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Cambridge IGCSE0450

Internal and external communication

Business Studies 0450 Chapter Notes

What this chapter covers

Internal and external communication - Why effective communication is important and the methods used to achieve itInternal and external communication - Demonstrate an awareness of communication barriers
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In this chapter

  1. 1Why effective communication matters
  2. 2Written methods: letters, notices and newsletters
  3. 3Spoken methods: meetings and phone calls
  4. 4IT-based methods: email, text and video
  5. 5Recommending and justifying a method
  6. 6What goes wrong when communication is ineffective
  7. 7Barriers at the sender
  8. 8Barriers at the receiver
  9. 9The wrong medium and a long chain of command
  10. 10Lack of feedback
  11. 11Reducing or removing barriers

1. Why effective communication matters

Communication is effective when the receiver understands the message and can give feedback. Two-way communication, such as meetings and discussion groups, asks employees what they think as well as telling them what to do.

Its importance lies in the benefits to the business. Clear communication means employees complete their tasks correctly and are motivated. When people can clarify points straightaway, there are fewer mistakes. Quick communication can also speed up decision-making.

A question on importance wants a benefit. ‘Fewer mistakes’ is a benefit. ‘Employees know what to do’ is only why communication happens, and a list of methods does not answer the question at all.

Examiner insight

“A common mistake was to identify features of effective communication instead of the benefits of communication being effective. For example, fewer mistakes are a benefit whereas knowing what to do is why communication happens.” “Some cited examples of methods of communication – for example meetings, phone – rather than its importance.”

Worked example 14 marks

Hana owns a print studio with 12 employees. Customers often send rush orders, and Hana passes the printing instructions to her staff in short notes.

Outline two benefits to Hana’s print studio of effective communication.

  1. 1

    Knowledge: fewer mistakes are made [1]

  2. 2

    Application: the 12 employees print each order exactly as Hana’s note instructs [1]

  3. 3

    Knowledge: decisions are made more quickly [1]

  4. 4

    Application: staff can decide how to handle a rush order at once, without waiting to ask Hana [1]

2. Written methods: letters, notices and newsletters

A letter gives a professional image and is confidential. Like an email, it gives a hard copy of the details.

A notice, noticeboard or poster can be placed in various locations for employees to read. It is a poor choice when the receivers are in different countries.

An internal newsletter, newspaper or magazine is another written method. Cost alone is a weak point: ‘a letter is cheaper’ says little about which method works for this business.

Examiner insight

“Weaker responses did little more than identify the expense of each communication method such as mobile phone calls can be expensive whilst sending letters is a cheaper option.” “The point in the question about being in different countries was often overlooked by weaker candidates with suggestions of noticeboards and face-to-face meetings being both problem areas and possible solutions.”

Worked example 16 marks

Brightway Tiles has 25 employees in two showrooms. The owner must tell each employee their new rate of pay. She must also tell all staff about new opening hours.

Explain two written methods of communication Brightway Tiles could use.

  1. 1

    Knowledge: a letter [1]

  2. 2

    Application: one to each of the 25 employees about their own new rate of pay [1]

  3. 3

    Analysis: a letter is confidential, so no employee sees what another is paid [1]

  4. 4

    Knowledge: a notice [1]

  5. 5

    Application: about the new opening hours, put up in each of the two showrooms [1]

  6. 6

    Analysis: it can be placed in various locations, so staff in both showrooms read it where they work [1]

3. Spoken methods: meetings and phone calls

A meeting, in person or online, allows everyone to discuss points and get feedback. Workers can ask questions to make sure they fully understand. A meeting held only once a week can be too infrequent.

A phone call is quick, so speed is its usual advantage. It is a direct two-way conversation, with the chance to question the other person. Its usual disadvantage is that there is no written record.

Give each method its own explanation. ‘Allows feedback’ written for two methods is credited once.

Examiner insight

“However, weaker responses needed to explain all four methods without repeating the same explanation for different methods, such as able to give feedback or allows discussion.” “Some candidates made vague references that using a phone was easy without indicating why this might be the case.”

Worked example 14 marks

Marlow Café buys milk from one supplier. The morning delivery is late and the café opens in two hours. The manager decides to phone the supplier.

Outline one advantage and one disadvantage to Marlow Café of using a phone call.

