Communication is the key to global business and a way to build relations with people in an organization. Smooth communication is crucial for a company’s success and allows to bring in more productivity among employees. Even 97% of employees believe that effective communication positively impacts everyday task performance.

However, often organizations with various levels of hierarchy struggle to manage business communication effectively. 

To keep the communication struggle at bay, organizations need to have a continuous and effective communication channel between superiors, subordinates, and clients. 

Clear communication in an organization doesn’t leave room for:

  • Confusion
  • Lack of trust
  • Dissatisfaction
  • Misunderstanding
  • Loss of productivity

With effective and seamless communication, it becomes easy for organizations to brainstorm their ideas, solve a problem and make better decisions. 

According to the research of Gallup, when employees are actively engaged, the chances are high that the company can boost 20% of sales and 21% of profitability.

So, To Help You Deep Dig, This Article Focuses Upon:

  • What is Business communication?
  • What are the types of communication available for organizations?
  • What are the methods through which businesses can have effective communication?
  • Why do we need communication in business?
  • How can you set up effective ways to communicate in your organization?

So let’s start with an understanding of what business communication is.

What is Business Communication?


Business communication is a two-way process of sharing information between different hierarchies in an organization and with people outside an organization. A good way of communication is also about receiving information and understanding it well. Feedback is vital in communication, be it from employee management or customers. 

Communication is a continuous process and an essential trait in managing people and business by creating, discussing, and interpreting ideas, facts, opinions, and feelings about work performance. 

An effective mode of communication between employees and management helps a business reach its organizational goals way faster than its competitors. On the other hand, having seamless contact with people outside the organization will lead to a good relationship with clients and positive branding about your business. 

The prime goal of establishing business communication in your organization is to improve organizational practices by coming to a mutual understanding, influencing, or persuading people to work together. An organization with an effective communication program performs 3.5 times better with peers. 

Effective communication can help you reduce errors and avoid any issues with employee productivity in your organization. It also plays a crucial role in developing a product, managing customer relations, engaging employees, and many other facets of business operations.

To conclude, business communication helps you in:

  • Effectively presenting business ideas, business proposals and sharing them with management, partners, and employees in written form with clear instructions and plans.
  • Executing decisions taken up by top management and managers
  • Reaching agreements with business partners, clients, sponsors, employees. 
  • Sending and fulfilling orders to clients and customers
  • Successful selling by your sales team 
  • Effective meetings to come to decisions
  • Obtaining feedback from employees and customers to improve in the future.

What are the types of communication available for organizations?

You can use communication as a key to business in 2 ways: 

  • Internal communication 
  • External communication.

First, let’s discuss internal business communication.

Internal communication

When an organization communicates inside an organization among its peers or according to the hierarchy, it is internal communication.  

However, there are the types of internal communication available for organizations:

  • Upward Communication

Communication done with proper etiquette and mannerisms are significant factors of upward communication. This mode of business communication represents authority and ensures an easy flow of information between managers and employees.

Employees direct the workflow and the information from a manager or someone senior in the organizational hierarchy. The subordinates and managers are responsible for giving a clear tone with an appropriate description of responsibility towards the organization. 

With a proper order of information flow, you can avoid commotion and chaos in your organization and maintain work efficiency and superiority. Also, a single source of information is much more reliable for employees and helps them solve problems. 

  • Managerial Communication

When an organization’s superior or manager shares the information with the employees working in his/her team or with other managers, the direct communication of the manager with the team helps in encouraging peers, preparing employees with head-ups for significant announcements, and giving performance reviews to employees. 

A manager with good communication skills will positively affect an organization’s work culture, business goals, employees etiquettes, morals, and values. 

  • Horizontal Communication

The flow of information in an organization is across departmental boundaries, either laterally or diagonally. Herein, the people at parallel or the same level of an organization share information to cooperate and collaborate to complete a project.

Effective horizontal communication in business includes:
  • Direct supervision of employees’ productivity
  • Recognize the needs for completing the project
  • Clear misunderstandings as soon as possible
  • Communicate in case of emergency
  • Increase interdependence of departments and discipline among employees

External communication

For a business to succeed, an organization needs to communicate with people working outside the organization to impact the market positively. 

So, to promote the company and accelerate its growth, a business needs continuous contact with its customers, vendors, and government officials.

All these business communications help you in:
  • With downward and upward communication channels, you can share and receive information to complete assignments and projects in time and avoid confusion. 
  • When sharing and discussing information during the meeting, you can brainstorm ideas with your team and solve issues related to business.
  • Feedback, correction, and sharing knowledge about different tools help in increasing employee productivity.
  • With better access to information through communication, you and your team can better outcomes and make better decisions to solve your problems.

Now let’s have a glimpse of the methods you can adopt for effective communication when handling business.

What are the methods through which businesses can have effective communication?

Today there are many methods of communication in both large and small business houses. However, what is important is which communication is a perfect fit for your business and will resonate more with your audience. 

Nowadays, you can communicate in various ways – online communication, telephone conversations, video conferences, meetings, presentations, and more.

In this blog, we will discuss five various methods you can adopt for effective business communication in your organization:

Open Meeting

With open meeting forums, now both you and your team can communicate effectively in person. Open meetings build confidence among employees as they can share their ideas and opinions with everyone to solve problems to create synergy in the group.


