4 Types of Business Communication

Everyone has heard the expression “communication is crucial,” and this is especially true in business. Clear and productive Business communication can make or break a company’s performance, whether you’re a manager delivering internal goals to your team or a virtual receptionist addressing consumers.

Effective communication is critical in business, but the trick is ensuring that your team communicates all the time effectively.

Business communication entails the exchange of information among members of an organization as well as between the organization and outside parties. The four major categories are upward, downward, lateral, and external communication. Internal business communication or information transferred within an organization is referred to as upward, downward, and lateral communication. It differs from external business communication, which relates to exchanges between an organization and a third party.

Upward communication

As the name implies, upward communication concerns any engagement that occurs higher up in your company’s hierarchy. It is the most typical example of a direct report speaking with a supervisor or management. Another example is when a manager contacts directors or high-level executives.

This business communication style keeps upper management up to date on what is happening in the organization. It also allows employees to ask questions, express problems, and make suggestions.

Downward communication

The sharing of information from the top of an organization to lower levels of the organizational structure is called downward communication. Although downward communication is the polar opposite of upward communication, the two frequently coexist.

A manager relaying orders to a direct report through email is one example of downward communication, as is an executive communicating corporate goals to a manager. Management can use this communication style to share information, delegate roles, and enforce standards.

Lateral communication

Latitudinal or horizontal communication occurs when individuals communicate across divisions or with peers of equivalent status inside the organization. A coworker calling another coworker is an example of lateral communication, as is a team of managers deliberating on a potential recruit.

The goal of lateral communication in an organization is to promote collaboration and coordination. An organization may fail to meet its commercial objectives if it does not engage in constructive lateral communication.

Internal communication that is transparent and approachable helps to establish a positive culture inside your organization. Downward communication from leadership influences employee engagement and helps to maintain morale, whereas open upward communication makes employees feel heard.

Furthermore, collaborative lateral communication decreases competition among departments and increases team cohesion. It’s also effective for issue solving and conflict resolution.

Encourages innovation

It is stated that communication is the only way for creativity to occur, and firms can move toward innovation by fostering team interactions. Lateral communication, such as brainstorming and meetings, encourages coworkers to share ideas and get their creative juices flowing.

Open upward communication also allows employees to discuss ideas with upper management and take risks to innovate within the organization. In contrast, downward communication communicates the leadership’s innovation aims. External communication is used to share innovative ideas with the public, and lateral and upward communication enhances knowledge transfer.

Another advantage of strong business communication is that it might improve your company’s operations. Effective downward communication is critical for expressing company goals to employees and assisting your organization in reaching its goals.

Employee performance and productivity are also aided by effective business communication. According to one study, 60% of business workers confront a communication problem at least once a month. Upward communication assists employees who require direction, whereas lateral communication fosters synergy and collaboration, allowing teams to overcome challenges and accomplish more.

Finally, external communication aids in the development of positive working connections with other companies, ensuring that others do not hamper your company’s workflow.

Keeps employees happy

Internal communication is also a technique for keeping employees happy and pleased at work, making them less likely to leave. According to one study, employee satisfaction with internal communication predicts higher employee engagement and corporate attractiveness.

Maintaining open lines of communication between employees and management is essential for cultivating excellent working relationships and assisting managers in keeping a pulse on how people are feeling.

Accessible upward communication, in particular, allows employees to express feedback on pain spots in their workflow or the employee experience. Management can enhance processes and promote staff retention based on any feedback.

External communication

The flow of information from within an organization to persons outside the organization is called external communication. For example, a team within your firm may send a proposal to a client for an outreach campaign, or your organization may issue a news release to advertise a new product or service.

It also covers any electronic communication from your organization to consumers, clients, or other parties via a website, email, or social media. External communication should be a top concern for your corporation because it manages your company’s reputation and external interactions.

To sum up

There is some overlap between these channels, and it is crucial to note that some communication methods do not fit cleanly into one category. Email, for example, is a type of both electronic and written communication. You can use these categories as a reference to assist inform your workplace communication.

Furthermore, communication may change among channels depending on criteria such as formality, whether it is spoken or nonverbal, and whether it is synchronous or asynchronous. These elements may have an impact on business contacts. Therefore, it’s crucial to be aware of them and adapt as needed.

Every sort of business communication is critical to your company’s success and growth. Take the time to learn the intricacies of upward, downward, lateral, and external communication so your company can adapt to any situation.

Millennials already account for 50% of the global employment and are expected to account for 75% of the workforce by 2025.

Organizations realize that sending generic company-wide emails or using an old intranet is not enough to pique employees’ interest!

As a result, many businesses are already using mobile-first employee communications apps to improve employee communication, ensuring that employees always have access to critical information and the entire organization is aligned.