  1. 1

    Knowledge: a phone call is quick [1]

  2. 2

    Application: the manager gets an answer before the café opens in two hours [1]

  3. 3

    Knowledge: there is no written record [1]

  4. 4

    Application: nothing in writing states when the supplier promised to deliver the late milk [1]

4. IT-based methods: email, text and video

Email can be sent to many people at once, which saves time. It gives a written record that can avoid misunderstandings. Its limits: technical problems mean the message is not sent or received, some employees have no internet access, and there is no certainty that the message has been received.

A text (SMS) message is quick and can be saved for future reference, but only a limited amount of detail fits. A video conference, such as Zoom or Teams, means attendees do not have to travel. A website and social media are also IT-based methods.

‘Cheaper’ and ‘quicker’ alone are too vague to credit. Say how the point helps this business.

Examiner insight

“Better responses were able to explain how points such as being able to send messages to all customers at once could save time, whereas if there were technical problems the message would not be sent or received.” “A number of candidates stated very general points that could apply to many methods of communication, such as the cost or two-way nature of the method.”

Worked example 16 marks

CNR is a bank in country X. The directors are planning to merge the bank with one of its competitors. After the merger, CNR will have 8000 branches and 36 000 employees. The managing director knows she will have to find a suitable method of communication to inform CNR’s employees about the merger.

Explain two methods of communication CNR could use to inform its employees about the merger.

  1. 1

    Knowledge: email [1]

  2. 2

    Application: email the 36 000 employees [1]

  3. 3

    Analysis: it can be sent to many people at once [1]

  4. 4

    Knowledge: a meeting (online or in person) [1]

  5. 5

    Application: a meeting at each of the 8000 branches [1]

  6. 6

    Analysis: it allows everyone to discuss points and get feedback [1]

5. Recommending and justifying a method

To recommend, name an actual method. Then fit it to the business: how many people, where they are, and how fast the message must arrive. Speed matters when the news is urgent, and so does quick feedback.

Then justify. Compare the method with the others, or weigh its advantage against its disadvantage. A decision whose reason does not separate the methods gains little. Nor does a summary of points already made.

Keep the method realistic and answer the question set. A video conference is not credited for staff who all work in one hotel. If the question is about part-time employees, the decision must be about them.

Examiner insight

“Some recommendations did not seem to recognise the importance of quick feedback in this situation as the time element ‘work late tonight’ was completely ignored.” “Often a decision was made but the reason given did not effectively differentiate between the methods chosen.”

Worked example 16 marks

Seabright Hotel has 30 employees, all at work in the hotel this afternoon. A coach party has booked rooms for tonight at short notice, so the manager needs the whole team to work late.

Recommend the best method of communication for the manager to use to tell the employees. Justify your answer.

  1. 1

    Knowledge: a meeting allows everyone to discuss points and get feedback [1]

  2. 2

    Analysis: the 30 staff can ask at once who covers which rooms tonight, so points are clarified and fewer mistakes are made [1]

  3. 3

    Knowledge: an email can be sent to all 30 employees at once [1]

  4. 4

    Analysis: but there is no certainty that each of them has received it before the evening [1]

  5. 5

    Evaluation: the manager needs quick feedback today on who can work late. A meeting gives it at once, an email may not [1]

  6. 6

    Evaluation: decision to hold one short meeting. With all 30 in the building it is as fast as an email and it is the only one that gives an answer on the spot [1]

Recap

  • Effective communication: the receiver understands the message and can give feedback.
  • Importance means benefits: fewer mistakes, motivated employees, faster decisions.
  • Always name an actual method. ‘Written’, ‘verbal’ and ‘visual’ are categories, not methods.
  • Letter: professional image, confidential. Notice: placed in various locations.
  • Meeting: discuss points and get feedback. Phone call: quick, two-way, no written record.
  • Email: many people at once, written record. Text: quick, limited detail. Video: no travel.
  • Recommend: choose a realistic method, fit it to the business, say why it beats the others.

6. What goes wrong when communication is ineffective

A message passes from a sender, through a medium, to a receiver. A communication barrier is anything that stops the receiver getting or understanding the message.

Ineffective communication leads to mistakes and errors. Messages are distorted, so work is not carried out efficiently. That raises costs and lowers productivity.

