Page 133 - Cambridge IGCSE Business Studies

9: Internal and external communication

Barrier Cause
Problems with the ■ The wrong medium, for example using the telephone to communicate complex technical
communication information.
channel ■ The language used is too complex or too technical for the receiver to understand.
■ Too much information is being communicated in one message.
■ The channel of communication is too long.
Problems between ■ Lack of trust and respect between the sender and receiver.
senders and receivers ■ Demotivated workers don’t listen to the message properly.
■ Poorly disciplined workers do not pass on the message to others.

Problems with the ■ Too much noise between the sender and receiver.
physical environment ■ The distance between the sender and receiver. The further apart the sender and receiver are

the more difficult it is to have face-to-face conversations. However, electronic communication
methods such as video-conferencing, Skype and Facetime have significantly reduced this
particular problem.
Table 9.3 Causes of barriers to eff ective communication

If any of the above barriers to effective communication are present then this can
cause a number of problems for businesses including:

■ Tasks are not completed, or are completed incorrectly. This reduces productivity
and increases waste, both of which increase average costs and reduce profitability.
■ The reputation of the business may be damaged leading to a loss of customers. If 131
customers do not receive their order on time, or receive an incorrect delivery then
they might decide to take their business elsewhere.
■ The level of worker morale and motivation falls. This leads to problems such
as lower productivity, poor quality, increased absenteeism and increased
labour turnover. All of these problems will increase business costs and reduce
profitability.
■ Higher risk of accidents in the workplace. If health and safety procedures are not
properly communicated to workers then this increases the chance of workers
having an accident. An accident in the workplace reduces output if the worker has

to have time off to recover and could result in the business being fined and having
to pay compensation to the worker.
■ Poor sales. If advertising and other promotional messages are not eff ectively
communicated to consumers then they will not buy the firm’s products.
■ Recruitment and selection problems. If job descriptions and person
specifications are not produced or are poorly written, or if job advertisements
are poorly designed, then the business will not attract the best candidates.

This can reduce business efficiency and might increase recruitment costs because
the ‘wrong type’ of worker is appointed and they leave once they realise that the
job is not for them.