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Chapter 9: Internal and External communication

What is effective communication and why is it necessary?
Communication: is the transferring of a message from the sender to the receiver, who
understands the content of the message.

Message: is the information or instructions being passed by the sender to the receiver.

Effective communication: is when the information or message being sent is received,

understood and acted upon in the way intended.

Internal communication
Internal communication: is between members of the same organization.

Without internal communication it will be impossible for management to guide, instruct, warn
and encourage workers to do their tasks.

External communication
External communication: is between the organization and other organizations or individuals.

External communication is very important to the image and efficiency of a business. For
example, If a firm communicates ineffectively with suppliers, it may be sent the wrong
materials. If it is sends inaccurate information to customers, they may buy a product from
another firm. If it sends inaccurate information to the tax office it may be overcharged and
cause financial problems or undercharged and face legal consequences.

The process of effective communication

The process consists of the following four features:

1. Transmitter/ sender: is the person starting of the process by sending the message
2. The medium communication: is the method used to send a message
3. The receiver: is the person who receives the message
4. Feedback: is the reply from the receiver which shows whether the message has arrived,
been understood and, if necessary acted upon.
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One-way and two-way communication

One way communication: involves a message which doesn’t call for or require response. It
doesn’t allow the receiver to contribute to communication or to provide any feedback.

Two way communication: is when the receiver gives a response to the message and there is a
discussion about it. Since both people are involved in the communication process it may result
in better and clearer information.

Advantages of two-way communication:

1. It assures the sender whether the receiver has understood the message and acted upon
it. If not then the message needs to be re-sent or clarified.
2. It helps motivate the receiver since he is part of the communication process accordingly
makes real contribution to the topic being discussed.

Communication methods:
1. Verbal methods of communication: where the sender of the message speaking to the
receiver. Methods may include:
a. One to one talks
b. Telephone conversations
c. Video conferencing
d. Meetings and team briefings

Advantages of verbal communication Disadvantages of verbal communication

Quick; efficient way of communicating to big
numbers
Two way communication; opportunity of feedback
Body language used by the speaker will put the
message across effectively
Cannot tell if everybody is listening in a large
meeting or has understood the message
If receivers give feedback then it will take
longer to use verbal than written
communication
Verbal method is in appropriate when
accurate and permanent record of the
message is needed

2. Written methods of communication: includes letters, notices, posters and IT

Advantages of written communication Disadvantages of written communication

Hard evidence of the message is available Direct feedback is not always possible,
which can be referred to in the future unless electronic communication is used
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Essential for messages involving complicated Electronic communication may lead to

details – laws in certain countries require
certain safety messages written and
displayed in offices in order to refer to them
when needed
Copying a written message and sending it to
many people may be more efficient than
calling them
Electronic communication is quick and cheap
way to reach a large number of people
communication overload and people will
miss out important messages
Difficult to check if message has been
received and acted upon as with verbal
messages
Message is not reinforced by body language
Too long messages may be confusing and
not interesting to readers – language used
may be difficult for some receivers

3. Visual methods of communication: includes diagrams, charts and videos

Advantages of visual communication Disadvantages of visual communication

Information is presented in an appealing and
attractive way.
They make the written message clearer
when a chart or a diagram is used to
illustrate the point made.
There is no feedback and the sender of the
message may need to use other forms of
communication to check that the message is
understood.
Charts and graphs are difficult for some
people to interpret. The overall message
might be misunderstood if thee receiver is
unsure of how to read values from a graph
or how to interpret a technical diagram.

Choosing the appropriate communication method:

Factors which the sender should consider when selecting a method of communication:

1. Speed: importance of speed should be considered

2. Cost: companies may need to consider which is more important to keep cost down or to
communicate effectively. For example, when safety matters are involved
3. Message details: written & visual communication may be chosen if technical plans,
reports, figures,..etc. are to communicated
4. Leadership style: democratic managers would use two-ways communication whereas
autocratic ones would use one way communication
5. The receiver: one-to-one conversation may be used when communicating to one person
which is not appropriate to hundreds of people
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6. Importance of a written record: it is recommended when written record is needed to

refer to at some time in the future.
7. Importance of feedback: if feedback is essential then it is recommended to
communicate verbally where there will be direct feedback.

Formal and informal communication

Formal communication: is when messages are sent through established channels using
professional language.
Informal communication: is when information is sent and received casually with the use
of everyday language.

Advantages of informal channels / Disadvantages of informal channels

grapevine
Can be used by managers to try out the Can spread gossip and rumor which is
reaction to new ideas before unhelpful to managers
communicating details formally. If the
reaction to management from the
grapevine is negative, they may not
introduce the new idea at all.

The direction of communications

Downward communication: when messages are sent from managers to subordinates.
It doesn’t allow for feedback. If the message passes through too many levels it can
become distorted.
Upward communication: when a message or feedback is passed form subordinates to
managers.
Horizontal communication: when people at the same level of an organization
communicate with each other. They may use formal and informal meetings. It may
cause conflict between departments.

Communication barriers
Communication barriers: are factors that stop effective communication of messages.

Barrier Description How the barrier can be overcome

Problems with the  Use of difficult language or technical terms
sender  Sender speaks quickly or not clearly enough
 Sender communicates the wrong messages
or passes it to the wrong receiver
 Too long and detailed messages prevent the
 Sender should ensure that he
uses understandable language
- avoid technical language
 Ask for feedback to ensure
message is understood
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main points being understood.  Ensure that the right person is

receiving the right message
 The message should be as brief
as possible to allow the main
points to be understood

Problems with the  Message is lost and receiver doesn’t see it  Insist on feedback. If feedback
medium is not received then assume
that the message is lost
 Use of a wrong channel  The sender must select an
appropriate channel for each
message sent
 The use of a long chain of command may  The shortest possible channel
result in message distortion should be used
 Breakdown of the medium  Other forms of communication
should be made available
Problems with the  They may not be listening or paying  Importance of message should
receiver attention be emphasized and receiver
should be asked for feedback
 The receiver may dislike or distrust the  Another sender should be used
sender who is trusted by the receiver
Problems with  There is no feedback  Direct lines of communication
feedback  It is received too slowly or is distorted – between subordinates and
perhaps message passes through too many managers must be available.
people before being received by the original
sender of the message