What is Business Communication | An Expert Explanation


Ever wondered how our life will be without communication? Nothing! Right? Apart from our personal communication, do we even know what is business communication? No worries if we do not. Because today we will learn everything, we need to learn about it.

The manner in which we communicate with others is a particularly constant piece of us. We once in a while pause and consider everything. This converts into business correspondence as well. Organizations, all things considered, aren’t nondescript elements, yet gatherings of genuine individuals.

Organizations consist of individuals. These individuals communicate with each other. This communication helps integrate day-to-day operations. Effective communication is essential for every business. It helps in achieving efficiency and improve productivity. Organizations that emphasize better communication have boosted their productivity by up to 25%.

If you want to manage your business efficiently, then you should know everything about business communication. Better customer service won’t only guarantee the company’s success. A smooth flow of communication can eradicate problems and improve decision making.

Definition of Business Communication:

“It is the process of sharing information with other people, either within the company or outside the company”

Effective business communication is how employees and management interact with each other. It helps to reach organizational goals and be more aligned with the core company values. Moreover, its main purpose is to improve organizational practices, eliminate conflict, keep employees informed and reduce errors.

Business communication is essential for presenting options/new business ideas, making plans and proposals, executing decisions, reaching agreements, sending and fulfilling orders. Additionally, it helps in successful selling and effective meetings.

All coordinated movement in an organization depends on the cycle of business communication. This could be anything from administrative communication to specialized communication with sellers. Business messages can be shared through various applications offering secure communication.

Also, when communication becomes vague, the organization’s center frameworks hazard self-destructing. The information shows that 60% of interior interchanges experts don’t measure inner communication. Potential reasons incorporate not realizing where to begin, the subsequent stages, or how to compute ROI (return on investment).

Corporations with a large number of people and various levels of hierarchy often struggle to manage business communications effectively. Therefore, there should be effective and continuous communication between superiors and subordinates in an organization, between organizations and society at large. 

Employee engagement is encouraged with strong business communication. Furthermore, employees feel more involved when they are made a part of important communications. Whether it is formal or informal communication, employees must have a say in it. Therefore, it is necessary to keep a balance of business and communication.

Types of Communication:

The two main types of business communications are internal and external. These two ways have further types.

Internal Communication:

  • Upward Communication: Any communication that comes from a subordinate to a chief. Or on the other hand from someone else up the authoritative order. Every leader should enable information to flow upwards in order to have a true understanding of the company’s operations.

It includes surveys, feedback, forms, and reports that employees deliver to their managers or team leaders. 

  • Downward Communication/ Managerial Communication: It flows from a superior to one or more subordinates. This type of communication might be in the form of a letter, a memo or a verbal directive.

An example of this type of communication may include a memo regarding a new company operations procedure such as safety requirements and new regulations.

  • Lateral Communication/ Technical Communication: This type of communication takes place among employees. It can be cross-departmental as well. Lateral communication happens more frequently than other types of communications.

There are many different ways in which employees communicate. Some of them include chats, messaging, emails, and software, etc. Moreover, frequent communication among employees plays a crucial role in employee engagement and productivity. 

External Communication:

Any communication that happens with the external entities. These entities can be customers, suppliers, partners, and the publics. Though external communication happens less on a day-to-day basis.

A Spectrum of Business Communication:

The four main purposes of business communication are:

  1. Getting and accepting directions and tasks both upward and downward: This incorporates a viable assignment starting with one individual then onto the next. Most issues in business start with vague communications here.
  • Sharing and examining data, including data sharing that goes on in meetings. At the point when communications fail around there, it makes assignments be done inappropriately or not under any condition.
  • Giving criticism, amendment, and control to individuals who report to you. So, they can have the information and the instruments that they need to take care of their responsibilities better.

Giving incredible, significant criticism is vital expertise for anybody in an administrative role. Non-verbal communication and body language likewise assume a part here.

