[Commerce Class Notes] on Internal And External Communication Pdf for Exam

The act in which information is transferred from one person, group, or place to another is known as the act of communication. In every communication, there is one sender, one receiver, and a message. However, this transmission of information from sender to the recipient is affected by many factors which include, cultural situations, our emotions, our location, and the medium which is used to communicate. Communication in an organization involves internal communications which include messaging around an organization, employee training modules, interpersonal communications between employees, and external communication which includes customer feedback.

Internal Communication

When a piece of information is transmitted within the organization, internal communication takes place. It is the lifeline of business that usually occurs between an employee and the employer or among employees. 

Internal communication includes sharing of ideas, knowledge, information, and beliefs between the members of the company. It can either be formal or informal and is dependent upon the persons who are communicating. However, while communicating with the head of the company the language should be strictly formal. Some of the examples of common internal communication are company blogs, group meetings, inquiries of employees, staff communication, and so on.

Internal Communication- Importance

Some of the importance of internal communications are listed below-

1. The easy attainment of goals.

2. Increased productivity.

3. Fast response.

4. Fast-decision making.

5. Reduction of day-to-day conflicts among employees.

External Communication

When a piece of information is transferred between two organizations, external communication takes place. It usually occurs between an entity and another person exterior to the company and this exterior person may be a dealer, a client, customer, government official, and so on. Another example of external communication is customer feedback. With the help of effective external communication, an organization can improve its image rather than investing a lot of time and money. 

Some of the examples of external communication may include response to the customers, advertisement of a business, press conference, brochures, feedbacks, print media, and so on.

External Communication- Importance

Some of the importance of external communications are listed below-

1. Reaction of risks of mistakes.

2. Helps to promote the organization.

3. A favourable image of the organization is presented.

4. Helps in advertising the organization.

5. Easy communication about the information of products and services.

More About the Topic

Communication is the pillar on which organizational success depends. There are mainly 2 kinds of communication that happen in a corporate environmrnt, and they are internal and external communication. The main difference between internal and external communication lies in the audience to which the message is delivered, and both forms of communication support different business goals. Both internal and external corporate communication are significant resources for the business.

Let us understand this with an internal and external communication example. Suppose you need to convey an important idea to your project manager. There would be some internal communication tools that you would employ in achieving this. Now, if the same idea is to be used to pitch for your company in some other firm, there would be different means and methods used for presenting this information. This is where the difference between internal and external communication comes into play.

What is Internal Communication?

The exchange of information between members of an organization or different parts (or departments) of an organization comes under the internal communication umbrella. The different means used to transmit this information could be emails, phone, personal contact, intranet, or other modern employee communication platforms. Internal communication helps employees of an organization perform their work effectively and gives them a clear sense of the organization’s mission. 

There are 5 Types of Internal Communication

• Vertical – This happens between employees present at different hierarchical positions in the company.
• Horizontal – This happens between employees present at the same hierarchical positions in the company.
• Downward – This internal communication happens from managers, leaders, or executive directors to their assistance or other employees.
• Upward – This is the communication from employees and assistants to their managers or leaders.
• Diagonal – There are situations when vertical (either upward or downward) channels need to be filled. This is where diagonal communication happens.

Internal communication could also be categorized as informal or formal internal communication.

Different Ways of Internal Communication

The different means of internal communications are:

What is External Communication?

External communication encompasses interaction within the company as well as with the outside environment like customers, vendors, clients, investors, government agencies, society, etc. These are mostly documented pieces of information. External communication happens between organizations and the outside world daily. The two broad categories of external communication are:

• Formal External Communication – This kind of communication is the first step in creating an image of the company and brand awareness. Various media like letters, reports, web pages, or presentations are used to showcase a favorable image of the organization. It is also used to provide information about the company’s products and services.

• Informal External Communication – The organization does not directly regulate this kind of communication. It mostly happens when employees talk about their organization and its quality to other people outside the company. Employees are daily absorbing tons of information about the company. When these employees with in-depth information about the company speak about it to the outside world, it forms a channel for external communication.

Different Ways of External Communication 

The ways in which external information can transpire within and outside the organization are:

• Print and broadcast media.

• Pamphlets.

• Press conference.

• Annual reports and letters.

• Business meetings.

• External electronic communication like emails, phones, etc.

Comparison Between Internal and External Corporate Communication 

Here is a table outlining the key differences between internal and external corporate communication.

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