CHAPTER II:

BUSINESS AND ORGANIZATIONAL

COMMUNICATION
 LESSON 2:
BUSINESS AND ORGANIZATIONAL
COMMUNICATION
Business communication is how people communicate, while organizational
communication deals with whom they communicate. Understanding the
requirements of good business communication, developing good
communication skills and understanding the channels of communication in
your organization will ensure success in your career.

According to Harvard Business School, business communication “is the

management’s mechanism for influencing employees … it is the means through
which employees provide information and feedback that management needs to
make sound decisions.” Each employee plays an integral role in an organization,
and each role is important to the success of the company. Communication
between you and your co-workers, your service providers and your boss
ensure that everyone is working toward the same objectives and is using the
same timeline.
ORGANIZATIONAL
COMMUNICATION
Communications educator, Joann Keyton states, “…an organization
can change its physical location and replace its members without
breakdown because it is essentially a patterned set …(of) codified
norms and practices that are … adapted to by newcomers.” . The
success of any individual within an organization lies in his ability To
learn these practices through training, observation and
questioning and thereby come to understand the channels and
preferred methods of communication.
ROLE OF COMMUNICATION IN A
BUSINESS ORGANIZATION
Communication in a business organization provides information,
direction and motivation. According to the Wisconsin School of
Business, all business is built on people who effectively communicate.

• Communication is the lifeblood of a business organization that

sends and delivers messages to employees, the public and other
businesses.

• Ineffective communication in a business organization can cause

confusion, misunderstandings and makes for an unpleasant
working environment.

• Business organization is the system and procedures put in

place in a company to help define, guide and motivate
employees to concur with the organizational goals.
• Communication in a business organization serves different purposes. It is
the medium through which messages are sent.

• Communication also serves as a listening and feedback agent.

• Communication allows employees and customers alike to share their

thoughts, ideas and concerns about a particular matter.

• Communication in a business organization also educates, trains and

develops employees to improve productivity and efficiency.
TYPES OF COMMUNICATION IN
A BUSINESS ORGANIZATION
TALL AND FLAT
According to RizwanAshraf.com, communication in a business organization is
categorized into two types: tall and flat.
Tall organizations have multiple levels of hierarchy that limit the amount
of communication between leadership and subordinates. Feedback is not
encouraged, and employees are expected to take directives and fulfill them
without question. Flat organizations are designed to incorporate
leadership and subordinates in problem-solving, decision-making and
brainstorming. These types of organizations thrive on open communication
between departments and management

The importance of communication to the business world becomes apparent

when the activities of the organization in all perspectives are considered.
These activities are of three categories, namely: internal-operational,
external-operational, and personal.
❖ Internal-Operational Communication. It refers to all communication that
happens in the conduct of work within the business. Internal-operational
communication includes the instructions from the supervisor to the
workers, and the oral exchanges from all workers in relation to work matters.

✓ Reports and records, memorandums, and e-mail messages

✓ The role that communication plays in internal communication is for

information, training and vision.

✓ Internal communication is any message sent within the company.

❖ External-Operational Communication. It is the work-related
communication done by people and groups outside the business.

✓ The business communication with its publics, suppliers, service

companies, customers, and the general public is termed as external-
operational communication.

✓ The role of communication in external communication is to promote,

persuade and maintain a business’ positive image.

✓ This is commonly accomplished through public relations, marketing and

advertising efforts.
❖ Personal Communication. Personal communication is a non-business
exchange of messages within the workplace.

✓ It is not a part of the business’ plan of operation, but it can have a

significant effect on the success of the business.

✓ The major effect of the personal communication is on its influence to

the worker’s attitude.

The extent of personal communication permitted in the workplace affects

worker’s attitude. Absolute denial of personal communication could lead
to emotional upset while an excessive one may interfere with the work
done. A middle ground therefore is the best personal communication.
Organizational communication has three basic functions which are
1) to inform, 2) to persuade, and 3) to promote goodwill.

Figure 2.1 Functions of Business Communication

1. To inform
2. To persuade
3. To promote goodwill

Internal Communication External Communication

with superior, co-workers with Customers, Suppliers,
and subordinates Government Agencies,
The Public
UNDERSTANDING CHANNELS
OF COMMUNICATION
Within an organization, communication “flows through a well-defined
hierarchy, i.e., employee to department head, department head to manager,
manager to owner. Understanding this flow, as the authors of
“Organizational Communication: Perspective and Trends” explain, is
“essential to personal effectiveness in managerial, professional and
leadership positions.”

➢ The flow of communication can be different from project to project

and customer to customer.