  • Critical thinking and dynamic gatherings and conversations. These are considered among the main conversations for any association. This includes higher basic reasoning and better communication innovation.

Methods of Business Communications:

Business communication either happens verbally or non-verbally. There are several communication strategies in businesses. Moreover, communication can occur face-to-face or virtually through electronics.

Neither of these are better or more terrible for your organization all alone and completely relies upon the unique situation. Written communication is extraordinary for keeping a paper trail of choices and activities made just as for setting up together methodologies and plans. Verbal associations empower thinking skills and open up more ideas and thoughts.

A few organizations are in a single office. Some have workplaces in different time regions. Others are completely distant and don’t have an actual area. These are the techniques for business communication material to a few or the entirety of the above situations:

Web-Based Communication:

Some company communication occurs through emails, portals, and instant messaging applications. These types of communication channels help to carry out private conversations. You can carry out these private conversations in busy offices.

Moreover, you can share information with many people at one time. You can share words, ideas, concepts, or images with a network of computers. The internet has made this easier.

Telephone Meetings:

Cellphones have brought everyone closer. Now conference calling has made it easier to bring more than two people together. Just as personal group calling, we can now group call our employees and discuss important stuff.

Telephone meetings enable better idea exchanging. Also, sometimes verbal (voice) communication can better convey messages than written communication. Numerous business communication apps have made teamwork easier and more collaborative.

Video Conferencing:

With the trend of remote working, video calls have become an essential tool for conducting business. Some aspects like body language, posture, and get-up are more visible through video calls. Especially in interviews, body language and posture are judged.

Now we can conduct interviews remotely, through video calling. It will make the employees feel more closer and talking in-person (face-to-face).

Face-to-Face Meetings:

In a situation where more critical thinking and participation are required, then face-to-face meetings are a good option. It helps to quickly extract ideas. As more employees will participate, you will come up with more ideas.

According to research, in-person meetings generate more ideas than virtual (online) meetings. You must have a solid agenda to carry out effective meetings. Approximately 46% of employees rarely or never leave a meeting without knowing what was the agenda. Or what they are supposed to do.

Reports and Official Documents:

Written records are better for later use. Reports are written by everyone. Executives to juniors, everyone summarizes or writes reports to analyze activities. You can refer to written records at any point in time. This will clear any ambiguities or disagreements. Moreover, it provides clarity in communication.


Presentations are a better way of delivering ideas and concepts in meetings. You can deliver your idea to a large number of people through presentations. These presentations can be on a whiteboard, blackboard, or on any app. These are extraordinary for sharing novel thoughts in a manner that makes space for questions and any explanations.

Forum Boards and FAQs:

An inner zone for workers to refers to much of the time posed inquiries on different departmental points. And to ask new ones that will make them more gainful and exceptional on an issue.


Surveys are an ideal way to gather feedback. They can be done internally and as well as on customers. Moreover, you can gain important ratings on several topics through surveys. Studies encourage a sound pattern of input upheld upgrades and open a communication channel between all levels inside an organization.

Customer Management Activities:

This includes all the customer-related activities. All those soft wares, platforms, and activities that are related to customers are called Customer Management System. These activities can be customer support, after-sales services, customer reviews, Customer Management Systems (CMS), and feedback forms.

Which Method is Best for You?

Every business has a different structure and purpose. So, the answer to this question varies from business to business. These variations may be due to the size and preferences of the business.

As a matter of fact, there’s no one solution to all sizes. One thing guaranteed here is that the right mode of communication will lead towards success. And you will only achieve success when you determine the right communication method to use. Moreover, by applying the communication method correctly.

Let’s imagine a hypothetical situation to know how to select a communication method:

You need a discussion board, so you and your staff go through weeks finding the best arrangement and setting it up. Inevitably, you discover that nobody is utilizing it. Since they find their solutions faster from their group or archives. A pointless arrangement has cost you important time and cash.

