Horizontal communication is when people from the same level of hierarchy communicate. This usually occurs frequently. For example Paul Jones (production director) could be talking to Graham Smith (finance director) possibly about a new product.
Diagonal communication takes place across the hierarchy between people at different levels. For example if there were several departments in a store and each department had a manager and many employees, in this case a staff from one department would communicate with a manager from another department.
Horizontal
Now I have talked about the ways that people can communication within the business, I will now talk about what each departments covers and how they can work together in a process called interdependence.
3.0 Departments and Their Duties
Each Director in the business has a specific responsibility concerning the department they manage.
The marketing director is responsible for running the marketing department. This includes market research, promotion and advertising, publications, and sales. Majority of company income is his duty. In Gregg’s this would be Susan Ward.
The production director’s responsibility is to run the production department. His/Her main target is to meet the customers’ requirement in all aspects. He/She has to make sure that the right goods of the right quality are produced at the right time.
For the human resources director to work effectively he/she has to work closely with other departments. He/She is responsible for running the human resources department and has to ensure that the business has enough employees to operate. He/She also have to be aware of the developments in employment and training laws.
The finance director runs the finance department. His responsibilities include ‘oversight of all financial and accounting operations, such as billing, management information services, enrolment, and underwriting as well as accounting, fiscal reporting and budget preparation’.
().
The managing director is the head of the company. He/She is responsible for many things such as agreeing policies, setting objectives with other directors and ultimately is responsible to the shareholders for the performance of the organisation and to make certain that the decisions decided by the board of directors are carried out. The managing director’s overall task is the day-to-day running of the organisation. In Gregg’s the managing director is Andrew Martin.
The administration director is responsible for the administration department. This department is vital to the smooth running of the organisation. It is responsible for legal and other matters such as maintenance of offices, insurance, and many more. It also provides a service for the other departments in the organisation. Services include photocopying, fax services, telephone and several others.
Having noted what each department does, I will explain why they communicate with each other. This is called interdependence. Different departments can communicate with each other for an effective running of the business, otherwise the business will fail.
The definition of interdependence is ‘people relying on each other in different places or in the same place for ideas, goods and services’
(). Positive interdependence means that team members need each other in order to succeed. An example of this is the three-legged race. Role interdependence relies on the fact that the specific roles are rotated so that all team members gain the experience. I will now talk bout the difference between internal and external communication.
3.1 External/Internal Communication
Internal communications is when the people in the business organisation communicate. External communications is when people communicate with those outside the organisation.
External Communication
Internal Communication
Source: (Teacher’s Notes)
3.2 Communication methods
There are a range of communication methods available in businesses and can be classified under paper, people, and electronics. I will list the different methods available for each heading and then record the advantages and disadvantages for some of these methods. With a few of them, I will also give an appendix.
Paper
Memorandum (Memo)
A memo is used as a way of committing questions and answers. A memo sets out the date, sender, recipient, topic for discussion and contains a short note of the content. An advantage is that a memo can be self carbonated so that the sender can keep a copy. The message is communicated in written format and therefore should be definite but sometimes pieces of paper can get lost or ignored so there is no guarantee that the message is received.
Advantages of Memoranda (Memo)
- They can provide a permanent record for future reference.
- They are short and to the point.
Disadvantages of Memoranda (Memo)
- There is no immediate feedback.
- Feelings and emotions cannot be expressed through a memorandum.
For example the finance director (Graham Smith) could leave a memo for the production director (Paul Jones).
Example: There is a meeting today at 17:00 hours.
This is an example of a memorandum – (source BBC Bitesize Revision).
Notices
Notices are used a lot especially internally within the business. Most times they are placed on notice boards so that most or all the staff is able to see it.
Advantages of notices
- They can be viewed by a large number of people
- Producing them is inexpensive.
Disadvantages of notices
- Notices can be torn down or damaged either accidentally, or purposely.
- There is no guarantee that everyone will read the notice.