A barrier arises at the sender, in the medium used, or at the receiver. A question about barriers wants the barrier and how it arose. A question about problems wants the effect on the business.

Examiner insight

“However, it was apparent that not all candidates have an explicit understanding of the significance of good communication in any business.”

Worked example 14 marks

Petal & Stem is a florist with four shops. The owner, Rosa, changed the opening times but did not tell the shop staff, who found out from customers. Outline two problems that ineffective communication could cause for Petal & Stem.

  1. 1

    Knowledge: ineffective communication leads to mistakes or errors. [1]

  2. 2

    Application: staff were not told the new opening times, so they open a shop at the old time. [1]

  3. 3

    Knowledge: work is not carried out efficiently. [1]

  4. 4

    Application: staff in the four shops spend time dealing with customers who came at the wrong time, not selling flowers. [1]

7. Barriers at the sender

The sender can cause a barrier by using jargon or by sending the message to the wrong person. Jargon is technical language. A receiver who does not know the terms cannot work out what was meant.

Say why the barrier arose, not only that the message was not understood. ‘Language’ alone is too vague: write ‘the use of jargon’ or ‘speaking different languages’.

Examiner insight

“It was relatively easy for candidates to identify the use of jargon or messages being sent to the wrong person as a problem with the sender, or different time zones and different languages for the receiver, and not giving feedback to the sender was a common barrier.” “Language was often stated as an issue without identifying how this caused a barrier. For example, the use of jargon or speaking different languages.”

Worked example 14 marks

Cobalt Bakery has 30 staff. The head baker writes the new cleaning rota using baking terms such as ‘proving’ and ‘knocking back’. He sends it to the delivery drivers instead of the cleaning team. Outline two communication barriers at Cobalt Bakery.

  1. 1

    Knowledge: the use of jargon is a communication barrier. [1]

  2. 2

    Application: the rota uses baking terms such as ‘proving’, which staff who do not bake do not know. [1]

  3. 3

    Knowledge: a message sent to the wrong person is a communication barrier. [1]

  4. 4

    Application: the cleaning rota went to the delivery drivers, so the cleaning team never received it. [1]

8. Barriers at the receiver

At the receiver, the barriers are different languages, different time zones, and no access to the internet or a computer. A message sent by email does not reach a worker who has no computer.

A receiver can also fail to pick up a message at all. Name the cause. ‘Not understood’ and ‘distance’ describe the situation, not the barrier.

Examiner insight

“Other candidates used words such as ‘technology’, ‘not understand’ or ‘poor communication’ without identifying the barrier itself.” “A common mistake was for candidates to focus on issues such as distance or that the message might not be understood without explaining what the barrier was.”

Worked example 16 marks

Trevane Textiles has a factory in country Y and an office in country Z. Managers in the office email instructions to factory workers, most of whom speak a different language and have no computer. Explain two communication barriers at Trevane Textiles.

  1. 1

    Knowledge: speaking different languages is a communication barrier. [1]

  2. 2

    Application: most factory workers speak a different language from the office managers. [1]

  3. 3

    Analysis: the emails are written in the managers' language, so the workers cannot read the instructions. [1]

  4. 4

    Knowledge: no access to a computer or the internet is a communication barrier. [1]

  5. 5

    Application: the instructions are sent by email, but the factory workers have no computer. [1]

  6. 6

    Analysis: the workers have no way to open an email, so the instructions never reach them. [1]

9. The wrong medium and a long chain of command

The medium is the method used to send the message. A medium that suits one message can fail for another. An email cannot reach a worker with no computer. A noticeboard or a face-to-face meeting cannot reach staff in another country.

A long chain of command is another source of barriers. The message passes through each level of the hierarchy, so it can be distorted on the way down.

When you choose a method, say what it lets the sender do, such as reach many people at once or allow discussion.

Examiner insight

“This question proved to be the most challenging on the paper for candidates, with ‘problems with the medium used’ the hardest of the three barriers.” “For example, poor communication may be as a result of the chain of command becoming longer making it more difficult to ensure tasks for employees were clearly passed down to the lower levels, leading to messages being distorted and work not being carried out efficiently.”

Worked example 16 marks

Explain two methods of communication CNR could use to inform its employees about the merger.

