COMMUNICATION

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    • Importance of Communication:

     

    • Information is required about what is taking place outside the business
    • Firms need to communicate with suppliers, customers, banks etc
    • Information must flow out to employees and shareholders within a firm
    • Communication expands trade to include overseas markets
    • Promotes the development of highly organized markets

     

    • Methods of Communication:

    Before we move towards discussing the various modes of communication, there are a few terms which will be used quite often so it’s beneficial if you know their meaning.

    When we say reference back, we mean the feature of the particular method in question which enables the communication to be stored and then referred back to at some other time. Take for example, an email. If you mail your friend, you can read that mail even after it has been dispatched. Even if you were to log on a 100 years, that mail would be there! On the contrary, oral conversation cannot be referred back to.

    Same is the case with time span. Time span, is how long that communication can be saved as documentary evidence. For example, you may save a letter your entire life but you cannot do the same for an oral conversation.

    1. Oral:

     

    • Talking by mouth with one another
    • Time span is very less
    • Shorter sentences can be understood easily but not longer sentences
    • Not suitable for facts and figures
    • Can be held on a short distance only
    • Zero cost – cheap
    • Great availability
    • Language barrier
    • No reference back available – words once delivered are not saved anywhere.

     

    1. Written:
    • Authentic – documentary evidence can last years
    • Reference back available
    • Less chances of error
    • Good for transferring facts and figures
    • High time span
    • Minimum cost
    • Is dependent on other mediums to be sent on large distances
    • Available to those only who can read and write

     

    1. Telephonic:

     

    • Low time span
    • No reference back
    • Chances of error – hence not suitable for facts and figures
    • Cost varies as per the duration and distance over which call is made

     

    1. Facsimile:

     

    • Cost depends on distance and size of document
    • Convenient for sending documents across distances
    • Reference back available
    • Even if receiver is not present on the other end, he can see the document later – suitable for communication over different time zones

     

    1. Internet:

     

    • Suitable for regions with different time zones
    • Cheap easily available
    • Global access
    • Gives the firm a competitive edge

     

    1. Intranet:

     

    • A firm’s internal networking system
    • All head offices are connected to it
    • All employees have access to it
    • Easy mode of conveying information

     

    1. Teleconferencing:

     

    • Suitable for large scale businesses
    • Good for handling meetings
    • Low availability
    • Cost effective – saves travelling time and cost since business men across the globe can communicate

     

    1. Videoconferencing:

     

    • Suitable for large scale businesses
    • Good for handling meetings
    • Low availability
    • Cost effective – saves travelling time and cost since business men across the globe can communicate
    • Time zone difference is a barrier

     

    1. E-mail:

     

    • Allows communication between countries with different time zones
    • Reference back available
    • Low cost
    • Suitable for transferring facts and figures
    • Sender is not sure whether his message has reached the receiver or not

     

    • Post Office:

     

    1. Ordinary Letter Post:

     

    • The post office delivers letter post to its written address and charge for this service

     

    1. Recorded Letter Post:

     

    • Letter is not dropped in post box
    • Has to be deposited in post office
    • The sender fills a form and gets a receipt
    • The receipt can be used as evidence in future references

     

    1. Registered Letter Post:

     

    • Letter is not dropped in post box
    • Has to be deposited in post office
    • The sender fills a form and gets a receipt
    • When the letter is delivered, the receiver has to sign too

     

    1. Parcel Delivery Service:

     

    • A parcel is any item other than documents
    • Post Office delivers parcels but does not take any responsibility for the goods delivered
    • They provide a box according to the size of parcel

     

    1. Cash on Delivery Service:
    • Service provided to mail order businesses who need to deliver goods over long distances
    • Post Office delivers the product on behalf of manufacturers
    • The receiver pays the price to the delivery man who then hands it over to the manufacturer

     

    1. Free Post:

     

    • For subscription of magazines etc
    • Or for NGO’s conducting surveys
    • The company deposits some money in the post office
    • So customers don’t need to pay for the postal charges

     

    1. Air Mail Service:

     

    • Post office sometimes delivers few fragile or perishable goods by air mail

     

    1. Money Order Service:

     

    • To deliver money from one place to another especially in areas where no banks are present