Transcript Chapter Seven - Communications

Ms. Marshall
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By the end of this chapter you will be able to:
1. Explain the central role of communications in business
and management;
2. Identify and explain the main barriers to effective
communications;
3. Demonstrate business data in the following written
forms: memos, reports, and business letters; draft a visual
presentation from given data;
4. Identify the duties of a chairperson and secretary and
draft an agenda and minutes of a meeting;
5. Distinguish between the methods of communication;
6 Discuss the importance of general communication
skills (HL);
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What is
Communication
?
Written,
Verbal,
Visual
Principles of
Good
Communication
Meetings
Barriers to
communication
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Importance
of Good
Communicat
ion
ICT
Data
Protection
Act
1988/2003
Methods:
Internal/Exte
rnal
Choosing a
Method of
Communication
Communication is concerned with the
transferring of ideas, information, messages,
etc. from a sender to a receiver, with the
aim that the message is understood.
 Formal Communication means it takes
place through the approved channels of
communication, e.g. written letter, formal
meeting.
 Informal Communication, refers to general
informal networking within an organisation,
e.g. chatting, gossiping.
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Basic Elements of Communication:
Sender
Message
via
Medium
Feedback
Receiver
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Ability to speak clearly
 Ability to listen carefully
 Ability to give and receive feedback
 Ability to write clearly and concisely
 Ability to read and understand
communications
 Ability to select the best medium for the
You could be asked to
communication
discuss these in relation
to internal/external
 Ability to use ICT effectively
communications
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P102/103
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Importance of good communication
between levels in an organisation
 • Offers the solution to conflict and
misunderstanding in an organisation
 • Improves staff morale
 • Good industrial relations
 • Effective decision-making
 • Feedback
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Communication can be
between the internal
stakeholders of a
company:
 E.g. employees and
managers at a meeting.
Managers giving
instructions to
subordinates.
Entrepreneurs or
managers providing the
shareholders with
accurate information on
the company
performance.
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Communication can be
between the external
stakeholders of a
company:
 The business informing
customers through
advertising, a manager
ordering goods from a
supplier, the business
applying for a grant from
government.
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Therefore internal communications are
used to communicate between staff in
the same business.
 External communications are used to
communicate with people outside the
business, such as customers, suppliers,
investors, the government and the
general public.
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Internal communication can
flow upward, downward or
horizontally.
 1.Upward Communications
 Upward communications
allow complaints, difficulties or
suggestions to be reported up
the line to the superior by the
subordinate. The messages
may be either written or oral
and move in both up and
down directions between
manager and worker.
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2. Downward Communications
Occur when instructions,
orders, directions, etc. are
transmitted from a superior to
a subordinate e.g. Manager
to employee.
 Usually designed to help the
individual understand the task
to be performed and avoid
mistakes e.g. issuing detailed
instructions on how to perform
a particular job. One-way
communication, no feedback
from the receivers, no replies
or responses.
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3. Lateral (Horizontal)
Communications
Maintained between people with
the same level of authority in the
organisation. To ensure that the
various sections of the
organisation work together at all
times in the general interest of all
e.g. the marketing department
and finance department meet.
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4. Feedback
Good information is the basis of
decision making. Successful
communication of messages from
and to decision-makers is vital.
Everybody in the organisation
should have the opportunity to
influence decision making through
providing feedback. By getting
opinions through discussion,
decision making may be slow but
once a decision is reached then
satisfaction with it is high.
Feedback is important
because:
It makes the message clear.
It allows the subordinates to have
a say.
It brings everyone closer together.
It encourages a democratic style
leadership.
Written
Oral
Visual
Internal
Letters, email,
internet, intranet,
text, memos,
notice board,
reports, newsletter,
suggestion box
Meetings, internal
phone, video
conference,
intercom, one to
one conversation,
informal
conversation
Posters, graphs –
pie charts, bar
charts, body
language,
External
Letters, fax,
email,internet,
text,reports,brochu
res,ads,press
releases, business
documents e.g.
invoice
Telephone,
meetings,
exhibitions, video
conference, radio
tv ads, WOM
Posters, graphs,
internet- company
website, ads,
sponsorship,
packaging,
merchandising,
maps.
