The Importance of Good Communication
	Communication is simply a method of sending a message from one person or group of persons to another. It is of vital importance to a business because it involves all the persons and organizations connected with the business - employees, customers, shareholders, suppliers, creditors, debtors - and a whole range of people outside - journalists, television reporters, tax authorities, local government and national government officials, the European Union and, indeed, any person or organization throughout the world with which the business has any contact. Good communication will ensure that all these persons and organizations understand the message sent. They will also be more likely to respond favourably to the message if it appears to be reasonable and fair to both the receiver and the business. Bad communication will have exactly the opposite effect. People will be confused by the message and less likely to do what the business wants. That is why good communication is so essential. It is not only what you say (or write), but how you say it that is important. Your message should be easy to understand and take account of the receivers' own attitudes and feelings.
	One-Way and Two-Way Messages
	Communication may be one-way, when no reply is wanted or expected. For example, a public notice stating 'TURN OFF LIGHTS' is a command or an order which does not demand a response. However, if people do not like the message, they may respond by writing rude words on it! Most communications are two-way, with some feedback, or response, required from the receiver. If some official response was wanted to the message about turning off lights, a different means of communication would have to be used. Instead of putting up a notice, a memorandum, or a brief written message on a form, would have to be sent to the heads of all departments asking them to ensure that all lights should be turned off when not in use. The sender could ask for the message to be acknowledged, or for the heads of departments to report what action they were taking to put the order into effect. If the sender wanted to make the message more persuasive, a reason for the request could be given, which might be the need to reduce costs.
	Directions of Communication
	Within any organization, the character of the communication varies according to whether it is going downwards, upwards or sideways. The main uses of vertical downwards communication are: to give orders or instructions; to provide, or ask for, information. Example: a manager communicating with an employee. The main uses of vertical upwards communication are: to describe the results of actions; to provide information that has been requested; to make requests or appeals. Example: an employee communicating with a manager. The main uses of horizontal, or sideways, communication are: to keep equals informed of actions taken, or results achieved; to discuss means of tackling problems together. Example: colleagues communicating with colleagues.
	Channels of Communication
	There are three main channels of communication. They are: spoken written electronic Visual aids, such as charts, graphs, diagrams, photographs and other illustrations, are often used to support messages. They summarize information and present it in a striking way.
	Why Communications Fail
	There are a number of reasons why communications fail. The cause may be the fault of: the sender the receiver the choice of channel The sender Sometimes the sender is to blame. The message may not be clear and accurate or simple enough to be understood by the receiver. It may be so badly presented, or so boring, or so complicated, that it fails to hold the receiver's attention. The receiver Receivers can also cause problems. They may be unwilling to take in the message because they are too busy, or because they have made up their mind already, or because they are too prejudiced to hear the message clearly. The channel The choice of channel may also be the cause. For example, it would be no good trying to discuss a very complex contract with a colleague unless he or she had been given a written copy of the contract - preferably well in advance of the meeting. The written channel is more suitable for complicated matters than the spoken channel.
	Methods of Communication
	A variety of methods are used in each of the three channels. Some are used mainly for internal communication, while others are used mainly for external communication. Those which are very commonly used for both internal and external communication are marked with an asterisk (*) in the sections below.
	Internal Communication
	Spoken Messages
	Advantages: Can provide instant feedback; opportunity for discussion. Disadvantages: Often costly to arrange in both time and money; frequently no permanent record. Some of the main methods are: * Face-to-face meetings. It is estimated that managers in companies spend almost half their time in meetings. They may be one-to-one or group meetings. The bigger the company, the more meetings there are likely to be. At large formal meetings, there is a written agenda, or a list of items to be discussed. Minutes, or a written record of what was said and agreed, are usually kept. There are also many external meetings with customers, suppliers, bank managers, advisers, etc. Meetings are useful because they allow instant feedback and discussion to take place. * Presentations. A manager, often accompanied by members of his or her staff, uses a presentation to explain a project or a plan to colleagues. Visual aids, such as transparencies projected on to a screen, are often used to illustrate points in the talk. Presentations are also given externally to clients or potential clients. For example, an advertising agency might make a presentation of its campaign to a client. Presentations allow a large amount of complex information to be communicated to a number of people at the same time. They also provide opportunities for feedback and discussion.
	Written Messages
	Advantages: Permanent record; suitable for both simple and complex messages. Disadvantages: Usually takes some time for message to arrive; slow feedback, or sometimes none at all. Some of the main methods: Public notices are a cheap way of communicating the same information to a large number of people. However, notices may not be read; and, even if they are, they may be ignored. Memorandums, or memos, are still one of the main means of communication within a business. They are useful for making arrangements or requests and sending confirmations. Reports. These are widely used in business. They are the written equivalent of a presentation. Visual aids, such as charts and photographs, are often used to illustrate them. There is a standard format for a report. It should include a title, a brief introduction, headings or subheadings for each section, a conclusion, a list of recommendations and the name of the author(s) and the date. Staff bulletins or magazines. Many big firms publish bulletins or larger magazines to give employees information about the company, to make them feel they are part of a team, and to increase their morale. The magazines are usually illustrated.
