Topic: Internal and External Communication

Learning Objectives:

 To understand why effective communication is important to business

 To explain the advantages and disadvantages of different communication
methods
 To examine why barriers to communication exist and how they can be
reduced

Key words: Effective Communication. Sender, receiver, message, feedback

COMMUNICATION
Communication occurs when a message is transferred from one person to
another, who understands the content of the message. It is a process by which
information or instruction is exchanged between one group and person to another.

Effective communication means that the information or message being sent is

received, understood and acted upon in the way intended.

• Effective communication should be:

o Clear and unambiguous
o Appropriate to the context and to the sender
o Sent to the correct receiver in an accessible format
o Timely and contain only the required amount of detail

• Effective communication is important to any business as it affects many key

stakeholders including employees, managers, suppliers and customers.
• Overall, effective communication helps a business meet its objectives by making
it
easier to control and coordinate business activity

As poor communication leads to higher costs, demotivated workers and a lack of

cooperation, it is essential businesses establish effective communication channels.
Effective Communication
Effective communication brings a number of benefits to businesses including:

o Reducing the risk of mistakes

o Enabling faster decision-making
o Enabling quicker responses to market changes
o Improving coordination between departments
o Improving the morale and motivation of the workforce
o Improving customer relationships

METHODS OF COMMUNICATION

Verbal (or Spoken) Communication:

Written Communication
Visual Communication

Non-Verbal Communication:
body language, gestures, how we dress or act - even our scent.

Class activity 1:
Write down 10 method of communication that can be used by a business.
You can do this in a group of 2 or alone.

Verbal communication
(face-to-face, telephone, radio or television and other media)

Pros:
o Fast - It saves time in communication
o Opportunity for receiver to reply
o Quick in obtaining feedback once the message is delivered
 o It is flexible and effective for all
o It is cheaper way of communication and hence saves money

Cons:
o Emotions are visible and hence leads to trouble in certain cases
o No permanent record of the discussion
o No legal validity — cannot be proved
o Difficult for certain people to understand speech

Written communication (Letters, e-mails, books, magazines, the Internet or via other media)

Pros
o Permanent record of message
o May be required by law (e.g. legal information or safety notices)
o Can be easily sent to many people (e.g. emails to all employees)
o Easy presentation of complex matter
o Use as a reference

Cons
o Readers may find long letters boring and hard to read
o No feedback from receiver unless they reply
o No body language
o Lack of understanding due to complex words (jargons used)

Visual Communication
(Diagrams, videos, graphs and charts, maps, logos and other visualizations can communicate
messages)

Pros:
o Interesting - Readers may pay more attention to posters / videos than boring
letters
o Information can be clearer than other methods - Video instructions can be
clearer than letter instructions
o Simple and easy to understand

Cons:
o No feedback
 o Some people may find graphs/charts difficult to read
o Costly

FACTORS THAT AFFECT THE CHOICE OF AN APPROPRIATE

COMMUNICATION METHOD
 Speed: if the receiver has to get the information quickly, then a telephone
call or text message has to be sent. If speed isn't important, a letter or e-mail
will be more appropriate.

 Cost: if the company wishes to keep costs down, it may choose to use letters
or face-to-face meetings as a medium of communication. Otherwise,
telephone, posters etc. will be used.

 Message details: if the message is very detailed, then written and visual
methods will be used.

 Leadership style: a democratic style would use two-way communication

methods such as verbal mediums. An autocratic one would use notices and
announcements.

 The receiver: if there is only receiver, then a personal face-to-face or

telephone call will be more apt. If all the staff is to be sent a message, a
notice or e-mail will be sent.

 Importance of a written record: if the message is one that needs to have

a written record like a legal document or receipts of new customer orders,
then written methods will be used.

 Importance of feedback: if feedback is important, like for a quick query,

then a direct verbal or written method will have to be used.

METHODS OF COMMUNICATION
Communication is done in the following ways:
 Internal or External
 Formal or informal
 One way or two ways

INTERNAL COMMUNICATION
Communication from and to people within the business/organisation.

Examples:
o Employees talking to each other.
o Director sending an email to employees,
o Noticeboard in the office

Poor internal communication results in:

o Workers don't understand what they have to do
o Poor motivation
o Wastage (For instance, 2 employees performed the wrong task due wrong
instructions)
EXTERNAL COMMUNICATION
Communication from people inside the business to people outside the business.

Example:
o Employees talking to customers
o Ordering materials from suppliers
o Advertisements

Poor external communication results in:

o Unhappy customers — few sales
o Bad business reputation
o Problems with suppliers/customers due to incorrect information e.g. wrong
supplies
o Problems with suppliers/customers due to incorrect information e.g. wrong
supplies being delivered or incorrect amount of money paid to the suppliers

Formal and Informal

FORMAL COMMUNICATION
This is the recognised and approved way of communication by most businesses.
 Formal emails,
 Official meetings,
 Legal & Commercial Notices,
 Reports,
 Public Speaking.

