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Method of Communication in Business: Different Types, Overview

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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.

Effective communication is just as important, if not more, within an a business as it is between the organization and its consumer. There are many types of communication methods including face to face, email and telephone among other means. First, take a look at the importance of business communication to determine the pros, cons and appropriate use of each form in a business setting. Updated: 08/31/2021

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.

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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, email 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.

Email 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 are that email 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. Email 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 gotten the job done more efficiently.

Iphone communication

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Method of Communication in Business: Different Types, Overview Quiz

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Which of the following was popular for sending documents before email became more mainstream. It is still used across some industries and in cases where email is not thought to be 'secure'.

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