  1. 1

    Knowledge: email. [1]

  2. 2

    Application: email the 36 000 employees. [1]

  3. 3

    Analysis: it can be sent to many people at once. [1]

  4. 4

    Knowledge: a meeting, online or in person. [1]

  5. 5

    Application: a meeting at each of the 8000 branches. [1]

  6. 6

    Analysis: it allows everyone to discuss the points and get feedback. [1]

10. Lack of feedback

Feedback is the receiver's reply to the sender. Not giving feedback to the sender is a barrier. A manager who tells workers what to do and does not ask what they think gets none.

Without feedback, workers cannot ask for clarification of a message, so an unclear message stays unclear.

A question on the problems of a lack of feedback wants those problems. Ways to encourage feedback earn nothing there.

Examiner insight

“Many candidates misinterpreted this question so focussed on communication in general rather than the problems caused by a lack of feedback as a barrier to communication.” “Other candidates identified ways to encourage feedback or reasons why people communicate.”

Worked example 14 marks

Marlow Print has 60 staff. The manager sends a long message about a new machine's safety rules and never asks if staff understood it. Outline two problems a lack of feedback could cause for Marlow Print.

  1. 1

    Knowledge: workers cannot ask for clarification of the message. [1]

  2. 2

    Application: staff who are unsure about the new machine's safety rules have no chance to ask about them. [1]

  3. 3

    Knowledge: the sender does not find out that the message was not understood. [1]

  4. 4

    Application: the manager never asks, so he believes that all 60 staff know the rules. [1]

11. Reducing or removing barriers

A solution must address the barrier that was named. For no feedback, use two-way communication, such as meetings and discussion groups. For notices that some staff never see, place them in various locations.

For a language barrier, a business can employ an interpreter, teach language skills or employ local people. For a long chain of command, delayering leaves fewer levels to distort a message. For jargon, the sender uses simple language.

Use a different solution for each barrier, and check that it works for this business. A face-to-face meeting does not suit staff in two countries.

Examiner insight

“Weaker answers did not attempt to link their answers to the scenario or offered generic solutions which did not directly address the knowledge point identified. Some candidates provided solutions but did not make clear what problem it was addressing.” “A significant number of candidates repeated similar solutions when discussing both messages lost and the use of jargon, this limited their ability to gain marks.”

Worked example 16 marks

Harbour Hotel has 90 staff. Managers pin notices in the manager's office only, and often use hotel jargon such as ‘turn-down’ and ‘covers’ that new staff do not know. Explain one way to reduce each of these two communication barriers.

  1. 1

    Knowledge: for notices that staff do not see, place the notices in various locations. [1]

  2. 2

    Application: noticeboards in the kitchen, the reception area and the staff room of Harbour Hotel, not only the manager's office. [1]

  3. 3

    Analysis: staff pass a notice wherever they work, so the message reaches all 90 of them. [1]

  4. 4

    Knowledge: for jargon, use simple language or explain the terms. [1]

  5. 5

    Application: managers write ‘prepare the room for the night’ in place of ‘turn-down’ for new staff. [1]

  6. 6

    Analysis: new staff know every word in the notice, so they can work out what the managers want. [1]

Recap

  • Ineffective communication leads to mistakes and errors, and work is not carried out efficiently.
  • Barriers arise at the sender, in the medium, or at the receiver. Name the barrier, then explain how it arose.
  • Sender: jargon, or a message sent to the wrong person. Receiver: different languages, different time zones, no internet access.
  • Medium: the wrong method for the people or the message. A long chain of command can distort a message.
  • Lack of feedback: the receiver does not reply, so workers cannot ask for clarification.
  • A solution must address the named barrier and suit the business. Do not use the same solution for two barriers.
  • Apply every point to the business in the question, with a different piece of the context for each point.

End-of-chapter exercise

Test yourself on the whole chapter. Work through these before moving on.

