Internal Communication and External Communication
1. Internal Communication
Meaning
Internal communication is the exchange of information within the business, between employees and management.
Why Internal Communication Is Needed
People in a business must communicate to:
Coordinate work and avoid confusion
Give instructions and guidance
Warn employees about dangers or problems
Motivate and encourage workers
Ensure everyone works towards the same goals
Without internal communication, employees would work separately with no teamwork, and management would not function properly.
Examples of Internal Communication
Notices (e.g. “Do not smoke in this area”)
Verbal questions from managers to workers
Emails and memorandums
Telephone calls
Meetings with employees
Letters to staff (e.g. disciplinary letters)
Signs and warning boards
Problems If Internal Communication Fails
Workers may not follow instructions
Safety risks (e.g. missed fire drills)
Low morale and confusion
Poor productivity
2. External Communication
Meaning
External communication occurs between the business and outside parties, such as customers, suppliers, and government bodies.
Who the Business Communicates With
Customers
Suppliers
Government and tax authorities
Other organisations
Examples of External Communication
Ordering goods from suppliers
Informing customers about prices and delivery
Advertising products and services
Asking customers to pay bills
Emails or letters to government offices
Online customer orders
Product recall messages
3. Importance of Effective External Communication
External communication affects the image and efficiency of a business.
Why It Must Work Well
Wrong communication → wrong materials from suppliers
Incorrect information → customers may go to competitors
Poor communication → loss of trust and reputation
Serious Situations Requiring Accuracy
Tax information sent to authorities
Online customer orders
Safety recalls for dangerous products