INTERNAL AND EXTERNAL COMMUNICATION

• Communication occurs when a message is

transferred from one person to another and is
understood by the receiver.
• Effective communication means that:
"the information or message being sent is received,
understood and acted upon in the way intended.”
 TYPES OF BUSINESS COMMUNICATION
• There are two types of communication in
a business. they include ;
internal communication-this is when
messages are sent between people inside a
business. for example:
othe manager talking to his subordinates.
oa report sent to the CEO.
external communication refers to messages sent to
people or organisations outside the business. for
example:
o orders for goods from suppliers.
o talking to customers.
o advertising to the public.
IMPORTANCE OF INTERNAL COMMUNICATION

• It informs employees about an important

issue/event
• It can be used to correct an earlier mistake
• It can be used to give instructions about an action
to be taken.
• It is used to appreciate or commend a good effort
• Warnings are given on a wrong action
When to use external communication
creating awareness of the firms
products.
reporting the firms performance to
stakeholders
ordering for supplies
requesting for payment
 EFFECTIVE COMMUNICATION
Communication between two of more groups of people
will only be effective if:
•The message is sent using the correct communication
medium
•The message is sent and received by the right person
•The receiver understands the message
•The receiver provides feedback to the sender to confirm
that they have received and understood the message.
 TRANSMISSION
OF
MESSAGE

SENDER RECEIVER

TRANSMISSION
OF
FEEDBACK
 BENEFITS OF EFFECTIVE COMMUNICATION TO
BUSINESSES

• Reducing the risk of mistakes – the receiver of a message must

understand what it is they are being asked to do by the sender. if the
message is not understood then the instruction or task will not be
completed correctly.
• Enabling quicker responses to market changes – the longer it takes
to communicate changes in markets, the slower the business will be to
respond and may miss marketing opportunities as a result.
• Improving the morale and motivation of the workforce
– if the workforce knows what is going on in the
workplace and is able to take part in discussion, this will
make employees feel valued and part of the organisation.
• Improving customer relationships – keeping customers
informed about the progress of their orders or any new
products that the business has added to its range will make
customers feel valued and they will not want to continue to
buy from the business in the future.
• Improving coordination between departments –
decision taken by one department often have an
impact on other departments. there needs to be
effective communication between departments so that
each knows what the other is doing and can respond
appropriately.
 ONE-WAY AND TWO-WAY COMMUNICATION
There are two modes of communication.
• one-way communication is when there is no feedback
required for the message, or the receiver is not allowed
to reply. this might be the sign that says "no smoking",
or your boss saying: "give me a biscuit".
• two-way communication. this occurs when feedback is
required. therefore, both people are now involved in the
communication process. this could lead to better and clearer
information.
 TYPES OF COMMUNICATION

Information can be transmitted in several ways:

• Verbal/ oral: involves the sender speaking to
the receiver.
• Written: the message is written to the receiver.
• Electronic: this is communication fax, email,
text messages
• Visual: using charts, videos, images or
diagrams to communicate a message.
 VERBAL/ ORAL COMMUNICATION

This is communication using the spoken word.

