Quick summary
Business communication is the exchange of information, ideas and decisions within an organisation and between the organisation and outsiders such as customers, suppliers and government offices. This topic explains its nature, importance and process, the types of communication by direction and form, and the channels used, including digital ones.
Key points
- Nature: purposeful, two-way, continuous, formal and informal, verbal and non-verbal, and aimed at getting results.
- Importance: smooth running of work, decision-making, coordination of departments, good customer relations, motivation of employees, building the organisation's image.
- Process: sender → encoding → message → channel → decoding → receiver → feedback; noise can disturb any stage.
- Internal communication is within the organisation; external communication is with outsiders (customers, banks, government).
- Direction of flow: downward (superiors to subordinates – orders, circulars), upward (subordinates to superiors – reports, suggestions, complaints), horizontal/lateral (between equals in different departments), diagonal (across levels and departments).
- Formal channels follow the official chain of command; the informal channel, called the grapevine, spreads news quickly but may carry rumours.
- Forms: oral (meetings, phone, presentations), written (letters, reports, memos, emails), non-verbal (gestures, charts) and visual (graphs, infographics).
- Digital channels: email, video conferencing, intranet, instant messaging, company social media, websites, e-newsletters. They are fast and cheap but need netiquette and data security.
- Barriers: language, semantic (different meanings), physical (noise, distance), psychological (prejudice, emotions), organisational (too many levels), technological.
- The 7 Cs of business communication: clarity, conciseness, concreteness, correctness, consideration, completeness, courtesy.
Important terms
- Grapevine – informal network of communication in an organisation.
- Chain of command – the official line of authority.
- Intranet – private computer network inside an organisation.
- Feedback – the receiver's response.
- Channel – the medium used to send a message.
Language study
| Flow | Example |
|---|---|
| Downward | Manager's circular on new working hours |
| Upward | Lab technician's monthly report |
| Horizontal | Quality control discussing with production |
| Diagonal | Sales executive contacting the finance head |
5 important questions
Q1. What is grapevine communication?
It is informal communication that spreads through personal contacts in an organisation. It is fast but can carry incomplete or false information.
Q2. Give two examples of upward communication.
Reports to seniors and suggestions or grievances from employees.
Q3. Explain the importance of business communication.
- Planning and decision-making.
- Coordination between departments.
- Motivation and morale of employees.
- Customer and public relations.
- Efficiency and growth.
- Image of the organisation.
Q4. Describe the different types of communication on the basis of flow.
- Downward: meaning, examples, merits, limits.
- Upward: meaning, examples, importance.
- Horizontal: coordination among equals.
- Diagonal: speed, but may bypass authority.
- Diagram or table.
Q5. Discuss digital channels of business communication and their merits and limitations.
- Email, video calls, intranet, messaging apps, social media, websites.
- Merits: speed, low cost, global reach, records.
- Limitations: information overload, security risks, lack of personal touch, technical problems.
- Need for netiquette.
Exam tip
Use a small table or flow diagram for directions of communication; it makes the answer clear and saves writing time.