Business Communication

Organization An organization is a group of people associated for business, political, professional, religious, social or other purposes. Its activities require human beings to interact and react, that is, to communicate. They exchange information, ideas, plans, order needed supplies and make decisions, rules, proposals, contracts, and agreements. Communication is the “Lifeline” of every organization OR “lifeblood” of any organization.

Informal Communication Flow of Communication Formal Planned communication. Memo, letter, report, e-mail faxes that follow company’s chain of command. Informal Communication Casual Communication among employees, e-mails, face to face conversation, phone calls and discussions.

Direction of flow within the organization 1 2 3

Internal Communication The formal flow of information follows the official chain of command. President VP Production VP Marketing VP Sales VP Finance VP Human Resources Sales Manager East Sales Manager Midwest Sales Manager West Sales Manager International District 1 Manager District 2 Manager District 3 Manager Sales Rep Sales Rep Sales Rep Sales Rep Sales Rep

Downward Communication Organizational decision are made at top level and then flow down to the people who carry them. Employees become motivated and more efficient. It increases satisfaction. They need clear job directions, safety rules, facts about organizational strategies, products, and viewpoints on important controversial issues.

Upward Communication Communication that takes place from the lower management to the upper management. It helps the top management to make intelligent decisions. Upward communication can be formal and informal.

Horizontal Communication Horizontal flow enables two departments or two people to function properly. It solves problems, performs job duties, prepares for meetings and cooperates on important projects.

Informal Internal Communication Every organization has an informal communication network – a grapevine – that supplements official channel. It is important source of information. It is casual conversation of an organization.

External Communication Communication that takes place between two or more than two organizations is called external communication. The right letter, proposal, report, telephone call, or personal conversation can win back an angry customer, create a desire for a firm’s product or services, encourage collections, motivate performance and in general, create goodwill. Formal Planned communication with outsides, memo, letter, Report, e-mail, Faxes that follow company’s chain of Command. External Communication Casual Communication among Customers, suppliers, investors, e-mails, face to face conversation, phone calls, discussions

Various Aspects of External Communication 14 1 13 2 12 Flow 3 11 4 5 10 6 7 9 8