Internal and External Communication

• Communication


  The successful transfer of messages between sender(s) and receiver(s)
• Internal communication


  The exchange of message(s) between two or more members of the same organisation
• Internal communication


  • Telephone call between a sales manager and a finance team member
• External communication


  The exchange of message(s) between an organisation and external entities such as customers, suppliers or investors
• External communication


  • Sending an online order form to a supplier
• One-way communication


  Transmits a message which does not require any feedback
• One-way communication


  • Sign in a supermarket stating 'wet floor' to customers
• Two-way communication


  Occurs when the receiver gives a response to the message received
• Two-way communication


  • Email between two members discussing the success of a new promotional campaign
• Formal communication


  Channeled through the businesses organisational structure and is likely to be recorded in some way
• Formal communication


  • Minutes of an appraisal meeting
• Informal communication


  Any communication that takes place outside of the official channels and is unlikely to be formally recorded
• Informal communication


  • A short lunchtime conversation about workload with a colleague
• Effective communication


  Ensures that clear messages are sent, received, understood and acted upon in the way intended
• Effective communication should be

  • Clear and unambiguous
  • Appropriate to the context and to the sender
  • Sent to the correct receiver in an accessible format
  • Timely and contain only the required amount of detail
• Effective communication helps managers and employees to minimise mistakes
• Effective communication supports everyone involved in a business to understand their role and know what is expected of them
• Effective communication ensures that the businesses values and objectives are clear
• Effective communication provides customers with the information they need to understand goods and services
• Effective communication minimises business costs
• Effective communication helps businesses to effectively exploit new opportunities
• A 2021 survey of US workers found that more than one-third reported email overload that might lead them to resign from their jobs
• Main forms of communication used by businesses

  • Verbal
  • Visual
  • Written
• Verbal communication


  • Video and phone calls allow people in different locations to connect
  • Face to face verbal communication includes facial expressions, body language and tone of voice which can enhance understanding
  • Allows for real-time communication and the quick exchange of information and resolution of queries/disputes
• Verbal communication weaknesses


  • May not always be possible due to geographical distances or time constraints
  • Requires listening skills
  • Unreliable internet connections or audio/video problems can hinder effective verbal communication
• Visual communication


  • Videos, charts, photographs and visual displays can simplify complex communications
  • Feedback may be limited so follow-up may be required to check understanding
  • Some diagrams/charts may need a verbal or written explanation to support them
• Written communication


  • Provide a record that can be referred back to in the future
  • Instant messaging (WhatsApp, Slack) enables fast and real-time communication making it ideal for brief exchanges or urgent matters
• Written communication weaknesses


  • Without facial expressions and tone of voice, written messages can be misinterpreted or lack context
  • Requires literacy and/or technical skills
• Businesses are likely to develop their communication methods and style over time
• Smaller businesses may only be able to afford to communicate with customers through posters, leaflets and social media
• Larger businesses are likely to have greater budgets which allow for the use of television and billboard promotional campaigns
• Factors which impact the communication method used

  • Cost
  • Speed
  • Receiver
  • Leadership Style
  • Message details
  • Need for a written record/formality
  • Feedback
• Cost


  How important is it to keep costs down? Is communication vital regardless of cost?
• Cost


  • Customers need to be informed about a serious safety problem with a children's toy
  • An announcement in national newspapers would reach many affected people quickly
  • An announcement via social media channels would be low-cost
• Speed


  Does the message need to transmitted quickly?
• Speed


  • A manager from a foreign division of a company must be told about a cancelled sales meeting before he catches his flight from the US to China
  • A telephone call would be quick and direct
  • An internal email may not read in time
• Receiver


  How many/what type of person needs to receive the message?
• Receiver


  • All 300 staff in a factory need to be told about a change in working hours
  • An internal email would be an effective way to inform all staff
  • An announcement on a staff noticeboard may be missed/ignored by some workers
• Leadership Style


  Democratic leaders are likely to encourage two-way communication whilst autocratic leaders would prefer one-way communication
• Leadership Style


  • A business is making arrangements for a staff social event
  • A democratic leader may hold a meeting with the workplace social committee
  • An autocratic leader may send written invitations to staff