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Advantages
 It provides a
permanent record
and therefore proof of
the communication,
NB contracts.
 Can be read again if
difficult to understand.
 E-mail has made this a
fast form of
communication.
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Disadvantages
 Feedback is slower
than with verbal
communication.
 There is a risk of
information overload.
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Advantages
Instant feedback
Problems can be
explained at the
time.
Personal.
Body language and
emotions can be
very telling.
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Disadvantages
No record
May not be
prepared in
advance
Receiver may not be
listening e.g. in
class…
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Useful for analysing
statistics.
Much clearer and
easier to understand,
especially for
numerical
information.
Effective way of
showing trends.
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Usually needs to be
accompanied with
another form of
communication, e.g.
a written explanation
of a graph.
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Agenda of an AGM of a Private Limited
Company:
1. Minutes of the 2011 AGM
2. Matters Arising from the Minutes
3. Chairperson’s Report
4. Auditors report and accounts
5. Declaration of Dividend
6. Appointment of Auditors
7. Election/reappointment of Directors
8. Motions
9. A.O.B.
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A Notice is a
document setting
out the date, time
and venue of the
meeting
Notice to each Board member:
A meeting of the Board of Directors of Kilbay
Ltd will take place in
the Boardroom on 9th of June 2009 at 7.30 p.m.
Agenda:
1. Minutes of the last Board Meeting
2. Matters arising from the minutes
3. Effects of economic downturn on Kilbay Ltd
4. Possible introduction of a three-day week
5. Future sources of finance for the company
Agenda is a summary
6. A.O.B.
list of all the items to
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be dealt with at the
meeting
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Minutes of the AGM of Seaview Club
1. Minutes of the last AGM were read, approved and
signed by the chairperson.
2. There were no matters arising from the minutes.
3. The Chairperson presented his report.
4. The Auditors presented his report.
5. A dividend of 10% was proposed and approved by
the shareholders.
6. The Board of Directors were elected for the next
year.
7. There was no A.O.B.
Minutes are a
summarised written
Signed: J. Thomas
 Club Chairperson
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record of what
happened at the
meeting
MEMO
To: Mary O’Brien, Managing Director
Subject: Sales Promotion Incentives
From: Peter Murphy, Marketing Manager
Date: 9th June 2009
Sales promotion incentives are short term
marketing techniques designed to increase
sales of a product, e.g. Buy one get one
free and a loyalty card scheme.
 Signature: Peter Murphy,
 Marketing Manager
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Ms. Marshall
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Church View,
Navan,
Co. Meath.
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9th June 2009
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Miss Kate Quinn,
47. Quay Lane,
Dun Laoghaire,
Co. Dublin.
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Dear Kate,
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In response to your query, concerning the two main types of car insurance cover, the
following is my advice:
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Re: Insurance Query
Third Party Insurance provides compensation to people injured while in or by your car and to
the owners of property damaged by your car, but it does not compensate for any damage to
your car.
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Comprehensive Insurance provides compensation to all parties injured by your car and also
compensation for any damage to your car. Due to the extra benefit provided by
comprehensive, the premium will be higher but may be worth it, since it’s your first car.
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I hope this is of some help to you and feel free to contact me any time.
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Yours sincerely,
Michelle Hughes
Insurance Consultant
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Reports: a written document in which one
person sets out the findings of her
investigation into a certain issue.
Objectives
1. To give information.
2. To investigate an incident.
3. To come up with solutions to a problem.
4. To investigate the impact of decisions.
5. To convince the reader to take a
particular course of action.
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Layout of a report
Title: sets out objectives, the names of the people who
commissioned and who wrote the report.
Table of Contents
Executive Summary: major findings and conclusions.
Terms of Reference: issues asked to investigate, instructions
given.
Findings/Main Body of the report: sets out the facts and
information collected and analysed and interpreted.
Conclusions & Recommendations: lessons to be learned
and what should be done in the future.
