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Cambridge (CIE) IGCSE Your notes

Business
2.4 Internal & External Communication
Contents
Types of Communication Methods
Communication Barriers

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Types of Communication Methods

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The Importance of Effective Communication
Communication is the successful transfer of messages between sender(s) and receiver(s)
Internal communication is the exchange of message(s) between two or more members of the same
organisation
E.g. Telephone call between a sales manager and a finance team member
External communication is the exchange of message(s) between an organisation and external entities
such as customers, suppliers or investors
E.g. Sending an online order form to a supplier
One-way communication transmits a message which does not require any feedback
E.g. Sign in a supermarket stating 'wet floor' to customers and staff
Two-way communication occurs when the receiver gives a response to the message received
E.g. Email between two members staff discussing the success of a new promotional campaign
Formal communication is channeled through the businesses organisational structure and is likely to
be recorded in some way
E.g Minutes of an appraisal meeting
Informal communication is any communication that takes place outside of the official channels and is
unlikely to be formally recorded
E.g. a short lunchtime conversation about workload with a colleague

Diagram: the process of communication

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A sender passes the information to the receiver using a medium of communication such as email

Effective communication ensures that clear messages are sent, received, understood and acted upon
in the way intended
Effective communication should be
Clear and unambiguous
Appropriate to the context and to the sender
Sent to the correct receiver in an accessible format
Timely and contain only the required amount of detail

The benefits of effective communication

Helps managers and employees to minimise mistakes
Supports everyone involved in a business to understand their role and know what is expected of them
Ensures that the businesses values and objectives are clear
Provides customers with the information they need to understand goods and services
Minimises business costs
Helps businesses to effectively exploit new opportunities
Managers should make sure that communication is organised and controlled to ensure that a suitable
level of communication exists between key stakeholders

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A 2021 survey of US workers found that more than one-third reported email overload that might
lead them to resign from their jobs
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Methods of Communication
Businesses have a range of ways in which internal and external communication can take place
In some circumstances, the choice of communication methods may be more limited
For example the need for a written legal contract of employment for a new employee or a notice of
termination of employment

Diagram: the main communication methods

The main forms of communication used by businesses

The effectiveness of each method depends on the business context, the nature of the
communication and the personal preferences of both the sender and receiver of information
Evaluating Communication Methods

Method Strengths Weaknesses

Verbal Video and phone calls allow people in May not always be possible due to
different locations to connect geographical distances or time
constraints
Face to face verbal communication
includes facial expressions, body Requires listening skills

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language and tone of voice which can Unreliable internet connections or

enhance understanding audio/video problems can hinder
Allows for real-time communication and effective verbal communication Your notes
the quick exchange of information and
resolution of queries/disputes

Visual Videos, charts, photographs and visual Feedback may be limited so follow-up
displays can simplify complex may be required to check understanding
communications
E.g. a training video on fire safety in
E.g. A manager showing sales figures the workplace may be followed by
using a pie chart in a meeting an assessment task to check
employees understand risks
Some diagrams/charts may need a
verbal or written explanation to support
them

Written Written communication provide a record Without facial expressions and tone of
that can be referred back to in the future voice, written messages can be
misinterpreted or lack context
Instant messaging (WhatsApp, Slack)
enables fast and real-time Requires literacy and/or technical skills
communication making it ideal for brief
exchanges or urgent matters

Recommending a Method of Communication

Businesses are likely to develop their communication methods and style over time
Smaller business may only be able to afford to communicate with customers through posters,
leaflets and social media
Larger businesses are likely to have greater budgets which allow for the use of television and
billboard promotional campaigns
Factors Which Impact the Communication Method Used

Factor Explanation Example

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Cost How important is it keep costs Customers need to be informed

down? about a serious safety problem with a
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children's toy
Is communication vital
regardless of cost? An announcement in national
newspapers would reach many
affected people quickly
An announcement via social
media channels would be low-
cost

Speed Does the message need to A manager from a foreign division of a

transmitted quickly? company must be told about a
cancelled sales meeting before he
catches his flight from the US to China
A telephone call would be quick
and direct
An internal email may not read in
time

Receiver How many/what type of All 300 staff in a factory need to be

person needs to receive the told about a change in working hours
message?
An internal email would be an
effective way to inform all staff
An announcement on a staff
noticeboard may be
missed/ignored by some workers

Leadership Style Democratic leaders are likely to A business is making arrangements

encourage two-way for a staff social event
communication whilst
autocratic leaderswould prefer A democratic leader may hold a
one-way communication meeting with the workplace
social committee
An autocratic leader may send
written invitations to staff

Message details Is the message technical or A manager needs the sales team to
detailed? review the monthly revenue figures

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Does it contain images or data? before the next meeting

Sending the sales report via email Your notes
or placing it in a shared online
folder allows colleagues to
access/interact with the report
before the meeting

Need for a written Is a record of the A customer wishes to place an order

record/formality communication needed for
future reference? An order form is a permanent
written record that can be placed
Is the communication related to on file and provide a financial
a formal matter? record
A telephone call may not record
all important details about the
order

Feedback Does the receiver need Two colleagues are concerned a

immediate feedback? customer has not paid for the goods
they have and are leaving the store
A quick verbal discussion can
establish situational facts quickly
so that appropriate action can be
taken
A text message may not be
received in time

Examiner Tips and Tricks

Communication methods in the workplace have changed rapidly due to advancements in
technology. For example many organisations use social media to communicate. The speed of
feedback from customers using these platforms can be both a positive and negative factor. Any
errors are quickly posted across the internet, which can harm the business brand

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Communication Barriers
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Barriers to Effective Communication
Barriers to communication hinder the flow of information leading to potential misunderstandings,
conflicts and inefficiency

Diagram: the barriers to communication

Barriers to Communication and How to Overcome Them

Barrier Explanation Reducing or Removing the Barrier

Language and The use of technical terminology or Use of jargon or terms which are too
jargon industry-specific jargon can be technical should be minimised
misunderstood
An agreed language for key
Industry- or business-specific communications is implemented
acronyms can confuse new staff
Staff in businesses that operate across
international borders may speak
different languages

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Noise and Loud machinery or a crowded Choose communication methods

distractions workspace can interfere with effective that are relevant to the workplace
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communication
Set up a room on the factory
Distractions including phone floor in which conversations is
notifications and email alerts which possible
can divert attention
Limit distractions such as pop up
messages and unnecessary emails

Lack of The absence of feedback can affect Where appropriate select methods
feedback understanding and lead to that allow for feedback
misunderstandings
Encourage an open culture where
Messages may require urgent employees are confident to ask
clarification or correction to avoid questions
mistakes being made

Cultural Cultural norms and expectations can Build a culture of teamwork and
differences affect communication style respect amongst employees
Include cultural awareness in
training and development
programmes

Lack of time Busy work schedules and competing Schedule meetings in shared
priorities can limit the time available calendars
for communication
Amend workloads to ensure
effective communication can take
place

Technological Technical issues such as poor internet Invest in good quality ICT systems
barriers connections, malfunctioning and conduct regular updates and
equipment or unfamiliarity with maintenance to avoid slow or poor
platforms can slow communication quality connections

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