The Types of Business Communication and Their Importance

business meeting

We communicate with other people in our daily lives, and that makes things easier for us. Understanding other people’s needs and them doing the same to you is a vital part of our regular functioning. This can also be said for businesses.

Without a proper line of communication, businesses would fall to the ground. That’s why companies use more intricate and complicated tools for communication and archiving like Salesforce to keep employee and customer conversations in a proper data storage.

Types of Business Communication

There are many forms of communication in businesses, and these are all relevant to ensure that certain operations are maintained. Through the transfer of information, you can guarantee that your business runs smoothly. Below are some of the ways that people in any organization talk to one another.

Internal Upward

Every business has a hierarchy, and employees often need to communicate their concerns with managers or supervisors. This form of communication is called internal upward. Getting feedback and delivering surveys or reports are also part of this type of communication.

Internal Downward

The next form of communication is called internal downward. This pertains to any transfer of information from a manager or supervisor to a subordinate. This can either be in memos, emails, or verbal directives.

Internal Lateral

Before a task is completed, multiple employees or departments would have to work together and communicate a specific objective. This form of communication between workers is called internal lateral and is done through chats, emails, or other communication software.


There are many examples of external communication in the workplace and how they are utilized to promote a goal. It’s either with a business partner, customers, or other agencies. Although it doesn’t occur as often as internal communication, talking with external parties is an integral part of a business’s success.

Importance of Communication

working in the office

Any company that knows how to use communication to its advantage is a powerful one. It’s not just about the ability to utilize the four types of communication in the business, but also how to send and properly receive any piece of information. If your company can do this, you are sure to receive the benefits we’ve listed below.

Interdepartmental Collaboration

One of the most important aspects of business operation is interdepartmental collaboration. Like the human body, any company or organization has various parts that need to function properly to ensure that all tasks are accomplished smoothly. A good communication line between these departments ensures that employees can come up with a strategy to achieve a goal.

Customer Satisfaction

External communication includes conversing with customers to assist them with their needs or gain feedback on how you can improve your services. In addition to this, customer satisfaction is also widely affected by internal communication. If people within a company can discuss particular areas of improvement, then your customers would get the product or service at its best quality.

Employee Productivity

Another notable benefit of good communication is the boost in employee productivity. If an employee is provided with concise instructions, they would be able to follow them in pursuit of your business’s mission. In addition to this, receiving positive feedback from their managers or supervisors is also helpful in boosting their performance.

Remote Workers

Even before the pandemic struck, lots of businesses have utilized the structure of working remotely. This is when employees are allowed to work from their homes or wherever they desire. Hiring staff overseas, also known as offshore staffing, is also part of this operational structure. Because of this, employees are unable to stick to the traditional form of verbal communication. Instead, workers converse and relay information online through the use of various communication tools.

Knowledge Sharing

You never know who your employees have the next million-dollar idea, especially when people keep on learning and growing. A good communication line where employees are free to share ideas and maximize their problem-solving skills can improve your business’s progress. In addition to this, employees can also gain insights or techniques from their colleagues, making things easier for them, and ultimately boosting their performance.

The rise of businesses will not be possible without proper communication. Relaying information to your employees or your managers is a prerequisite to success. That’s why it’s important to understand how you can utilize the different types of communication and how vital it is to be knowledgeable in the various areas of conversing. With the constant improvement of mobile technology, it would be a failure not to incorporate this into your business operations.

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