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Business Studies

Communication

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Effective communication is important both within an organisation and externally. Effective communication improves business efficiency.

What is communication?

A woman holding a mobile phone

Communication is about passing messages between people or organisations. Messages between a sender and receiver take place using a medium such as email or phone.

One-way communication is when the receiver cannot respond to a message. Two-way communication is when the receiver can respond to a message. This allows confirmation the message has been both received and understood.

Types of communication

There are a number of technical terms you need to learn:

Still from sitcom 'The Brittas Empire'. Gordon Brittas speaks to his staff using an overhead speaker system.

Internal communications take place between people within organisations

  • Internal communications happen within the business.
  • External communications take place between the business and outside individuals or organisations.
  • Vertical communications are messages sent between staff belonging to different levels of the organisation hierarchy.
  • Horizontal communications are messages sent between staff on the same level of the organisation hierarchy.
  • Formal communications are official messages sent by an organisation, eg a company memo, fax or report.
  • Informal communications are unofficial messages not formally approved by the business, eg everyday conversation or gossip between staff.
  • A channel of communication is the path taken by a message.

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