Reports
Reports are important in every business, to check its progression and how additional modifications/improvements in the way the business is run can help the business succeed also. They are presented in an ordered layout and are better used to discuss the more complicated matters in the firm as they tend to be very detailed and formal. Reports usually contain information on forthcoming matters in the business, how to stop problems, resolutions to current or future problems, and they also may budgets and suggestions etc.
Advantages of reports
- Reports are formal and are very detailed.
- Reports usually deal with complicated matters, which are best dealt with in writing rather by any other methods.
Disadvantages of reports
- The language can be too difficult for some people to understand.
- The process of giving feedback would be long which could cause barriers of communication to occur.
Letters
Letters can be used internally, but they are generally used for external communication.
They are written formally unless it is addressed for a friend/relative. Depending on how the message is sent, it will take a certain amount of time to reach the recipient. A First Class stamp will ensure the letter will reach the recipient in a much quicker time then a Second Class stamp as for the royal mail, the first class stamp is more important, this is why a first class stamp is more expensive.
Advantages of letters
- It enables long distant communication to take place.
- Letters contribute to the confidentiality and securities of information, as they are sealed and are usually sent to people that are related to the matter.
Disadvantages of letters
- There is a possibility that letters can be lost or damaged through post.
- You can not be certain of security as it can easily be opened and read, or sent to the wrong address
Below is how you would usually set out a letter. – Source (Teacher’s Notes)
People
Meetings
Talking to people is the easiest way to interact with one another. This can be done by various methods of communication, one of which is, face to face. Face-to-face communication is the oldest form of communication; it can be a one-to-one conversation.
Advantages of meetings (Face to Face)
- Feedback can be given and received.
- The body language of the speaker can ensure the message is given effectively.
- At a meeting, what is set is recorded which could be important for future references (minutes).
Disadvantages of meetings (Face to Face)
- Not everyone is willing to speak up at meetings. People’s views may not be looked at.
- People may not always be available to attend meetings.
In Gregg’s, meetings would not only take place internally between employer and employees about various issues such as daily plan etc, but would also take place externally between Gregg’s and other relevant companies. The two branches of Gregg’s may sometimes meet to discuss improvements, targets and other issues.
Grapevine
Information which is spread through a grapevine means that that certain information is spread through an informal way (e.g. rumours)
Advantages of Grapevines
- Can be discussed instantly, you can immediately talk to them face to face and give them your own opinion.
- Information can be sent very quickly
Disadvantages of Grapevines
- Information that is sent can be inaccurate/complete rubbish.
- May lose the business some possible profit. For example if someone worked for Gregg’s and they were going to bring out a new product which had not been made yet in the market, the employee at Gregg’s may go and tell one of his mates who may be working in another company which sells similar products.
Interviews
An interview is ‘A two-way conversation started by an interviewer to obtain information. Interviews may be done with individuals or with groups of people. Interviews may be done in person (face-to-face), completed by telephone, or may involve use of a computer’ ()
Advantages of Interviews
- Personal/Confidential information may be discussed in an interview
- Anything that cannot be understood can be quickly asked and answered
Disadvantages of Interviews
- Interviews can vary in times, sometimes it can be very long
- Information cannot be spread to many people.
In Gregg’s there will be many interviews. The Human Resource Director is responsible for employing new employees, therefore John Dickens will have to interview possible candidates for new various jobs.
Electronics
Electronic Mail (e-mail)
E-mail stands for Electronic Mail. Each user can have their own separate e-mail address (ie. [email protected]), and sometimes a company may have shared e-mail address
Once email has been sent, it should be received straight away. This is a convenient way of sending long messages or documents. For example, externally it could be used to other branches of the organisation.
Advantages of Electronic Mail (E-mail)
- Attachments can be made, which means other documents can be sent with the email.
- The email should be received straight away (quick)
Disadvantages of Electronic Mail (e-mail)
- Users have to subscribe to an ISP -(Internet Service Provider) for example AOL, Tiscali or BT.
- You can receive viruses via email.
