“Any act by which one person gives to or receives from another person information about that person’s needs, desires, perceptions, knowledge, or affective states. Communication may be intentional or unintentional, it may involve conventional or unconventional signals, may take linguistic or non-linguistic forms, and may occur through spoken or other modes.”

Or in simple words;

Communication is the exchange of ideas, opinions and information through written or spoken words, symbols or actions.

Communication is a dialogue, not a monologue. In fact, communication is more concerned with a dual listening process. For communication to be effective, the message must mean the same thing to both the sender and the receiver.

Business Communication

Business Communication is any communication used to promote a product, service, or organization – with the objective of making sale.

In business communication, message is conveyed through various channels of communication including internet, print (publications), radio, television, outdoor, and word of mouth.

In business, communication is considered core among business, interpersonal skills and etiquette.

Historical Background

Thousands years ago, people use to communicate orally. Greeks use a phonetic alphabet written from left to right. After that, many books appeared on written communication principles. In a result of this, Greek started her very first library.

When communism was ruling China, communication had become the biggest challenge within the vast government as well as between government and people. 1st in China and then in Rome postal service was launched. After that paper and printing press was invented in china that made communication easier.

Hence, today’s principles of communications are founded on a mixture of ancient oral and written traditions.


The arrangements between individuals and groups in human society that structure relationships and activities (Business, Political, Religious or social).

In other words,

A group of people identified by shared interests or purpose, for example, a “Bank”.

Lifeblood of an Organization

Communication is the lifeblood of an organization. If we could somehow remove communication flows from an organization, we would not have an organization.

It is needed for:

  • Exchanging information
  • Exchanging options
  • Making plans and proposals
  • Reaching agreement
  • Executing decisions
  • Sending and fulfilling orders
  • Conducting sales

When communication stops, organized activity ceases to exist. Individual uncoordinated activity returns in an organization. So, Communication in an organization, is as vital as blood for life.

Types of Business Communication

There are two types of business communication in an organization:

  1. Internal Communication
  2. External Communication
  1. Internal Communication

  2. Communication within an organization is called “Internal Communication”.

    It includes all communication within an organization. It may be informal or a formal function or department providing communication in various forms to employees.

    Effective internal communication is a vital mean of addressing organizational concerns. Good communication may help to increase job satisfaction, safety, productivity, and profits and decrease grievances and turnover.

    Under Internal Business Communication types there come;

    a) Upward Communication
    b) Downward Communication
    c) Horizontal/Literal communication

    a) Upward Communication

    Upward communication is the flow of information from subordinates to superiors, or from employees to management. Without upward communication, management works in a vacuum, not knowing if messages have been received properly, or if other problems exist in the organization.

    By definition, communication is a two-way affair. Yet for effective two-way organizational communication to occur, it must begin from the bottom.

    Upward Communication is a mean for staff to:

    • Exchange information
    • Offer ideas
    • Express enthusiasm
    • Achieve job satisfaction
    • Provide feedback

    b) Downward Communication

    Information flowing from the top of the organizational management hierarchy and telling people in the organization what is important (mission) and what is valued (policies).

    Downward communication generally provides enabling information – which allows a subordinate to do something.

    e.g.: Instructions on how to do a task.

    Downward communication comes after upward communications have been successfully established. This type of communication is needed in an organization to:

    • Transmit vital information
    • Give instructions
    • Encourage 2-way discussion
    • Announce decisions
    • Seek cooperation
    • Provide motivation
    • Boost morale
    • Increase efficiency
    • Obtain feedback

    Both Downward & Upward Communications are collectively called “Vertical Communication”

    c) Horizontal/Literal communication

    Horizontal communication normally involves coordinating information, and allows people with the same or similar rank in an organization to cooperate or collaborate. Communication among employees at the same level is crucial for the accomplishment of work.Horizontal Communication is essential for:

    • Solving problems
    • Accomplishing tasks
    • Improving teamwork
    • Building goodwill
    • Boosting efficiency

  3. External Communication

  4. Communication with people outside the company is called “external communication”. Supervisors communicate with sources outside the organization, such as vendors and customers.
    It leads to better;

    • Sales volume
    • Public credibility
    • Operational efficiency
    • Company profits

    It should improve

    • Overall performancee
    • Public goodwill
    • Corporate image

    Ultimately, it helps to achieve

    • Organizational goals
    • Customer satisfaction

201 Responses to “Business Communication and its Types”

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  3. Material is good just because you people are reading it.