Appendices: extra information such as relevant statistics
used in the report.
Bibliography: list of sources used to write the report.
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Evaluate reports as a form of
communication:
Advantages:
1. Can gather together all
relevant information on an
issue.
2. Can provide detailed
research, information and
analysis.
3. Help managers to make
informed decisions.
4. Can be compiled by
outside experts leaving
managers more time for more
important tasks, also means it
is independent and not
biased.
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Disadvantages:
1. Can discourage readers if
they are too long or badly laid
out.
 2. Requesting a report can be
used as an excuse to
postpone dealing with issues
involved.
 3. Report recommendations
can be ignored by the
receivers.
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2002: Draft a Report to the Managing Director about
the four main barriers to effective communication
Title: Report to the Managing Director of A and B Ltd.
on effective communications in the business.
Name: Prepared by J. Burke. Management
Consultant.
Terms of Reference: To explain the main barriers to
effective communications in the business
The Executive Summary:
For communications to be effective and successful
there must be no barriers to the process.
Unfortunately, both people and situations cause
some barriers to be built up.
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Body of the Report/Findings:
Effective Communication: A and B Limited
must have a plan to overcome the
following barriers to effective
communications:
Outline the main barriers…
Conclusion & Recommendations: Write a
sentence or two to wrap it up.
Appendices.
Bibliography/Reference
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Sales
1st Qtr
2nd
Qtr
Pie Charts compare different
categories, and are a good way
of showing fractions and
percentages.
6
5
4
3
2
1
0
Bar Charts are useful for
showing the relative
sizes of whatever is
being measure.
Series 1
Series 2
Series 3
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6
5
4
3
2
1
0
Series 1
Series 2
Series 3
A line/trend graph is used
to show how the value of
an item can change over
time.
A pictogram is a good
way of showing relative
sizes of the items in
question.
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Distinguish between two types of meeting which are common in
a business.
- AGM (Annual General Meeting). This is a meeting of the
shareholders of a company. It is held once a year. At the AGM,
shareholders can ask the directors questions, the chairperson
gives an address, directors are elected, auditors are appointed
and accounts are presented.
- EGM (Extraordinary General Meeting). This occurs when a
matter of such importance arises that the business cannot wait
until the next AGM to discuss the issue.
- Board Meeting. These are regular meetings held by the board
of directors of the company. Tactical planning, strategic
planning and review of company performance are often on the
agenda of a board meeting.
- Management/executive meetings/ad hoc. Meeting held by
various managers in the business to deal with operational
issues/immediate problems.
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Benefits of Meetings
1. Meetings allow discussions to take place on different
proposals which in turn allow for good, effective decisionmaking/ co-ordination of the work of various departments.
2. Meetings allow information to be disseminated to the various
stakeholders in the company, e.g. a meeting of management
and the employees of the firm regarding industrial relations
issues.
3. Meetings are creative forums, e.g. a brainstorming session
during the idea generation stage of the product development
process.
4. Meetings are appropriate when sensitive or confidential issues
are being discussed e.g. redundancy, dismissal of staff and
business contraction/expansion.
5. Meeting allow for feedback to be given and received.
6. A written record (i.e. minutes) of decisions can be made for
future reference
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State the advantages of meetings as a method
of communication.
• They allow people to exchange ideas and
information
• They allow decisions to be made by voting
on proposals
• Problems can be discussed and solutions put
forward
• People can report findings, etc. to other
participants
Less formal
• Face-to-face communication / less language
used
misunderstanding and conflict.
here, suitable for
outlining or OL
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Disadvantages of meetings
Cost: Time involved can make them more
costly than just exchanging information by
e-mail.
Record: If minutes are not kept, then it can
be easy to forget details.
Clarity: Complex and detailed information
can be difficult to transmit verbally.
Accuracy: it can be easy to misunderstand
something spoken if it is not clear.
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Outline the duties of a Chairperson at a
meeting.
• Ensure that there is a quorum, open the
meeting and run it in an orderly manner
• Ensure that the agenda is followed / ensure
compliance with standing orders
• Make sure that everybody gets a chance to
A quorum is the
participate and air their views
minimum no. of
that must
• Ensure that any voting is carried out people
be present at a
meeting
according to standing orders.
