Internal and External

Communication
sarina chadha /// peer teaching /// business studies
What is communication? Why do we need it?
Communication is the transferring of a message from a sender
to a receiver.

A business needs to communicate so that all parts of a

business can run smoothly.

However, a business doesn’t need just communication - it

needs effective communication.
 Internal External

Communicating with Communicating with

other employees [in people and organizations
the same business]. outside the business:

●
With
Subordinates
The
The two
two types
types of
of
stakeholders
Eg.
● Selling goods to

communication
● Managers customers

communication
● colleagues ● ordering goods from
suppliers
● sending information
It could be about shareholders
● giving and receiving ● sending information
information to the media
● Giving instructions ● liaising with the
● Discussing day-to- government
day business ● negotiating with
activities trade unions
 One Way Two Way

● The sender of the ● The receiver gives

message does not a response to the
call for, require, message and this
or allow feedback
The two
waystypes
of of
leads on to
discussion and
feedback

communication
communication
Two way communication advantage
Allows for feedback that tells the sender whether the message has been received and understood, or
asks for clarification; allows clearer and better communication

Both parties are now part of the communication process, which lets the receiver feel involved and
valued, that their contributions make a difference, and therefore motivates the receiver
When information is passed between two or more groups,
with feedback to confirm that the message has been
received and understood, we call it...

Effective
communication!
Effective communication is when:
● The message is sent using the
correct communication media
● It is sent to and received by
the right person
● The receiver understands the
message
● The receiver provides feedback
to the sender to confirm that
they have received and
understood the message
 The Benefits of Effective
communication!

Effective communication means that:

● The risk of mistakes are reduced
● Faster decision-making
● Quicker responses to market
changes
● Improves coordination between
departments
● Improves morale and motivation
of workforce
● Improves customer relationships
Communication media
The methods used to communicate a message
Speed Cost Message details

How important is it Should the cost be as How detailed is the

for the message to low as possible or is message? If there’s any
reach the receiver fast? communication efficiency technical jargon,
more important? clarification may be
Eg. A meeting being needed alongside them.
cancelled before someone Eg. informing customers
catches their flight to about safety flaws in
it products

Choosing an Appropriate Communication Method

Leadership style The receiver Need for written record

Depending on the Who is, or are, the If the information being

leadership style, receiver(s)? The passed may need to be
different methods may be communication methods referred to in the
used to suit their need. used depends on these future, it must be
factors. recorded (verbal is
Eg. Democratic style therefore not suitable).
needing feedback; two Eg. Noticeboard for many
way communication. workers Eg. Employee contracts
Choosing an Appropriate Communication Method Communication Methods
Need for feedback
Like mentioned, depending on leadership
style, or the need for feedback (and how
quickly the sender needs it), a
Visual
communication method may be chosen.

Eg. Need for feedback on the design of a

poster or notice Written

Visual

Electronic
 Verbal

● One to one talks

● telephone talks
● video conferencing
● meetings and team briefings

disadvantages advantages
no way to tell if everyone is listening,
quick way to give out information
eg. in meeting
immediate feedback and two way
can take longer than written
communication
communication if feedback is involved
(large scale)
message reinforced by speaker’s body
language, intonation, facial expressions,
no accurate or permanent record of
etc. and more efficient
message
Written

● business letters [internal or external]

● memos [internal] informal record
● Agenda [order for conduct of meeting] and minutes of meeting [written record of meeting]
● reports [detailed documents, often by experts, about a problem] sometimes too hard for all employees
to read
● notices may not be read by everyone
● job description
● purchase order, invoice [suppliers, customers]
● Company magazine
● text messages quick, discrete, but has no tone and may not be appropriate
● Faxing / email / social networking sites / tweeting, etc. Revolutionized communication. Printouts for
hard copies can be obtained. Intranet also usable for workers in a business

