Types of Communication

Communication in an organization is either external or internal.

Internal communication takes place between people within the organization while external communication occurs between people in the organization and others outside the organization.

Today's organizations are complex and big and the amount of information handled is very large. Therefore a lot of efficiency in communication is required. All organizations generate internal communication and the communication flow is multidirectional.

It could either be:

(a)    Vertically upward—from lower to higher level through the chain of command.
(b)    Vertically downward—from higher to lower levels.
(c)    Direct horizontal—when an individual from one department communicates to another in another department but at the same organizational level.


(d)    Indirect horizontal—occurs between people of different organizational levels and in different departments.
(e)    Depending on the nature of the firm zigzagging or diagnosing of messages cannot be ruled out.

The informal group through the grapevine forms an important communication channel. All organizations have a "grapevine" or informal communication channel. News flow through the grapevine with or without the approval of the management. The information that flows through the grapevine is rarely ever true as it is based on gossip and half truths. Where management has not devised ways of passing information promptly the "grapevine" thrives. So the more fully and accurately management keeps people informed, the weaker the grapevine.

The firm also invites communication with groups outside and as the organization grows external communication grows. These groups include customers, suppliers, government, competitors etc.