maker
Great reliance on
key workers
supporting decision
makers

Key
worker

One or two
people make
decisions

Key
worker

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Illustrating Structures 3
Matrix
Marketing

Production

Finance

Project A
Project teams
created

Staff with
specialist skills

Project B

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Illustrating Structures 4
Independent
Dr A

Not suited to most

businesses due to
lack of control

Dr B

Support systems
to professionals
such as doctors
Dr D

Dr C

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More on Business Structure

Centralisation
Managers keep
control
Decisions are made
in the interests of
the whole business
Costs can be cut by
standardising
purchasing and so on
Strong leadership

Decentralisation
Empowering and
motivating
Freeing up senior
managers time
Better knowledge of
those closer to
customers
Good staff
development
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Channels of Communication
Communication in organisations
follows paths or channels
Communication between managers
and subordinates is known as
vertical communication
This is because the information
flows up or down the hierarchy
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Vertical/Lateral Communication
Organisation chart shows vertical
(black arrows) and lateral (green
arrows)
Board of Directors

Finance

Marketing

Production

Finance
Officers

Marketing
Assistants

Factory
Operatives

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Channels of Communication
Channels between departments or
functions involve lateral communication
As well as formal channels of
communication, information also passes
through an organisation informally
Communication is not complete until
feedback has been received

Copyright 2006 Biz/ed