CHAPTER FOUR

TYPES OF COMMUNICATION
IN ORGANIZATION
 Chapter Objectives
At the end of this chapter students will be able to:
Understand External and Internal Communication
Identify different types of formal and informal
communications.
Explain the meaning and concept of nonverbal
communication.
Differentiate vertical, horizontal and diagonal
communications
 Types of Communication
4.1 Internal and External Communication
 Internal communication - is the exchange of messages
between employees inside the organization.
 When you talk, send an e-mail message, or write a memo
to co-workers, supervisors, or managers about customer
needs, supplier delivery schedules, or project progress,
you are communicating internally.
• According to Lesiker and Pettit, “Internal communication
consists of the structured communication within the
organization that directly relates to achieving the organization’s
work goal.”
• According to Bovee and others, “Internal communication is
the exchange of message among organizational members.”
• According to S. P. Arora, “Information exchanged among
executives, officials and employees of a same organization is
known as internal communication.”
 Effective internal communication
function can boost(encourage to increase
or improve.) morale, help create happier
employees who are more productive, and
allow management to develop
ambassadors of the corporation and its
brands.
• Internal communication is a communication among members of an
organization.
Nature of internal communication

• Some important natures of internal communication are

as follows:
1. Direction: There are some special directions of
internal communication which are:
(a) Downward (high superior to subordinates)
(b) Upward (subordinates to superiors)
(c) Horizontal (officials to officials of same rank).
2. Formality: Internal communication follows proper formalities
as well as informal channels.
3. Specific purpose: The purpose of internal communication is
to ensure effective and efficient management as well as smooth
operations of the concern.
4. Frequency: One of the important features of internal
communication is frequency of occurrence. It is associated with
same day-to-day operations. The nature of information of
internal communication is almost same in respect of everyday
activities.
5. Scope: The scope of internal communication is limited.
Because, internal communication cannot take the form of mass
communication as it is confined within the same organization.
 Cont’d

 External communication - is the exchange

of messages between the organization and the
external environment.
 The external communication links the
organization with the outside world.
 The communication that is occurred among the
organizations is called the external communication.
• Communication that takes place outside the organization
is called external communication.
• The letter, proposal, pamphlets, annual report for
external body, telephone call, or personal conversation,
interviews with the news media etc… those are some
ways of external communication.
 Effective external communication can create a
desire for a firm’s product or services, encourage
collections, motivate performance, and in general,
create goodwill.
 The objective of external communication

The objectives of an ideal external communication are as

follows:
1. Community relations: Every business organization has to maintain a
relation with the common people of the society so as to achieve the
organizational goals. External communication helps to keep a link with
the people.
2. Collection of information: The main objective of external
communication is to collect the information from outside the
organization.
3. Contracts with customers: Every organization should know the
taste, liking and disliking of its customers to increase the sale of its
products or services. So, external communication is necessary to
contract with customers.
4. Relations with suppliers: Every organization has many
suppliers form that it collects raw material or finished
goods to run the business. So there must be a good
relation between the firm and its suppliers.
5. Relation with financial institutions: One of the most
important objectives of external communication is to keep
a link with banks, insurance and other financial
institutions.
6. Relation with government: Every organization should
obey the rules and regulations of the government. So,
through external communication it can keep the relation
with government agencies.
7. Shareholder relation: Shareholders are the owners
of the company. The board of directors is liable to
inform all the business affairs to the shareholders.
External communication is a must in this regard.
8. Others:
(a) to keep the relation with regulatory bodies
(b) To keep the images of the company
(c) To keep the international relations etc
 The differences between Internal and External
Communication
1. Internal Communication refers to the
communication which takes place among the
participants within the business organization.
• On the contrary, external communication is a
communication that occurs between the organization
and other individuals, groups or organizations.
2. Internal communication can be formal or informal
but external communication is mostly formal and highly
documented.
3. Internal communication aims at transmission of
information between various business units and
departments.
• Conversely, external communication focuses on
maintaining relationship or exchanging information
with the parties external to the business.
4. The participants of internal communication are
employees and the company’s management.
• As against this, the parties to external communication
include customers, shareholders, investors, clients,
general public, suppliers, creditors, etc.
5. Both internal and external communications are
regular but the frequency of internal
communication is relatively higher than that of
external communication.
6. Internal communication flows within the
organization, whereas the external communication
flows in the vast business environment.
 4.2 Formal and Informal Communication

 Formal Communication - are established within the

organization’s chain of command in order to accomplish task
objectives.

