Business Communication and its Types


“Any act by which one person gives to or receives from another person, the information about that person’s needs, desires, perceptions, knowledge, or affective states. Communication may be intentional or unintentional, it may involve conventional or unconventional signals, may take linguistic or non-linguistic forms, and may occur through spoken or other modes.” Or in simple words;

Communication is the exchange of ideas, opinions and information through written or spoken words, symbols or actions. Communication is a dialogue, not a monologue. In fact, communication is more concerned with a dual listening process. For communication to be effective, the message must mean the same thing to both the sender and the receiver.

Business Communication

Business Communication is any communication used to promote a product, service, or organization – with the objective of making sale. In business communication, message is conveyed through various channels of communication including internet, print (publications), radio, television, outdoor, and word of mouth.

In business, communication is considered core among business, interpersonal skills and etiquette.

Historical Background
Thousands years ago, people used to communicate orally. Greeks used a phonetic alphabet written from left to right. After that, many books appeared on written communication principles. As a result of this, Greek started her very first library.

When communism was ruling China, communication had become the biggest challenge not only within the vast government, but also between the government and people of China. Postal services were then ;launched in China. Rome introduced the postal service after China. After that paper and printing press was invented in china that made communication much easier.

Hence, today’s principles of communication are founded on a mixture of ancient oral and written traditions.

It’s an arrangements between individuals and groups in human society that structure relationships and activities (Business, Political, Religious or social). In other words, an organization is a group of people identified by shared interests or purpose, for example, a “Bank”.

Lifeblood of an Organization
Communication is the lifeblood of an organization. If we could somehow remove communication flow from an organization, we would not have an organization.

It is needed for:

  • Exchanging information
  • Exchanging options
  • Making plans and proposals
  • Reaching agreement
  • Executing decisions
  • Sending and fulfilling orders
  • Conducting sales

When communication stops, organized activity ceases to exist. Individual uncoordinated activity returns in an organization. So, Communication in an organization, is as vital as blood for life.

Types of Business Communication

There are two types of business communication in an organization:

  • Internal Communication
  • External Communication
  1. Internal Communication

    Communication within an organization is called “Internal Communication”. It includes all communication within an organization. It may be informal, formal function, or department providing communication in various forms to employees.

    Effective internal communication is a vital mean of addressing organizational concerns. Good communication may help to increase job satisfaction, safety, productivity, and profits and decrease grievances and turnover.

    Under Internal Business Communication types, there come:

    • Upward Communication
      Upward communication is the flow of information from subordinates to superiors, or from employees to management. Without upward communication, management works in a vacuum, not knowing if the messages have been received properly, or if other problems exist in the organization. By definition, communication is a two-way affair. Yet for effective two-way organizational communication to occur, it must begin from the bottom.

      Upward Communication is a mean for the staff to:

      • Exchange information
      • Offer ideas
      • Express enthusiasm
      • Achieve job satisfaction
      • Provide feedback
    • Downward Communication
      Information flowing from the top of the organizational management hierarchy and telling people in the organization what is important (mission) and what is valued (policies). Downward communication generally provides information – which allows a subordinate to do something. For example, instructions on how to complete a task. Downward communication comes after upward communications have been successfully established.

      This type of communication is needed in an organization to:

      • Transmit vital information
      • Give instructions
      • Encourage 2-way discussion
      • Announce decisions
      • Seek cooperation
      • Provide motivation
      • Boost morale
      • Increase efficiency
      • Obtain feedback
    • Both Downward & Upward Communications are collectively called “Vertical Communication”

    • Horizontal/Literal communication
      Horizontal communication normally involves coordinating information, and allows people with the same or similar rank in an organization to cooperate or collaborate. Communication among employees at the same level is crucial for the accomplishment of the assigned work.

      Horizontal Communication is essential for:

      • Solving problems
      • Accomplishing tasks
      • Improving teamwork
      • Building goodwill
      • Boosting efficiency
  2. External Communication

    Communication with people outside the company is called “external communication”. Supervisors communicate with sources outside the organization, such as vendors and customers.

    It leads to better:

    • Sales volume
    • Public credibility
    • Operational efficiency
    • Company profits

    It should improve:

    • Overall performance
    • Public goodwill
    • Corporate image

    Ultimately, it helps to achieve:

    • Organizational goals
    • Customer satisfaction

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