A Coursework in Business Communication

A Coursework
in
BUSINESS
COMMUNICATION

Unit 1: BUSINESS COMMUNICATION INTRODUCTION

 The Basic Forms of Organizational Communication

Prepared by: AIMEE F. ROMERO

Instructor

Disclaimer: ALL RIGHTS RESERVED

This coursework is a compilation of works from

internet sources, manuals, and books from different authors
and will be used for educational purposes only. Due
recognition is given to the authors who are the source of
some parts found in this coursework. The compiler/ owner
does not clam copyrights to any part taken for other sources.

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 A Coursework in Business Communication

A Coursework
in

Business
Communication

Name: ___________________________________________
Course and year: ___________________________________________
Lesson 4
Class Schedule: ___________________________________________
Instructor:AIMEE F. ROMERO

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 A Coursework in Business Communication

The Basic Forms of Organizational Communication

E ffective communication in business is vital to the success of an organization.

Regardless of your industry or the size of your company, it is likely that communication
is an important part of your day. Business owners communicate with employees,
customers, partners and other stakeholders on a regular basis.
It’s important to understand the four types of organizational communication so
you can use them effectively to express your ideas and make sure the recipient
understands the message. While the functions of organizational communication vary,
the goal is always to ensure that the message is conveyed accurately to your audience.
The importance of organizational communication in a business environment
cannot be underestimated. The way employees communicate with each other, with
managers or with external stakeholders such as customers and partners reflect on the
business itself. As a result, it’s vital to be aware of the kind of communication in which
you are participating. There are suggested basic forms of organizational
communication: Formal and Informal communication; Directional communication;
Internal and External communication; and Oral and Written communication.
Most business communication can be organized into these four major categories.
Each kind of communication is used in specific business scenarios and with different
types of audiences.
There are many overlaps between the different kinds of communication. For
example, communication can be from two or more different categories at the same
time, such as a performance appraisal that is formal, downward, internal and written. It
encompasses all basic forms of organizational communication.

A. Formal Communication
Business communication can be categorized by the level of formality that is
used. Formal communication generally has a specific organizational structure and a
standardized and carefully crafted message. The company ensures the communication
flows through a channel that caters to the audience.
For example, formal company news that is for customers may be sent through an
official press release. However, formal company news that is for employees may be
sent through a memo or be conveyed through a town hall meeting.

Informal Communication

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Informal communication, also known as the “grapevine”, is free flowing and

spontaneous. This kind of communication takes place between employees one on one or
in small groups. It can also involve quick interactions between employees and customers
or partners.
Unlike formal communication, which moves at a slower pace, informal
communication is more impulsive. This can lead to inaccurate or misinterpreted
information. However, many organizations favor informal communication over formal
communication because it enables employees to be more creative and self-driven.

B. Directional Communication: Downward

Basic forms of organizational business communication are also directional. This
means that information can flow downward, upward or horizontally.
Downward communication flows from managers and supervisors to front-line
employees. This kind of communication often involves instructions or tasks that
employees need to complete. It can also include organizational policy or performance
appraisals.
While most downward communication comes in written form, such as emails,
memos and policy guidelines, it is also verbal, such as through meetings and phone calls.
Directional Communication: Upward
The opposite of downward communication is upward communication, in which
messages flow from lower-level employees to superiors. This kind of communication
can include projects or materials that employees need to show their managers.
Employees can also provide feedback and suggestions to superiors about their
jobs, performance or company business. This kind of communication often provides
upper management with insight and data that is used to make important company
decisions.
Directional Communication: Horizontal
Communication also flows horizontally through a business. This kind of
communication takes place between employees who are on the same level of the
hierarchy. They can be in the same department or in other areas of the company.
Much like informal communication, this kind of communication is quick and often
spontaneous. Most horizontal communication is verbal as opposed to written.

C. Internal Communication
Internal communication takes place between members of the organization. It
can be among the entire company or in small groups of people, such as departments or
project teams.

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Formal internal communication is often in written form and includes performance

appraisals, company updates and sales performance. This kind of information is
generally only suited for employees and not external stakeholders such as customers
and partners.

External Communication
External communication contains messages that are specifically for people
outside of the organization, like customers, prospects, partners, the media,
competitors or regulating bodies such as the government. Businesses take time to
carefully construct messaging that is for external audiences so that the business is
seen in a positive light. Most external communication is formal and structured and sent
through specific channels so that the audience receives the message.
For example, sales promotions to prospects may be sent through a targeted
email campaign, while news about the appointment of a new CEO may be sent to the
media and the government through a press release.

D. Oral Communication
Oral communication can take place between two people, within small groups of
people or even among the entire company, such as at an annual meeting.
While oral communication may seem more informal, it can often be structured
and prepared. For example, a business owner speaking with potential investors at a
charity dinner may have carefully researched the investors so that she can lead the
conversation by speaking to their interests.
Written Communication
Written communication is an essential part of running a business. Even before
starting a business, many business owners have to prepare lengthy and complex
business plans. They may also take part in creating contracts and financial documents.
This kind of business communication is formal and often requires subject matter
experts, such as lawyers and accountants.
Not all written communication in business is formal. Day-to-day communication
between employees, such as horizontal communication, can be informal. Colleagues may
write each other quick emails to ask a question.
It’s commonplace for businesses to use instant messaging programs such as
Skype or collaboration tools such as Slack to expedite written communication. This
enables colleagues to receive and reply to messages right away, ensuring that time-
sensitive business activities can proceed as planned.

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Regardless of what kind of communication you are using, it’s important to use
proper sentence structure, grammar and punctuation in business communication. This
shows professionalism and credibility and also ensures the recipient of the message
can understand it correctly.
References
Egipto, JJ (2005). Writing Business Letters. Rex Bookstore. Sampaloc Manila
Macabuhay, C (2010). Effective Business Letter and Communication . National Bookstore.
Mandaluyong City.
https://bizfluent.com/list-7613677-types-organizational-communication.html

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REFLECTIONS

In your own words, what is formal and informal communication? Explain 2-

3 sentences.
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What is directional communication?

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Explain internal and external communication in 2-3 sentences.
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Explain in 2-3 sentences the oral and written communication.

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ASSESSMENT

Compare and Contrast

Directions: Using the Venn Diagram, compare the similarities and contrast the
differences of the basic forms of organizational communication. Choose two (2)
among the four (4) basic forms of organizational communication.

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