CHAPTER 4 – TYPES OF COMMUNICATION

CHAPTER 4
TYPES OF COMMUNICATION

Personal Communication
Business Communication
Internal Communication
External Communication
C HA

O UT
PTE

LIN

Upward Communication
E
R

Downward Communication
Formal Communication
Informal Communication
Lateral Communication
Interactive Communication
Mass Communication
Grapevine Communication

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CHAPTER 4 – TYPES OF COMMUNICATION

TYPES OF COMMUNICATION

Apart from the different methods and channels of communication, we

now take a look at the various types of communication. Some of the
commonly referred to types of communication are as follows:

o Personal communication and business communication

o Internal communication and external communication
o Upward communication and downward communication
o Formal communication and informal communication
o Lateral communication
o Interactive communication
o Mass communication
o Grapevine

1) PERSONAL COMMUNICATION

It relates to the individual. It is the communication between

individual and individual, individual and his family, individual and
the group of organisation to which he belongs. There is an element
of privacy in all such communications. It can take the form of
personal letters, personal telephone calls, personal conversations,
one-to-one meetings or e-mails.

2) Business Communication

Business communication takes place to further the goals of a

business, It is seen to happen among and between business
entities, in markets and market places, within organisations,
between various groups of employees, between owners and
employees, between buyers and sellers, between service providers
and customers, between service providers and prospects and also

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CHAPTER 4 – TYPES OF COMMUNICATION

between people within the organisation and press persons. All such
communication impacts business. Done properly it can promote the
business interests. Otherwise it can adversely affect the business.
Our major concern in this Course is about business communication
and the various facets of this subject will be dealt with in detail as
we move along.

3) Internal Communication

Internal communication takes place within the organisation—

among people within, among different groups of employees and
between employers and employees. It could be oral or written,
visual or audio-visual, formal or informal, and upward or
downward. Internal communication serves to inform, instruct,
educate, develop, motivate, persuade, entertain, direct, control and
caution people in the organisation. Knowledge, skills, goal-
orientation, sharing of corporate concerns, review and monitoring,
performance appraisal, counselling and training are among the
issues that internal communication addresses.

4) External Communication

External communication addresses people outside the organisation

like the customers, prospects, competitors, public, press, media,
controlling authorities and the government. It can also take any of
the methods of communication listed. Letters, notices, brochures,
demonstrations, telephone calls, business meetings, press releases,
press conferences, audio-visual presentations, publicity films,
product launch events and advertisements are all examples of
external communication

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CHAPTER 4 – TYPES OF COMMUNICATION

5) Upward Communication

Large organisations have different hierarchical levels or tiers. A

large public sector bank is typically a 4-tier structure. The process of
communication, to be effective, should encompass all these levels
and tiers. Upward communication is that communication which
moves upwards, i.e., from bottom to top levels in the hierarchy.
Take this example: communication from employees to supervisors,
to managers, to executives, onward to the top management.
Communication from branches to regional offices, to zonal offices,
to the head office is also an example of upward communication.
Employee suggestions, market reports, performance reports,
feedback on new products and schemes are few other examples of
upward communication.

6) Downward Communication

Downward communication moves from top to bottom, i.e., from

the CEO downwards. It travels from senior executives to junior level
functionaries, from the
controlling office to the
branch or from the head of
the division to the head of
the unit. Corporate goals,
business priorities,
motivational letters,
newsletters, letters from the
CEO/General Manager’s
Desk are all typical examples
of downward
communication. The

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CHAPTER 4 – TYPES OF COMMUNICATION

performance budgeting exercise, it is worth noting here, is meant to

be a two-way process. It must move from top to bottom as well as
from the bottom to top.

7) Formal Communication

Towards ensuring effective communication on an ongoing basis,

organisations develop formal systems. Staff meetings, union-
management meetings, branch managers’ conferences,
performance review meetings, customer meets are examples of the
forums that facilitate formal communication.

8) Informal Communication

This takes place in an unstructured manner and outside the formal

forums. There is an element of spontaneity in this communication.
It is more easily resorted to in smaller organisations. Informal
communication is often used in the absence of hierarchical
differences. While formal structures of communication are a must
in large organisations, it is the informality that helps sustain goal
orientation in small, well-knit units.

9) Lateral Communication

Lateral communication in an
organisation is that which is neither
upward nor downward. It proceeds in a
horizontal manner and takes place
among equals and at the peer level. It
can be seen to take place between one
General Manager and another, and also

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CHAPTER 4 – TYPES OF COMMUNICATION

between one unit head and another. Such communication should

take note of the fact that there is no hierarchical level difference.

10) Interactive Communication

Interactive communication is essentially a two-way process. It takes

place through meetings, conferences, tele-conferencing,
multimedia presentations and the like. Often there is a need for
moderating such communication.

11) Mass Communication

Mass communication is distinctive in view of its

scale. Essentially it addresses a large mass of
people. Public speaking, newspapers, radio,
television, journals, etc.. are means of mass
communication. Mass communication has
developed into a specialised area. At the
governmental level too, there is often a Ministry
or Department of Mass communication.

12) Grapevine

Grapevine is a kind of informal

communication that prevails in
organisations and businesses.
Through such gossip or rumours a
substantial portion of information
may be spread unofficially from any
level of an organisation, utilizing an

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undocumented web of contact between peers, juniors and even bosses,

in the organisation.

The source of the communication may not be clear. It spreads by

way of gossips and rumours. The prevalence of this type of
communication in an organisation has to be recognised. A skilled
communicator can derive benefits from even such a
communication. It may not be possible to control the grapevine but
a seasoned communicator knows how to influence it. Like any other
system it has its own merits and demerits.

"Gossip is what no
one claims to like, but
everybody enjoys."

Joseph Conrad

Not everyone is included in such unofficial communication channels,

meaning information may reach only a portion of the organisation.
Because the communication is not sanctioned or properly founded, the
validity of the information communicated unofficially can be
questionable.

If management is able to tap into such unofficial

communication networks, though, they can gain an
understanding of their subordinates' attitudes or
values, as well as counter any false information

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CHAPTER 4 – TYPES OF COMMUNICATION

being spread through these same unofficial communication levels or

forestall unfavourable actions brewing.

The grapevine, according to famous organisational theorist Keith Davis,

seems most likely to be used when

 a) there is great upheaval or change within the organisation

 b) the information is new and no one likes to spread old and
well-known information
 3) face-to-face communication is physically easy.

Keith Davis observes and advocates that “a lively grapevine reflects the
deep psychological need of people to talk about their jobs and their
company as a central life interest. Without it, the company would literally
be sick”.