The Role of Management in Facilitating Communication (Cambridge (CIE) A Level Business): Revision Note

Exam code: 9609

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Updated on

The role of informal communications

  • Informal communication is the casual, unofficial way that people in a business share information

    • It is not planned or written down in official records

    • The style is friendly and conversational, often using everyday language

    • Messages travel outside the formal chain of command, so they can move quickly across levels and departments

  • Informal communication can occur in a range of situations, including

    • Water-cooler chats

      • Quick conversations in the corridor, kitchen or staff room

    • Instant-messaging or group apps

      • Short texts or emoji exchanges on WhatsApp, WeChat, Slack, etc

    • Social gatherings

      • Talking during lunch breaks, team socials or company sports events

Benefits and risks of informal communication

Benefits

Risks

  • Fast information flow

    • Staff can warn each other of a problem immediately, without waiting for formal meetings

  • Rumours and gossip

    • Wrong facts can spread quickly, damaging morale or reputation

  • Builds team spirit

    • Friendly chat helps people feel connected, boosting motivation and cooperation

  • No written record

    • Decisions made informally may be forgotten or disputed later

  • Encourages ideas

    • Casual talk makes employees more willing to share creative suggestions

  • Can bypass managers

    • Important issues might skip the chain of command, leaving leaders unaware

  • Reduces stress

    • A quick joke or personal story can ease tension during busy periods

  • Exclusion risk

    • Staff who are not part of the social circle may feel left out or unfairly treated

Communication and business efficiency

  • Clear, timely and two-way communication is vital for an efficient business

    • It can can save time, cut costs or raise output when managed well

How communication affects business efficiency

Aspect

Impact on efficiency

Example

Clarity and accuracy

  • Clear, jargon-free messages reduce mistakes and the amount of rework

  • A warehouse worker picks the right items first time when orders are precise

Speed of information flow

  • Fast, real-time updates shorten decision times and reduce bottlenecks

  • A WhatsApp alert warns drivers of a traffic jam, rerouting deliveries instantly

Feedback channels

  • Two-way communication surfaces problems early, so fixes are quicker and cheaper

  • Factory operators report a loose bolt before it causes a costly machine stop

Cross-department coordination

  • Shared platforms (e.g. Slack, Teams) align schedules and resources, avoiding duplication

  • Marketing and production compare launch dates, preventing excess inventory building up

Employee engagement

  • Open, respectful dialogue boosts morale and effort, raising output per worker

  • A suggestion box in a Kenyan tea plant cuts water waste by 10%.

Customer and supplier links

  • Timely, transparent updates build trust and streamline the supply chain

  • A Chinese electronics firm shares live stock data with suppliers, reducing lead times

Ways of improving communication

  • As communication is crucial to improving efficiency, managers should take steps to improve the way information moves around and outside of a business

Steps managers can take to improve communication

Notepad graphic listing six communication tips: clear purpose, matching message channels, inclusive language, feedback, collaboration tools, and open culture.
  • Sending a clear message through the most suitable channel, whether email, chat, video or face-to-face, reduces errors and speeds up decisions

    • This saves a business time and money

  • Encouraging two-way, inclusive dialogue by using plain language and inviting feedback brings problems to light early

    • It can also encourage new ideas and keep employees motivated.

  • Equipping teams with modern digital tools for chat, video calls and shared files keeps everyone coordinated, wherever they work

    • This improves customer service and helps achieve faster growth

You've read 0 of your 5 free revision notes this week

Unlock more, it's free!

Join the 100,000+ Students that ❤️ Save My Exams

the (exam) results speak for themselves:

Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Reviewer: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.