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Types of Business Communication

There are four main types of business communication: internal, external, and horizontal/lateral. Internal communication occurs within an organization and can be upward, downward, or lateral. Upward communication includes reporting from lower to higher levels, like an HR report to the manager. Downward communication flows from high to low levels, such as new CEO guidelines to all employees. Horizontal communication is between peers in different departments to share information. External communication occurs between a business and outside organizations through formal methods like letters or informal advertising. Effective communication is important for business productivity and satisfaction.

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605 views2 pages

Types of Business Communication

There are four main types of business communication: internal, external, and horizontal/lateral. Internal communication occurs within an organization and can be upward, downward, or lateral. Upward communication includes reporting from lower to higher levels, like an HR report to the manager. Downward communication flows from high to low levels, such as new CEO guidelines to all employees. Horizontal communication is between peers in different departments to share information. External communication occurs between a business and outside organizations through formal methods like letters or informal advertising. Effective communication is important for business productivity and satisfaction.

Uploaded by

Md Aftar Nazim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Types of Business Communication 

Majority of the business organizations follow four main types of business


communications, i.e. Internal (upward & downward), External and Horizontal/Lateral.

Internal Business Communication


The communication which happens within the members of an organization can be
regarded as internal business communication. It is inclusive of
both formal and informal modes of communication. Whenever various departments
convey the information to the employees of the organization, it comes under internal
communication. It is vital to have effective internal communication as it increases
productivity and satisfaction level. Predominantly, there are 2 types of internal business
communication:

Internal Upward Communication
For Instance: The HR team of an organization has prepared a report on a certain topic
which is further communicated to the HR manager. This reflects upward internal
business communication. 

Internal Downward Communication
For Instance: The CEO of an organization has now laid down certain new guidelines as
per the COVID-19 situation that has been propagated to all the employees. This is how
communication within an organization would occur as per the internal downward
business

Horizontal/ Lateral Business Communication 


The communication which takes place at a horizontal level, i.e. amongst the co-workers
of an organization or firm is known as horizontal or lateral business communication.
Usually it is written or verbal communication. Out of all the types of business
communication, this one happens through messages circulated between a single
department, cross departments or between various individuals holding similar ranks.
Through this form of communication, the information is only limited to the people
working on the same rank.

For Instance: The marketing head of an organization contacts the production head of
the same form as she/he has to communicate about the latest marketing trends, product
demand as well as customer needs. Through smooth communication between
managers of different departments, the message will be circulated effectively. 

External Business Communication


Whenever any information regarding a business firm is provided to another business
organization or officials belonging to some other organization outside the business
environment then it is called external business communication. Oftentimes
organizations interact with other organizations to enhance their business opportunities.
Mainly the external business communication is done through written or verbal medium
unlike the other types of business communication.

There are two types of external business communication,


namely formal and informal. The formal external business communication includes
mediums of communication such as letters, reports, presentations, memos, etc whereas
the informal external business communication can have various mediums and is
generally out of the control of an organization. 

For Instance: You might have come across various deals or offers available at an
online platform by a particular enterprise or business, this is the most appropriate
example of external communication as the companies use mediums like different types
of advertising, radio channels, social media ads, etc. for their promotion. 

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