Effective business communication is essential for the success of any organization. Clear business communication improves collaboration and teamwork, reduces the chances of misunderstandings and conflicts, and boosts engagement and relationships among employees, teammates, and clients. Hence, it is the most important soft skill for achieving better results in a professional or entrepreneurial journey. This is also one of the major reasons why major online MBA programs in India include business communications as one of the program subjects.

W.H. Newman and C.F. Summer Jr. view business communication as “the exchange of ideas, news, and views in connection with the business among related parties….” Thus, effective business communication is the backbone of a business’s progress and growth. This article discusses the basics of business communication and how it can help enterprises achieve long-term success.

Business Communications: What is it? 

Business communication involves exchanging information within a business organization and with external stakeholders. It involves using all tools, strategies, and techniques to convey messages, information, and utilities to the company’s customers, suppliers, shareholders, employees, etc. Whether virtual meetings, emails, or chatting, business communication ensures everyone receives the right message to achieve a common end goal. 

What are the Types of Business Communication?

Effective business communication falls into different categories, each with its subtypes. Understanding when to use each type is important for better impact and clarity.

1. Based on Organization Structure:

Subtype:  Formal Communication: A way of communication that follows business protocol and structure.

Example: A scheduled meeting for discussion on work projects with an agenda related to the business.

2. Based on the Direction:

Upward Communication: Sharing information up the chain of command, from lower-level employees to top management. This usually includes suggestions, reports, and feedback.

Example: An employee sharing ideas or feedback with their manager or supervisor to improve business processes.

Downward Communication: The information moves from higher management to someone lower in the hierarchy. This usually includes procedures, goals, decisions, rules, and other instructions. 

Examples: A team meeting where a manager is conveying new company rules and policies to their team members.

Horizontal Communication: The information flows among coworkers or colleagues at the same level in the hierarchy.

Examples: Regular discussions among colleagues who are working on a joint project.

External Communication: This includes communication with external individuals, such as stockholders, customers, suppliers, partners, etc.

Example: Emails to reach out to customers or meetings with suppliers regarding orders and products.

3. Based on the Mode of Communication:

Oral communication: Face-to-face meetings, lectures, and seminars that involve verbal discussions.

Examples: A brainstorming session or meeting to share different ideas.

Written communication: This involves using emails, notes, texts, or any other written form.

Examples: Written reports on vital data or emails about project updates to colleagues.

What Roles Does Business Communication Play? 

A company’s path to success depends on the effectiveness of its business communications. Since communication holds the key to corporate growth, let’s look at how business communication is essential:

● Top to bottom

Major business choices are made at the high levels of organization, and businesses need effective and fast methods of communication to spread them throughout the company. Hence, many businesses use top-to-bottom communication, which is a strategy of data flow from the top levels to lower levels in the business hierarchy. This communication method, when used correctly, is immensely powerful, as it can boost confidence among team members to succeed. However, it can also reduce production and force employees to follow an excessive hierarchical organization.

● Bottom to top

Although a bottom-up communication approach is not as common as top-down communication, it can be highly effective when applied. This strategy involves communicating through lower-level supervisors, managers, and team leaders. It improves the opportunity for employees to provide feedback and play a vital role in higher levels of decision-making. 

● Peer to peer

Finally, good connections with your colleagues are just as essential. A working relationship with your supervisor is crucial, but most employees spend days without communicating with their supervisors. Hence, sharing information, solving problems, and collecting feedback among colleagues improves workplace efficiency and enjoyment.  

What Are the Right Business Communication Channels?

The current business industry and its development have brought numerous communication methods and channels. Here are some appropriate channels for effective corporate communication:

● Meetings and presentations: Personal and interactive communications require meetings and presentations. These could be face-to-face or virtual, but they are important for brainstorming complex ideas and fostering strong relationships.

● Emails: Emails are vital for written updates or documents. However, they should be based on email etiquette to send the right message.

● Collaboration and instant messaging tools: Slack and Microsoft Teams are vital tools for instant messaging and collaboration on a formal level. These tools also help in effective project management, file sharing, and real-time communication.

● In-person meetings: In-person communication is usually underestimated. However, conferences, networking events, and even business dinners are important to boost connections. 

● Surveys: Both internal and external surveys are important for collecting useful input and ratings on critical topics. Additionally, surveys help in improving based on customer feedback.

● Social media: Social media is another essential business communication channel for conducting surveys and increasing customer engagement.   

What Are the Positive Impacts of Effective Business Communication? 

For any organization, effective business communication becomes important to resolve internal issues. The following are some positive impacts of effective business communication:

● Clarity for roles and responsibilities: Unclear tasks and roles for employees can create significant issues in a business. A collaborative environment and effective communication can help employees gain clarity about their business roles, fostering individual and organizational growth.

● Refined written communications: New projects, updated workflows, and organizational streamlining usually require written communications. Poorly written messages can confuse employees; clear communication is important for a better workflow.

● Bridging the gap between departments: In businesses, various departments work on their assigned tasks independently. In most cases, effective communication resolves communication gaps between departments.

● Positive impact on customer service: Poor internal communication often leads to ineffective customer service. Effective business communication solves such issues by providing relevant information to employees to improve customer experience.

Conclusion

Effective and clear business communication is essential for nurturing positive connections in a business. The communication method might vary from company to company, some fostering an open culture while others follow a hierarchy. Given the importance of business communications, online MBA programs incorporate it as one of the program subjects.  

Upskill for better growth opportunities with online MBA courses from Kurukshetra University. Online MBA programs in India offer the flexibility of remote learning for students with a passion for business management skills. Kurukshetra University’s MBA program courses are UGC-recognized to ensure quality education with the benefits of self-paced learning.