• Chairperson may have casting vote in the
event of a tie.
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Outline the duties of a Secretary at a
meeting.
• Ensure that all entitled to attend have
received the Notice and Agenda in
advance
• Ensure all facilities are arranged and all
necessary documentation is available
• Read the minutes of the last meeting
• Read out any correspondence
• Take notes of discussions and decisions
made in order to write the minutes.
Ms. Marshall
How can ICT help business
communications?
 ICT refers to the use of
computers,
telecommunications and
electronics to gather, store,
process and distribute
information.
 The Internet: is an international
network of computers
connected through the
telephone network. It can be
used to transmit and receive
data and information globally
at a low cost. It allows
companies to display websites
for communicating
information with customers
and other stakeholders.
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E-mail: allows documents and
audio-visual files to be sent
instantly at practically no cost.
 Intranet are networks of
computers within a business.
They allow employees to send
files to each other over the
computer network, speeding
up communications.
 Electronic Data Interchange
(EDI) is an automated stock
ordering system that allows
orders to be placed
automatically from a
computer in one business to a
computer in another business,
using the internet.
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Benefits of EDI
Speeds up stock ordering and reduces
human error.
Reduces costs by eliminating much of the
paperwork and stock management costs.
Improves cash flow as invoices are sent out
accurately and on time.
Increases customer satisfaction and
improves sales as the firm secures regular
stock delivery.
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Video-conferencing: is a type of virtual meeting
where participants can see and hear each other
through the use of video cameras, telephone links
and monitors. Therefore people can meet even
when in different countries. This reduces travel costs
and saves time for managers.
Software Applications: word-processing software
allows for professional documents to be written up
easily and at low cost. Database software stores a
huge amount of customer details allowing for more
targeted marketing. Spreadsheets allow users to do
complicated mathematical calculations and display
the results in graphs.
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Benefits of ICT
Faster Communication
Advertising to a global
audience becomes
easier
Stakeholders relations
are enhanced
Reduced marketing
costs
Reduced travel costs
Staff motivation can
be increased.
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Risks of ICT
Information security:
vulnerable to viruses,
hackers.
E-crime: credit card
fraud, phishers.
Business disruption: if
internet is down!
Can be expensive:
initial capital
investment + ongoing
maintenance.
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Problems of e-mail
Technology availability
Data security
Business contracts
Audit trail
Authenticity
Negligence - liability
Incorrect address or data
Viruses
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Factors to consider when choosing a method of
communication:
Cost: generally businesses aim to minimise costs, e.g.
sending an email instead of a letter.
Urgency: if the message is urgent then you need to use
the quickest method available, e.g. telephone
Confidentiality: if the message is private then you must
make sure another person cannot access it, e.g. a face to
face conversation instead of a note on their desk.
Nature of the message: if the contents are very detailed a
letter might be appropriate. If the news is distressing a
face to face conversation or a telephone call may be
appropriate.
Legal Requirements: some messages are required by law
to be a certain format, e.g. a contract for buying a house
must be written.
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technical
jargon
lack of
feedback
timing
wrong method
relationships
Language
noise
not listening
Ms. Marshall
For communications to be effective and
successful there must be no barriers to
the process.
 Unfortunately, both people and
situations cause some barriers to be built
up.
 An organisation needs to be aware of
common barriers to effective
communications:
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Ms. Marshall
Language
If the language is too technical or too difficult for the
audience to understand then the message may be
misinterpreted.
 Need to choose language appropriate to the audience.
Short clear sentences, visual supports etc.
 Wrong Medium
 The medium chosen must be appropriate to the message
been given. A letter would be more appropriate than an
e-mail if terminating employment. ‘Texting’ may be
inappropriate for formal communications/medium chosen
might be too slow for any action to occur. Using e media
when personal communication is the most appropriate.
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Not Listening : If the intended recipient is
not listening when a verbal message is
being communicated the information will
not be received correctly.
