Types of business communication

From CEOpedia | Management online

Business Communication is known as a very important subject among all organizations. It can power all actions which an organization is taking. There is no chance to create a successful business without appropriate business communication skills. An organization can maintain contacts with others only by using communication. Business communication is based on transforming information among the business environment. There is no possibility that the business will grow without appropriate communication channels. The quality of the whole process of business communication impacts on outperforming in business environment (N. Gopal 2009, p. 3).

Division of business communication into types

There are 2 main types of business communication, including (N. Gopal 2009, p. 7-8):

  • Internal communication which is popular among an organization. It is used when employees exchange ideas, when a leader gives work instructions to subordinates, or when internal memos are passed along the whole organization.
  • External communication which is based on communicating with clients, suppliers, government, and other public and private organizations.

There are also other types of business communication, including many criteria, such as (A. Sethi, A. Bhavana 2010, p. 59):

  • Using procedures where we can find formal and informal communication
  • Proces where we can find upward, downward and horizontal communication
  • Giving signs where we can find verbal and non-verbal communication
  • Using words where we can find written and oral communication

Effectiveness of business communication

In order to make the whole process of communication effective, each information which is communicated must be (N. Gopal 2009, p. 18):

  • precise
  • devoid of incompletness
  • latest
  • proper
  • organized
  • clear

Barriers of effective business communication

There are four types of barriers which are sometimes forbid to make a business communication effective, including (N. Gopal 2009, p. 25-28):

  • Physical barriers which are referred to defects which can be found among the whole system of communication. It can be e.g. a physical noise which can disturb the communication process.
  • Semantic barriers which are related to language. They are e.g. bad expressions or inappropriate translations.
  • Psychological and physological barriers which are related to the mind and the body. They occur when the interlocutor is not paying appropriate attention to the person who sends the message. Another barrier in this type is fear. There is a fear receiving and providing the message.
  • Other barriers where are included such barriers as e.g.: insufficient knowledge, lack of communication skills, technical jargon and organizational politics.

Examples of Types of business communication

  • Verbal communication: Verbal communication is the most common type of communication in the business world. It is the most direct way to communicate with other people. Verbal communication can be either face-to-face or through the phone. A real-life example of verbal communication is a meeting between two company representatives to discuss a new business venture.
  • Written communication: Written communication is the most formal type of communication. It includes emails, letters, memos, reports, and other types of documents. A real-life example of written communication is a memo sent to employees informing them of a change in company policy.
  • Non-verbal communication: Non-verbal communication is an important part of business communication. It includes body language, facial expressions, and tone of voice. A real-life example of non-verbal communication is a manager’s body language during a presentation to the board of directors.
  • Networking: Networking is a type of business communication that is used to build relationships with other people. It involves attending events, exchanging contact information, and keeping in touch with contacts. A real-life example of networking is attending a networking event and exchanging business cards with other professionals.
  • Digital communication: Digital communication is a type of communication that is done through technology. It includes emails, social media, and text messages. A real-life example of digital communication is a company’s use of email to send updates to its customers.

Advantages of Types of business communication

A good business communication can bring a number of advantages to the organization:

  • Clear communication: Business communication helps to maintain a clear flow of communication within the organization, allowing all stakeholders to have an understanding of the goals and objectives of the organization. This helps to create and maintain a positive work environment.
  • Improved efficiency: Effective communication in the workplace can help to improve efficiency and productivity. By having a clear understanding of the goals, everyone in the organization can work in a coordinated and organized manner towards achieving the desired goals.
  • Increased customer satisfaction: In order to ensure customer satisfaction, it is important to ensure a clear and continuous communication between the organization and its customers. By providing prompt and reliable communication, business can ensure that their customers are kept informed and satisfied.
  • Better decision making: Business communication helps to ensure that the right decisions are taken based on accurate and reliable information. This helps to ensure that the right decisions are taken at the right time and that the organization is able to make the most of opportunities.
  • Cost savings: Good communication can help to reduce costs by ensuring that the organization is able to effectively manage resources and minimize wastage. By using resources efficiently, businesses can reduce costs and improve their profits.

Limitations of Types of business communication

The limitations of types of business communication are as follows:

  • Verbal communication - Verbal communication can be difficult to understand, as the recipient may interpret the message differently from the sender. It is also difficult to properly express oneself when communicating verbally and the message may appear insincere or impolite if not done correctly.
  • Non-verbal communication - Non-verbal communication is unreliable and can be difficult for the recipient to interpret. For example, non-verbal cues such as body language or facial expressions can be misinterpreted, leading to confusion and misunderstanding.
  • Written communication - Written communication can be time-consuming. For example, writing emails and letters takes time to compose and then send. Furthermore, the message may be misinterpreted if the reader does not understand the tone and intent of the message.
  • Electronic communication - Electronic communication can be unreliable, as messages may not be delivered on time or may be lost in transit. Additionally, electronic communication can be vulnerable to hacking, which can lead to confidential information being leaked.

Other approaches related to Types of business communication

In addition to interpersonal communication, there are other approaches to business communication that are important to consider. These include:

  • Electronic communication: This form of communication includes email, instant messaging, text messaging, and video conferencing. Electronic communication is an effective way to share information quickly and easily.
  • Social media communication: Social media has become a popular way for businesses to communicate with their customers. Companies can use social media platforms such as Facebook, Twitter, and Instagram to share updates and engage with customers.
  • Print media communication: Print media such as brochures, flyers, and newsletters are still an important way for businesses to communicate with their customers. These materials provide a tangible connection to the company and can be used to promote products and services.
  • Visual communication: Visual communication can be used to convey information more effectively. This could include using infographics, animations, and videos to share information.

Overall, there are many different approaches to business communication that can be used to effectively convey information to customers and employees. It is important for businesses to be aware of all the different communication options available and to determine which approach will be most effective for their needs.

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Author: Katarzyna Krzyk, Adrianna Kuzak, Julia Kotlarz