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  4. humayun azhar siddiquipak
    May 26th, 2008 at 3:54 pm

    I am an English Language teacher and have done some commercial correspondence courses. I want to do something in this field also. So I want help, what should I do in the early classes of Communication and how should I carry on.


  5. easy english notes send me of MBA every subject especialy BCRW.



  6. Am a auniversity student doing information technology and i would like you to help me send the definition of upward,downward,horizontal and diagonal communications to me via my e-mail adress below

  7. I am persuing MBA.i need notes on business communication.

  8. what topics do u need sandeep!

  9. thank u very much for postin it…it will really help me in ma assignment…

  10. easily to keep in mind because of numbering

  11. I am a professor of Management teaching management subjects to post graduate students of Management. I have liked these notes on Business Communication & have recommended to my students to study & take advantage of this. I would very much appreciate if you could send me a complete set of notes on this as well as other management subjects for the benefits of my students.

  12. @ Suraj Prakash

    Thanks for comments,
    Complete list of posts about Business Communication/Career is here:
    In future when i write more on Business Communication, i will publish here, Thanks.

  13. first of all i am very thankful to you for providing me such useful information. i am a student of mba and serching about my topics and this link gave me all the information which i neede. thanks a loat.

  14. mohammad faizanpak
    March 30th, 2009 at 11:59 pm

    i have a question regarding formal communication. i want this answer to be answered tomorrow only because i have an assignment to submit.The question is:

    It is a well acknowledge fact that all forms of External and internal written Business communication have an inherently formal and impersonal style which do not necessarily reflect the personal characteristics of the individuals responsible for the communication. Give six reasons why this style is strictly adopted in large and complex business organizations..



  16. wow
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  17. This is very useful for my exam.. thank you…

  18. thanxxxxxxxxxxxxxxxxxxxxxx alot 🙂

  19. I am a student of CA. I am in module C now. Can you please help me learning concept about feedback and its importance in communication cycle..???

  20. I m student of MBA.I need notes on business communication

  21. Try this

  22. hey me Qasim Razzaq from shahdra lahore i really appreciate your notes here that i have got to solve my assignment
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  23. i need notes for the assignment of buisness report
    Q 1 The profit of a manufacturing industry are on the download trendfor the last three years,although sales have been steady.the management is anxious to find out the reason and measures to arrest (stop)the decline. me asked to investigate and report.
    (1)Outline of the report
    (2)Text body
    (3)Terminal section

  24. hello dear, ur notes are realy superb, actualy today it was my first class of business communication, n i realy gained alot from ur notes,.,.,

  25. All the notes are very useful. Thanks

    September 19th, 2009 at 3:50 pm

    it is very benifical web thank for business communication notes

  27. It realy very good.this is my first read about the business communication.and very useful.Thank you

  28. it is superb.puple can understand easily this b.c.notes

  29. Salam
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  30. i have just started my mba..and its really good and informative for me..thanksss

  31. sidramin
    iam doing my MBA i will be thank full if you provide me note of B.C 1 hopeing for reply

  32. Check this if you find here

  33. abhishek purwarpak
    October 11th, 2009 at 2:48 pm

    i want answer of what are the advantage and disadvantage of of verbal and non verbal communication?

  34. About business communication types check this link

  35. i want notes of BCR for class b.com2 so plzz help me by sending notes of BCR i shall thankfull to u .

  36. really good information provided about business communication… it worth reading

  37. thanks for providing me such good information its help me to enhans my commnication skills ina better way

  38. hello dear friends i m a student of & i want notes of economics for class so plzz help me i shall thankfull to u .

  39. Thanks for providing good information about business comunication.Its very useful and help us to improve our business comunication.

  40. Thanks.
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  42. the notes are very easy and puples can learn easily about business communication as i learnt a lot.

  43. these notes are not enough as i want detail.

  44. irfan munir jalbanipak
    December 5th, 2009 at 11:43 am

    hello dear students i m student of mba n i need some notes about business comunication in detail.

  45. Rana Shaffaqat Alipak
    December 9th, 2009 at 9:08 pm

    I am student of MBA.This information of business communication very well.

  46. Assalm-o-Alikum,,

    I’m Student of MBA Finance and i need some short notes about b.comunication,,

  47. Really very useful and easy to understand notes

  48. md. safatul kabirpak
    December 15th, 2009 at 5:52 am

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  49. I m student of MBA.I need notes on business communication

  50. Mohamed Hussainpak
    December 30th, 2009 at 5:20 pm

    It was very helpful to make my assignment with this blog post. Thank you very much for sharing with us.


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