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Business Studies · People in business

Internal and external communication

CIE 04502 min read

Key definition

Effective communication — a message where the information is received and understood by the receiver.


Why is effective communication important?

  • Decisions are made faster
  • Chances of mistakes and accidents are reduced
  • Changes in the market are responded to quicker
  • Strengthening teamwork between workers
  • Increasing employee motivation

Types of communication

  • Internal communication — communication between members of a business
  • External communication — communication between the business and 'outsiders' e.g. suppliers

Communication methods

MethodExamplesAdvantagesDisadvantages
VisualPie charts, graphic drawings, line graphsAesthetically appealing; a visual idea of a project is clearInformation may not be clear; information is not detailed
OralFace to face communicationAllows immediate feedback; two-way communicationThere may be problems with the receiver; there is no permanent record
WrittenLetters, notesPermanent record; message can be detailed; can be sent to multiple receiversNo personal contact; no immediate feedback; time consuming
ElectronicEmails, text messages, phone callsPermanent record (for some); can be sent to multiple receiversNo personal contact; must have access to the internet

Communication barriers

BarrierProblems causedHow to reduce/remove the barrier
Type of mediumThe message may not allow instant feedback or may be easily ignored by the recipientConsider the importance of the message, the need for a permanent record, the cost of the medium, the confidentiality of the medium, and the number of recipients
LanguageThe recipient may not be able to understand the message and it may be unclear even after translationEnsure the language used for the message is suitable, or hire a translator for reliability
Length of messageThe receiver may not be able to take in a large amount of information, or the main message may be lostKeep the message short and concise where necessary, getting the key points across
Problem with recipientThe recipient may not want to listen to the sender due to grudges or a personal issueRelay the message to a suitable recipient, or ask for immediate feedback to ensure the recipient understands
Problem with environmentThe message can get lost if the environment is noisy and distractingAlong with a suitable medium, choose an appropriate environment

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