Business owners tend find themselves in a position where no one seems to understand what they really want. And there is only one solution... start COMMUNICATING!

Sunday, July 31, 2011

What are the different categories of business communication?

We must first understand the different kinds of communications in the business firms to find out the best way to communicate with your staff.

1) Downward Communication: The communication that flows from a higher level to a lower level in the business. This type of communication is needed in an organization to:

◦Transmit vital information
◦Give instructions
◦Encourage 2-way discussion
◦Announce decisions
◦Seek cooperation
◦Provide motivation
◦Boost morale
◦Increase efficiency
◦Obtain feedback

Example: An email from a team leader to their team members reminding them about an upcoming deadline for a project/ a manager informing an employee about a change in business.
Downward communication can be either formal or informal.

2) Upward Communication: The communication that flows from a lower level to a higher level in the business. Upward Communication is a mean for staff to:

◦Exchange information
◦Offer ideas
◦Express enthusiasm
◦Achieve job satisfaction
◦Provide feedback
Example: Employees annually completing attitude surveys and reviews management in a company.
Upward communication channels are usually formal, and is vital in keeping small business managers informed and up to date on how particular areas of the business is going.
3) Lateral Communication: The channel of communication between people at the same level in the business. Horizontal Communication is essential for:

◦Solving problems
◦Accomplishing tasks
◦ Improving teamwork
◦ Building goodwill
◦ Boosting efficiency
◦ Saves time
Example: A sales forecast from the sales department to the production department.
4) External Communication: the communication that takes place between the business and external groups/companies. External communication will lead to better;

◦Sales volume
◦Public credibility
◦Operational efficiency
◦Company profits

It should improve

◦Overall performancee
◦Public goodwill
◦Corporate image

Ultimately, it helps to achieve

◦Organizational goals
◦Customer satisfaction
Example: Releasing marketing materials (brochures, emails) to customers.