Chapter 13 – COMMUNICATION IN BUSINESSCOMMUNICATION:‘A process of creating and exchanging information between people that produces the required response of understanding.’

The communication Process:1. The sender (individual or Group) sends a message to another in

an encoded form, such as words, actions or a facial expression.

2. The receiver is exposed to the message in its encoded form and decodes it, (understands the meaning)

3. The receiver gives feedback to the sender to show that they have received and understood the message in the manner intended by the sender.

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSEFFECTIVE COMMUNICATION:

Is when the intended receiver of the message obtains and interprets the message in the manner intended by the sender.

INEFFECTIVE COMMUNICATION:

Is when a message is either not received or is incorrectly decoded (inaccurately conveyed)

ONE WAY COMMUNICATION:

Is when information is passed on by a sender with no feedback

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSEFFECTIVE COMMUNICATION:

An effective communicator:

- Builds trust and positive relationships- Recognises that communication is an interactive process that

involves listening as well as transmitting.- Works out the exact message they intend to send- Choose the most effective method of communication.- - - FILL IN THE GAPS-

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSEFFECTIVE COMMUNICATION:

Effective communication is usually

TWO WAY COMMUNICATION:

‘Communication that is open and encourages discussion and feedback’

KISS Principle“Keep It Short & Simple”

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSTable 13.1Effective communication processes:

Step 1. Produce a message

Step 2. Put the message into the most appropriate form to achieve the desired result

Step 3. Send the message to the receiver, who then decodes it; how it is decoded will depend on the context of the message.

Step 4. Feedback is given to confirm intended meaning of how the message has been received.

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSFactors that affect how a message is decoded:

The same message can have an entirely different meaning to two people. Factors such as age, education levels, cultural backgrounds, and even a persons mood can affect the way a message is decoded.

READ Pages 226 - 228

1. Cultural Differences: (table 13.2)

2. Body Language:

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSFactors that affect how a message is decoded:

3. Mood and state of mind of the receiver:

4. Environment in which a message is delivered:

5. Language used and its accessibility to the receiver:

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESS

Complete Activity 13.1

Activity 13.3

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSTypes and purpose of information to be communicated:

(page 228)INTERNAL BUSINESS COMMUNICATION:Can occurs between the following stakeholders:

- Employees - Management- Owners/ Shareholders - Local trade union reps

Internal communication channel and patterns:Is the means in which a message is sent. Internal business

communication usually takes one of three patterns:

1. Downwards Communication2. Upward Communication3. Lateral Communication

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSTypes and purpose of information to be communicated:

(page 228)1. Downwards Communication

Flows from higher to lower level in the organisation. Most commonly involves boss giving instruction to employees.

2. Upward CommunicationOccurs when information flows from lower to higher levels of the

organisation, such as:employee appraisals/reviewssuggestion boxesstaff meetings

3. Lateral CommunicationInvolves interaction between people at the same level of the

organisation, eg teams/groups. - Social chats - Emails between staff - Phone calls

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSTypes and purpose of information to be communicated:

(page 228)EXTERNAL BUSINESS COMMUNICATION:Occurs between internal Management/Staff and:

- Suppliers - Customers- General Public - Government agencies

External business communication can fall into 2 categories:1. Business to Business communication (B2B)

2. Business to the wider community communication (B2WC)

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSTypes and purpose of information to be communicated:

(page 228)EXTERNAL BUSINESS COMMUNICATION:

1. Business to Business communication (B2B)These communications encompass day to day interactions with

other businesses such as:

Suppliers – Business customers – Professional Advisers – Contractors – FILL IN THE DETAILSGovernment Departments – Wholesalers – Retailers –

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSTypes and purpose of information to be communicated:

(page 228)EXTERNAL BUSINESS COMMUNICATION:

2. Business communication to the wider community (B2WC)These interactions are vital. Businesses must effectively deal with

a wide variety of external groups and individuals such as:

Customers/Clients – Lobby GroupsMedia – The community in general –

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSTypes and purpose of information to be communicated:

(page 228)EXTERNAL BUSINESS COMMUNICATION:

2. Business communication to the wider community (B2WC)The purpose of this form of communication may be to:

- Pass on information, usually to help with decision making- Persuade- Motivate- Entertain/amuse- Negotiate- Give emotional satisfaction- Seek/gain information- Monitor and evaluate- Reflect- Influence

