What are Different Types of Business Communication?

Interpersonal Skills

iSkillBox Learning

Mon, 17-Oct-2022

Did you know, 86% of employees and managers blame the lack of efficient communication for major workplace failures?

Business communication is a type of verbal or written communication that is goal-oriented and conducted in a professional setting. When the internal communication flow becomes seamless, a company can function as a well-oiled machine. Even the statistics say so! Teams who communicate effectively may increase their productivity rate by almost 25%. 

Today, we discuss the different types of business communications and how you can master them. Read ahead!

What is Business Communication - An Overview

Business communication is the process of sharing information within the workplace or outside the company with your associates. In an organization, the flow of information always remains constant. 

However, in today’s era, organizations are filled with a myriad of employees. It leads to several levels of hierarchy and roles where managing everyone and everything becomes a difficult job. This is where communication processes come into picture. The correct form of business communication helps direct and manage talent in the organization and avoid mishaps due to confusions and misunderstandings.

Elements of Business Communication

To ensure you enjoy coherent and smooth business communication, it is imperative to have a solid grasp of the main elements present. 


The way you structure your conversation is essential for the other person to absorb it as you intended. A good conversation has three parts - an opening, a body, and a conclusion. 

  • An opening helps you introduce the purpose of conversation, so your audience is able to understand the gist of the matter. It should be quick, sharp, and devoid of any jargon. 

  • The body of communication is the heart of the matter. Stick to the subject of conversation and don’t bog your listener with irrelevant information.

  • Finally, conclude your communication by quickly revisiting the key points to ensure your listener is on the same page as you.

This structure holds true for all types of communications such as email, phone calls or presentations. 

Clear and Concise 

Although, it might make complete sense in your mind before you start the conversation, it is vital to ensure your team can comprehend the message clearly. For instance, let’s say you have urgent work that needs to be delivered by the end of the day. So, you assign it to someone in the team. But instead of giving clear deadlines, you just tell them to get the work done ASAP. Since the team members were already down with plenty of work, they pushed it to the next day. 

The Right Medium 

When it comes to business communication, it cannot always be done over a cup of coffee. Depending on the message, the audience size, and various other factors, the medium through which you must deliver your message changes. Let’s say, you are allotting weekly work to your team member, an email is ideal as you can record everything that’s being said and the chances of any misunderstanding are avoided. 

Now, let’s say you have a message about quarterly targets that you want to explain to your entire team, a PowerPoint presentation may be well-suited. Choosing the right medium is always crucial. 


In today’s busy world and hectic lifestyle people don’t have time to check messages that don’t concern them in any manner. So, for your team members to pay attention to your messages, ensure you keep it relevant.

Include an intro and a conclusion

For an important message to stay with your audience even after weeks have passed, a strong opening and closing are essential. This is especially true during the monthly town halls, meetings, and more. 

For a powerful opening or closing, you can always go with an appropriate sense of humor, a quote, or short story. Just make sure it is connected to the subject of communication or else your audience will feel duped. Remember, more than the message, people tend to remember the opening and the closing. So, make it memorable.

Keep it Short

Have you ever attended meetings that last for hours? Not only do they bore you, but also drain all your energy. According to psychologists, if you want the audience to remember the key points after five minutes or more, you must limit them to five to nine points. When you keep the communications brief, your audience can grasp things better, and their productivity won’t be hampered. 

What are the types of business communication?

Usually, business communication can be put into four different segments. 

Upward Communication

As the name suggests, upward communication is when an associate is communicating with someone superior to them. For instance, the manager communicates with the owner of the firm. 

Upward communication lets the top management keep an eye on the things that are happening on the ground level. To enhance the effectiveness of upward communication, some of the things you can include are:

  • Communicate with your employees regularly and be open to ideas and suggestions

  • Be empathetic and always listen to the concerns of your employees

  • Be easily accessible to all your coworkers 

  • Have an inclusive space 

  • Have anonymous surveys to receive honest feedback

Downward Communication

In downward communication, the flow of messages is top down. Here, the management communicates with the employees through a fixed hierarchy. For instance, the manager discussing a new project with the team members. This is how you can keep the top-down communication effective

  • Management should always have notes about their employees to add a personal touch while communicating 

  • Always exude approachable and friendly body language

  • Always encourage a mix of upward and downward communication for a healthy workspace

Horizontal/Lateral Business Communication

Lateral communication is between departments and employees of equal levels inside an organization. For instance, you talk to your co-worker when you need help with a particular project. 

This is how you can ensure effective communication with your peers.

  • If you are working from home, a video chat or one-on-one conversation can be great

  • Follow up with emails or written communication to avoid any confusion

  • Use proper technology for seamless communication 

External Business Communication

The final type of communication is the external one, which is the flow of information that occurs from the inside of an organization to people on the outside. This can be consumers, investors, clients, and more. For instance, a press release about a new product. To elevate its effectiveness, you can

  • Ensure transparency and stick to the message of communication

  • Know your audience well so you can curate the right message 

  • Make use of the right communication channels

Learn to make an impact with your communication skills. Join our course today and take your communication skills to a whole new level and make every interaction better than before.