Internal and External Communication
This chapter explains how businesses send and receive messages, why communication must be understood and acted upon, and how managers choose suitable methods while avoiding common communication barriers.
Topic 1: Communication Basics
Students first need to understand what communication means and why messages must be clear, received and understood.
1. Communication
A message is the information or instruction being communicated.
When is communication effective?
Communication is only effective when the message is:
- Received by the correct person
- Understood
- Acted upon as intended
2. Internal Communication
Internal communication takes place between people within the same organisation.
Examples
- A manager giving instructions to workers
- Human Resources emailing employees
- Departments sharing information
- Meetings between managers and workers
Why is internal communication important?
Effective internal communication helps:
- Employees understand instructions
- Departments coordinate their activities
- Managers guide and control employees
- Reduce mistakes and misunderstandings
3. External Communication
External communication takes place between the business and people or organisations outside the business.
Examples include communication with:
- Customers
- Suppliers
- Government
- Banks
Why a business may communicate externally
- To order goods from suppliers
- To provide customers with prices or delivery information
- To advertise products
- To request payment from customers
Topic 2: The Communication Process
This topic explains how messages move from sender to receiver and why feedback is important.
4. The Communication Process
Effective communication involves four important parts:
👤Sender
The person who sends the message.
📨Medium
The method used to send the message.
Examples: email, telephone and letter.
🎯Receiver
The person who receives the message.
↩️Feedback
The receiver responds to show that the message has been received and understood.
5. One-Way Communication
One-way communication occurs when the receiver is not expected or able to respond.
Examples
- Notice
- Poster
- Instruction sign
6. Two-Way Communication
Two-way communication occurs when the receiver responds to the sender.
Examples
- Face-to-face conversation
- Telephone conversation
- Meeting
Advantages
- The sender can check whether the message has been understood.
- Employees can contribute ideas and may feel more involved and motivated.
Topic 3: Methods of Communication
Businesses can use verbal, written and visual communication. The most suitable method depends on the situation.
7. Methods of Communication
There are three main types:
1. Verbal communication
Messages are communicated by speaking directly to the receiver.
2. Written communication
Messages are communicated in written form, such as letters, emails and reports.
3. Visual communication
Information is presented using images or visual displays.
There is no single best method of communication. The most suitable method depends on the situation.
8. Verbal Communication
Verbal communication involves speaking directly to the receiver.
Examples
- Face-to-face conversation
- Telephone call
- Meeting
- Video conference
Advantages
- Information can be communicated quickly.
- Immediate feedback is possible.
- Body language and tone may help explain the message.
Disadvantages
- There may be no permanent written record.
- The receiver may forget or misunderstand what was said.
9. Written Communication
Examples
- Letters
- Emails
- Reports
- Memos
- Notices
- Text messages
Advantages
- Provides a permanent record that can be referred to later.
- Useful for detailed or complicated information.
- Electronic messages can be sent quickly to many people.
Disadvantages
- Feedback may not be immediate.
- The sender may not know whether the receiver has read or understood the message.
- Too many emails can cause information overload.
10. Visual Communication
Visual communication presents information using images or visual displays.
Examples
- Charts
- Graphs
- Diagrams
- Posters
- Photographs
- Videos
Advantages
- Can make information attractive and easier to understand.
- Charts and diagrams can simplify complicated information.
Disadvantages
- Usually provides no immediate feedback.
- Graphs or diagrams may be misunderstood.
11. Choosing the Most Appropriate Communication Method
A business should consider:
1. Speed
How urgently does the receiver need the information?
2. Cost
Some methods are more expensive than others.
3. Amount and detail of information
Detailed information may need a written document, chart or diagram.
4. Receiver
Is the message intended for one person or thousands of people?
5. Need for a written record
Contracts and important agreements usually need written evidence.
6. Need for feedback
If a quick response is needed, verbal communication may be more suitable.
Topic 4: Formal, Informal and Direction of Communication
This topic helps students identify whether communication is official, casual, downward, upward or horizontal.
12. Formal and Informal Communication
Formal Communication
Formal communication is communication through official business channels using professional language.
Examples
- Official emails
- Reports
- Letters
- Formal meetings
Informal Communication
Informal communication occurs casually between people using everyday language.
Examples
- Conversations during breaks
- Discussions between colleagues
13. Direction of Communication
Communication can travel in three directions.
Downward Communication
Information passes from managers to employees below them.
Example: Manager → Supervisor → Worker.
Usually used for instructions and business decisions.
Upward Communication
Information passes from employees to managers.
Examples: employee suggestions, complaints and feedback.
Horizontal Communication
Communication occurs between employees or managers at the same level of the organisation.
Example: Marketing Manager ↔ Operations Manager.
Topic 5: Communication Barriers and Solutions
Communication can fail because of problems with the sender, medium, receiver or feedback. Students must also explain how barriers can be overcome.
14. Communication Barriers
Problems can arise from:
- The sender
- The medium
- The receiver
- Feedback
15. Problems With the Sender
Possible problems
- Using difficult language or jargon
- Speaking unclearly
- Making the message too long
- Sending the message to the wrong person
How to overcome them
- Use clear and simple language
- Keep the message brief
- Make sure it is sent to the correct receiver
- Ask for feedback
16. Problems With the Medium
Possible problems
- Choosing the wrong communication method
- The message becoming distorted through a long chain of command
- Technical failure
- The message being lost
How to overcome them
- Choose an appropriate method
- Use the shortest possible communication channel
- Have alternative communication methods available
- Ask for feedback
17. Problems With the Receiver
Communication may fail because the receiver:
- Is not listening
- Does not understand the message
- Does not trust the sender
How to overcome them
- Emphasise the importance of the message
- Use clear language
- Ask for feedback
- Develop trust between sender and receiver
18. Problems With Feedback
Problems may occur because:
- No feedback is received
- Feedback takes too long
- Feedback becomes distorted
Topic 6: Key Definitions and Examination Checklist
Use this final topic for quick revision before attempting past-paper questions.
Key Definitions
| Term | Meaning |
|---|---|
| Communication | Transfer of a message from sender to receiver who understands it |
| Message | Information or instructions being communicated |
| Internal communication | Communication between people in the same organisation |
| External communication | Communication between the organisation and outside individuals or organisations |
| Sender | Person who sends the message |
| Receiver | Person who receives the message |
| Medium | Method used to communicate the message |
| Feedback | Response showing whether a message has been received and understood |
| One-way communication | Communication with no response from the receiver |
| Two-way communication | Communication involving a response from the receiver |
| Formal communication | Communication through official channels |
| Informal communication | Casual communication using everyday language |
| Communication barrier | Factor that prevents effective communication |
What Students Must Know for the Examination
Students should be able to:
- Distinguish between internal and external communication.
- Explain why effective communication is important.
- Identify the sender, receiver, medium and feedback.
- Distinguish between one-way and two-way communication.
- Distinguish between verbal, written and visual communication.
- Explain important advantages and disadvantages of each method.
- Choose and justify the most suitable communication method for a business situation.
- Understand formal and informal communication.
- Understand downward, upward and horizontal communication.
- Identify common communication barriers.
- Explain how communication barriers can be overcome.