Chapter 9 – Internal and external communication

Communication is the process of transferring a message from a sender to a receiver. Effective communication ensures that information is delivered clearly and promptly, enabling organisations to operate smoothly.

Why communication is important

Good communication helps employees understand their tasks, reduces mistakes, builds teamwork and trust, improves customer service and enables better decision making. Poor communication leads to confusion, delays, wasted resources and lower morale.

Methods of communication

Businesses use a range of methods depending on the message, audience and urgency:

Communication can be internal (between people within the same organisation) or external (with customers, suppliers, shareholders and the media).

One‑way and two‑way communication

One‑way communication occurs when a message flows in a single direction from sender to receiver without any feedback. Examples include posters, recorded announcements or mass emails. It is quick and useful for conveying simple information but does not confirm whether the receiver has understood.

Two‑way communication allows the receiver to respond and provide feedback. Examples include meetings, phone calls and interactive online messaging. It ensures understanding, builds relationships and can improve motivation but may take more time.

Comparison of communication methods
Method Type Advantages Disadvantages
Email Written/electronic Fast and inexpensive; can be sent to many recipients; record kept. May be ignored; not suitable for complex or sensitive messages.
Meetings Verbal Allow discussion and immediate feedback; build relationships. Time‑consuming; can be dominated by outspoken individuals.
Telephone/video calls Verbal/electronic Quick; personal; suitable for remote communication. No physical record; time zone differences; technical issues.
Reports Written Provide detailed information; formal record. May be lengthy; costly to produce; delayed feedback.
Social media Electronic Reaches large audiences quickly; interactive; cost‑effective. Reputational risk if misused; information overload; difficult to control messages.

Barriers to effective communication

Common barriers include:

Overcoming communication barriers

Examples and applications

Internal communication includes a manager sending a weekly email newsletter to staff with updates and praise, or holding a team meeting to discuss progress on a project. Good external communication is just as important: a company might send a press release to announce a new product, post updates on social media to engage customers, or telephone suppliers to confirm delivery times. Visual communication like charts and infographics can make financial results easier for shareholders to understand.

Choosing the right method depends on the purpose. Sensitive issues, such as discussing an employee’s performance, are best handled face‑to‑face to allow empathy and immediate feedback. Urgent instructions can be given by telephone or instant messaging, while formal proposals may require detailed written reports. By matching the message to the medium, businesses can improve understanding and reduce costly miscommunication.

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