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Lesson ON:
CONTEMPORARY
BUSINESS
COMMUNICATION

03/03/2024 1
 CHAPTER FOUR

4. TYPES AND MODELS OF

BUSINESS COMMUNICATION
 4. TYPES AND MODELS OF BUSINESS COMMUNICATION

4.1 Internal & external Communication

4.1.1 Internal Communication
What is an Internal Communication?
“Internal communication consists of the structured communication within the
organization that directly relates to achieving the organization’s work goal.”
“Internal communication is the exchange of message among organizational
members.”
“Information exchanged among executives, officials and employees of a same
organization is known as internal communication.”
So, internal communication is the process of exchanging information among
the people of different level or internal participants within the same organization.
 4. TYPES AND MODELS OF BUSINESS COMMUNICATION…
Nature of internal communication
•Some important natures of internal communication are as follows:
1. Direction: There are some special directions of internal communication which are:
(a) Downward (high superior to subordinates) (b) Upward (subordinates to superiors)
(c) Horizontal (officials to officials of same rank).
2. Formality: Internal communication follows proper formalities as well as informal
channels.
3. Specific purpose: is to ensure effective and efficient management as well as smooth
operations of the concern.
4. Frequency: One of the important features of internal communication is frequency of
occurrence. It is associated with same day-to-day operations.
5. Scope: The scope of internal communication is limited.
 4.1.2 External communication
What is External Communication?
It is a transmission of information between a business and another
person or entity in the company's external environment. Or
Every organization is required to maintain a relation with other
organizations or people with a view to achieving goals.
So, when a business organization exchanges information with
other business organizations, government offices, banks, insurance
companies, customers, suppliers, leaders and general people and so
on,
Communication that takes place outside the organization
 The objective of external communication
1. Community relations:- helps to keep a link with the people.
2. Collection of information: to collect the information from outside the organization.
3. Contracts with customers: is necessary to contract with customers.
4. Relations with suppliers: Every organization has many suppliers form that it collects raw
material or finished goods to run the business.
5. Relation with financial institutions: is to keep a link with banks, insurance and other
financial institutions.
6. Relation with government: Every organization should obey the rules and regulations of the
government.
7. Shareholder relation: Shareholders are the owners of the company. The board of directors is
liable to inform all the business affairs to the shareholders.
8. Others:
(a) to keep the relation with regulatory bodies
(b) To keep the images of the company
(c) To keep the international relations etc.
 The Differences between Internal and External Communication
No… Internal communication External communication

1 which takes place among the participants occurs between the organization and other
within the business organization. individuals, groups or organizations
2 Can be formal or informal but Mostly formal and highly documented.

3 Aims at transmission of information between Focuses on maintaining relationship or

various business units and departments. exchanging information with the parties
external to the business.
4 The participants of internal communication are the parties to external communication include
employees and the company’s management. customers, shareholders, investors, clients,
general public, suppliers, creditors, etc.
5 Both internal and external communications but the frequency of internal communication
are regular is relatively higher than that of external
communication.
6 Internal communication flows within the whereas the external communication flows in
organization, the vast business environment.
4.2 Types of Communication

•The formal communication network information follows the official chain of

command according to organizational structure.

Fig. 4.2 Formal flow of Communication

 4.2 Types of Communication…

•In an organization, there are four types of

communication. Such as:-
1. Downward communication
2. Upward communication
3. Horizontal /Lateral communication and
4. Diagonal communication
 A. Down Ward Communication

