communication - introduction
The use of communication in business
Good communications are essential within a business if it is to prosper.
In any business, the communication of information is an essential part of three key business activities:
(1) Management decision-making (without relevant, timely and accurate information, decision-making at any level becomes quite tricky!)
(2) Co-ordination of departments, teams and groups - e.g. making sure that marketing, production and administration know what each other is doing, when and why
(3) Motivation of individuals
Examples of communication
To illustrate the all-pervasive nature of communication, consider the following list of communication examples:
- Exchanging ideas
- Announcing investment plans
- Producing a report with the monthly management accounts comparing actual results against budget
- Giving instructions to the production and purchasing departments about the new product plans for next year
- Delivering a presentation to the marketing department following the results of some quantitative, primary market research
- Announcing the annual trading results and future strategy to company investors and analysts
Directions of communication in a business
Communication flows in three main directions in a business:
(1) Vertical Communication
E.g. from managers to sub-ordinates; from shop floor workers to supervisors; from the Chief Executive to all other management and employees.
Vertical communication flows are mainly used for reporting information (e.g. results, plans) and obtaining feedback (e.g. an employee survey summarised for the Board of Directors
(2) Horizontal Communication
This is between people of the same "level" in a business - usually in the same department, but sometimes communication between departments. This is sometimes known as "peer communication". It is normally used to co-ordinate work. E.g. sales managers for different regions circulate details of potential customers to each other and allocate based on the customer location; or accounting staff in different departments share information to help prepare the annual budget on a consistent basis.
(3) Diagonal Communication
Less common; this involves interdepartmental communication by people at different levels. A good example would be a project team drawn from different grades and departments.
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