IBBusiness ManagementHLRevision Notes2. Human Resource Management2.6 CommunicationFormal & Informal Communication

Formal & Informal Communication (HL IB Business Management)

Revision Note

Lisa Eades

Methods of Communication

  • The aim of communication is to exchange or transfer information
     
  • Formal communication is channeled through a businesses formal organisation structure and is likely to be capable of being recorded in some way
     
  • Informal communication is any communication that takes place outside of the official channels and is unlikely to be formally recorded

Business communication happens in three main ways 1. Verbal communication such as meetings 2. Visual communication such as using posters 3. Written communication such as emails

The main forms of communication used by businesses
 

  • The effectiveness of each method depends on the business context, the nature of the communication and the personal preferences of both the sender and receiver of information

Strengths & Weaknesses of a Range of Communication Methods


Method of Communication
Strength
Weakness

Face-to-Face Communication

  • Face-to-face communication allows for the exchange of facial expressions, body language, and tone of voice which enhance understanding

  • Face-to-face communication may not always be feasible due to geographical distances or time constraints

Written Communication

  • Written communication provides a paper trail that can be referred to in the future for clarity

  • Without facial expressions and tone of voice, written messages can sometimes be misinterpreted or lack emotional context

Phone Calls

  • Phone calls allow for real-time communication, enabling quick exchange of information and resolution of queries

  • Without seeing the other person, it can be challenging to interpret their body language and facial expressions accurately

Video Conferencing

  • Video calls allow people in different locations to connect 

  • Unreliable internet connections or audio/video problems can hinder effective communication

Instant Messaging & Chat Applications

  • Instant messaging (WhatsApp, Slack) enables fast and real-time communication making it ideal for brief exchanges or urgent matters

  • Text-based communication lacks non-verbal cues, increasing the chances of misunderstandings or miscommunication

Exam Tip

Businesses use a combination of different communication methods, choosing the most appropriate for the message or discussion that needs to be held

However, factors such as time and distance play an important role in the type of communication chosen - in some cases the method chosen will not be the most appropriate method but it is the quickest or the only option available

Barriers to Communication

  • Barriers to communication hinder the flow of information leading to potential misunderstandings, conflicts and inefficiency

An Explanation of the Barriers to Communication in Business


Barrier
Explanation

Language and jargon
  • The use of technical terminology or industry-specific jargon can create barriers between individuals or departments

    • Misinterpretation or lack of comprehension can occur when people are not familiar with the terms being used e.g. many businesses use a large amount of acronyms which can leave new staff feeling confused

Noise and distractions

  • Physical noise such as loud machinery or a crowded workspace can interfere with effective communication

    • Similarly, distractions like phone notifications, email alerts, or multitasking can divert attention and impede clear communication

Lack of feedback

  • Communication is a two-way process and the absence of feedback can affect understanding

    • When individuals don't ask for or provide feedback, assumptions and misunderstandings can arise, leading to communication breakdowns

Cultural differences

  • In today's globalised business environment people from diverse cultural backgrounds work together

    • Cultural differences in communication styles can create barriers if they are not understood

Hierarchical barriers

  • Employees may feel hesitant to communicate with their superiors due to fear of repercussions or a perceived lack of accessibility

    • This can impede the free flow of information and ideas within the business

Lack of clarity and conciseness

  • Vague, lengthy or overly technical messages can confuse recipients 

Emotional barriers or lack of time
  • If individuals are angry, stressed or upset their ability to convey or understand messages may be compromised

  • Busy work schedules and competing priorities can limit the time available for communication

Technological barriers

  • Over-reliance on technology or improper use of communication tools can create barriers

    • Technical issues such as poor internet connections, malfunctioning equipment or unfamiliarity with communication platforms can slow down communication

Personal biases and filters

  • People often have preconceived notions, biases or filters that affect their interpretation of messages

    • These biases can affect their ability to listen objectively and understand the intended meaning accurately

 

  • Organisations should encourage open communication, may consider providing training on effective communication techniques and encourage a culture of transparency and collaboration to overcome these obstacles

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    Lisa Eades

    Author: Lisa Eades

    Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.