 In formal communication, transmission of messages is made as per the

procedures specifically set up for the purpose in the organization.
 Usually orders and instructions flow from the superiors to the
subordinates and reports, suggestions, and recommendations flow
from the subordinates to the superiors.
A formal communication channel transmits
information such as the goals, policies and
procedures of an organization.
An example of a formal communication channel is a
company's newsletter, which gives employees as
well as the clients a clear idea of a company's goals
and vision.
A business plan, customer satisfaction survey, annual
reports, employer's manual, review meetings are all
formal communication channels.
Formal Communications
• Downward communication
• Upward communication
• Horizontal /Lateral communication and
• Diagonal communication
Informal communication
Non- verbal communication
 a. Down Ward Communication

Communication that flows from a higher level in

an organization to a lower level is a downward
communication.
In other words, communication from superiors to
subordinates in a chain of command is called a
downward communication.
This communication flow is used by the managers
to transmit work related information to the
employees at lower levels
 Downward communication is used by the managers
for the following purposes:-
• Providing feedback on employees’ performance.
• Giving job instructions.
• Providing a complete understanding of the
employees’ job as well as to communicate them how
their job is related to other jobs in the organization.
• Communicating the organization’s mission and
vision to the employees.
• Highlighting the areas of attention.
Organizational publications, circulars, letter to employees, group meetings etc are all examples of downward communication.

In order to have effective and error-free downward

communication, managers must:
Specify communication objective.
Ensure that the message is accurate, specific and
unmistakable.
Utilize the best communication technique to convey
the message to the receiver in right form.
 Advantage of downward communication:
when messages are clear and comprehensive,
employees better understand:
 Their role in the company,
 What resources are available, and
 What is expected from them professionally
 Disadvantages
• Downward noise includes message filtering and distortion.
Because message travel through people, their perceptual
differences may magnify, minimize, or alter a message as it
moves down through the ranks. People perceive messages
differently, so they may add, delete, or change information
accordingly.
• Message overload when they receive too much information
at one time.
• Time consuming. Indeed, delays may be so frustrating that
some top managers insist that information be sent directly to
the person or group requiring it.
 b. Upward Communication

Communication that flows to a higher level in an

organization is called upward communication.
It provides feedback on how well the organization is
functioning. The subordinates use upward
communication to convey their problems and
performances to their superiors.
Upward communication leads to a more committed
and loyal workforce in an organization because the
employees are given a chance to raise and speak
dissatisfaction issues to the higher levels.
• Complaint and Suggestion Box, Job Satisfaction surveys etc all help in
improving upward communication.
 It provides managers with feedback about current organizational issues
and problems, and information about day-to-day operations that they need
for making decisions about directing the organization.
 It is management’s primary source of feedback for determining the
effectiveness of its downward communication.
 It relieves employees’ tensions by allowing lower-level organization
members to share relevant information with their superiors.
 It encourages employees’ Participation and involvement, thereby
enhancing organizational cohesiveness.
 c. Horizontal Communication

Communication that takes place at same levels of hierarchy

in an organization is called lateral communication, i.e.,
communication between peers, between managers at same
levels or between any horizontally equivalent organizational
members

• Horizontal communication is also known as

sideward communication
 The advantages of horizontal communication
are as follows:
• It is time saving.
• It facilitates co-ordination of the task.
• It facilitates co-operation among team members.
• It provides emotional and social assistance to the
organizational members.
• It helps in solving various organizational problems.
• It is a means of information sharing.
• It can also be used for resolving conflicts of a department
with other department or conflicts within a department.
The most notable disadvantage of horizontal
communication is professional rivalry, which is
competition between members of different
departments.
 d. Diagonal Communication or crosswise
communication
 Communication that takes place between a manager and employees of
other workgroups is called diagonal communication. It generally does
not appear on organizational chart. For instance - To design a training
module a training manager interacts with Operations personnel to
enquire about the way they perform their task.
 For example: - The Accounts people of an organization visiting
different employees in various departments for their auditing, bonus
for workers etc. such kinds of communication fall under diagonal
communication
 Horizontal
Upward
Downward
Diagonal
 Informal Communication
 Informal communication arises out of all those
channels that fall outside the formal channels and it is
also known as grapevine.
 It is established around the societal affiliation of
members of the organization.
 Informal communication does not follow authority
lines as in the case of formal communication.
 Informal communication takes place due to the
individual needs of the members of an organization
and exists in every organization.
 Non- verbal communication
For brainstorming
What do you observe from this picture?
 Four types of nonverbal messages

