Corporations with a large number of people and various levels of hierarchy often struggle to manage business communications effectively. Therefore, there should be effective and continuous communication between superiors and subordinates in an organization, between organizations and society at large.

11 Reasons Why Business Communication is Critical to Your Company’s Success

4 Types of Business Communication

1. Internal upward communication
Internal upward business communication is communication that comes from a subordinate to a manager or an individual up the organizational hierarchy. Every leader should enable information to flow upwards in order to have a true understanding of the company’s operations.

Internal upward communications usually include surveys, feedback, forms and reports that employees deliver to their managers or team leaders.

For example, a marketing report may include statistics such as total website visitors, social media engagement or total leads generated.

2. Internal downward communication
Internal downward communication flows from a superior to one or more subordinates. This type of communication might be in the form of a letter, a memo or a verbal directive.

When communicating with employees, leaders should keep communication professional and clear. An example of this type of communication may include a memo regarding a new company operations procedure such as safety requirements and new regulations.

3. Internal lateral communication
Internal lateral business communication happens among employees in the workplace. Today, there are many different ways employees can communicate: chats, messaging, email, employees communication software solutions.

This type of communication can be within or among departments and it happens more regularly than other types of business communication. Moreover, frequent communication among employees plays a crucial role in employee engagement and productivity.

4. External communication
External business communication is any communication that happens with external parties such as customers, prospects, vendors or partners.

Unlike all the internal business communications types, external communications happen on a less regular basis.

The way we communicate with others is such a habitual part of us that we rarely stop and think about it. This translates into business communication too. Organizations, after all, aren’t faceless entities, but groups of real people.

Effective communication affects processes, efficiency, and every layer of a company.

In this guide, we’ll cover all you need to know to set up a successful business communication process.