	Electronic Messages
	Advantages: Speed; accuracy; quick or instant feedback: message is usually - or can be - recorded. Disadvantages: Expensive; whole systems sometimes crash. * Telephones. These were one of the earliest means of electronic communication and are still widely used for both internal and external communication. (An answerphone is an essential for external messages.) * Personal computer (PC). The PC, which processes data at enormous speed, has revolutionized communication and many other aspects of business. Computer software By using different kinds of software, PCs can perform a variety of tasks, including wordprocessing letters and documents; storing information on a database; and making financial calculations with a spreadsheet.
	Local Area Networks
	Firms can link all the computers in the same building to form a local area network (LAN). The computers can communicate with each other and also share common facilities, such as a printer. The PCs are all linked to a more powerful computer, or server, which stores a vast amount of information. For example, it can send relevant parts of the business plan to computers in different departments. A LAN makes it much easier for managers to access information from other departments and also to keep a check on the work that their staff are doing and to see that they are not playing computer games!
	External Communication
	Spoken Messages
	Advantages: Can provide instant feedback; opportunity for discussion. Disadvantages: Often costly to arrange in both time and money; frequently no permanent record. * Face-to-Face meetings. * Presentations. Interviews. These are usually used for external purposes, such as interviewing a possible employee or a supplier, but they are sometimes used internally on formal occasions, e.g. in internal promotion. interviews can produce feedback and give a quick impression of a person, but the impression may be wrong or superficial. Talks. Formal talks are sometimes used to publicize the firm's activities at trade or public meetings. They are also given internally on induction courses. Annual general meetings (AGMs). Companies have to hold a general meeting for their shareholders every year. Shareholders are told about the company's financial results and activities during the past year and its plans for the future. They are invited to elect or re-elect directors and to vote on other matters. Any shareholder has the right to question the board of directors. In practice, very few private investors ever attend AGMs.
	Written Messages
	Advantages: permanent record; suitable for both simple and complex messages. Disadvantages: Usually takes some time for message to arrive; slow feedback, or sometimes none at all. Business letters. Letters are still one of a firm's main means of communication with the outside world. They are particularly useful for contracts; sending the same letter to a large number of people; answering queries; explaining complex matters which it would be difficult for the receiver to understand immediately; dealing with any matters where it is important that a written record should be kept. Letterheaded paper is used, which sometimes includes the firm's logo. There is a standard format for letters, which includes references, the date, the inside address, the salutation, the text of the letter and the close. If the salutation is 'Dear Sir' or 'Dear Madam', then the close should be 'Yours faithfully'. If the salutation uses the person's name, e.g. 'Dear Mr Brown', the close should be 'Yours sincerely'. Letters are also used occasionally for formal occasions within the firm, such as invitations, notices of promotion, dismissals, etc. Annual report and accounts. By law, companies must send a copy of their annual report and accounts to all shareholders. Business forms. A variety of forms are used for routine messages. Using pre-printed forms ensures that no relevant information is omitted. They also save time, as an individual letter does not have to be sent. Many of them are trading documents. Some of the main ones are: quotations by a firm for supply of goods or services; delivery notes, which are delivered with the goods and signed by the customer to show they have been received; invoices, which give details of the goods and show the amount of money owed; credit notes, which are sent when a customer has been overcharged or faulty goods have been returned; statements of account sent to regular customers every month giving details of transactions and the amount owed.
	Electronic Messages
	Advantages: Speed; accuracy; quick or instant feedback; message is usually - or can be- recorded. Disadvantages: Expensive; whole systems sometimes crash. * Mobile phones. These portable telephones allow users to make calls from most locations, indoors and outdoors. The messages are transmitted by radio beacons. Satellite phones, which work anywhere in the world, were being introduced in 1998. Video-conferences. These allow business people to talk to colleagues in any part of the world. Special cameras and software are used to transmit words and images to computer screens or visual display units. Fax. A fax, or facsimile machine can send an exact copy of a document to another fax machine anywhere in the world. The sender puts the document in a fax machine, dials the fax number of the person or organization, and the fax machine at the other end prints a copy of the document automatically. Letters, plans, diagrams and drawings can all be transmitted in this way. * Personal computer (PC): PCs and notebooks - lightweight, portable computers - have revolutionized external communication, too. At one time, big companies employed a small army of clerks to deal with trading documents. Now the work can all be done by a few computer operators in each firm. The work is done far more efficiently and speedily. Space is also saved, as all the records can be stored in the computer files instead of in large grey filing cabinets. Standard business letters, mail 'shots' to thousands of customers, letters to selected customers using a database, and many other communications can now be made far more easily and quickly. By using a modem, messages can be sent along the telephone lines. This enables the computer to become part of a WAN, a wide area network, which links it to other computers anywhere in the world.
	The Internet
	The Internet, which links millions of computer users, is the most rapidly growing means of global communication. The Internet provides an electronic mail, or e-mail, service to other users all over the world, which is much quicker and cheaper than the traditional postal service. The service provider stores the message in an electronic mail box until the receiver views it. In addition there are also millions of 'sites', or pages, on the World Wide Web (WWW), which provide information in words and pictures on almost every conceivable topic. Using a software browser, computer users can 'surf' the Net from site to site all over the world. The Internet is also used for shopping, research, education and games.