For example;
• one-to-one talks.
• meetings.
• oral communication is appropriate when
something needs to be discussed between two or
more people.
 WRITTEN COMMUNICATION
Some written forms of communication include:
• letters: used for both external and internal
communication. follows a set structure.
• memos: used only for internal communication.
• reports: detailed documents about any problem. they
are done by specialists who send them to managers to
analyse before meetings. these reports are often so
detailed that they cannot be understood by all
employees.
• notices: pinned to notice boards that offer information
to everyone. however, there is no certainty on whether
they are read or not.
VISUAL COMMUNICATION
Some forms of visual communication
includes:
• films, videos, and PowerPoint displays:
often to help train new staff or inform sales
people about new products.
• posters: can be used to explain a simple but
important message
• charts and diagrams: can be used in letters or reports
to simplify and clarify complicated data. computer
technology could help in the design of these charts or
diagrams. a printed copy might be needed for hard
data to add to reports and documents.
• visual communication methods may be used when
trying to explain difficult concepts.
• pictures and charts are often easier for some people
to understand than words or complex tables of
numbers or the detail contained in financial
statements.
ELECTRONIC COMMUNICATION
•many businesses communicate with customers and suppliers via
email, websites, web chats, social media networking,intranets,
video conferencing and text messaging.
•these electronic communication methods have the advantage of
being much faster than traditional methods and the message
received instantly.
•the use of video-conferencing has reduced the need for people
to travel to meeting as managers can connect with each other via
the internet.
Advantages of electronic communication
•Great speed
•Messages can be sent to many people
•Overcomes global boundaries
•Good image for external communication
•Interactive since it encourages response
Disadvantages of electronic communication
•They may require staff to be trained
•Reduced social contact and create a sense of isolation
•Direct interpersonal contact is lost and most of these media do not allow
use of body language to convey message
•There are security issues with computer technology and hard copies are
often kept too in case of a virus
•Use of it can lead to information overload. too many messages can prevent
the really important communication from being noticed and acted upon
CHOOSING THE BEST METHOD OF COMMUNICATION
•The choice of communication type and medium is important factor
influencing the effectiveness off communication.
When choosing the best method of communication, business need to think
about:
How urgent the message is – for example, a telephone call or face-to-
face conversation would be better than a letter if the massage is urgent.
The length and complexity of the message – written communication is
best for long or complex messages, so that the receiver can read it over
again to check they have understood.
How many people need to receive the message – letters might be
expensive, but it is a good way of contacting many people. emails might be
another method to use depending on the message.
How far away the receiver is from the sender – several methods could
be used to communicate over long distance, such as email, text, phone
call or letter. it will depend on the other factors, such as how urgent the
message is and if the receiver has access to the internet or a mobile phone
network.
How important it is for all receivers to receive the message at the
same-time – a meeting is the best way of getting the same message to
everyone at the same time. if this is not possible then letters or emails
could be used. everyone will receive the same message, but not
necessarily at exactly the same time.
The cost of media – letters are more expensive than other methods
because of the postage charge. however, email, text messaging and
telephone calls all require investment in equipment and regular payments
to the phone service or internet provider.
How important it is to have a written record of the
communication – if this is important, then the method
must be written one (such as letters, memorandums or
reports) or electronic (such as email or text messaging).
If the message requires discussion – meetings, telephone
calls and video- conferencing are all ways for people to
discuss and debate a message.
How confidential the message is – a letter dressed to the
person concerned is the best method for communicating a
confidential message.
• HANDOUT FOR ADVANTAGES AND DISADVANTAGES OF THE MOST COMMON
COMMUNICATION MEDIA USED IN BUSINESS

• (LEAVE 14 LINES IN YOUR NOTE BOOK TO STICK THE HAND-OUT)

 COMMUNICATION BARRIERS
• Communication barriers can prevent a message from
being received or understood by the receiver.
• The main barriers to effective communication can be
divided into three main areas:
oproblems with the channel of communication
oproblems between senders and receivers
oproblems with the physical environment.
CAUSES OF BARRIERS TO EFFECTIVE
COMMUNICATION
 EFFECTS OF COMMUNICATION BARRIERS TO
BUSINESS
• Tasks are not completed or are completed incorrectly. this reduces
productivity and increases waste, both of which increase average costs
and reduce profitability.
• The reputation of the business may be damaged, leading to a loss of
customers. if customers do not receive their order on time, or receive an
incorrect delivery, then they might decide to take their business
elsewhere.
• The level of employee morale and motivation falls. this leads to
problems such as lower productivity, poor quality, increased
absenteeism and increased labour turnover. all of these problems will
increase business costs and reduce profitability.
• Higher risk of accidents in the workplace. If health and safety procedures
are not properly communicated to employees then this increases the
chance of employees having an accident. An accident in the workplace
reduces output if the employee has to have time off to recover and could
result in the business being fined and having to pay compensation to the
employee.
• Poor sales. If advertising and other promotional messages are not
effectively communicated to consumers then they will not buy the firm’s
products.
• Recruitment and selection problems. If job descriptions and person
specifications are not produced or are poorly written, or if job
advertisements are poorly designed, then the business will not attract the
best candidates.
 HOW COMMUNICATION BARRIERS CAN BE
REDUCED OR REMOVED
• Make sure that the language used is appropriate to the receiver. this might
mean using simple rather than complex words, or avoiding the use of
complex technical terms that are not understood by people without
technical knowhow.
• Keep the channel of communication as short as possible. the people a
message is passed through, the greater the risk of the message being
changed before it gets to the final receiver.
• The sender must always insist on receiving feedback as this shows that the
message has been received and understood.
• The sender must use the most appropriate medium for the message; for
example, it would not be appropriate to send a long and complex
instruction by text message.
• Physical barriers, such as noise, should be removed. If two
people are having a conversation in a noisy environment,
then they should remove to somewhere quieter if the noise
cannot be turned off.
• Management must build a culture of trust and respect
between all employees.