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Internal and External Communications

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E5: Internal and External Communications Internal communication is communication that takes place within an organization, whereas external communication takes place between the organization and the outside world. Both internal and external communications have been transformed by rapid developments in information and communications technology. The modern organisation may have: * An internal network. * A system for e-commerce * A system for e-business Together these links create what is called the networked economy, which vastly increases the potential of business to connect with employees, customers, other businesses, shareholders etc. We live in exciting times in which the potential for new business is enormous, and in which start-up businesses can literally, become worth millions of pounds overnight. The new networked economy enables businesses to cut costs and to increase efficiencies. Common Forms of Internal Communication The three main ways of communication in a business are verbal, written and electronic. ...read more.


These communications perform a number of functions: * A public relations function. To present a good image of the company. * An informative function. To provide various groupings with essential information about the company. * A day-to-day trading function. To transact the business's daily commercial relationships. * A transparency function. Today, it is often important that outsiders can see what is happening inside the organisation so they know the company is carrying out its business in a true and fair way. Formal an Informal Communications Formal communication in an organisation is communication that takes place through the recognised channels. Informal communications are ones that take place that are not part of the officially recognised networks of the organisation. This does not mean informal communications are necessarily negative or anti-organisational. Indeed, organisational members taking initiative into their own hands and coming up with ideas that directly benefit the organisation carry much of the good work in organisations out. ...read more.


* Managers can be made aware of likely problems before they occur. * It provides feedback on the decisions being made by senior managers. * People lower down the organisation are more likely to know what is practical in a working setting than those higher up. * Being asked to be involved in the communication process motivates those lower down in the organisation. Open or restricted channels With any form of communication it is important to identify the purpose of the message as well as the people at whom the message is to be targeted. If the message is targeted at everyone within the organisation or groups outside and does not contain confidential materials, then the message is open for anyone to see or intercept. On the other hand, if the message contains confidential materials, the likelihood is it will be targeted at only a few groups of users, either within a particular department or at certain levels of seniority, so that its use is restricted. ...read more.

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