➢ Knowing the flow ensures that required standards are met, customers’
needs are satisfied and that the workers and the boss are on the same
page.
Most of the information flow of operational organization is downward
and follows the formal line of organization. This is so because most of the
information and instructions originate from the top and to be cascaded to
the workers.

However, companies also acknowledge the need for an upward

information flow for the management to be better informed of the
status or conditions of things down below. They also realize that
information from the lower level is important to achieve the goals of the
company.
FORMAL AND INFORMAL CHANNELS. The flow of communication in
an organization follows both formal and informal channels

➢ The formal communication channel is created by management to

control individual and group behavior and to achieve the organization’s
goals.
✓ A guide to behavior.

✓ System is called bureaucracy since procedure manuals, job descriptions,

organizational charts, and other materials dictate the required pattern of
behavior.

✓ communication channels are followed strictly.

➢ The informal communication channel on the other hand, develops as
people interact within the formal system and certain behavior patterns
emerge.

✓ People Interact in a person-to-person basis and create an environment

conducive to satisfying their emotions, prejudices, likes, and dislikes.

✓ The best-known informal communication system is the grapevine or

rumor mill. It is characterized as a provider of a speedy but Inaccurate
information.

✓ Informal communication, generally associated with interpersonal

horizontal communication, was primarily seen as a potential hindrance to
effective organizational performance since it carries much gossip and
rumor, for this is the nature of human conversation
 ROUTES OF
COMMUNICATION
 UPWARD
COMMUNICATION
UPWARD
• Progress report
COMMUNICATION
(oral/written)
Ideas/Suggestions
• Results/
Feelings/Attitudes
Accomplishment
DOWNWARD
COMMUNICATION
Policies and procedures
Organizational goals and
Strategies
In an organization once again, the Work assignments
Employee development
directions in which communication flows • Job role/
may be downward, upward, or horizontal. Responsibility
• Performance
Appraisal
• Constructive
Criticism
• Deserved praise
And recognition

HORIZONTAL/LATERAL
COMMUNICATION
Coordination of
Interrelated activities
Problem solving efforts
➢ Downward Communication flows from top to bottom in the organizational
chart. It shows the people how to perform their designated tasks. This
approach is used by the top-level management to communicate to the lower
levels.
✓ used to implement policies, guidelines, etc. In this type of organizational
communication, distortion of the actual information occurs. (This could be made
effective by feedbacks. )

Disadvantages: can be impeded by distortion which is the result of long

lines of communication. The longer the lines of communication are,
the greater the chance that a message will be distorted.

Many companies “reengineered” themselves into smaller operating units

and work teams to improve communication. They are also using
newsletters, announcements, meetings and the likes to improve the
efficiency of the downward communication.
➢ Upward Communication comes in a form of feedback or response to the
downward communication.

✓ It flows from the bottom going up.

✓ Upward communication keeps management informed about the feelings of the

lower-level employees, taps the expertise of employees, and others.

Disadvantages: Superficial or unreal information sent just to satisfy the

management and .

➢ Horizontal/Lateral Communication carries information and interactions

between organization units on the same level.

✓ primary means of achieving coordination in a functional organization structure.

✓ Unit coordination allows accomplishment of task goals.

➢ Written Communication is impersonal because the people involved in the
process cannot see each other and that immediate feedback cannot be
provided. However, most forms of business communication belong to this
category.
✓ Most organizations rely on the written communication since it provides permanent
record and convenience.
✓ Written documents are more developed, well organized, and well-considered
messages.
✓ They can also be reviewed if necessary.

Disadvantages: needs careful preparation and sensitivity to audience and

anticipated effects.
➢ Oral Communication is personal because it allows the communicators a
face-to-face conversation or meeting.

✓ It minimizes misunderstanding because communicators can immediately ask

questions or raise a point of clarification.

✓ Understanding of the message can be improved by seeing the gestures and

hearing the voice inflections.

Disadvantages: inconvenient, wasted time, and production of no written documents.

(no record or file, no documentation)

Metacommunication and kinesic messages are included in the nonverbal

form.
Metacommunication is a message not expressed in words but
accompanies message that is expressed in words. "Don't be late for work”
implies caution or "Your solution is perfect" may mean “You are efficient."

Kinesic communication is a non-verbal form of communication wherein

meanings are expressed through visual and vocal means. Visual means
includes gestures, winks, smiles, frowns, sighs, and all kinds of body
movement. A wink or a light chuckle that follows a statement may mean
"Don't believe what I just said." or a group leader sits at a position other
than at the end of the table may convey a message that "I want to show
we are equal.” On the other hand, vocal refers to tone, pitch, intonation,
and projection.
Activity
Check our Google Class Activities for the
“FIGURE IT OUT: Chapter 2 Lesson 2”
-END-
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