disadvantages advantages
direct feedback slow or impossible
‘hard’ evidence
not so easy to check if the instructions have been
received and acted upon complicated details, explanations, the
Message can be complicated or too long need to refer back to - easier than verbal

no opportunity to reinforce message with body language can be copied and sent to multiple people
not everyone has the equipment needed for electronic
communication cheap, easy, and quick
 Visual
● films, videos, presentations [often used to
train new staff or inform sales people of new
products]
● posters [simple but important messages using
picture or cartoon]
● charts and diagrams [numerical data or simplify
ideas. However may be misread]
● photographs and cartoons [variety, colour,
humour - increases chance of message being read
and understood]

disadvantages advantages
no feedback, and other forms of
attractive and appealing, more interesting
communication may be needed to check
understanding
can be used to make a written message
clearer
charts and graphs may be difficult to
interpret or misinterpreted, therefore
quite possibly spoiling the overall
message
When information is sent and received
casually in everyday language
Network of communication sometimes
called “grapevine”
Can be used to test reaction to changes
before official announcement of change
When information is sent and received
through established channels in
professional language
Official network of communication by
business where major changes, etc. are
announced

May spread rumours and gossip

However, a “grapevine” cannot be

controlled by the business

informal communication // formal communication

 directions of communication
downward communication
Messages from higher-ups to subordinates

Downward communication
Does not allow for feedback
upward communication

Usually instructions or statements on

decisions
upward communication
Messages or feedback from subordinates to
higher-ups
This feedback is important for effective
communication
A lot of contributions can be made

horizontal communication
horizontal or lateral communication Same level of hierarchy communicate
Information and ideas can be exchanged
Can be formal or informal

Problems on the sender’s end
Difficult language used;
jargon or technical terms
not understood by receiver
Speaker uses verbal
communication but speaks
too quickly or unclearly
Sender sends wrong message
or sends to wrong receiver
The message is too long and
with too much detail,
preventing the main matter
from being understood
barriers to effective communication
Sender should used
simplified and avoid
difficult words
Sender should make message
as clear as possible and
ask for feedback
Sender must ensure that the
right person is receiving
the right message
Message should be as brief
as possible
problems with the medium used
The message may be lost, Important to insist on
and the receiver doesn’t feedback; if none received,
see it assume message was lost
The wrong method has been Sender must select proper
used, eg. an important method of communication
message on a noticeboard
that not everyone will
read
The channel of Sender must send through
communication was so long, shortest channel of
the message was distorted communication
No feedback received Inconvenient channel of
communication used eg.,
meeting instead of email
for large-scale feedback
Breakdown of medium, eg., Alternatives should always
computer failure be available
 barriers to effective communication

Problems on the receiver’s end problems with the feedback

No feedback Perhaps no feedback was
May not be listening or The message’s importance asked for, or the method of
paying attention should be emphasized and communication didn’t allow
feedback asked for for it

Too slowly received or Direct lines of

May not like or trust the A trusting relationship distorted communication should be
sender, and be unwilling to should be fostered, or a available between manager
act on the message different sender should be and subordinate; they are
used more effective usually
 So what if we can’t talk?
Tasks are not completed or completed incorrectly. Productivity and
profitability reduced

The business reputation may be damaged, as well as customer service

Level of worker morale and motivation falls, leading to lower productivity,

quality, and higher absenteeism, and labour turnover

Higher risks of accidents in the workplace

Poor sales

Recruitment and selection problems

 questions
Q. What is internal Q. Differentiate between Q. Explain why effective
communication? What are two-way and one-way communication is
the directions of communication. important.
communication?

GenX19 is a computer manufacturer. For their advertising department, the

manager takes all the decisions and only tells the decisions to the
subordinates after they have been taken, which not only demotivates workers, it
also makes their work slow as they need to re-coordinate. They don’t get any
say in the matter either. The other departments who need to cooperate with the
advertising department never get the information on time, the advertising
department manager blames this on them as they do not record his voice-calls
and share them. Identify 3 problems and give their solution.
Thank you