2. Communication in Business Organizations

2. Communication in Business Organizations
Business organizations are established to achieve a specific purpose, such as the
production of some goods or services. Effective communication is vital for the
coordinated functioning of any organization.
There are the two main contexts in which organizational communication may be viewed:
internal and external communication.
Internal communication involves all communication networks within the organization, i.e. between the
various levels of the hierarchy, departments, branches, or individuals.

The main internal communication channels include:
 Written – memos, reports, forms, notice boards, house magazines, manuals
 Oral – interviews, consultations, formal and informal meetings, grapevine.
 Telecommunications – telephones, intercoms, private lines, fax, computers, email, etc.
External organizational communication entails all communication by the organization with the general
public, or other public or business organizations. External communication purposes vary from public
relations and image-building to governmental, educational, environmental, etc.
The channels of external communication include the mass media, advertising, letters, company reports,
open days, local/community participation, sponsorship, trade fairs and exhibitions, conferences, etc.
Internal communication in all organizations has formal and informal channels of
communication.
Levels of Business Communication: There are four levels of communication in
organizations:
1. intrapersonal (communication with yourself)
2. interpersonal (communication to a superior or subordinate)
3. one to many (making a speech)
4. many to one (a committee making a presentation to company president, etc.)