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The Importance of Communication in Business

Paper Type: Free Essay Subject: Information Technology
Wordcount: 1544 words Published: 2nd Jun 2017

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Communication is the lifeblood of a business organization; no organization can succeed or progress, without effective communication. We can build good relationship within or outside the organization, build organizational image etc, through effective communication

In any business, the communication of information is an essential part of three key business activities:

Management decision-making (without relevant, timely and accurate information, decision-making at any level becomes quite tricky!)

Co-ordination of departments, teams and groups – e.g. making sure that marketing, production and administration know what each other is doing, when and why

Motivation of individuals

A program that focuses on general communication processes and dynamics within organizations. Includes instruction in the development and maintenance of interpersonal group relations within organizations; decision-making and conflict management; the use of symbols to create and maintain organizational images, missions, and values; power and politics within organizations; human interaction with computer technology; and how communications socializes and supports employees and team members. (Source: U. S. Department of Education)


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.





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

Diagonal Communication:

Less common; this involves interdepartmental communication by people at different levels. A good example would be a project team drawn from different grades and departments

Vertical Communication:

In a organization, vertical communication is communication between those who are on different levels of authority within the company. Examples are: manager to employee, general manager to managers, foreman to machine operator, head of the department to cashiers, etc.

It includes Top-Down and Bottom-Up communications.

Top-Down & Bottom-Up



TOP-Down Communication:

A flow of communication from higher management to the lower level in the form of Orders, Instructions, and Plans.

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.

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

Bottom-Up Communication:

A flow of communication from the lower level to high level in the form of suggestions, feedback, and information.

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

Top-Down Vs. Bottom-Up:

External Communication

External communication covers how a provider interacts with those outside their own organization. This may be with the public, employers, community organizations, local authorities, job centres, careers offices, funding bodies, specialist agencies and other training providers.

External communication is equally important as internal communication to provide a link between the employees and the shareholders and other third parties. As a matter of fact, external communication is considered as lifeblood of the modern business. External communication can be arranged by oral or verbal communication as well as through written media.




Tele printer



and other modern sophisticated communication technologies can be used for external communication. Written media like letters, circulars, Jl1emos, notices, legal notices, newspapers, magazines, manuals, periodical reports, pamphlets etc., are also used towards external communication. External correspondence is mostly in written form except in extraordinary circumstances resorting to telecommunication services.

Internal/Organizational Communication

Internal communication involves the communication that exists within a company and can take many forms. Key to the success of an organization is communication from within. In order to effectively engage in two-way symmetrical relations, (the goal of public relations practitioners), communication is essential internally.

With increased use of e-mail, managers substitute face-to-face communication with email.

Medium of internal Communication

Employees’ Handbook

House Magazines and Newspapers



Bulletin board notices



Functions of Internal and External Communications.

Technology has rapidly expanded the types of internal and external communication available to organizations. The diagram illustrates the vast array of internal and external communication available.

Combined together internal and external types of communications allow various sectors of the local, national and international community to interact, liaise and conduct business.

Communication Policy

Communication policy defines and controls the process of communicating information in order to make relation with other institutions, professional bodies and within organization. It also helps in making relation with the public through internet, publications and events. It gives us guidelines and restrict us in order to share information.

Communication policy defines & controls the process of communicating information

Relations with other institutions, professional bodies, and within organization

Relations with the public through Internet, publications and events; and

Relations with the media.

Protecting Sensitive Information:

Information technology (IT) security is indispensable to an organization’s ability to conduct business and achieve its objectives

Security requirements affect almost every business process and system, and successful security measures help protect a business’ brand value, stakeholder confidence, risk management strategies, and compliance status.

Requirements vary among industries, geographies, and regions, but the need to protect privacy, retain important data, and facilitate e-discovery are common to all

For example:

Once we initiative the activity in our office. We feel as we are not having


Data confidentiality must also include intellectual property and other company-sensitive data to protect stakeholder interests and brand reputation.

Data Retention Requirements

Data retention requirements are mandated in support of right-to-information acts or in securities trades, which may be investigated years after the fact

Data retention laws vary across geographies but have the common theme of specifying that certain types of data be stored for specific periods of time

Privacy Pervades e-Discovery and Data Retention Requirements

Tamperproof with an audit trail (data integrity)

Only viewable by authorized parties (access control)

Protected from viewing by unauthorized parties (confidentiality through encryption)


Developing a communication strategy and its implementation in an efficient and effective manner is quite beneficial for an organization.

You need to be transparent about your goals and values.

Consistency has to be maintained.

You need to adopt comprehensive & persuasive methods for that.

All this needs a long term focus.


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