Or then again you introduce a quality video conferencing framework. When truly you just need a solid business telephone framework to run your distant gatherings. Each business will use electronic communication.

 There is a wide range of various techniques. Nonetheless, the method used will rely upon individual organization conditions. Set aside the effort to carefully think about the estimation of each for your unique circumstances.

Problems That Effective Business Communication Can Solve:

Effective communication can solve many problems. Clear communication is essential for employees and teams. Moreover, this communication is essential to get their jobs done. And this will help them in understanding tasks better.

Without the correct tools and instruments set up, the progression of information is hindered. And as a result, individuals are left in confusion. This can cause genuine problems for the organization. The bad consequences can range from unsatisfied employees and clients to lost benefits.

For business communication success, companies try to ensure a transparent flow of information. This transparent flow is an obvious goal for every company.

Email Over-burden and Absence of Everyday Efficiency and Productivity:

Many of us get too many text messages in a day. Similarly, employees in organizations receive a large number of texts each day. This causes a distraction for them. It is found that a person receives 120-150 messages each day on average.

We effectively lose or ignore a vital piece of information. With a business communication framework set up, organizations can lessen advanced interruptions. Moreover, they can make space for thoughts and thinking.

Horizontal and Vertical Communication Interruptions:

Sometimes employees and teams do not communicate often. These barriers can reduce the exchange of information between employees. Furthermore, there are situations where it is difficult to reach out to a superior or junior. For example, if there’s an issue inside a team, it is difficult to reach a department manager.

Using business communication systems or plans can settle things down. Communication problems can be eradicated by using coordinated plans.

Poor Communication with Remote Employees:

Amid COVID-19, many companies have shifted towards the trend of “work from home”. The business which already had plans for remote working didn’t suffer much. But the business which did not know how to communicate in such situation, suffered a lot.

Almost 50% of employees like to work remotely. Remote work is here to stay. Companies struggle when they have to work remotely. So, it is better to have a communication plan beforehand. While distance adds a barrier, try to communicate through proper channels.

Now multilingual communication applications have made life easier. You can hire people from around the world. And then you can communicate with them in their language. A little degree of diversification in employees is better in the workplace.

Employee Turnover/ Low Employee Engagement:

Employee turnover is the number of employees who leave the organization. Whereas employee engagement is the degree to which employee takes part actively in the workplace. Many organizations face the issue of high turnover or low engagement.

Communication plans can make an employee feel important. Moreover, the employees will participate more often. Losing a worker can cost as much as double their salary. Yet when organizations do communicate adequately, they are 50% more likely to report turnover levels underneath the business normal.

Poor Customer Service

A company will suffer if it has a poor communication plan. The two main results of poor communication will be on customer service. Firstly. The employees who will be involved in customer management, will not have full information. Secondly, customers will feel the lower employee involvement. And as a result, have a negative experience with the organization.

As a matter of fact, a study concluded that employee attitude impacts customer satisfaction. A better attitude can increase revenues by one percent.

Steps to Set Up Your Business Communication Plan:

A reliable and integrated communication plan is essential for your company. It will result in the happiness of employees and customers. Additionally, it will benefit you with financial stability. Approximately 29% of employees believe that their communication tools do no work. Some reasons are:

  • Important information displaces because of other information overloads.
  • The communication feels self-serving or dishonest.
  • The company doesn’t include them in internal announcements.
  • Employees work remotely and the news is shared in-person.

These problems are all caused due to irrelevant information transfer, dishonesty, lack of access to key information, and exclusion. Your workplace must have experienced these too.

Another important study arrived at a result that, 86% of workplaces fail due to inefficient communication. We cannot ignore the effect of teamwork on productivity and efficiency. You can follow the following steps to create an effective business communication plan:

Audit Your Current State

Evaluate your current business communication plan. Regardless of the phase of your business, you need a business communication plan set up.

