In business communication there are two types:

  • Internal Communication
  • External Communication

1.     Internal Communication

Communication inside an organization is called “Internal Communication”. It contains all communication within an organization. It might be informal, formal function, or section providing communication in several forms to employees.

Effective internal communication is a dynamic mean of addressing organizational concerns. Good communication may help to rise job satisfaction, productivity, safety, and profits and decline complaints and turnover.

Under Internal Business Communication types, there are:

o    Upward Communication
Upward communication is the movement of information from assistants to managers, or from employees to management. Lacking upward communication, management works in a vacuum, not knowing if the messages have been received correctly, or if extra problems occur in the organization. By definition, communication is a two-way situation. Until now for effective two-way organizational communication to arise, it must begin from the bottom.

Upward Communication is a medium for the staff in order to:

Exchange information

Offer ideas

Express enthusiasm

Attain job satisfaction

Provide feedback or suggestion

o    Downward Communication
Data or Information flowing from the top of the organizational management hierarchy and telling people in the organization what is significant (mission) and what is valued (policies). Downward communication usually provides information – which allows a subordinate to do something. For instance, advices on how to complete a task. Downward communication comes after upward communications have been fruitfully recognized.

This kind of communication is needed in an organization in order to:

Transmit vital data or information

Give directions

Encourage 2-way conversation

Announce decisions

Seek out cooperation

Provide inspiration

Improvement in morale

Rise in efficiency

Obtain feedback

Mutually Downward & Upward Communications are called “Vertical Communication”

o    Horizontal or Literal communication
Horizontal communication generally involves coordinating data or information, and allows employees with the similar rank in an organization to collaborate. Communication amongst employees at the same level is critical for the achievement of the allocated work.

Horizontal Communication is important for:

Solving organizational problems

Finishing tasks

Improving teamwork

Building goodwill

Enhancing efficiency

2.     External Communication

Communication with persons outside the organization is called “external communication”. Managers communicate with sources outside the organization, such as sellers, vendors and customers.

It leads to improved:

o    Sales size

o    Public trustworthiness

o    Operational productivity

o    Company earnings

It should improve:

o    Total performance

o    Public goodwill

o    Corporate image

Eventually, it helps to attain:

o    Organizational goals

o    Customer satisfaction


business communications

February 04, 2017