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_ Media/Channels of
Business Communication
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Bf Formal and Informal Communication Network
Communication is a two-way process of connecting people and reaching mutual
understanding, in which contributors not only exchange (encode-decode) information, news,
ideas and feelings but also generate and share their meaning. In business, it is a key function of
management. An organisation cannot function without communication between different levels,
departments and employees.
Every communication, either in personal life or in business, has certain goals to fulfill. It is
giving, receiving or exchanging ideas, information, signals or messages through appropriate
media, that enables individuals or groups to convince, to seek information, to give information or
to express sentiments. The messages can pass through Internal and external structure.
1. Internal communication: When the exchange of ideas, information, signals or messages
occur within an organisation through phone, emails, notices or circulars etc., the
communication is called Internal communication.
2. External communication: Exchange of ideas, information, signals or messages into or
out of the organisation with customers, distributors, competitors, investors, community
representatives is called external communication.
On the basis of an organisational structure, the messages flow in two ways or channels in an
organisation to achieve goals:
1. Formal communication 2. Informal communication
1. Formal communication
Formal communication is a communication system that occurs in a formal way to achieve the
organisational objective. Formal communication has a formal and well defined structure. It is
inflexible in nature. There is a clear authority to report and get the instructions in a formal
communication, This structure cannot be changed as it makes sure the smooth flow of
communication and organisation efficiency. This channel is also known as Vertical communication
which can further be divided into three types on the basis of its direction
1. Downward communicating
2. Upward communication
3. Horizontal communication1. Downward Communication
Si lows from a higher level in organisation Top Management |
nication that
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to a lower level is known as downward communication. In other | |
ce from superiors to - a
eds, communication that takes place fi Pp aiaslurouoes
chain of orders is also known as downward 1 m
sub-ordinates in a $ do
cxmmunication. It is done for achieving goals, objectives and
Tt comes into existence for implementing
applying strategies. i
i ; feedback. It
procedures and practices and for getting performance SELL
is used by the managers for highlighting the areas of attention.
Advantages of Downward Communication: it is useful for followin
Downward communication helps the managers and the
Lower Management
(1) Useful for Management:
management for achieving their vision and