Business Communication

 Course Instructor
Tamkinut Rizvi
Introduction to Business Communication

 Communication is an essential element in the

success of any business. The process of
transferring information from one person to
another, within and outside the business
environment, is termed as ‘Business
Communication.’ The term ‘Business
Communication’ is derived from general
communication which is associated with
business activities. In other terms,
communication between business parties or
people for business-related tasks is considered
as ‘Business Communication.’
Definitions
 Different scholars have given different definitions of
Business Communication. Few of them are mentioned
below:

 According to Ricks and Gow defined Business

Communication as a system that is responsible to affect
change throughout the whole organization.

 According to W.H. Business Communication is

exchanging business-related different views, ideas, and
news within the related parties.

 Prof. J. Haste stated that when the communication occurs

between either two or more than two business people for
the purpose of effective organization and administration of
business then it is considered as Business Communication.
Importance of Business Communication

 Effective business communication is the way employees and

management communicate to achieve organizational goals. The
objective is to improve organizational efficiency by reducing
mistakes. Business Communication includes different aspects like
marketing, public relations, customer relations, corporate and
interpersonal communication, etc.
 Business communication plays a significant role in any
company, and it should always be one of the key fundamental
elements of success. Excellent communication skills within a
business environment vastly contribute to personal growth,
increased quality of performance at work, and overall job
satisfaction.
Basic elements of Business
communication:
Basic elements of Business
communication

 The above elements indicate business communication as a

process in which information or news related to business is
exchanged between different business parties like
customers, suppliers, business clients, employees, etc. for
the purpose of effective administration of the business.

 Moreover, it involves a regular flow of information and

feedback is considered as a crucial and important aspect of
business communication. Due to different levels of
hierarchy and involvement of a huge number of people,
business communication plays an important role in
different management functions i.e. planning,
coordinating, organizing, directing, and controlling.
Types of Communication
 Upward communication
 Downward communication
 Lateral communication
 External communication
Types of Communication
 Upward communication
Like the name suggests, upward communication deals with any
interaction that travels up the hierarchy of your business. The most
common example is when a direct report communicates to a
supervisor or manager. Another instance is when a manager reaches
out to directors or high-level executives.
This type of business communication allows upper management to
stay informed about what is happening with the company. It also
provides employees with the opportunity to ask questions, raise
concerns, or make suggestions.

Examples of upward communication:

 Direct report to manager
 Manager to high-level executive
Strengths/weakness of upward
communication:
Strength:
 Allows for the exchange of information from direct reports to
upper management
 Helps management respond to employee needs and identify
problems before they escalate
 Promotes interaction across different levels in a company
 Cultivates an open and friendly company culture
Weakness:
 Communication is hindered by existing power dynamics because
employees may feel uncomfortable sharing information or being
fully open and honest with superiors
 Employees are often limited by their level of access to
management, and they need a clear channel of communication to
successfully communicate up the organizational hierarchy
Downward communication
 Downward communication refers to the exchange of information
from the top of an organization down to lower levels of the
organizational hierarchy. Although the direction is the opposite of
upward communication, these two types often work hand in
hand.
 Examples of downward communication include when a manager
relays instructions to a direct report in an email or an executive
communicates business goals to a manager. This type of
communication allows management to distribute information,
delegate responsibilities, and enforce standards.

Examples of downward communication:

 Executive to manager
 Manager to direct report
Strengths/weakness of Downward communication
Strength :
 Shares and disseminates information among the wider team
 Helps management delegate responsibilities and company
priorities
 Communicates about the big picture (e.g., business goals,
mission, etc.)
 Enforces regulations that must be followed
Weakness:
 Organizational hierarchy may stifle efficient
communication because communicating messages from
the top down is slow
 Messages may get distorted traveling down the
organizational hierarchy
 Downward communication without upward
communication may leave employees feeling frustrated or
undervalued
Lateral communication
 When employees communicate across departments or with peers
of equal rank in the organization, this is considered lateral or
horizontal communication. Lateral communication examples
include a coworker calling another coworker or a team of
managers deliberating a potential new hire.
 The purpose of lateral communication is to foster collaboration
and coordination in an organization. Without productive lateral
communication, an organization may fail to reach their business
goals.

Examples of lateral communication:

 Coworker to coworker
 Manager to manager
Strengths/weakness of Lateral communication

Strength:
 Allows for knowledge sharing and problem solving
 Supports employee productivity and morale
 Helps avoid conflict within and across teams
 Lacks formality and lets workers speak openly
Weakness
 Lack of lateral communication may result in barriers that
decrease productivity
 Less formality in communication can result in
misunderstandings
External communication
 External communication deals with the exchange of information
from within the organization to parties outside of the
organization.
 This also includes any electronic communication that occurs
through a website, email, or social media from your organization
to consumers, clients, or other parties. Your organization’s
external communication should be a top priority because it
manages your business’s reputation and outside relationships.

Examples of external communication:

 Organization A to Organization B
 Website to consumer
Strengths/weakness of external
communication:
 Strengths:
 Builds a positive reputation for your organization
 Fosters beneficial customer/client relationships
 Helps promote company growth and success

Weaknesses
 There’s potential to harm your company’s reputation using poor
external communication
 When communicating externally, there’s less room for mistakes
 If internal communication needs work, external communication
may be a challenge