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSFORMAL & INFORMAL CHANNELS OF BUSINESS

COMMUNICATION: (page 230)

Business communication can be further broken into 3 categories:

1 – Formal ChannelsFILL IN

2 – Semi Formal ChannelsFILL IN

3 – Informal ChannelsFILL IN

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSFORMAL & INFORMAL CHANNELS OF BUSINESS

COMMUNICATION: (page 230)

Business communication can be further broken into 3 categories:

1 – Formal Channels

2 – Semi Formal Channels

3 – Informal Channels

Complete:- Make your own notes on the 3 channels of communication

above- Activity 13.4- Activity 13.5

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSMETHODS OF COMMUNCIATION: (Page 233)

An effective business operator not only needs to possess strong communication skills, they must also be able to select which method of communication is best for a given situation.

Each method has its strengths and weaknesses. A business operator must recognise this and be able to implement the method that is likely to be the most effective in any given situation.

VCE Business Management Year 11

Communication

NON-VERBAL Communication

VERBAL Communication

Body Language Visual Imagery Oral Written

Chapter 13 – COMMUNICATION IN BUSINESSMETHODS OF COMMUNCIATION: (Page 233)

VERBAL COMMUNICATION:Is the communication that involves the use of language or

actual words. This can be categorised into 2 areas:

1. Written Communication

2. Oral Communication

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSMETHODS OF COMMUNCIATION: (Page 233)

VERBAL COMMUNICATION:1. Written Communication

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSMETHODS OF COMMUNCIATION: (Page 233)

VERBAL COMMUNICATION:2. Oral Communication

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSMETHODS OF COMMUNCIATION: (Page 233)

NON-VERBAL COMMUNICATION:is any form of communication that does not rely on words

to convey a message. This method usually involves visuals. Some forms of non verbal communication include but limited to:

The problem with non verbal communication is that the sender has little control over the message being conveyed. People are often unaware of non verbal communication taking place.

It is estimated the impact we make on others depends on what we say (7%), how we say it (38%) and our body language (55%)

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSMETHODS OF COMMUNCIATION: (Page 233)

NON-VERBAL COMMUNICATION:some of the main forms of non verbal communication

include:Body Language:

A form of non-verbal communication that includes messages and communication conveyed by facial expressions and other gesture.

Some body language signs:

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSMETHODS OF COMMUNCIATION: (Page 233)

NON-VERBAL COMMUNICATION:some of the main forms of non verbal communication

include:Personal Space:

Humans have a need for personal space. This is the distance we like to keep from others in a given situation.

Table 13.3 (page 240) Personal Space ZonesZone Distance ReasonsPublic 3 + mts feel safe at a distanceSocial 1.5 – 3 mts start to connect with peoplePersonal 0.5 – 1.5 mts Ok dist for person conversationIntimate 0.0 - 0.5 mts feel confortable / can intimidate

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSMETHODS OF COMMUNCIATION: (Page 233)

NON-VERBAL COMMUNICATION:some of the main forms of non verbal communication

include:Dress:

How we dress also plays a role in determining messages sent to others. Inappropriate dress can lead to other people to form opinions about us that are extremely difficult to alter.

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSMETHODS OF COMMUNCIATION: (Page 233)

NON-VERBAL COMMUNICATION:some of the main forms of non verbal communication

include:Symbols:

Are an important communication tool in business. Graphics such as letterheads and logos communicate much about the business they present

Letterheads: Stationary printed or engraved, usually with the sname and

address of the organisation

Logos:Graphic representation signifying a business

VCE Business Management Year 11

Chapter 13 – COMMUNICATION IN BUSINESSMETHODS OF COMMUNCIATION: (Page 233)

COMBINATION COMMUNICATION:Several forms of communication contain both verbal and graphical

features:- Brochures, Pamphlets and signage

- Are forms of external communication that utilise both language and symbol communication such as text, pictures, colour and design

- Stationary and letterhead- Also convey messages about the business, both in the form of a

symbol or logo and in actual written content

- Business cards- Are small cards distributed to clients in order to promote the

business, details include:- Name of business - Name & position of person- Business address - Logo & Graphic of business- Web address - operating hours

VCE Business Management Year 11