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IB Business and Management An Irish poet, by the name of William Butler Yeats (18651939), once said “ Think like a wise man but communicate in the language of the people.” • What did Yeats mean by this? • Why is communication so important? • What will make you an excellent communicator? • … • 1. What is communication? 2. How many ways do we communicate? 3. Why is effective communication important for the running of a business? 4. How is an abstract different from an executive summary? 5. What is the purpose of communication? 6. Evaluate which methods of communication are preferred over others and why? … So why is communication as a manager important? Because a lot of your time will be spent communicating. The purpose of communication is to: Staff become aware of their roles/expectations Managers can gather and act upon feedback from employees, customers, and other stakeholders Overall, it allows managers to have better understanding and control of their business Internal communication Communicate within the same business organization EX: store manager of KFC talks with BOD about marketing techniques External communication Communication between one organization and another unrelated organization EX: KFC manager talks to supplier about orders Oral / Verbal communication: Involves parties talking and listening to one another. I know a lot of you may think this common sense, but you would be surprised how many people do NOT know how to listen. Advantages Disadvantages Information may not be truthful. Detailed questions can be asked. No delay in answering questions. No cost involved. A good way to judge an employee’s ability to communicate: interviews and presentations. Facial reactions and body language can be seen and judged. List examples of verbal communication. No permanent record of the conversation. Confidential messages difficult to verbally communicate. Meetings and interviews can be time consuming. … Non-verbal Communication: What is it? Basically, all forms of communication EXCEPT oral. Written communication Visual communication Involves use of information and technology Letters Research Memorandum proposals Forms of written communication Abstracts (paper-based methods) Executive Summaries Notices Reports • Visual Communication: • Napoleon once said, “A picture paints a thousand words.” • Images speak louder than words. • Visual aids can enhance communication. … Understood easily Have a longer lasting impact Communicate Ideas How can visual communication be beneficial? Cater to a visual learner Cheaper quickly Photographs, symbols, tables, maps, sketches, and diagrams. Sign language and body language. A major disadvantage of all forms of communication is that of storage space. Many forms of written communication are slow What happens if the receiver does not understand the written message? IB Business and Management 1. What is channel of communication? 2. Explain informal and formal communication. 3. What are some factors influencing the choice of communication method? 4. How has the use of ICT improved business communication? 5. Discuss some barriers to effective communication. 6. Analyze the consequences of poor communication. All unofficial channels of communication. Famous expression “through the grapevine” - one form of this is gossip. Many managers view gossip as a hindrance to efficiency and productivity in the workplace. Some view informal communication as beneficial: Fosters a sense of belonging. Foster a sense of security and mutual support. Pooling of ideas can help generate solutions. Refers to all official channels of communication. Written communication methods tend to relate to formal channels of communication. Formal communication is directly related to work matters … ITC used to aid communication such as: … POSSESS LUC Personal preferences Ease Size Of Of use business Skills And training Storage issues … Cost Security Organizational structure Issues and concerns Location Urgency 4. Barriers to Effective Communication: • High costs. • Technological breakdown. • Language. • Accents. * Jargon. * Attitude. * Geographical location. * Internal politics. * Poor presentation skills. * Chinese whispers. * Physiological barriers. Errors and reworking will rise. Lowers morale, confidence and sense of direction. •…. Loss of competitiveness. Lack of control Consequences of poor communication Solving Communication Problems •You as the manager, must look at the causes of the breakdown. •1) You may have to consider delayering. •2) Hire bilingual employees Communication and Business Strategy Managers continuously try to improve communication in the workplace in order to: Improve speed, access, and accuracy of communication Reach a wider audience Improve motivation and productivity Communication and Business Strategy Disadvantages of changes to ICT: Cost Threat to security Need for change management • Information overload – too much info., can demotivate staff Importance of verbal vs. non verbal communication • Visual liking – 55% • Vocal liking – 38% • Verbal liking – 7%