 Communication that flows from a higher level

to a lower level
 communication from superiors to subordinates
in a chain of command.
 used by the managers to transmit work related
information to the employees at lower levels.
 Employees require this information for
performing their jobs and for meeting the
expectations of their managers.
 A. Down Ward Communication..
Downward communication is used by the managers for the following
purposes:-
 Providing feedback on employees’ performance.
 Giving job instructions.
 Providing a complete understanding of the employees’ job.
 Communicating the organization’s mission and vision to the employees.
 Highlighting the areas of attention.
In order to have effective and error-free downward
communication, managers must:
 Specify communication objective.
 Ensure that the message is accurate, specific and unmistakable.
 Utilize the best communication technique to convey the message to the receiver in
right form.
 A. Down Ward Communication…
The objectives of Downward Communication are:
To train subordinates in performing the job.
To motivate employees to improve their performance.
To know how effectively a person is performing his job.
To explain organizational policies, programs and procedures.
To give instructions about what to do and how to do.
To highlight the areas of attention
 B. Upward Communication
•relates to communication being made by Junior person to senior.
•The communication relates to reporting production levels, sales
performance, reaction to certain orders and instructions.
 The flow of information from bottom to top helps the top management
to know the actions, attitude, opinion and feelings of people.
 The upward communication process is non-directive in nature,
 It provides feedback on how well the organization is functioning.
 The subordinates also use upward communication to tell how well they have
understood the downward communication.
 It can also be used by the employees to share their views and ideas and to participate in
the decision-making process.
 b. Upward Communication..
 Upward communication leads to a more committed and loyal workforce
in an organization because the employees are given a chance to raise and
speak dissatisfaction issues to the higher levels.
 The managers get to know about the employees’ feelings towards their
jobs, peers, supervisor and organization in general. Managers can thus
accordingly take actions for improving things.
 Complaint and Suggestion Box, Job Satisfaction surveys etc all help in
improving upward communication.
 Other examples of Upward Communication are performance reports
made by low level management for reviewing by higher level
management.
 C. Horizontal Communication
•Communication that takes place at same levels of hierarchy in an
organization is called lateral communication, i.e., communication
between peers, between managers at same levels or between any
horizontally equivalent organizational members.
•People communicate with others at their own level, in their own
departments or other departments, to solve problems and to share
experiences.
•The main objectives of horizontal communication are developing
teamwork, and promoting group coordination within an organization.
 c. Horizontal Communication..
The advantages of horizontal communication are as follows:
 It is time saving.
 It facilitates co-ordination of the task.
 It facilitates co-operation among team members.
 It provides emotional and social assistance to the organizational
members.
 It helps in solving various organizational problems.
 It is a means of information sharing.
 It can also be used for resolving conflicts of a department with
other department or conflicts within a department.
 D. Diagonal Communication or crosswise communication

•Communication that takes place between a manager and employees of other

workgroups is called diagonal communication.
•It generally does not appear on organizational chart.
 For instance - To design a training module a training manager interacts with
Operations personnel to enquire about the way they perform their task.
 For example: - The Accounts people of an organization visiting different
employees in various departments for their auditing, bonus for workers etc.
 Vertical communication occurs between various hierarchies. It maybe
upward or downward.
 For example manager to employee, general manager to managers, foreman
to machine operator, head of the department to cashiers, etc.
 4.3. Informal Communication

•Informal communication arises out of all those channels that fall

outside the formal channels and it is also known as grapevine.
•It is established around the societal affiliation of members of the
organization.
•Informal communication does not follow authority lines as in the
case of formal communication.
•Informal communication takes place due to the individual needs of
the members of an organization and exists in every organization.
•Normally, such communication is oral and may be expressed even by
simple glance, sign or silence.
 4.3. Informal Communication

•It acts as a valuable purpose in expressing certain information that cannot be

channeled via the official channels.
•It helps to satisfies the people desires to identify what is happening in the
organization and offers an opportunity to express fears, worries and complaints.
• The informal channels of communication may transmit completely imprecise
information that may harm rather than help an organization.

• However, for the efficient working of any organization both formal and
informal communications are required.

•An example of an informal communication channel is lunchtime at the

organization's cafeteria/canteen.
•Here, in a relaxed atmosphere, discussions among employees are encouraged.
 4.4. Forms of Communication
•There are two forms of communication. Those are verbal and non verbal communication.