Telephones
Telephones are used everywhere and is still the most used method of reaching someone far. Calls can be transferred from one department from another via intercom to provide help and service, as long as there is another phone around.
Advantages of Telephone
- Problems can be dealt with quickly. Information can be received quickly (reliable)
- It is relatively cheap - calls starting from 1p a minute.
Disadvantages of Telephones
- There is no written record of the conversation.
- Verbal messages can sometimes be misunderstood.
Fax – Facsimile
Fax is a way of sending long or short forms and documents, electronically, all over the world via telephone lines. The sender and recipient must each own, or have access to, a fax machine in order for the message to be sent and received.
Advantages of Facsimile (Fax) Machine
- Messages can be sent quickly in comparison to letters.
- Authorise documents with a signature.
Disadvantages of Facsimile (Fax) Machine
- The fax machine can miss sheets (waste paper in some cases)
- The message is not confidential; this may prove to be some-what of an issue in some circumstances where the message at hand is private.
Overall I feel that using electronic forms of communication is the best method. This is purely because of it being reliable and efficient. Although you will have to pay a considerable amount as a start up cost, it is extremely quick. Even though, paper communication is just as reliable and efficient, it is not quick as electronic communication. These days, the speed is very important. On the other hand people communication can be very slow. It can also be less motivating for example, if you were really tired at the end of working day, and there was a meeting, then you would less motivated to go.
People communication can also be very expensive, for example if Gregg’s had a meeting, then they may have to pay for the food and drinks that would be served there. Similarly electronic communication is very expensive in the way that you will have to pay for electricity which the equipment is running on. In this case using paper communication is not that expensive. With electronic communication, a downside could be that confidential information might be accessed by the wrong person. For example if you send an e-mail to the wrong address, it could cause big problems. A big advantage of using people communication against electronic and paper is that the information is confidential. A good reason to use paper communication is that everything that is usually sent is authorised by a signature, therefore you are able to keep a permanent record. But if you use paper as one of your main source of communication, then more trees will have to be cut down which is not environmentally friendly.
4.0 Market Research
Before I create a budget, I need to find out what I need most of. This can be done by phoning other companies and asking them what kind of communication they use in their business. Before I start to phone up a couple of companies I have to create a series of questions to ask them (questionnaire)
The questions that will be asked are:
- Within your business (internal) what different types of communications do you use?
- Out of all the types of communication your organisation uses which do you use most frequently?
- Which of the different forms of communication would you say is the cheapest?
(On a scale of 1 -5, 1 = most cheapest, 5 = least cheapest)
- What type of communication would you indicate as the fastest?
- Which form of communication does your organisation find the most reliable?
The companies that I will be phoning will be:
- Anglian Home Improvements
- IKEA
- Dansk International Furniture Centre
When I phone up the company I will have to introduce myself, so they know who they are talking to. I will first have to ask for the customer services department as these are the people who deal with customer enquiries. I will then have to tell them what school I attend at the current time and why I am calling them.
After calling the three companies, I was successful in that all three companies could help me with my enquiries which I was grateful for. Below I have written the results of my questionnaire.
Anglian Home Improvements:
- telephones, notices, meetings, fax, mobiles, face to face
- telephones
- 5 = notices/face to face, 4 = telephones, 3 = fax, 2 = meetings, 1 = mobile
- telephone, mobile
- telephones, meetings/face to face
IKEA
- telephones, e-mail, notices, meetings, face to face, memo’s
- telephones/face to face
- 5 = e-mail/face to face, 4 = memo’s, 3 = notices, 2 = telephone, meetings
- telephone
- meetings, telephones
Dansk International Furniture Centre
- telephone, face to face, notices
- face to face
- 3 = face to face, 2 = notices, 1 = telephone
- telephone
- face to face
From these results I can now make conclusions, however before I analyse the answers the different organisations gave me; I will create graphs from the answers received so it enables me to make clearer conclusions.
From this graph we can see that telephones, face to face communication, and meetings are all equally reliable. This means that they will be very highly recommended to be used in Gregg’s.
