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Business Communication

Communication is vital in business as it ensures effective information flow within organizations. The structure of a firm often determines how information is communicated. This article explores different forms of business structures, including entrepreneurial, pyramid, matrix, and independent structures. It also discusses the importance of centralization and decentralization in decision-making. Additionally, it examines channels of communication, both vertical and lateral, and emphasizes the importance of feedback in effective communication.

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Business Communication

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  1. Business Communication BTEC Business www.AssignmentPoint.com

  2. 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 www.AssignmentPoint.com

  3. 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 www.AssignmentPoint.com

  4. Illustrating Structures 1 The Pyramid Traditional view of organisations Decisions pass down formal channels from managers to staff Information flows up formal channels from staff to management www.AssignmentPoint.com

  5. Illustrating Structures 2 Entrepreneurial Key worker Key worker Quick to act but pressure on decision makers One or two people make decisions Most small businesses have this structure Decision maker Great reliance on key workers supporting decision makers Key worker Key worker www.AssignmentPoint.com

  6. Illustrating Structures 3 Matrix Marketing Production Finance Project A Project teams created Staff with specialist skills Project B www.AssignmentPoint.com

  7. Illustrating Structures 4 Independent Not suited to most businesses due to lack of control Dr A Dr B Support systems to professionals such as doctors Dr C Dr D www.AssignmentPoint.com

  8. 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 More on Business Structure www.AssignmentPoint.com

  9. 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 www.AssignmentPoint.com

  10. 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 www.AssignmentPoint.com

  11. 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 www.AssignmentPoint.com

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