What Is Business Communication and its Types

Large businesses have usually established through expensive media campaigns, and large cash outlays for remodels, uniforms, or other things that will help them establish their "brand" or culture. However, despite these investments, they may be challenged by employees that don't buy into the campaign. The customer may easily identify the culture to the business, but that doesn't guarantee employees will deliver according to the cultural context.

Small businesses on the other hand may not have the resources for expensive media campaigns, etc. but since they are smaller in employee numbers, the employees tend to be more invested. Small businesses pride themselves on customer intimacy, less bureaucracy, and ability to "walk the talk". Employees in small businesses tend to share the same understanding of goals, processes, and expectations.

Large and small business cultures require the same ingredients, just on different levels. Both require established dress codes, communication processes, clean facilities, and most importantly, EMPLOYEE ENGAGEMENT. If employees don't buy into the company culture, everything else is wasted. Company culture should begin in the early stages of training, train to retain employees that believe in the company culture. Employees that believe in the company culture will also live and share it with others.


“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.

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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