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Method of Communication in Business: Different Types, Overview

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  • 0:00 Importance of Business…
  • 0:50 Types of Communication
  • 4:20 Lesson Summary
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Instructor: Aaron Hill

Aaron has worked in the financial industry for 14 years and has Accounting & Economics degree and masters in Business Administration. He is an accredited wealth manager.

Learn the different types of communication in business and the advantages and disadvantages of each. Find out which types work best in different scenarios and why mastering more than one is important.

Importance of Business Communication

In business, effective communication is crucial to staying competitive, maximizing profit, keeping employees engaged and happy, and making sure everyone is focused on the right goals and objectives. When communication is done correctly, it means the same thing to both the sender and receiver.

There are several types of business communication. This lesson will focus on communication inside the organization between executives, managers, and employees. Another lesson topic could be how companies communicate with their customers and target markets or externally, which is often done through marketing departments.

It's important to note that communication can move upward through an organization from employees giving feedback to executives, downward by executives and managers communicating goals, initiatives, and performance to employees, and horizontally between peers and departments working to accomplish tasks and projects.

Types of Communication

Let's look at some different types of communication.

face to face verbal communication

Face-to-face communication occurs when the people communicating are in each other's physical presence. This is the oldest form of communication and still often the most effective when you want to make sure that a point is understood properly. It gives all parties involved a chance to interact and go back and forth in a quick and accurate manner.

The ability to emphasize passion, commitment, and feelings directly to an audience can make face-to-face a very effective form of communicating. This can be done one-on-one or through group meetings. Many leaders believe this is the most professional way to deliver bad news or important news that is vital to the company.

A few disadvantages to this type of communication are that the conversation can easily get off topic quickly and may need to be re-directed. It can sometimes lead to increased tension if the parties participating are not fond of each other or have deep-rooted differences in the topic or direction they believe a project or business should be going.

For most corporations, E-mail is one of the dominant forms of communication. It is quick, cheap, and works great for companies spread all over the globe. It allows for communication that is convenient for the receiver and sender.

E-mail can include documents or images that also make it a preferred method over printing something out and hand-delivering or faxing it in a timely manner. A few disadvantages is that E-mail is less personal than face to face or phone communication and often can lead to misunderstandings or misinterpreted messages based on how things are written and perceived. E-mail can also become overwhelming at times with several messages going back and forth with multiple parties involved. Many times, employees lose sight of the fact that a simple phone call or face-to-face meeting for two minutes would have got the job done more efficiently.

Iphone communication

Phones are now usually the alternative to E-mail when some personal clarification or personal touch is needed to deliver a message or convey a thought. It is more personal than E-mail but not as personal as face-to-face. It can be a nice communication vehicle when you are looking to congratulate someone or check for additional understanding. It is still a highly-preferred method in sales positions. Like E-mail, you can reach people from hundreds of miles away in distant offices and departments, but you also give up some of the nonverbal facial expressions that can sometimes be effective when communicating.

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