What is Communication?
The act in which information is transferred from one person, group, or place to another is known as the act of communication. In every communication, there is one sender, one receiver, and a message. However, this transmission of information from sender to the recipient is affected by many factors which include, cultural situations, our emotions, our location, and the medium which is used to communicate. Communication in an organization involves internal communications which include messaging around an organization, employee training modules, interpersonal communications between employees, and external communication which includes customer feedback.
Internal Communication
When a piece of information is transmitted within the organization, internal communication takes place. It is the lifeline of business that usually occurs between an employee and the employer or among employees.
Internal communication includes sharing of ideas, knowledge, information, and beliefs between the members of the company. It can either be formal or informal and is dependent upon the persons who are communicating. However, while communicating with the head of the company the language should be strictly formal. Some of the examples of common internal communication are company blogs, group meetings, inquiries of employees, staff communication, and so on.
Internal Communication- Importance
Some of the importance of internal communications are listed below-
The easy attainment of goals.
Increased productivity.
Fast response.
Fast-decision making.
Reduction of day-to-day conflicts among employees.
External Communication
When a piece of information is transferred between two organizations, external communication takes place. It usually occurs between an entity and another person exterior to the company and this exterior person may be a dealer, a client, customer, government official, and so on. Another example of external communication is customer feedback. With the help of effective external communication, an organization can improve its image rather than investing a lot of time and money.
Some of the examples of external communication may include response to the customers, advertisement of a business, press conference, brochures, feedbacks, print media, and so on.
External Communication- Importance
Some of the importance of external communications are listed below-
Reaction of risks of mistakes.
Helps to promote the organization.
A favourable image of the organization is presented.
Helps in advertising the organization.
Easy communication about the information of products and services.
More About the Topic
Communication is the pillar on which organizational success depends. There are mainly 2 kinds of communication that happen in a corporate environmrnt, and they are internal and external communication. The main difference between internal and external communication lies in the audience to which the message is delivered, and both forms of communication support different business goals. Both internal and external corporate communication are significant resources for the business.
Let us understand this with an internal and external communication example. Suppose you need to convey an important idea to your project manager. There would be some internal communication tools that you would employ in achieving this. Now, if the same idea is to be used to pitch for your company in some other firm, there would be different means and methods used for presenting this information. This is where the difference between internal and external communication comes into play.
What is Internal Communication?
The exchange of information between members of an organization or different parts (or departments) of an organization comes under the internal communication umbrella. The different means used to transmit this information could be emails, phone, personal contact, intranet, or other modern employee communication platforms. Internal communication helps employees of an organization perform their work effectively and gives them a clear sense of the organization's mission.
There are 5 Types of Internal Communication
- Vertical – This happens between employees present at different hierarchical positions in the company.
- Horizontal - This happens between employees present at the same hierarchical positions in the company.
- Downward – This internal communication happens from managers, leaders, or executive directors to their assistance or other employees.
- Upward – This is the communication from employees and assistants to their managers or leaders.
- Diagonal – There are situations when vertical (either upward or downward) channels need to be filled. This is where diagonal communication happens.
Internal communication could also be categorized as informal or formal internal communication.
Formal Internal Communication – Any communication that goes through a predefined channel falls under formal internal communication. This flow of information is controlled and follows a chain of command.
Informal Internal Communication – This is multi-dimensional communication that moves freely around the organization. This is a very natural form of communication among people and arises out of social and personal needs.
Different Ways of Internal Communication
The different means of internal communications are:
Emails
Staff meetings
Personnel meetings
News bulletins
Company’s internal server
Telephone
Company blog
Online tools like Google calendar and Google drive
What is External Communication?
External communication encompasses interaction within the company as well as with the outside environment like customers, vendors, clients, investors, government agencies, society, etc. These are mostly documented pieces of information. External communication happens between organizations and the outside world daily. The two broad categories of external communication are:
Formal External Communication – This kind of communication is the first step in creating an image of the company and brand awareness. Various media like letters, reports, web pages, or presentations are used to showcase a favorable image of the organization. It is also used to provide information about the company’s products and services.
Informal External Communication – The organization does not directly regulate this kind of communication. It mostly happens when employees talk about their organization and its quality to other people outside the company. Employees are daily absorbing tons of information about the company. When these employees with in-depth information about the company speak about it to the outside world, it forms a channel for external communication.
Different Ways of External Communication
The ways in which external information can transpire within and outside the organization are:
Print and broadcast media.
Pamphlets.
Press conference.
Annual reports and letters.
Business meetings.
External electronic communication like emails, phones, etc.
Comparison Between Internal and External Corporate Communication
Here is a table outlining the key differences between internal and external corporate communication.
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FAQs on Internal vs. External Communication Explained
1. What is the primary difference between internal and external communication?
The primary difference lies in the target audience. Internal communication is the exchange of information and ideas within an organisation, involving employees, managers, and various departments. In contrast, external communication is directed outside the organisation to parties such as customers, suppliers, investors, government agencies, and the general public.
2. Can you provide some common examples of internal and external communication?
Certainly. The channels and methods used differ based on the audience:
- Internal Communication Examples: Memos, employee newsletters, team meetings, company intranet portals, emails between colleagues, and performance reviews.
- External Communication Examples: Press releases, advertisements, social media posts, annual reports, customer service calls, and product brochures.
3. What are the main directions of communication flow within an organisation?
In an organisational structure, internal communication typically flows in four main directions:
- Downward: Information flows from management to subordinates (e.g., policy announcements, job instructions).
- Upward: Information flows from employees to management (e.g., feedback, progress reports, suggestions).
- Horizontal (or Lateral): Communication occurs between individuals at the same hierarchical level (e.g., coordination between department heads).
- Diagonal: Communication that cuts across different levels and departments (e.g., a marketing manager communicating with a junior IT staff member about a project).
4. How does the level of formality differ between internal and external communication?
External communication is almost always formal, as it represents the official voice and image of the company to the outside world. Internal communication, however, can be both formal (e.g., official circulars, policy documents) and informal (e.g., casual conversations between team members, also known as the 'grapevine'), which arises from social and personal needs within the workplace.
5. Why is it crucial for a company's internal and external messages to be aligned?
Aligning internal and external communication is vital for maintaining brand integrity and credibility. If a company promises exceptional service in its external advertisements, its employees must be internally informed and trained to deliver on that promise. Misalignment can lead to poor customer experiences, damage the company's reputation, and create a disconnect between the brand's image and its reality.
6. What are the '7 Cs of Communication' and why are they important in a business context?
The '7 Cs' are a set of principles that ensure communication is effective. They are crucial for building clear and professional messages, whether internal or external. The 7 Cs are:
- Clarity: The message should be simple and easy to understand.
- Correctness: Information, grammar, and spelling must be accurate.
- Conciseness: The message should be brief and to the point.
- Courtesy: Communication should be polite, respectful, and friendly.
- Concreteness: The message must be specific and supported by facts.
- Consideration: The message should be framed with the audience's viewpoint in mind.
- Completeness: The communication must contain all information the receiver needs to act.
7. How can ineffective external communication negatively impact a business?
Ineffective external communication can have severe consequences for a business. It can lead to a damaged brand reputation, loss of customer trust, and a decline in sales. For instance, misleading advertisements can result in legal issues, while poor public relations can create a negative public image that is difficult and costly to repair. It can also alienate key stakeholders like investors and suppliers, affecting the company's financial stability and operational success.