Out of the three companies asked, all three said that they find telephones as the fastest form of communication and one said that mobile is also a fast way of communicating. Therefore in the budget I will include these two things.
Two of the three companies said that face to face is communication is cheap; therefore I will use this within the organisation. They also said that they use telephones most frequently as a form of communication. In the next few pages, I have put pictures of products that I will put in my budget along with their prices.
4.1 Legal, Social, and Environmental Issues
When a company opens up a new site, it must first consider the legal, social, and environmental issues. I will now talk about how each of these factors could affect the relocation of the business, to the employees within the business and even the people who have nothing to do with the company.
Social Issues: - When the business relocates, many things could go wrong. For example when the business moves, friendship groups might be broken. This could result in certain people in the business being less motivated. When a business relocates, training is required for the employees so they can use all the new communication systems. This will cost the company quiet a lot of money and another disadvantage could be that some employees might take some time before they get used to running the new systems. However the training program is very important for the efficient running of the business. Other problems that could occur could be that the employees could feel alienated by all the new technology. Some people may not like the idea of a relocation package and may intend to work from home. (Tele-working). If employees were to work in the new site and did not live close by, then they would be tired, therefore being less motivated, hence being less efficient in their work.
Environmental Issues: - Nowadays mobile phones have been speculated to be very dangerous. This is because they send out electromagnetic waves which could result in cancer being formed anywhere in the body. These days it seems that recycling is a very good way of protecting the environment. Although it is beneficial to the environment, it is still an expensive process. There could also be fire hazards. It is very important we do not add to pollution as global warming is rising. Another vital factor that affects the environment is congestion. As we are relocating we must make sure that we do not cause congestion on the roads. An advantage of relocating is that we bring social benefits to the community such as increased employment, improved services and success to a community. When relocation is being considered the infrastructure of the area which you are planning to move to is very important. This is because employees, who may not like to travel by car, may decide to travel by the train or bus, another reason is that it is often vital for raw materials to be taken to the business and finished goods to be distributed.
Legal Issues: - When businesses relocate, they sometimes have to build a new office/factory. This requires permission from the local council. In some areas in the UK, it is very easy to get permission as new businesses are encouraged, however in some areas; to obtain this permission is very difficult, this is probably because they would like to protect the existing environment. When a business starts up or in this case relocate, they have to follow strict rules. The Health and Safety Work Act (HASWA) set in 1974 is an ‘Act to make further provision for securing the health, safety and welfare of persons at work, for protecting others against risks to health or safety in connection with the activities of persons at work’ (). There is the Data Protection Act which tells us to keep all information safe. The European Union(EU) directive says that workers must have a minimum of twenty minutes break.
5.0 Conclusion
My decision is that the company should undeniably use telephones as one form of communication between the two different sites. From doing the market research on three well established companies, that almost every question I asked, then answered me back with telephone. Telephones are reliable, used very frequently in businesses, they are relatively cheap to buy and use and are a very fast way of communicating and are user-friendly. I chose digital telephones because they can be used very far away from their base station (E.g. 300m), and they also have an answering machine built inside them which could be useful if the business is closed. Someone who is trying to get in contact with them could possibly leave a message.
Another advantage of using telephones is that they can be linked via intercom. Although they can only be used internally, a solution to this problem could be to provide a mobile phone for all the senior ranked people in the business, i.e. chairman, directors, managers. This would mean that the intercom could be used both internally and externally. Although it would be quite expensive to buy all this equipment, I have been able to calculate my budget which includes sixty mobile telephones. Although mobiles have been said to cause cancer, this is still not a fact, it has not been proven, and therefore I will go ahead and buy mobile phones. I also decided to buy hands free kits for the mobile phone as; very recently they brought a new law saying that you cannot use your mobile whilst you are driving. For example if in Gregg’s there was a major meeting between the two branches, then the director’s from one branch would have to go the other branch. Therefore hands free kits have been brought so that you can use your mobile whilst driving. For example one of the directors may get an emergency call.
