2.3 Methods of Communication

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Cambridge IGCSE Business (0264) syllabus reference: 2.3.1 and 2.3.2

Success criteria - by the end of this topic you can:
Key terms
Communication - the transfer of information from a sender to a receiver, which is understood by the receiver.
Internal communication - communication between people within the same business.
External communication - communication between a business and people or organisations outside it, e.g. customers, suppliers, government.

Why communication matters: employees know what to do, mistakes are reduced, decisions are faster, motivation is higher, and customers and suppliers receive accurate information.

Methods of communication
Comparing methods
MethodAdvantagesDisadvantages
Meetings (face-to-face)Feedback is immediate; body language helps understandingTime-consuming; hard to gather everyone
Virtual meetingsSaves travel time and cost; people in many placesNeeds reliable internet; less personal
EmailFast; written record; many people at once; attachmentsMay not be read; can be misunderstood; information overload
Text messagesVery quick; read on mobile phonesShort; no detail; unsuitable for complex messages
Social mediaReaches many customers quickly and cheaplyPublic; negative comments spread fast
Phone callsImmediate feedback; personalNo written record; person may be unavailable
LettersFormal written record; can be keptSlow; costly to post
Posters and noticeboardsCheap; seen by manyMay not be read; no feedback
Exam tip

To recommend a method, ask: How urgent is the message? Does it need a written record? How many people must receive it? Is feedback needed? Is it confidential?

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All Unit 2 topics← 2.2 Organisation and Management  |  2.4 Motivating Employees →