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  • Writer's pictureFeasibility Plus

Business Communication And Its Need

In a world of work from home and other digital means of conveying messages, it is essential for the organisations and the members in them to have a transparent and efficient process of sharing information between employees within and outside of the organisation while being more aligned with the core values and morals of the organisation and to increase profits.


Essentially there are six types of business communication, namely:


  • Verbal Communication

It essentially uses words to convey messages and can be either written or oral. Examples of this form of communication would include emails, one-on-one conversations, interviews, etc. the volume of voice, clarity of speech with the tone and calibre of words used by the person are factors that affect the style of verbal communication.


  • Non-Verbal Communication

Facial expressions and body language are integral parts of the non-verbal form of communication. Agreeing or acknowledging someone/something via head nods, finger or foot tapping to indicate impatience and making eye contact as a sign of paying attention are all examples of non-verbal forms of communication.

  • Formal Communication

Designed at the organisational level, formal communication is usually the official form of communication involving documents such as orders, reports or business letters that involves a long chain of command and is generally time-consuming.

  • Informal Communication

It is less time consuming and often called the ‘grapevine’ in organisations as it flows freely in organisations or companies without any predefined channels or boundaries while also helping build cohesiveness among workers.

  • Upward Communication

It is a type of internal communication ( kind of communication that happens within an organisation and its members via formal or informal methods to increase the productivity and smoothness of functioning) where the lower levels of the management on the hierarchy convey messages or reports to the higher levels for them to have an idea of the happening at the ground level.

This helps management to remain responsive to their employees by fostering a healthy atmosphere and also identifying issues before it gets out of hand. Having an open-door policy, displaying empathy for employees and their concerns while having communication channels allowing all workers to have access are a few means of increasing the effectiveness of upward communication.

  • Downward Communication

It is another type of internal communication where information is passed on from the higher levels of management to the ones below them on the hierarchy i.e. it has a top-down approach of passing on information and messages. This form of communication helps delegate responsibilities in an easier and clearer manner while reinforcing compliance with the company-specific standards or the rules of the organisation.

Having a visible and reliable leadership model/ role while allowing a healthy blend of the upward and downward flow of communication can help maximise the effectiveness of business communication and a harmonious environment in organisations.

  • Diagonal Communication

It is a form of formal communication that occurs between employees of different departments working not necessarily at the same level.


  • Horizontal Communication

This kind of formal communication is what happens among co-workers of an organisation or company or firm. It limits the information being passed to remain to people working on the same rank for effective functioning and better cooperation and is majorly carried out via written or verbal communication. To avoid miscommunication, video chats/ video calls/ one-on-one conversations may prove to be effective along with follow-up memos or emails to help alleviate confusion.


  • External Communication

This is the kind that happens with external parties such as prospects, customers or partners and usually happens on a less regular basis.

As organisations grow in size, the number of levels at the hierarchy of management keeps increasing too, which is why it is of utmost importance to have a clear and efficient flow of communication.

Some of the other importance of business communication are:

  • Increases productivity of employees

Internal horizontal communication helps increase productivity by easier communication of tasks and sharing of information a]while focusing on problem-solving and brainstorming innovative ideas.

  • Improves inter-departmental communications thereby having more harmony and synchronisation in organisations.

  • Reduces employee turnover as workers who are more involved and engaged with frequently tend to be more satisfied with the organisation and the environment of the workplace. When done in an effective and balanced manner it can also help employees be more informed about the relevant facts about their jobs.

  • Increases employee advocacy

Employees who are observed to be good at communicating are generally the ones shortlisted for being the chosen candidates for roles such as brand ambassador which play an integral part in increasing sales by boosting marketing efforts and increasing brand awareness.

  • Improves customer retention and customer satisfaction

Employees facing customers need to be well informed about the products and services being provided to address all doubts and queries of customers and provide them with a positive experience. Also, good business communication would help keep the morales of the employee high which would reflect on the attitude towards the customers. Having a good attitude and knowledge while handling customers can be a huge benefit for the customer to continue with the services of that particular organisation.

  • All in all, good business communication also helps build a better company culture and harmonious workplace environment.


While communication may seem like a very basic and commonly practised thing, it is crucial to do it efficiently and systematically in order to reap the most benefits. If you have any queries or doubts that we can help address, do drop them by in the comments!


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