In any case, you will make it the most helpful on the chance that you focus on the areas that need the greatest improvement at the present time. And work your way to any remaining regions later on.

For instance, these may be a portion of the reasons your correspondence needs returning to:

  • Low worker fulfillment or high turnover.
  • Lower than anticipated yields across the organization.
  • Quick development prompts forgetting about data.
  • Absence of data straightforwardness because of far off work.

You may encounter more than one of these. Or an extraordinary situation. Recognize it and set objectives for your business communication measure dependent on it. For instance, your objectives can include:

  • A particular worker turnover or fulfillment rate.
  • Consumer loyalty rate.
  • The number of activities finished.
  • The number of communications between divisions.

Identify and Spot Teams in Your Organization:

Identify the groups within the organization. Study their relationships inside and outside the groups. Analyze the structure of your organization. Observe each gathering that expects data to work. This ought to include:

  • Horizontal Classification, for example, divisions (activities, promoting, plan, HR, deals, client care, money, and then some).
  • Vertical Classification: experts in groups, group leaders, office administrators, chiefs.
  • External Groups: Clients, Suppliers, Partners, and the sky is the limit from there.

From here, considering the work they do on a continuous premise and the outcomes expected of them. Guide out the manner in which they need to work all together for their responsibilities to complete.

Depending upon your organization size, this may be an enormous assignment. So, give yourself a lot of time. A portion of the fundamental inquiries to answer are:

  • Which groups and individuals need to contact whom consistently? Shouldn’t something be said about week after week, fortnightly, and month to month?
  • What communication happens just when there’s a continuous emergency?
  • How are directors and group leaders keeping up advancement in their specialties? How does reporting work?
  • Is there an information library that can possibly decrease pointless gatherings and discussions?
  • Which activities and processes need approvements from others in the organization? How are the approvements mentioned and encouraged?

At any rate, these answers should give you knowledge of the important measure. It will give you an insight into emails, messages, calls, gatherings, and reports for everything to occur in the assigned time period.

Define Method Of Communication:

Then, pick the techniques for communication that line up with your business communication objectives. Moreover, select the communication between center groups in your organization.

Audit the rundown of strategies for communication. We examined before and try to add any extraordinary to your organization:

  • Online Communication
  • Phone Meetings
  • Video Conferencing
  • Face to Face Meetings
  • Reports and Official archives.
  • Introductions/ Presentations.
  • Gathering sheets and FAQs
  • Studies/ Surveys
  • Customer Relationship Management

Which ones of these are fundamental for your organization to arrive at its objectives? What’s discretionary and might see opposition in appropriation? Which ones make the danger of adding an excessive number of tools and ought to be rearranged? Be sensible about your particular necessities.

For instance, a five-man startup where everybody works in a similar office will probably zero in on:

  • Electronic Communication
  • Face to Face Meetings
  • Customer Management

A 50-man organization that is completely far off will put more assets into:

  • Telephone and Video Conferencing
  • Document important information of the organization. This will enable them to track processes easily.

A huge worldwide business will most likely use all of these recorded strategies for communication. And have devoted groups work on it for a large number of them.

Select The Right Tools

No record that defines or highlights the right tools. It depends and varies from organization to organization. Every company has its own goals and objectives. Different purposes have different tools. The competition and struggle to select the right tools will continue.

Since we cannot enlist all the soft wares over here. We can share tips on how to select the right tools. Here are a few of them:

  • Use storage apps and soft wares. This is necessary to store data and important documents. Switch on backup and sync. So, this will avoid human error. And save your data even if you lose track of it.
  • Use a single communication app for emails and other connections.
  • Use one application for instant messaging between employees. For example, some employees will use App A and others will use App B. It will create ambiguity and slow down communication.
  • Select a reliable communication application. This is important when your employees are working remotely. Moreover, use an app that offers quality voice and video calling.
  • Develop guidelines for your brand. These guidelines will develop a single tone of voice for everyone. As a result, all your communication would be consistent and unified. Whether it is internal or external, your communication will be efficient.

