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Different Types of Business Communication

The document discusses the different types of business communication. It identifies 5 main types: 1) Based on structure, which is either formal or informal. Formal communication has defined channels like chains and wheels, while informal has undefined networks like gossip. 2) Based on medium, which is either verbal (spoken or written) or non-verbal communication like body language. 3) Based on flow direction, which can be upward, downward, horizontal, or diagonal. 4) Based on response, communication can be one-way without feedback or two-way with responses. Effective communication is essential for business success.

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April Rose Caballero
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54 views

Different Types of Business Communication

The document discusses the different types of business communication. It identifies 5 main types: 1) Based on structure, which is either formal or informal. Formal communication has defined channels like chains and wheels, while informal has undefined networks like gossip. 2) Based on medium, which is either verbal (spoken or written) or non-verbal communication like body language. 3) Based on flow direction, which can be upward, downward, horizontal, or diagonal. 4) Based on response, communication can be one-way without feedback or two-way with responses. Effective communication is essential for business success.

Uploaded by

April Rose Caballero
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Types of Business

Communication
Definition: Business Communication refers to the exchange of thoughts, ideas,
views and information among the personnel working in or associated with the
organisation. Communication, i.e. interacting in some or the other way is
essential for humans beings to survive in a social environment.

Similarly, effective communication is the foundation of a successful


organisation and to carry out business activities smoothly.

Different Types of Business Communication


Communication is a need in today’s business world. The people either
work for or are associated with an organisation, including employees,
stakeholders, banks, customers, suppliers, advertisers, etc. Thus, they
need to interact and communicate with each other to achieve business
objectives as well as fulfil their requirements.

Let us now understand the various ways in which interactions take place
in an organisation. Business communication can be classified by its
structure, direction of flow of information, modes of communication and
response.

Content: Types of Business Communication

1. Based on Structure
o Formal
o Informal
2. Based on the Medium of Communication
o Verbal
o Non-Verbal
3. Based on Flow of Direction
o Upward
o Downward
o Horizontal
o Diagonal
4. Based on Response
o One-Way
o Two-Way
5. Conclusion

Based on Structure

The first one is the structure of communication; the channel used for
interaction plays a vital role.

It can be further bifurcated into the following two categories:

Formal Communication

It is a regular and organised channel of work-related communication


within a company, where the employees have to coordinate through a
proper medium among themselves.

Types of Formal Communication Network: A communication network


is a pattern designed to understand how information travels from one
person to another.
Let us now go through the different networks provided under formal
communication:

 Chain: When an employee passes on official information to the


other employee who further communicates it to a third employee
creates a chain pattern. For example; the CEO informs the sales
target to the General Manager, the GM also transmits it to the
Sales Manager.

Wheel: When a single employee communicates any organisational information


to a group of co-workers, a wheel pattern is formed. For example; Team
leader reading out a circular issued by the management in front of other co-
workers.

Circular: An employee communicates information to his colleague, who passes


it on to another co-worker and so on. The message passes from one employee
to another and finally reaches to the person who initiates the process.
 Free Flow: In this type of network, no particular pattern is
followed. Information is spread in a non-systematic manner by
anyone. For example; in an emergency condition in the
organisation, say in case of a short circuit, the information is
randomly spread among the employees.

 Inverted V: Under this network, the subordinates can


communicate directly with their immediate senior as well as their
senior or top management too. For example; sales executives can
interact with their team leader as well as with the manager.

Informal Communication

It is an unofficial form of communication arising out of friendship or casual


relations, where the discussions may or may not be related to the work or
the organisation.

Types of Informal Communication Network: Though there is no


particular system which is followed for informal communication, still
following are the four informal networks identified:

 Single Strand: Similar to the chain pattern, in single strand too,


the information goes on passing from one person to another; then
to the next; and so on.

 Gossip / Grapevine: One single person spreads information


within an informal group where the message may or may not be
valid. This pattern is also called as grapevine.

 Probability: It is similar to the gossip pattern, but here, it is not


necessary that everyone is involved in the communication.

 Cluster: When a person passes on information only to his


trustworthy people believing that they won’t tell it to anyone, but
they do the same thing. Thus, the message spreads to a selected
group of people; this network is known as a cluster.

Based on the Medium of Communication

The way a message is framed and the channel used for sending
information to the receiver determines the following forms of
communication:

Verbal Communication

Transmission of information which is enclosed in words whether written


or said is known as verbal communication.
A message framed in words when spoken to the receiver is termed as
oral communication. It includes face to face interaction, calls, voice
calls, video calls, a recorded message, etc.

Whereas, when the sender drafts a message in words for the receiver to
read, it is called written communication. For example; a letter, an email,
brochures, circulars, notice, message chat, etc.

Non-Verbal Communication

As we say ‘actions speak louder than words’, expressing information


other than words is known as non-verbal communication. Any
communication remains incomplete without the use of non-verbal means.

There are different types of non-verbal communication, including kinesis,


paralanguage, chronemics, artefacts, proxemics and haptics.

Kinesis refers to interactions through facial expressions, body language,


eye contact, gestures, postures, etc. However, paralanguage is the way
we speak, i.e. tone, volume, pitch, etc.

Artefacts include the appearance, personality, dressing sense and


presentability of a person. Whereas, chronemics is the timing,
punctuality, pause etc. while speaking.

Proxemics is the distance which a person maintains while


communicating with others, speaks a lot about the relation between the
two. Lastly, haptics or the touch also inform about the feelings and
expressiveness of a person.

Based on Flow of Direction

The direction in which information or a message flows within a formal set


up in an organisation defines the type of communication it is.
Following are the four primary forms of communication- according to 

their direction:

Upward Communication

In upward communication, the sub-ordinates share their problems,


suggestions and ideas with their seniors.

Downward Communication

When the seniors pass on orders, instructions, policies, rules, norms, etc.
to their subordinates, it is known as downward communication.

Horizontal Communication

When communication takes place among two people holding a similar


position in the organisation, it is known as horizontal communication. For
example; A sales manager provides the sales revenue sheet to the
finance manager.

Diagonal Communication

When the senior of a particular department shares some information with


the subordinate of the other department and vice-versa. For example; a
human resource manager warns a sales executive for excessive leaves.
Based on Response

Communication in an organisation can be differentiated as per the need


for response or feedback.

Following are the two types of business communication, based on the

response:

One-Way Communication

In one-way communication, the sender passes on the information to the


receiver without seeking any feedback or response. For example; an
advertisement for a particular product on television.

Two-Way Communication

When the sender shares some information with the receiver, and in
return, the receiver responds to such information, it is known as two-way
communication. For example; the manager discusses the problem of low
productivity with the team, and they give reasons for the same.

Conclusion

We, humans, are considered to be social animals, and therefore,


interaction with each other is a necessity for us. So goes for business, no
business activity can survive in the absence of communication.

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