The document explains the flow of communication in business, highlighting its dependence on effective exchange processes both internally and externally. It outlines formal communication channels—downward, upward, and horizontal—as well as informal networks like the grapevine, emphasizing their roles in organizational success. Additionally, it describes various methods of communication, such as memos and meetings, and stresses the importance of both internal and external communication in maintaining a good reputation.

1. Explain The Flow of Communication?
Communication Flow:
Business communication is a process of exchanging, explaining and promoting business. It is
a proven fact that business success or survival is totally dependent on effect communication as it is
the circuit of the business. The best way to study the important of communication is to observe the
direction in which it flows with in an organization.
i. Formal communication channels
· Downward communication
· Upward communication
· Horizontal communication
ii. Informal communication
a. Internal communication:
“Exchange of information with in an organization on different levels.”
An exchange of information with in an organization is called internal communication. It takes place
at different levels such as:
· Formal communication channels
· Informal communication channels
b. Formal communication channels:
Information may travel downward, upward and horizontal.
· Downward communication:
“Downward communication means passing information from higher management to
workers and employees etc.”
When a manager passes information to subordinate, communicate is flowing downward the
message may be conveyed orally to a group through a meeting, workshop or a written memo. When
employees receive appropriate downward communication form management they become more
efficient. They need clear job directions, safety rules and view point about their benefits such as
health care, promotion, training pension etc.
Management
Message
Employees
· Upward communication:
“Passing information from lower level employees to upper management.”
Upward communication is as important as downward communication. Many executives want
communicate form employees in addition to the usual periodic report. Successful managers listen
closely to opinions, complaints, problems and suggestions especially when these are clearly put
forward. An executive cannot be everywhere at once; he depends on lower level employees to give
him timely report.
Management / High Authority
Message
Lower employees

2. · Horizontal Communication:
“Horizontal Communication means passing and receiving information between persons of
same level of job or information.”
In addition to transmitting messages up and down the organization, the formal communication
network also carries messages horizontally from one department to another. Horizontal
communication takes place between in organization in order to solve problems and to perform job
duties.
Informal communication channels:
Every organization has one informal communication network. This is known as ‘the
grapevine’. As people go about their work, they have causal conversations with their friends in the
office, they joke and discuss many things like sports, movies their families etc. although many of
these conversations deal with personal matters, business is often discussed as well.
Ways of internal communication:
Among various ways of internal communication with in organization are memos, reports,
meetings, face to face discussions teleconferences and electronic mail etc.
External communication:
“Passing and receiving information from outside the organization.”
Communication takes place outside the organization is called external communication. It helps to
create a good reputation among other organizations and people. Ways of external communication:
· External communication made through letters, proposals, telephone call, pamphlets,
annual reports can win back an energy customer. It creates desire for firm’s product
services.
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