Study notes

Effective Communication in a Business (GCSE)

What would be considered good or effective communication? It would be communication in which:

  • The sender and receiver of information are properly matched
  • The message is communicated clearly – i.e. without misunderstanding or misinterpretation
  • Communication is made using an appropriate communication channel and/or method
  • The receiver of the communication is able to pass on any relevant and appropriate feedback (i.e. two-way communication)

There are many reasons why it is important for a business to achieve effective communication:

  • Motivates employees – helps them feel part of business
  • Easier to control and coordinate business activity – prevents different parts of business going in opposite directions
  • Makes successful decision making easier – decisions are based on more complete and accurate information
  • Better communication with customers will increase sales
  • Improve relationships with suppliers
  • Improves chances of obtaining finance – e.g. keeping bank up-to-date about how business is doing

The link between communication and motivation is particularly important. Good communication is an important part of motivating employees and the main motivational theorists recognised this:

  • Mayo emphasised importance of communication in meeting employees' social needs
  • Maslow and Herzberg stressed importance of recognising employee's achievements and self-esteem needs

Amongst the other reasons for using communication to boost motivation are:

  • Ensures that everyone is working towards same company goals
  • Enables employees to be involved in decision-making
  • Employees can offer feedback and give suggestions
  • People are motivated by having clear targets set for them
  • Recognise employee achievements

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