INFORMAL COMMUNICATION
 Information is sent and received casually,
 Informal means that the communication is relaxed,
 Employees talking during lunch break,
 Conversations with employees,
 Sending a friendly email to colleagues.

One way communication - Communication that does not allow for a response

Two-way communication — Communication where the receiver sends feedback

to the sender about the topic.
 Advantages of two way communications
o Receiver can tell the sender that they have understood the
information/instruction.
o Chance to ask for more information.
o Allows the receiver to contribute ideas.

DIRECTION OF COMMUNICATION
o Downward communication: when messages are sent from the manager to the
subordinates. Can be used for instructions or statements on important
business decisions. It does not allow feedbacks. If these messages have to be
passed through many levels of hierarchy then the original meaning of the
message can be distorted.

o Upward communication: when a message or feedback is passed from

subordinate to managers allowing effective commutation and discussion to take
place as workers also have much to offer to the business.

o Horizontal communication: when people at the same level in an organization

communicate with each other. Information and ideas can be exchanged at both
formal and informal meetings. Can be a cause of conflict between departments.

COMMUNICATION BARRIERS

Communication barriers are factors that stop effective communication of messages.

Barrier Description How the barrier can be overcome

Problems Language which is too difficult is used. The sender should ensure that the message
with the 'Jargon' or technical terms used may not uses language which is understandable.
sender be understood by the receiver. Use of jargon or terms which are too technical
should be avoided.
 The sender uses verbal means of The sender should make the message as
communication but speaks too quickly or clear as possible. Feedback should be asked
not clearly enough for to ensure the message is being
understood.

The sender communicates the wrong The sender must make sure that the right
message or passes it to the wrong person is receiving the right message
receiver.

The message is too long and too much The message should be as brief as possible to
detail prevents the main points being allow the main points to be understood.
understood. This is again, the fault of the
sender.
Problems The message may be lost so the receiver It is important to insist on feedback. If no
with the does not see it. feedback is received.
medium
The wrong channel has been used, e.g. an The sender must select the appropriate
important message was put on the channel for each message sent.
noticeboard which most people not read.

If the message is sent down a long chain of The shortest possible channel should be used
command, the original meaning of the to avoid this problem.
message may be lost. It could become
distorted.

No feedback is received This could be because, e.g. a letter was sent

to workers asking for their opinions. A
meeting would have been more useful.

Breakdown of the medium, e.g. computer Other forms of communication would, where
failure or postal strike possible, be made available.
Problem They might not be listening or paying The importance of the message should be
with the attention. emphasized. The receivers should be asked
receiver for feedback to ensure understanding.

The receiver may not like or trust the There should be trust between both the
sender. They may be unwilling to act upon sender and the receiver, or effective
his or her message. communication is unlikely. Perhaps another
sender should be used who is respected by
the receiver.

Problems There is no feedback. Perhaps no feedback was asked for. Perhaps

with the method of communication used did not
feedback allow for feedback.
It is received too slowly or is distorted. As Direct lines of communication between
with the original message, perhaps the subordinates and managers must be
feedback is passing through too many available. Direct communication is always
people before being received by the more effective.
original sender of the message.

KEY TERMS
Communication is the transferring of a message from the sender to the receiver,
who understands the message.
Message is the information or instructions being passed by the sender to the
receiver.
Internal communication is between members of the same organisation.
External communication is between the organisation and other organisations or
individuals.
Transmitter or sender of the message is the person starting off the process by
sending the message.
Medium of communication is the method used to send a message, for example,
a letter is a method of written communication and a meeting is a method of verbal
communication.
Receiver is the person who receives the message.
Feedback is the reply from the receiver which shows whether the message has
arrived, been understood and, if necessary, acted upon.
One-way communication involves a message which does not call for or require a
response.
Two-way communication is when the receiver gives a response to the message
and there is a discussion about it.
Formal communication is when messages are sent through established channels
using professional language.
Informal communication is when information is sent and received casually using
everyday language.
Communication barriers are factors that stop effective communication of
messages.

Practice questions

1. Manuel is HR Manager for a large bank. His responsibilities include internal

communication with individual workers and groups of workers. Sometimes he
 wants to send a message to all 15 000 workers employed by the bank. Some
workers complain that unless they spend time reading notices or email
messages they fail to receive important information.

a. Define 'internal communication'.

[2]
b. Identify two benefits to the bank of effective internal communication. [2]
c. Outline two possible barriers to communication within the bank. [4]
d. Explain two ways in which Manuel could communicate with individual
workers about their pay and working conditions. [6]
e. Do you think that electronic forms of communication are always the best
ones to use when communicating with large numbers of workers?
Justify your answer. [6]