Document The Process:

At long last, observe all that you do all through this arrangement. And transform it into a shared report noticeable to the whole organization. Along these lines, every employee can refer to a purposefully created communication design. Furthermore, they settle on the best activity for the circumstance they’re in.

The record will likewise help recently on-boarded employees effectively handle all the devices. Moreover, it will help practice the best communication rehearses. You can make a common schedule update for yourself and your group to return to the document once a quarter. Along these lines, you will guarantee the plan is as yet filling its best need. And update the plan if needed.

Reasons Why Effective Business Communication is Important

  • It improves employee involvement. Research on employee engagement shows that leadership communication is the top internal communication factor. It statistically correlates to how engaged employees are.
  • It increases employee productivity. 4 in 5 employees believe that effective internal business communications help their job performance. With the information overload, employees often spend too much time searching for content. The content is the one that they need to do their job on. Moreover, an average employee spends 2.5 hours every day searching for information needed.
  • It improves interdepartmental communication. Without a proper communications strategy, it is very hard to keep effective interdepartmental communication within companies. For employees to be more productive, they need to be able to communicate and collaborate easily.
  • It boosts up knowledge sharing efforts. Employees can openly share information with each other through communication. One of the main goals companies are trying to achieve by investing in internal communications is toimprove knowledge sharing best practices. In a world where employees are constantly growing and learning new things, employers need to enable easy knowledge sharing within their organizations. 
  • It helps in building a better company culture. At long last, an appropriate business communication system is vital for building a superior organizational culture. And also improve work environment climate.

Organizations that communicate straightforwardly and openly have a lot better work environment. Also, better employee inspiration and satisfaction.

On the opposite side, some organizations disregard business communication. They lack to use it as a mean for improving the working environment culture. And as a result, they experience the ill effects of low commitment, high turnover rates, and low worker and consumer loyalty rates.

Poor or ineffective communication will create problems. It conveys an excessive number of dangers to an organization to check. Moreover, it can disrupt the entire structure of your organization.

Better and integrated business communication has its fruits. Nonetheless, brings a chance for remarkable employees and customer commitment. It makes situations clear, more critical profits, and development in income and benefit.

Regardless of whether you have a business communication framework set up or are yet to build up one, recall to:

  • Set and return to your communication objectives as an organization dependent on the present status of communication in your organization.
  • Distinguish everybody associated with measures that cause your organization to take care of its work, for a long time.
  • Examine their necessities to speak with one another and recognize strategies that make the information stream conceivable.
  • Search for the most proper instruments and stages that will empower the strategies you recognized.
  • Offer this arrangement straightforwardly to the entire organization.

Thus, you’ll see cheerful, beneficial individuals eager to deal with projects. Moreover, make significant outcomes to assist everybody included.


Business communication is a process of sharing information. It keeps the employees connected. Moreover, the essentials of business communication are that it should be clearly conveyed and properly identified. The several types of business communication under two broad categories. These two categories are internal and external communication. Depending upon the direction of information flow, it can be upward, downward, or lateral.

The four main purposes of business communication are giving direction, sharing data, determining duties, and analyzing situations. Several methods of business communication will help your organization. Some of these methods are emails, telephone meetings, reports, presentations, and face to face meetings.

To select the right method, you must evaluate your current situation first. Then spot the groups within the organization. The next step is to define the method and select the right tools. Finally, you have to document the process by recording it.

Furthermore, we cannot neglect the various benefits of effective business communication. Employee satisfaction and customer satisfaction could be achieved. Consequently, you gain financial stability. Businesses that fail to determine benefits will suffer. So, study and set your business communication plan before its too late.


4 Replies to “What is Business Communication | An Expert Explanation”

  1. I agree. In business, communication is a vital skill to improve the relationships between the employer and employees and the target audience. Thank you for sharing.

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