  1. Bella runs a bakery with 9 employees. The bakery’s opening hours are about to change. Identify two methods of communication Bella could use to tell her employees.2 marks
  2. Swift Taxis sends text (SMS) messages to its drivers. State one advantage and one disadvantage of using text messages.2 marks
  3. Tariq owns a garage with 6 mechanics. He wants communication there to be effective. Identify two benefits to a business of effective communication.2 marks
  4. Kestrel Coaches has 18 drivers. 12 of them start each day at the depot. The other 6 are based in another country. The manager pins route changes to a noticeboard at the depot. Outline one advantage and one disadvantage to Kestrel Coaches of using a noticeboard.4 marks
  5. Zara’s Hats sells hats online. Zara plans to email its 2000 customers about a sale. Outline one advantage and one disadvantage to Zara’s Hats of emailing these customers.4 marks
  6. Orchard Foods is a farm shop. It buys jam jars from a supplier in another country. Explain two methods of communication Orchard Foods could use to contact the supplier.6 marks
  7. Nadia’s Print Shop has 8 employees and a new cutting machine with 15 safety steps. Should the manager explain the steps in a meeting or in an email? Justify your answer.6 marks
  8. Rapid Couriers has 200 drivers at 40 depots. Each has a work email address. New safety rules start tomorrow, and the managing director wants a record of who was sent them. Recommend the best method of communication for Rapid Couriers. Justify your answer.6 marks
  9. Tallis Haulage has 45 lorry drivers in three countries. They visit the depot only once a month. Each has a mobile phone and an email address. Explain a different method of communication Tallis Haulage could use for each message. | Message | What the manager needs | | --- | --- | | A. A road has just closed | One driver must change route within the hour | | B. Each driver’s new rate of pay | No driver should see another driver’s pay | | C. A list of 30 delivery addresses | Drivers must be able to check the details later | | D. A plan to change shift patterns | All 45 drivers must give their views together |8 marks
  10. Pembury Care has 240 employees in 6 care homes. Most are part-time. Each one starts every shift in the staff room and works at least one shift in the next 5 days. A new procedure for giving medicines starts in 5 days, and a mistake could harm a resident. Consider the advantages and disadvantages of each method and justify which is best. | Method | From the manager’s notes | | --- | --- | | An email to all employees | Only 40 have a work email address | | A meeting in each home on Monday | Only 50 of the 240 work on Mondays | | A notice in each staff room | Can be put up today in all 6 homes |12 marks
  11. Sunil owns a small printing firm. Identify two barriers to communication.2 marks
  12. Dalia runs a taxi firm. Her drivers often miss messages about changed bookings. Identify two problems that ineffective communication could cause for a business.2 marks
  13. Quill Software has 40 staff. Its designers write messages to the sales team using technical terms that the sales team does not know. The designers never ask the sales team for a reply. Outline two communication barriers at Quill Software.4 marks
  14. Orchid Foods has an office in country A and a factory in country B. The factory's working day starts as the office's working day ends. The factory supervisors speak a different language from the office staff. Outline two communication barriers between the two sites.4 marks
  15. Tidewell Laundry has two buildings and 50 workers. The manager puts every message on one noticeboard in the main building. The messages use the manager's own codes for the machines, such as ‘W3’ and ‘D-line’. Explain two communication barriers at Tidewell Laundry.6 marks
  16. Pallister Pharmacy has 25 staff. Staff do not give feedback to the owner, and the owner often sends messages to the wrong member of staff. Explain one way to reduce each of these two barriers.6 marks
  17. Meridian Hotels has 700 staff and eight levels in its hierarchy. Orders from the owner often reach hotel staff changed or incomplete. Explain one barrier that causes this and one way to reduce it.6 marks
  18. Greystone Builders has 80 workers on five sites. The director gives orders to the site managers and never asks what they think. Explain two problems caused by a lack of feedback as a barrier to communication. Which problem is likely to be more important? Justify your answer.6 marks
  19. Vessant Games has a design studio in country A and 30 testers in country B. Both sites work from 09:00 to 17:00 local time, and country B is 9 hours ahead of country A. The lead designer telephones the testers at 15:00 studio time with urgent changes. She uses the studio's own code names for parts of each game, which the testers were never given. Explain two communication barriers at Vessant Games and one way to reduce each barrier.8 marks
  20. Orrin Logistics has its head office in country A and six depots with 300 drivers in country B. Head office managers write delivery instructions in technical freight terms. They send them by email, but the drivers are on the road all day and have no internet access there. The drivers speak a different language from the managers. Consider the three barriers to communication at Orrin Logistics: problems with the sender, problems with the medium used and problems with the receiver. Which barrier is the easiest to overcome? Justify your answer.12 marks

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