I chose to use fax and e-mail in the company because they are both ways in which information can be sent from and back. They both cost money, and require a telephone line. They are both reliable and efficient. E-mails can be sent provided you have an internet service proved (ISP), and a modem which all cost money. Nowadays they have even brought e-mailing into mobile telephones which is expensive but can be useful in emergency cases. Another advantage of using e-mail to communicate is that they can be sent and received whenever you want. You are also able to add attachments onto the e-mail such as images, graphs, and other types of documents but a drawback of this is that they can take a long time to download. One disadvantage of using e-mails is that there is a high chance of accidentally downloading a virus or something that can harm the computer. To minimize this, I will use an anti-virus program recommended by Microsoft, and whenever we have to open up a mail, I will make sure that the files are scanned for viruses beforehand. The main reason I also chose to use fax was because it gave more of a professional look. Although fax machines are quiet expensive and require ink, they are usually used only for business use. You are also able to authorise a fax (document) with your signature.
As a conclusion, I believe that my decision that the company should use telephone, e-mail, fax, mobile phones to communicate will be a successful. I believe that my suggestions should satisfy the firm remarkably. I think that my solution has solved the problem over the two sites and I don’t see a problem growing from any of the two sites. To make sure that there are not any problems, I will visit both sites once a month just to make sure that everything is running smoothly and if any problems occur, I will make sure that I fix it. When I come back to check, if the training is not enough, then I will make sure that training is a necessity.
When the company relocates, the money that is left over from my budget will mostly go towards training the employees. Training is a very important part of a business. It is the ‘process of teaching an employee the knowledge and skills necessary to carry out his or her job efficiently’. (GCSE Business Studies by Chris J Nuttall). The main purpose of training is to develop the performance of an employee so that he or she is able to make the maximum contribution to the success of the business. The benefits that the business gains by providing training for its employees include developing a skilled workforce, improved efficiency, reducing the costs through less wastage of materials and increased productivity and better quality products. Training also makes employees feel esteemed and a major part of the business; it improves their motivation and profits both employees and employers, through reduced labour turnover. The cost of training will differ according to the type of training you embark upon. All training has a financial cost that has to be offset against the benefits gained.
In my budget, I have also bought three cars. These will be owned by the company and will be given to three directors which are moving to the new branch of the company. This has been done just in case the directors refuse to move. In addition to this the company will also pay for the petrol for which the car has to run on. However the car will not be used in the weekend. I also decided to buy projectors. For example in Gregg’s when there is a meeting or a conference, and when the marketing director (Susan Ward) proposes his ideas on possibly a new product, then a projector can be used, as another way of showing off the product, to everyone at the meeting/conference.
I decided to add flat screen monitors, and a batch of computers. I chose flat screen monitors because they are the latest technology and are used in many other bonafide companies. They reduce eye stress and take up less space than normal monitors. Using computers, I can do many things for the company. For example, I will connect these computers to the internet, so the company is able to use electronic mail. Another reason to buy computers is that all word documents will have to be typed, for example letters and do research using the internet. For example in Gregg’s, the marketing director, Susan Ward may use the internet to research possibly a new product.
These days it seems that all businesses use the internet as a way of communication. It is extremely useful and quick depending on the type of package you decide to use. For example in Gregg’s the two different sites could communicate via the internet, possible by using the e-mail system. Using e-mail documents which are not that confidential or important can be sent.
Whilst working on my coursework, I had many difficulties. I had four months to complete this investigation which I thought was too long and was disturbing the relocation process at the new site. When I return next month for the check up and to see if there are any improvements to be made, I will be very focused.
Bibliography
- GCSE Business Studies by Chris J. Nutall
Published by: Cambridge University Press, 2001
Unit: 29 Page: 165 – 167
Unit: 27 Page: 156
Unit: 26 Page: 149-150
Unit: 27 Page: 153-158
- Diagrams from ‘Teachers Notes’
- Various internet websites which have been given a source next to the place I have put these in the coursework.
- MapQuest: Driving Directions, Maps