1. Personal (to the individual)

2. Common to a group of people or culture
3. Universal (to humankind)
4. Unrelated to the message (random)
 1. Personal Nonverbal communication
Involves kinds of nonverbal behaviour that are
unique to one person. The meaning is also unique to
the person sending the message.
For example, someone may work while talking;
another person may work in silence.
One person may laugh due to nervousness or fear,
while another may cry.
 2. Cultural nonverbal communication,
by contrast, is characteristics of, or common to,
a group of people. It is learned unconsciously
by observing others in the society group. In
Aboriginal(indigenous) culture, for example,
eye contact is less acceptable than it is
European culture.
3. Universal nonverbal communication is behaviour
that is common to humankind. It shows happiness,
sadness or deep-seated feelings – for example, a
smile or tears.
4. Unrelated nonverbal communication, such as a
sneeze, is unrelated to the verbal message. It can
distract from the verbal message, but has little effect
on the meaning of the verbal part of the message
 Forms of Communication

 There are two forms of communication. Those are verbal and non-verbal
communication.
A. Verbal Communication
Verbal communication stands for both the spoken and written word used in the
communication process. It can be further divided into oral and written communication.

i. Oral communication: a face-to-face interaction between the sender and receiver.

Presentations, meetings, seminars are part of oral communication.
• Telephonic communication can also be included in this category.

ii. Written communication: sender uses the written mode to transmit his messages.
Reports, letters, memos, e-mails come under this category.
1. The Importance of Verbal Communication cannot
be overstated; it is critical for success in any
organization. Important communication outcomes
include:
a. Influencing task performance is important because it
encourages employees to complete tasks that lead to
meeting organizational goals.
b. Linking plans and actions is done by connecting the
“talking about” and “doing” stages within the organization.
c. Making effective decisions is much more likely when
relevant information is communicated clearly to all involved.
d. Enhancing effective working relationships is done by
helping people relate with others; communication enables
them to resolve conflicts productively.
e. Sharing emotions is done through verbal (and nonverbal)
communication.
f. Fulfilling social need for belonging is inherent in people;
communication allows them to share their likes and dislikes
with one another.
g. Providing training aids to what employees are to do
requires clear and complete communication.
h. Assisting in problem-solving for work groups is
accomplished through effective group communication.
2. Sharing and Transmitting Information in a manner that you feel the
receiver will understand is critical; transmission without
understanding is not communication.
a. The Intended meaning of the message should be the same as the
perceived meaning.
• Culture and previous experience play a role in the way we attach
meaning to words.
b. Transmission of information is done knowingly and unknowingly;
how something is said is as important as what is said. The receiver can
become confused if the two don’t send the same message.
c. Response of the receiver is called feedback; tells the sender a lot
 Non-Verbal Communication
Principles of Nonverbal Communication
• supplements or replaces verbal communication
• regulates interaction
• establishes relationship-level meanings
• (responsiveness, liking, power)
• reflects & expresses cultural value
 Guidelines for Improvement of your Nonverbal Communication
Skills
 Self-awareness
 Being aware of the ways in which you communicate, and realizing different
people have different ways of using nonverbal communication
 monitor behaviour, take note of your posture, movements, and objects
 ask friends for feedback
 videotape yourself in a conversation or speech
 Expand your range of nonverbal activities
 by expanding your own vocabulary for sending messages, you will expand your
ability to decode the messages of others
 Remember that good communication focuses on the receiver of the message
 You can send appropriate signals to amplify or intensify your verbal messages
THE End of Chapter
Four