Communication (LC 2026) (Leaving Cert Business): Revision Notes
Methods of Communication
Effective daily communication within a business organisation is essential for success. Companies use various methods to share information internally between staff members and externally with stakeholders like customers, suppliers, and investors.
Communication directions in organisations
Communication flows in different directions depending on who is sending and receiving the message:
Internal communication refers to sharing information between people within the same organisation.
Three main directions of internal communication
Downward communication happens when information moves from someone in a higher position to someone in a lower position. For example, a manager giving instructions to their team members.
Upward communication occurs when information travels from lower levels to higher levels in the organisation. This includes employees reporting problems to their managers or providing feedback about company policies.
Lateral (horizontal) communication takes place between people at the same level of authority. An example would be the marketing manager discussing budgets with the finance manager.
Internal vs external communication methods
Businesses use different communication approaches depending on whether they're communicating internally or externally:
Internal methods include:
- Staff notice boards
- Intercom systems
- Internal meetings
- Company emails
- Memos
- Video conferencing
- Group messaging apps like Microsoft Teams
External methods include:
- Company websites
- Telephone calls
- Formal reports
- Business emails
- Official business letters
- Video conferencing with clients
- Social media platforms like Facebook and Instagram
External communication means sharing information with people or organisations outside your company, such as customers, suppliers, or government agencies.
Communication channels and mediums
Communication channels are the methods used to send messages to their intended recipients. These can be categorised into three main types:
Written communication
Written communication uses text-based messages to share information, including emails, letters, memos, reports, and social media posts.
Email (electronic mail)
Email works similarly to traditional letters but messages are sent instantly through the internet. Modern email can include text, images, audio files, and video attachments, plus links to websites.
Key features of business emails:
- Require an email address to send and receive messages
- Popular services include Outlook, Gmail, and Apple iCloud Mail
- Can reach recipients within minutes
- Allow file attachments for sharing documents
Risks and drawbacks of email:
Common Email Security Risks to Avoid:
Data security concerns - Hackers may access confidential information if passwords and security measures are inadequate.
Virus threats - Recipients' computers or networks can become infected with malicious software or ransomware.
Authentication issues - Fake companies may create fraudulent emails to steal customer data through phishing attempts.
Human error - Important emails might be sent to wrong addresses, causing delays and potentially exposing confidential information.
Technology dependence - Companies become unable to operate effectively if their internet connection fails.
Memos (memorandums)
Memo (memorandum) is a brief written message used for internal communication within an organisation.
Memos work well for reminders, quick updates, or sharing brief details. For instance, a secretary might write a memo to inform their manager about a missed phone call, or a sales manager might send a memo to all retail staff about new commission rates.
Standard Memo Format:
To: [recipient]
From: [sender]
Date: [when written]
Re: [subject matter]
Message content
Signature of sender
Business letters
Business letters are formal written communications sent between stakeholders using a standardised format.
Business letters can be used both internally (manager to employee) and externally (company to customers or investors). They're particularly useful for communicating important information that requires an official record.
Key Components of Business Letters:
- Company letterhead with contact details
- Reference numbers for filing purposes
- Date of writing
- Recipient's name and address
- Subject line explaining the letter's purpose
- Formal greeting (Dear Sir/Madam, Dear Mr/Ms)
- Body paragraphs explaining the situation and requested action
- Formal closing (Yours sincerely/faithfully)
- Sender's signature and job title
- Any additional enclosed materials
Reports
Report means a detailed written document covering a specific topic or issue, designed to present relevant data and analysis to help with business decisions.
Reports serve multiple purposes including presenting company data, analysing efficiency or competition, investigating specific incidents, and examining possible solutions to business problems.
Advantages of reports:
- Provide an efficient way to communicate complex information
- Give stakeholders access to comprehensive research and analysis
- Supply critical information for management decision-making
- Can be easily shared within the company or with external stakeholders
Disadvantages of reports:
- Take considerable time to write and can be expensive to research
- Don't allow for immediate feedback or questions from readers
- Recommendations might be ignored if they're difficult to implement
Standard Report Structure:
- Title page and table of contents
- Executive summary outlining main findings
- Terms of reference explaining the report's purpose
- Main findings section with detailed research results
- Conclusions answering the original research questions
- Recommendations suggesting future actions
- Acknowledgements thanking contributors
- Bibliography listing information sources
- Index for easy reference
Verbal communication
Verbal communication uses spoken words to share information with others, including phone calls, conferences, and face-to-face conversations.
Meetings represent the most effective form of verbal communication in business settings. They allow managers and employees to discuss issues, propose solutions, and provide feedback in real-time.
Examples of verbal communication include presentations, team meetings, telephone calls, intercom announcements, video conferences, radio or TV interviews, and casual workplace conversations.
Visual communication
Visual communication shares ideas and information using images, either alone or combined with text, to help explain or reinforce written content.
Visual elements make information easier to understand and remember. Common examples in business include infographics, charts, graphs, diagrams, presentations, images, video conferences, websites, exhibitions, posters, and product packaging.
Types of business charts and graphs
Pie charts use circular graphs divided into sections to show amounts as fractions or percentages. They're particularly useful for displaying how different parts make up a whole.
Bar charts display information using rectangular bars (either horizontal or vertical). Each bar represents a category of information, with the bar's height or length showing its value.
Line/trend graphs track changes or patterns over time periods. Numbers appear on one axis and time intervals on the other, with dots representing values connected by lines to show trends.
Gantt charts combine bar charts with calendar information to display project timelines and task schedules. They're excellent for showing when different project phases should occur.
Pictograms use symbols or images to represent information rather than numbers or text alone.
Social media in business communication
Social media includes websites and apps that allow people to interact with each other online, such as Facebook, Twitter, Instagram, and Snapchat.
With over three billion people worldwide using social media monthly, businesses cannot ignore this convenient and cost-effective communication channel. Social media has become essential for connecting directly with customers and building brand awareness and sales.
Companies use social media for customer service, marketing campaigns, recruitment, sharing company news, and building relationships with stakeholders.
Key Points to Remember:
- Communication flows in three directions: downward (superior to subordinate), upward (subordinate to superior), and lateral (between equals)
- Written communication includes emails, memos, business letters, and reports - each serves different purposes and has specific formats
- Email offers speed and convenience but comes with security risks including hacking, viruses, and phishing attempts
- Visual communication using charts and graphs makes complex information easier to understand and remember
- Social media has become a vital communication tool for reaching customers and building brand awareness