 Synopsise, Summarise, Review, and Repeat
the message.
 Timing (Wrong timing/inadequate amount
of time) : Communications takes place with
a purpose in mind. If the message is sent
too late the recipient may not be able to
act on the information.
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Plan the process. Enough time must be given to
read/listen, understand, and respond to the
message. Reduce speed in the interest of
understanding.
No Feedback
The sender may be looking for feedback in
order to take further action, e.g. the sales
manager may require information from the
production manager before taking an order
from a customer. Build in a feedback
mechanism into the process e.g. a specific
time slot for feedback /questionnaire etc.
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Relationships between people/Credibility
Trust
A lack of trust between the parties acts as a
barrier to effective communication.
Build long term ethical relationships to
ensure a trusting relationship exists.
Use communications training to overcome
all the barriers.
Information Overload. Too much
information given / Main points may be lost.
Reduce the volume of information so that
issues can be dealt with effectively.
Ms. Marshall
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The Rights of Data Subjects
Right of Access – person has right to receive copy of
data held electronically relating to him/her, within 40
days of lodging a written request
Right of Correction – person has right to correction of
errors/inaccurate information.
Right to Compensation – person has entitlement to be
compensated for loss as a result of inaccurate
information held.
The person also has the right to complain to the Data
Protection Commissioner where a data controller is
suspected to be in breach of the act.
Right of Removal- person has the right to have their
name removed from direct marketing lists.
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The Obligations of Data Controllers
To keep the data secure – data must be protected
against unauthorised access.
To update the information – data should be accurate
and updated periodically
To use the data for the purpose intendedinformation should only be used for the specific
purpose provided
To obtain the information fairly and openly.
To keep a register of data kept.
To provide a copy of data held electronically within
40 days of receiving a written request from a person
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The Data Protection Commissioner is responsible for
ensuring that the Data Protection Acts 1988 & 2003
are obeyed.
Duties:
Providing information to the public about the Acts.
Helping businesses develop codes of practice to
keep within the law.
Investigating complaints from the public about
businesses that may be breaking the law.
Maintaining a register of all organisations such as
banks, market researchers and debt collection firms
that may hold sensitive information about members
of the public.
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2012 Q4 (A)
Illustrate the factors that a business needs to
consider when communicating with its various
stakeholders. (20 marks.)
(b) Distinguish between the duties of a
chairperson and a secretary in the organising
and running of an Annual General Meeting (20
marks).
2011 SQ (10 marks)
(a) Distinguish between two types of meetings
which are common in a business. (b) Outline
two benefits of meetings as a method of
communication.
Ms. Marshall
2009 Q4 C
 “There is often a legal requirement for
members of the public to hand over their
personal information to public bodies”.
Discuss the provisions of the Data
Protection Act 1988 in relation to:
 (i) the Rights of the Data Subjects
 (ii) The Obligations of Data Controllers
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2009 Q6 (A)
Illustrate how the following developments in
ICT have impacted on business:
(i) Electronic Data Interchange
(ii) The Internet and the World Wide Web
(iii) Video Conferencing
2008 SQ 10 marks
Draft a typical agenda of a Private Limited
Company (5 items).
Ms. Marshall
2008 Q4 (B)
Describe the barriers to effective communication in a
business enterprise and suggest methods a business might
consider to overcome two of these barriers. (25 marks).
2007 Q4
(B) Discuss the importance of good communication between
the levels of an organisation. (20 marks).
(c) The Data Protection Act 1988 sets out the following:
(i)
The Rights of Data Subjects
(ii)
(ii) The obligations of Data Controllers and
(iii) (iii) The functions of the Data Protection Commissioner.
Explain any two of the above.
(25 marks).
2005 SQ 10 marks
Outline three problems with email.
Ms. Marshall
2005 Q4 (A)
 Assume you are the secretary of a local
youth club. Draft the notice and agenda
to be posted to all members of the youth
club notifying tem of the AGM. The
agenda must contain 5 items (10 marks).
 Explain the factors that ensure managers
communicate effectively. Use examples
where appropriate. (25 marks).
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