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“Any act by which one person gives to or receives from another person information about
that person’s needs, desires, perceptions, knowledge, or affective states. Communication
may be intentional or unintentional, it may involve conventional or unconventional
signals, may take linguistic or non-linguistic forms, and may occur through spoken or
other modes.”

Or in simple words;

Communication is the exchange of ideas, opinions and information through written or
spoken words, symbols or actions.

Communication is a dialogue, not a monologue. In fact, communication is more
concerned with a dual listening process. For communication to be effective, the message
must mean the same thing to both the sender and the receiver.

Business Communication
Business Communication is any communication used to promote a product, service, or
organization – with the objective of making sale.

In business communication, message is conveyed through various channels of
communication including internet, print (publications), radio, television, outdoor, and
word of mouth.

In business, communication is considered core among business, interpersonal skills and

Historical Background

Thousands years ago, people use to communicate orally. Greeks use a phonetic alphabet
written from left to right. After that, many books appeared on written communication
principles. In a result of this, Greek started her very first library.

When communism was ruling China, communication had become the biggest challenge
within the vast government as well as between government and people. 1st in China and
then in Rome postal service was launched. After that paper and printing press was
invented in china that made communication easier.

Hence, today’s principles of communications are founded on a mixture of ancient oral
and written traditions.

The arrangements between individuals and groups in human society that structure
relationships and activities (Business, Political, Religious or social).

In other words,

A group of people identified by shared interests or purpose, for example, a “Bank”.

Lifeblood of an Organization

Communication is the lifeblood of an organization. If we could somehow remove
communication flows from an organization, we would not have an organization.

It is needed for:

• Exchanging information
• Exchanging options
• Making plans and proposals
• Reaching agreement
• Executing decisions
• Sending and fulfilling orders
• Conducting sales

When communication stops, organized activity ceases to exist. Individual uncoordinated
activity returns in an organization. So, Communication in an organization, is as vital as
blood for life.

Types of Business Communication
There are two types of business communication in an organization:

1. Internal Communication
2. External Communication

Internal Communication
Communication within an organization is called “Internal Communication”.

It includes all communication within an organization. It may be informal or a
formal function or department providing communication in various forms to
Effective internal communication is a vital mean of addressing organizational
concerns. Good communication may help to increase job satisfaction, safety,
productivity, and profits and decrease grievances and turnover.

Under Internal Business Communication types there come;

a) Upward Communication
b) Downward Communication
c) Horizontal/Literal communication

a) Upward Communication

Upward communication is the flow of information from subordinates to superiors,
or from employees to management. Without upward communication,
management works in a vacuum, not knowing if messages have been received
properly, or if other problems exist in the organization.

By definition, communication is a two-way affair. Yet for effective two-way
organizational communication to occur, it must begin from the bottom.

Upward Communication is a mean for staff to:

o Exchange information
o Offer ideas
o Express enthusiasm
o Achieve job satisfaction
o Provide feedback

b) Downward Communication

Information flowing from the top of the organizational management hierarchy and
telling people in the organization what is important (mission) and what is valued
Downward communication generally provides enabling information – which
allows a subordinate to do something.

e.g.: Instructions on how to do a task.

Downward communication comes after upward communications have been
successfully established. This type of communication is needed in an organization

o Transmit vital information
o Give instructions
o Encourage 2-way discussion
o Announce decisions
o Seek cooperation
o Provide motivation
o Boost morale
o Increase efficiency
o Obtain feedback

Both Downward & Upward Communications are collectively called “Vertical

c) Horizontal/Literal communication

Horizontal communication normally involves coordinating information, and
allows people with the same or similar rank in an organization to cooperate or
collaborate. Communication among employees at the same level is crucial for the
accomplishment of work.Horizontal Communication is essential for:

o Solving problems
o Accomplishing tasks
o Improving teamwork
o Building goodwill
o Boosting efficiency

External Communication
Communication with people outside the company is called “external
communication”. Supervisors communicate with sources outside the organization,
such as vendors and customers.
It leads to better;

o Sales volume
o Public credibility
o Operational efficiency
o Company profits

It should improve

o Overall performancee
o Public goodwill
o Corporate image

Ultimately, it helps to achieve

o Organizational goals
o Customer satisfaction