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Monitoring effectiveness

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  1. Reasons for monitoring business performance

Because of the rapid pace of technological change and the pressure to remain competitive, firms nowadays need to continually review the effectiveness of their communications system. The most important question to ask is:

How well does it meet business objectives? For example, if a business finds that its products are always out of date and that it is usually beaten to the market by competitors, this may indicate that its communication system is inefficient. Alternatively, a survey of staff morale and motivation can reveal a great deal about the operation and workings of internal communications within an organisation.

Does it offer cost advantages? Information exchange is now faster than ever before and accuracy has improved, requiring less labour and power input. For example, a table of data can be sent in a matter of seconds via a telephone link between computers, compared to a fax machine, which takes longer and where quality of reproduction can be poor.

Does it offer value for money? Compared to its cost, how well does the system do its job? Are there cheaper ways of doing things which would work just as well? For example, there is little point in a small firm investing thousands of pounds in building a wide area network if it is not going to be used to send and receive messages and share software applications. New communications equipment can be very expensive.

Does it provide accurate information? It is essential that information sent and received by a business is error-free. For example, fax machines, although extremely useful, are not the best method for reproducing small characters. For example, if a faxed order is illegible this could mean that a supplier may deliver the wrong quantity of materials.

How easy is it to use and access information? What do the users of the system both inside the firm and outside, including customers and suppliers, think of it? Communication will be ineffective if users have difficulty operating the equipment or if those organisations you wish to contact, via fax or Email for example, do not possess the necessary equipment. However, new systems may pose a threat to security if communications can be intercepted by unauthorised personnel. Access might need to be restricted in some cases to protect the confidentiality of important business information.

What is the speed of access? Paper-based communication – for example, sending a letter or data by internal mail or external post – can e slow, Technological advance has allowed us to send and receive information from anywhere in the world in just a matter of minutes - for example, via electronic mail.

What is its impact on information exchange? Because of improvements in the speed and cost of data exchange, interaction between individuals and business organisations has increased. Firms are now able to learn of conditions in world markets, such as strikes or wars in countries supplying raw materials, and be able to react immediately to minimise the impact on their business. Much information is freely available on the Internet.

What is its impact on users? Prolonged use of computer screens and keyboards can impair eyesight and result in repetitive strain injury (RSI) in users’ fingers and wrists. Increasing demands on users for up-to-date information and skills to operate a variety of equipment can also cause stress.

Is training adequate? To ensure that full and effective use is made of new communications equipment and systems, a business also needs to make sure that users are adequately trained. No matter how user-friendly computers and other equipment are today, some basic training will be necessary if employees are to use them to send and receive information. However, training can be expensive.


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