A. Verbal Communication
•Verbal communication stands for both the spoken and written word used in the
communication process. It can be further divided into oral and written communication.
i. Oral communication: a face-to-face interaction between the sender and receiver.
Presentations, meetings, seminars are part of oral communication.
•Telephonic communication can also be included in this category.
ii. Written communication: sender uses the written mode to transmit his messages.
Reports, letters, memos, e-mails come under this category.
Verbal Communications as a Process
•Communication is an ongoing process involving an exchange of information and
meanings between senders and receivers, both knowingly and unknowingly; you are
simultaneously sending and receiving messages and also communicating internally.
 4.4. Forms of Communication
B. Non-Verbal Communication
•How Do Our Bodies Talk? -----------------------------------------

•"Most people do not know what they are doing with their bodies when they are talking and
no one tells them."
For brainstorming
•What do you observe from this picture?
 4.4. Forms of Communication
WHAT IS NONVERBAL COMMUNICATION (NVC)?
•"Non-verbal communication is those attributes or actions of humans, other than
the use of words themselves, which have socially shared meaning, are
intentionally sent or interpreted as intentional, are consciously sent or consciously
received, and have the potential for feedback from the receiver"
•Nonverbal communication consists of that part of a message that is not encoded
in words.
•The nonverbal reveals the sender’s feelings and preferences more spontaneously
and honestly than the verbal part.
•If the verbal message does not match the nonverbal communication, people tend
to believe the nonverbal message.
 4.4. Forms of Communication

•Four types of nonverbal messages

1. Personal (to the individual)
2. Common to a group of people or culture
3. Universal (to humankind)
4. Unrelated to the message (random)
 4.4. Forms of Communication
1. Personal Nonverbal communication involves kinds of nonverbal behavior that are
unique to one person.
• The meaning is also unique to the person sending the message. For example, someone
may work while talking; another person may work in silence.
• One person may laugh due to nervousness or fear, while another may cry.
2. Cultural nonverbal communication, by contrast, is characteristics of, or common to, a
group of people. It is learned unconsciously by observing others in the society group. In
3. Universal nonverbal communication is behavior that is common to humankind. It
shows happiness, sadness or deep-seated feelings – for example, a smile or tears.
4. Unrelated nonverbal communication, such as a sneeze, is unrelated to the verbal
message. It can distract from the verbal message, but has little effect on the meaning of the
verbal part of the message.
 4.4. Forms of Communication
Remind: - The following are the widely recognized sub-codes of non-verbal
communication.
 facial expression
 eye contact
 gestures
 posture
 bodily contact (touch)
 spatial behavior
 clothes and other aspects of appearance
 non-verbal vocalizations
 Smell etc…
 4.4. Forms of Communication
•The role of non-verbal communication in human interaction may be summarized as
follows:
 Intentionally or unintentionally, consciously or unconsciously, people send and receive
non-verbal messages.
 We make important decisions and judgments about people and situations based on these
messages.
 People’s emotional state is best communicated through their non-verbal messages.
 We make judgments about the verbal messages in light of accompanying non-verbal
cues.
 We use the non-verbal elements to present ourselves to people and to alter their
thinking and behavior.
 NVC has a major role in facilitating cross-cultural interaction.
 4.4. Forms of Communication

Principles of Nonverbal Communication

 supplements or replaces verbal communication

 regulates interaction
 establishes relationship-level meanings
 (responsiveness, liking, power)
 reflects & expresses cultural value
 4.4. Forms of Communication
•Guidelines for Improvement of your Nonverbal Communication Skills
 Self-awareness
 Being aware of the ways in which you communicate, and realizing
different people have different ways of using nonverbal communication
 monitor behavior, take note of your posture, movements, and objects
 ask friends for feedback
 videotape yourself in a conversation or speech
 Expand your range of nonverbal activities
 by expanding your own vocabulary for sending messages, you will expand
your ability to decode the messages of others
 Remember that good communication focuses on the receiver of the message
 You can send appropriate signals to amplify or intensify your verbal messages
 .

THE END