Communicating in business: formula sheet

Key formulas

Stages of the communication process

Sender → Encoding → Message and channel → Receiver → Decoding → Feedback

Noise can interfere at any point. Feedback closes the loop.

Shannon-Weaver components

Source → Transmitter → Channel (+ Noise) → Receiver → Destination

Original model is linear and has no feedback. Noise is the key addition.

Effective communication test

Message received = Message intended

If they differ, a barrier has occurred. Identify where.

Downward communication

Senior → Junior (along the chain of command)

Instructions, policies, targets, feedback.

Upward communication

Junior → Senior (along the chain of command)

Reports, suggestions, complaints, requests.

Lateral communication

Peer ↔ Peer (same level)

Coordination between colleagues or departments.

Diagonal communication

Different level + different department/function

Crosses both levels and lines, so it may bypass the chain of command.

Formal vs informal test

Formal = follows official structure; Informal = follows personal relationships

Grapevine is the informal channel.

Selection test

Best method = fit with urgency + need for record + complexity + sensitivity + audience size + cost

This is a checklist, not a calculation. Use it to justify a choice.

Written

Pros: permanent record, precise, can be checked. Cons: slow, little feedback, can be ignored

Best for complex detail, legal or formal matters.

Verbal

Pros: instant feedback, personal, quick. Cons: no record, can be forgotten or misquoted

Best for sensitive, urgent or discussion-based messages.

Non-verbal

Pros: shows emotion, supports words. Cons: easily misread, differs across cultures

Used alongside other methods, rarely alone.

Electronic

Pros: fast, cheap, wide reach, works across locations. Cons: overload, misreading, security risk

Check whether the question means email, video or messaging.

Typical formal report structure

Title → Terms of reference → Procedure → Findings → Conclusions → Recommendations → Appendices

Some layouts add an executive summary near the start for long reports. Learn the order and the purpose of each part.

Memo heading

To | From | Date | Subject

Then a short body. No formal salutation or sign-off is needed, as it is internal.

Terms of reference

Who asked for the report, what it covers, and by when

Sets the scope and stops the report drifting off topic.

Five qualities of good writing

Clear, concise, accurate, complete, courteous

Use these as a checklist when a question asks you to judge or improve a document.

Choosing a document

Formal + complex + evidence needed = report; short + internal = memo; external + formal = letter; fast + flexible = email

This is a rule of thumb, not a fixed law. Always link your choice to the scenario.

Active listening behaviours

Attend → Show interest → Question → Paraphrase → Withhold judgement

Use this as a checklist when a question asks how someone can listen better.

Presentation planning

Purpose → Audience → Structure (opening, body, close) → Visuals → Rehearsal → Questions

Works for any question on preparing or delivering a presentation.

Typical agenda contents

Title, date, time, venue → Apologies → Minutes of last meeting → Matters arising → Main items → Any other business → Date of next meeting

Order can vary, but these items are the standard pattern.

Typical minutes contents

Meeting details → Attendees and apologies → Items discussed → Decisions → Actions, owners and deadlines → Next meeting

Minutes record outcomes, not a word-for-word account.

Intranet

Intranet = private network for internal staff only

Used for policies, forms, news and shared files.

Extranet

Extranet = intranet + controlled access for approved outsiders

Typical users are suppliers, customers and auditors.

Choosing a tool

Tool choice = audience + urgency + sensitivity + need for a record

Use this to justify which method suits a scenario.

Main risk areas

Risks = overload, security, confidentiality, misunderstanding, reputation

A useful checklist for any disadvantages question.

Quick revision

• The process: sender, encoding, message, channel, decoding, receiver, feedback.
• Feedback shows whether the message was understood. Without it, communication is one-way.
• Barriers include jargon, noise, poor timing, emotion, overload, cultural difference and a poor choice of medium.
• Formal channels follow the organisation structure. Informal channels, such as the grapevine, do not.
• Formal flows go downward, upward and horizontally.
• Choose a method by urgency, audience, cost, need for a record and need for feedback.
• Written methods give a record. Oral methods give speed and immediate feedback.
• A report is a structured document, often formal, covering an investigation and its findings.
• A memo is a short internal document. An email is quick and can be sent externally too.
• Good listening means giving attention, not interrupting, and checking understanding.
• Meetings need a clear purpose, an agenda and a record of decisions.
• IT tools such as email, intranets and video conferencing speed up communication but bring risks like overload and security.

Common mistakes

• Treating noise as only physical sound. Fix: Remember noise is any distortion: technical, physical or psychological.
• Leaving out feedback from the process. Fix: Always finish with feedback. It confirms the message was understood.
• Calling lateral communication diagonal, or the reverse. Fix: Check levels. Same level is lateral. Different level and different department is diagonal.
• Treating the grapevine as always false or harmful. Fix: Remember it is fast and shows staff feelings. State both advantages and disadvantages.
• Treating email as separate from written communication. Fix: Remember email is written and electronic. Pick the answer the question stem points to, and read all options first.
• Saying one method is always best. Fix: Always tie your choice to the situation. State the need it meets and one drawback.
• Saying a memo can be sent to external customers. Fix: Remember a memo is an internal document. Use a letter or email for outsiders.
• Putting recommendations before findings in a report. Fix: Follow the order: findings, then conclusions, then recommendations. Recommendations must rest on evidence.
• Confusing hearing with active listening. Fix: Remember that active listening is effort: attention, feedback, questions and paraphrasing. Hearing is only receiving sound.
• Treating minutes as a word-for-word record. Fix: Minutes summarise decisions, actions, owners and deadlines. They are brief and clear.

Exam tips

• Learn the stages in order and be ready to place a scenario at one of them.
• Always name the barrier in the exact term the exam uses, such as jargon, noise or channel.
• In multiple response questions, select only the stated number and avoid generic options.
• Remember Shannon-Weaver is linear with noise. Feedback belongs to later, two-way models.
• For channel choice, think about complexity, sensitivity, speed and need for a record.
• Always name the direction using the exact terms: upward, downward, lateral, diagonal.
• Look for level and department clues in the scenario. They decide between lateral and diagonal.
• Grapevine questions often ask for advantages or disadvantages, so learn both sides.