Emails have become one of the most effective communication methods without getting your employee out of their cubicle. You can send a text to an employee about their performance reviews or instructions on a project through emails.

You can also send emails to your entire organization informing them about changes in their goals and agendas. Also, employees use emails to ask for help from supervision or to apply for leave.

One-on-One communication 

Supervisors and managers need to continuously check the performance of their team and provide performance reports accordingly. At times, some employees cannot catch their problems and need detailed information to improve their productivity. 

Thus a manager or supervisor needs to provide their supervision; however, they must maintain eye contact with their employees while the employee can sink in the message. 

Creating a receptive environment

A tense environment is never a good way to start your meeting, so at all costs, avoid it. Try to create a more receptive environment, make the mood light by sharing an anecdote, and then move to more serious topics. 

A receptive environment in a meeting will make sure that your messages are understood and retained by your team.

Communication via Training

Your training should be tailored towards sharing some keynote information and data with your team members, which helps them learn and upskill. Ensure that the data shared by you during training is processed, retained, and applied by your employees.

Once you know the methods, it’s time to understand why we need communication in business!

Why do you need communication in business?

Effective business communication leads to more responsible teams, managers, and executives to cater to your business demands and achieve organizational goals and objectives. Approximately 85% of employees agree that they feel motivated when they know every update and news related to the organization.

Without proper communication processes and methods:

  • The flow of information can be interrupted
  • Can create confusion among employees 
  • Lead to severe consequences for your company
  • Leave your employees unsatisfied as all their hard work can go in vain. 
  • Struggle with business growth and lose or spoil long term customers relationships

However, effective communication in business can solve some deeper problems of your organization and provide some successful solutions for them. Also, when employees are fluently connected, then productivity improves by 25% in organizations.

You need business communication to solve day-to-day work-related problems like:

  • Email overload and lack of everyday productivity and clarity

Opening up your mailbox and seeing the “N” number of messages can be a bit overwhelming. Primarily when those messages are related to work anniversaries, birthday messages of other people. 

With such an overload of emails:

  • Essential emails remain unopened
  • Emails are not delivered on time 
  • Overlooked by employees
  • Delay in work
  • Creates unnecessary distractions that lower employees productivity and efficiency

However, with a business communication system in place, companies can reduce digital distractions and use that time in growing business.

  • Bridge communication gaps with lateral and vertical channels of communication 

At times, teams and departments cannot exchange information accurately due to communication gaps, creating chaos among employees as they do not know how to go forward. 

Also, sometimes managers are not available to handle issues without the team, and with no leader, it becomes difficult for teams to manage themselves. 

With lateral and vertical communication channels, it becomes easy for managers to bridge the communication gap among employees and different departments.

  • Challenges to communicate with remote employees

It does become quite challenging for managers to be in constant contact with remote employees as they are not physically present to cooperate and collaborate with other employees. 

However, virtual phone systems, phone conferences, cloud telephony, emails, and communication on a single platform can help solve problems essentially, proving the value of the right communication system.

  • Low employee engagement rate

Losing star employees from the organization is never a good sign. It creates a doubt in your ability to serve your customer and satisfy their demands. 

However, when you communicate effectively with your employees, you can engage your employees better. You can also help them achieve their personal goals and organizational goals together.

  • Bad customer service

Poor communication will ultimately lead to inadequate information with the sales team to share information with customers and a bad experience for customers. In both cases, there will be low morale in employees and customers. 

But with good communication, it becomes easy to satisfy customers and improve your business revenue.  

How can you set up effective ways to communicate in your organization?

To grow your business, you can no longer ignore the effects of communications on your organization, from employee productivity to customer engagement. 

Some of the effective ways for business communication include:

  • Set Clear Goals for Employees

Provide well-defined, calculable, easy-to-measure KRAs to all your employees so that they can understand their role better and have clarity on their responsibility towards their job.

  • Closely monitor the relationship of your core organizational groups

Managers are responsible for checking their department’s performance and communicating it to the top management. They also need to inform employees about their performance gaps. 

  • Schedule meetings to discuss organizational goals

With agile technologies, you can now set up knowledge libraries to schedule your appointments and meetings. With this, you must check on employees’ efficiency to meet organizational goals.

  • Interaction with external groups

Communicate with your customers, suppliers, partners, and more to promote your brand in the market.

  • Choose your preferred method of communication and outline the tools

Choose the best ways to communicate within your organization, from telephonic conversations to face-to-face meetings.

You can also use various tools like VoIP to communicate, cloud storage to save documents, chat messaging applications, video conferencing with Google Meet, and other popular VoIP service providers. 

  • Evaluate

Document your whole process of communication, execute it, evaluate it, and measure it to check whether it has served its purpose or not.  


A company’s success starts with effective communication. So are you ready to begin your journey to have good communication in your organization to grow your business?

Take the first step towards setting up effective communication with CallHippo – your only reliable on-demand Voice-over-Internet Protocol (VoIP) service provider.

Did we miss any important information that is critical for business communication? Let us know in the comments below.

Updated : June 30, 2021


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