Types of Business Communication: formula sheet

Key formulas

Verbal communication

Verbal = Oral (spoken words) + Written (written words)

Both use words. Sign language and gestures are not verbal in the usual exam classification.

Non-verbal communication

Non-verbal = message without words (body language, gestures, posture, eye contact, appearance, touch, space, paralanguage)

Paralanguage is how words are said: tone, pitch, volume, speed.

Oral: merits

Fast + instant feedback + personal touch + saves time and cost

Useful for urgent or sensitive matters and for clearing doubts at once.

Oral: limits

No record + easily forgotten + risk of hasty words

Not suitable for long, technical or legally important details.

Written: merits

Permanent record + proof + careful wording + wide reach

Can be referred to later and used as evidence.

Written: limits

Slow + delayed feedback + costlier to prepare + less personal

Poor for urgent matters or where an instant reply is needed.

Formal communication

Formal = official channel + authority line + set format + usually recorded

Includes downward, upward, horizontal and diagonal flows within the structure.

Informal communication (grapevine)

Informal = personal relationships + no fixed channel + no official record

Spreads in all directions, very fast, often oral.

Single strand chain

A → B → C → D → E

Each person passes the message to only one other person.

Gossip chain

One person → tells everyone

One person broadcasts the message to all others.

Probability chain

A → randomly chosen people → they randomly tell others

Message passes at random, not by a plan.

Cluster chain

A → a few selected people → each tells a few more selected people

Only some trusted people pass it on. Most common type.

Downward flow

Superior → Subordinate (same reporting chain)

Instructions, policies, orders, feedback. Part of vertical communication.

Upward flow

Subordinate → Superior (same reporting chain)

Reports, suggestions, complaints, feedback. Part of vertical communication.

Horizontal flow

Peer ↔ Peer (same level)

Coordination between equals, in the same or a different department. Lateral communication.

Diagonal flow

Different level + different department, no reporting line

Crosswise communication. Lateral communication. Applies only when both the level and the department differ.

Test for internal communication

Sender and receiver both inside the organisation = Internal

Examples: memo, staff meeting, circular to employees, inter-department email.

Test for external communication

One party is outside the organisation = External

Examples: customer letter, purchase order to a supplier, return to government, press release.

Medium does not decide the type

Type depends on the receiver, not on the channel

Email, phone and letter can each be internal or external.

Chain network

A → B → C → D → E

Linear flow along a formal line of authority. Slow at the ends and prone to message distortion.

Wheel network

Centre ↔ each member; members not linked to each other

One central person controls all flow. Fast for simple tasks, low satisfaction for the members.

Circle network

Each member ↔ two neighbours, in a closed ring

No leader. Moderate speed and good morale, but information passes through neighbours only.

All-channel network

Every member ↔ every other member

Free, direct flow. Highest satisfaction and best for complex tasks, but can be slow and hard to manage in big groups.

Number of links in all-channel network

n(n − 1) ÷ 2 for n members

Counts two-way links between pairs. For 5 members this gives 10 links.

Channel versus network

Network = pattern of links; Channel = medium of the message

Keep the two ideas separate when options mix them.

Written mode: strength and limit

Written = permanent record + proof; but slow feedback and costly to draft

Examples: letter, email, memo, report, notice.

Oral mode: strength and limit

Oral = speed + instant feedback + personal touch; but no record and chance of misunderstanding

Examples: meeting, interview, telephone call, face-to-face talk.

Audio-visual mode: strength and limit

Audio-visual = sound + sight; but costly and needs technology

Examples: video conferencing, presentation, film, webinar.

Choosing a mode

Need record → written; need speed or feedback → oral; need demonstration or remote face-to-face → audio-visual

A quick rule of thumb for situation-based MCQs.

Quick revision

• Verbal communication uses words, spoken or written; non-verbal uses gestures, posture, tone, facial expression and similar signals.
• Formal communication follows official channels and rules; informal communication arises from social relations, such as the grapevine.
• Downward flow goes from superiors to subordinates, such as orders, policies and instructions.
• Upward flow goes from subordinates to superiors, such as reports, feedback and suggestions.
• Horizontal flow is between people at the same level, used for coordination.
• Diagonal flow crosses both levels and departments.
• Internal communication stays within the organisation; external communication is with outsiders such as customers and suppliers.
• Networks are the patterns of communication among people, and channels are the paths through which messages travel.
• Written communication gives a record and proof; oral communication is quick and gives instant feedback.
• Audio-visual communication combines sound and sight, such as video presentations.
• Verbal includes written words, so do not treat verbal as only oral.
• Always identify the basis of classification before choosing the answer.

Common mistakes

• Treating tone of voice as verbal communication. Fix: Words are verbal. How they are said (tone, pitch, volume) is paralanguage, which is non-verbal.
• Thinking written communication means only letters. Fix: Emails, reports, memos, notices and text messages are all written verbal communication.
• Treating all written communication as formal and all oral communication as informal. Fix: Judge by whether the message follows the official structure. An oral order from a manager in a meeting is formal.
• Saying the grapevine is always false or harmful. Fix: Remember it often carries true information quickly and helps managers gauge employee feelings. It is unreliable, not always wrong.
• Calling diagonal communication the same as horizontal. Fix: Horizontal needs the same level. Diagonal needs different levels and different departments.
• Treating a manager's report to the director as downward. Fix: Look at the direction of movement. Lower to higher within the reporting chain is upward.
• Calling every email internal or every letter external. Fix: Decide by the receiver only. Medium is irrelevant.
• Treating shareholders or directors as always external or always internal. Fix: Follow the question. A board memo among directors is internal. A report sent to shareholders at large, such as an annual report, is generally treated as external. Use the option wording to decide.
• Confusing the wheel with the all-channel network. Fix: In a wheel, members talk only to the centre. In all-channel, every member talks to every other member.
• Treating a channel such as email as a network pattern. Fix: Ask: is this a shape or a tool? Shapes are chain, wheel, circle, all-channel. Tools are email, phone, letter and so on.

Exam tips

• Classification questions are common. Learn one example for each type: letter (written), phone call (oral), gesture (body language), tone (paralanguage).
• Expect questions on which form gives a record or instant feedback. Link record to written and feedback to oral.
• Watch for options that call paralanguage verbal. It is a standard trap.
• Questions often ask which is not a form of non-verbal communication. Spoken or written words are the odd one out.
• There is no negative marking, so answer every question even if you must guess after elimination.
• Questions often ask you to match a feature to formal or informal. Learn a short list for each and revise it daily.
• Know the four grapevine types by their shapes. Pattern-identification MCQs are common.
• Watch for words like official, authority, record (formal) and rumour, fast, personal (informal).