The importance of effective communication, Business Management

Assignment Help:

QUESTION

The Importance of Effective Communication

The Building Societies Association (BSA) is the trade association for all the UK's building societies. A building society is a financial institution that offers savings accounts and mortgages as its main business. About 15 million adults have building society saving accounts whilst over 2.9 million adults are currently buying homes with the help of a mortgage. The UK has 54 building societies with assets of £395 billion. All are members of the BSA.

Effective communication is vital to all businesses. The communication process involves: If the right message does not get to the right person, in the right format, then this could affect the overall efficiency of the business. Worse still, the wrong messages might be passed on to the wrong people. This could actually harm the business.

It is vital that each part of the message is correctly chosen and in place. If not, the message may not be received or understood. Sending a text to someone without a mobile phone will obviously fail. It is important for a business to choose how and when it will send messages to intended receivers. For example, a building society will only send information about a new savings product to its members by text or email, if they have specifically chosen to receive communication by that method. Sending information by this method to people who cannot receive text or email could result in losing an opportunity to sell a new product.

The BSA's member building societies mainly communicate with the following groups:

1. Members who require information about the society's aims and performance. Members are legally entitled to receive certain information from their society, such as a copy of the annual summary financial statement on the society's business and notice of the Annual General Meeting. As well as the required formal forms of communication, societies also communicate with their members on a more informal basis.

2. Societies believe it is important to engage with the local communities in which they work: The Cambridge Building Society explains its commitment to local people: 'As a local, mutual society, we are committed to supporting the local community in which we operate.'

Building societies deal with members' money and the purchase of their homes. They work within a legal framework, which requires formal communications. Formal communication uses a set format and has a record kept. Examples include annual reports, briefing notes, leaflets, factsheets, letters, seminars and training courses. These are all effective in carrying the formal messages of the building society. Other media include presentations, member groups and panels, newsletters and new technology. Informal communications, such as the office 'grapevine' can be effective channels. However, they are more appropriate for non-urgent issues or for communication on a one-to-one basis, for example, building society employees talking to each other in a branch.

The Building Societies Association represents the interests of its member building societies. In turn, these building societies serve the interests of their own members - who are also their customers. The BSA and societies need to convey clearly the benefits of mutuality to member customers, as well as to potential new customers. Mutuality brings positive impacts to both customers and communities.

a) Effective organisations should be capable to ensure an effective communication process. Explain the communication process and elaborate on the components that should be considered in an effective communication process based on the case study provided. Provide a relevant diagram to explain your answer.

(b) Explain the difference between formal and informal channels of communication and discuss their importance for an organisation such as BSA. Suggest examples of when each might be appropriate in relation to the above case study.

(c) Discuss the benefits that BSA can derive by communicating effectively.


Related Discussions:- The importance of effective communication

Effects of accidents, Effects  of Accidents The  accidents are  always ...

Effects  of Accidents The  accidents are  always undesirable.  They result in  loss of life  and property. They  produce evil effects  on workers, families employers and on the

Marketing, short note on marketing

short note on marketing

Organization behavior, Describe the three stages of change. Why is it criti...

Describe the three stages of change. Why is it critical that each stage be fully implemented before moving to the next? Provide concrete, detailed examples and explain how each fit

Classical and scientific approach to organization, Question: "Although ...

Question: "Although there may be general agreement from time to time on what constitutes best management practice, the theoretical ingredients will tend to vary. Management th

SElling personalized genetics, AskEvaluate the ethics of selling gene tests...

AskEvaluate the ethics of selling gene tests directly to consumers like these companies are doing. What would each of the three theories of a business’s duties to consumers say abo

Explain main reasons why an organization may fail to plan, QUESTION 1 (...

QUESTION 1 (a) What are the likely benefits which an organization may derive from the planning process? (b) Explain the main reasons why an organization may fail to plan

Determining various stock levels, Another important decision is maintaini...

Another important decision is maintaining inventory and determining the inventory level. An inventory level is a quantitative limit, which should neither be much higher nor

What are the objectives of work study for any management, What are the obje...

What are the objectives of work study for any management? The objectives of work study for any management are as follows: 1. Enhanced working processes as well as standard p

Strengths and weaknesses of the existing system, The system analyst must un...

The system analyst must understand the existing problems and strengths and weaknesses of the existing system. Other activities comprise identifying the overall implications and ben

Accident control or prevention, Accident Control or Prevention Acciden...

Accident Control or Prevention Accident  prevention  involves removal  or control  of hazards. It  both  science and  art. It represents  above  all other  things  control  of

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd