Organisation and communication (AQA GCSE Business): Revision Notes
Organisation and communication
Introduction to organisational communication
The way a business is structured has a significant impact on how effectively communication flows throughout the organisation. Understanding this relationship is crucial for businesses to operate efficiently. Different organisational structures create different communication challenges and opportunities, whether information is moving up or down through the company hierarchy.
The relationship between organisational structure and communication effectiveness is fundamental to business operations. A well-designed structure can facilitate smooth information flow, while a poorly designed one can create significant barriers to effective communication.
Types of communication methods
Written communication
Written communication includes various formats such as letters, memorandums, emails, and reports. As businesses grow larger, the volume of written communication tends to increase dramatically. This is because more people need to be kept informed about decisions, policies, and day-to-day operations.
In organisations with tall structures (many management layers), written communication faces particular challenges. When information needs to travel through multiple levels of management, each layer can act like a barrier or "philtre" that prevents messages from reaching their intended destination. Even something as simple as an email can generate extensive correspondence as it moves through different levels of the organisation to keep everyone informed.
In tall organisational structures, each management layer can act as a "philtre" that distorts or blocks communication. This filtering effect is one of the most significant barriers to effective organisational communication.
However, in flatter organisational structures, written communication becomes much more efficient. Messages can travel more directly between sender and receiver, and mass communication techniques work particularly well. For example, a managing director can send a single message to all staff members simultaneously, ensuring everyone receives the same information at the same time.
Oral communication
Oral communication encompasses face-to-face conversations and telephone calls. This form of communication presents unique challenges depending on the organisational structure in place.
In tall organisations with multiple management layers, verbal messages can easily become distorted or completely lost as they pass from person to person. This happens because there isn't always someone available to receive and pass on the message accurately. The result is that important information may never reach its intended recipient, or it may arrive in a significantly altered form.
Flat organisational structures provide much better conditions for oral communication. The reduced number of management layers means that personal contact between different levels is more feasible. This direct contact serves two important purposes: it helps motivate subordinates through personal interaction, and it provides managers with valuable information about what's happening at different levels of the organisation.
The "telephone game" effect is particularly problematic in tall organisational structures, where messages can become increasingly distorted as they pass through multiple layers of management.
Communication in different organisational structures
Centralised structures
Centralised organisational structures are particularly effective for downward communication - that is, sending information from the top of the hierarchy down to lower levels. This works well because there are clear chains of command and established procedures for distributing information.
However, when it comes to upward communication, centralised structures with tall hierarchies face significant challenges. Employees at lower levels often find it difficult to communicate with senior management because they must navigate through multiple layers of bureaucracy. This can lead to important feedback, suggestions, or concerns not reaching decision-makers.
Common Problem: In centralised structures, upward communication is often severely limited. Employees may have valuable insights or concerns that never reach senior management due to bureaucratic barriers.
Decentralised organisations
Decentralised organisations face their own unique communication challenges. When different parts of the business operate from separate locations, maintaining effective communication becomes more complex. The difficulties are particularly pronounced when locations are spread across different countries, as time zone differences can make real-time oral communication extremely difficult.
In these situations, electronic communication methods such as emails often become the most practical and effective solution. Written communication can be sent and received at convenient times regardless of time zone differences, making it ideal for coordinating activities across multiple locations.
Geographic Challenges: Multi-location businesses must carefully consider time zones, cultural differences, and technology infrastructure when planning their communication strategies.
Large businesses that operate across multiple locations often recognise these communication challenges and establish dedicated communication departments. These departments take responsibility for ensuring that the communication methods used throughout the business are both appropriate for the situation and effective in achieving their intended purpose.
The role of communication departments
In large multi-location businesses, communication becomes such a complex task that it requires specialist attention. Communication departments are specifically created to address these challenges. Their role involves evaluating different communication methods, selecting the most appropriate ones for different situations, and ensuring that information flows effectively throughout the organisation.
These departments help coordinate communication strategies across different locations, time zones, and organisational levels. They ensure that important messages reach their intended audiences and that feedback mechanisms are in place to support two-way communication throughout the business.
Professional Communication Management: As businesses grow in size and complexity, the need for dedicated communication specialists becomes increasingly important to maintain effective information flow.
Remember!
Key Points to Remember:
-
Structure affects communication: The shape of your organisation (tall, flat, centralised, or decentralised) directly impacts how well communication works
-
Written communication scales with size: As organisations grow, they rely more heavily on written communication, but this can create filtering problems in tall structures
-
Oral communication works best in flat structures: Face-to-face and telephone communication is more effective when there are fewer management layers to navigate
-
Location matters: Decentralised organisations, especially those across different time zones, often find electronic communication most effective
-
Specialist support may be needed: Large businesses often require dedicated communication departments to manage complex communication challenges effectively