The Importance of Communication (Leaving Cert Business): Revision Notes

The Importance of Communication

What is communication in management?

• Communication serves as a fundamental management skill that involves transferring information to one or more people in a way that ensures the message is received and clearly understood.
• The success of communication depends on selecting the appropriate method and choosing the right person to deliver the message.
• For communication to be truly effective, several key elements must be in place.
• The message needs to be clearly understood by the recipient, who must also have the chance to respond.
• An effective communicator is equally skilled at listening, and it's essential for the sender to be aware of the recipient's needs and to act on any feedback they receive.

The role of feedback in communication

• Feedback plays a crucial role in the communication process. It consists of information, opinions or observations provided to help a person or process improve.
• In organisations that value democratic principles, everyone should have opportunities to influence decision-making and contribute to organisational improvement.
• Additionally, feedback serves to confirm that the message has been successfully communicated.

Why communication skills matter in business

A manager who demonstrates effective communication skills brings significant value to their organisation. The benefits of strong communication skills create a positive impact across multiple areas of business operations.

Key benefits include:

1. Fewer errors: Written communication allows recipients to review messages multiple times, check important details and ensure they fully understand the content. This careful review process significantly reduces the likelihood of mistakes.
2. Greater productivity: When communication is effective and timely, less time is wasted on clarification. Everyone understands their tasks clearly and can act promptly, which boosts overall productivity.
3. Quicker decision making: Skilled managers can analyse information rapidly and make decisions without unnecessary delays. This speed is particularly valuable in today's fast-changing business environment.
4. Better decision making: Higher quality decisions emerge when they are based on accurate information that has been communicated clearly. Being open to feedback further enhances decision quality.
5. Better staff morale and lower staff turnover: Employees feel empowered when they receive clear instructions and know their voices are heard. This reduces stress levels and improves morale, leading to lower staff turnover and reduced recruitment and training costs.

Principles of effective communication

Effective communication in management follows established principles that guide how messages should be crafted and delivered. Managers must consider eight key principles when communicating to ensure their messages achieve the intended impact.

1. Length: Messages that are too long risk losing the recipient's attention, whilst overly short messages may not convey all necessary information.
2. Accuracy: The sender should have thorough knowledge of the topic and ensure all details are correct. They should also anticipate the recipient's concerns and prepare appropriate responses.
3. Language: Using language that is too technical or difficult for the recipient may lead to misunderstanding. The sender must choose language appropriate to the recipient and avoid unfamiliar terminology.
4. Visuals: Visual aids such as pie charts, bar charts and line graphs effectively communicate data, patterns or relationships. Diagrams are also excellent tools for communicating processes, such as assembly instructions.
5. Confidentiality: Some communication methods are safer for transferring sensitive information. For example, encrypted files or face-to-face meetings are more secure. When a message is sensitive or requires a personal touch (such as a performance review), a meeting is more appropriate than a letter or email.
6. Cost: Expense is an important consideration. Many free communication channels now exist, particularly via the internet, such as FaceTime, Skype or WhatsApp. A CEO communicating with managers worldwide may choose to hold an online meeting to reduce time, travel and accommodation costs.
7. Urgency: When crucial information needs to be communicated instantly, a phone call is more suitable than email, for example when updating an order with a supplier before despatch.
8. Records: Email provides an excellent option when the sender wants a record of the message and when it was sent. The email system stores a copy of the message, which can be revisited to check important details and used as formal evidence.

Barriers to effective communication

Even managers with strong communication skills may encounter barriers that can cause communication to fail, sometimes with serious consequences. Understanding these barriers is the first step towards overcoming them and ensuring communication success.

1. Language barriers: When language is too technical or difficult, it creates confusion.
   • Solution: Use language appropriate to the recipient, avoid unfamiliar terms and use short, clear sentences.
2. Medium barriers: Using the wrong communication method for the message can be problematic.
   • Solution: Consider factors such as urgency, confidentiality, cost, who the recipients are and whether you need to keep a record before choosing the most suitable medium for each message.
3. Timing barriers: Sending messages too late or too early to be useful creates problems.
   • Solution: Consider the message's purpose - does the recipient need to act on the information? How long will that take? Allow sufficient time for the message to be received, processed and acted upon.
4. Information overload: When too much information is provided in one message, the central points can be lost.
   • Solution: Reduce the volume of information and keep messages concise and relevant. Additional detail can be provided separately or at a later stage.
5. Not listening barriers: Distractions such as background noise or more urgent events can prevent proper listening.
   • Solution: Especially when communicating verbally, summarise and repeat the message to check that the recipient has heard and absorbed the information correctly.
6. No feedback barriers: When recipients cannot or do not provide feedback, communication effectiveness suffers.
   • Solution: State whether a response is needed and by when. Build feedback opportunities into the process, for example by offering a time slot for discussion.
7. Lack of trust barriers: When recipients don't trust the message, communication breaks down.
   • Solution: Include evidence to confirm the message's accuracy, such as a link to a report. Also consider team-building exercises or other methods to build trust between employees.