Communication is the transmission of information and meaning from one individual or group to another. Communication is only successful when the meaning is transmitted to the receiver and it is understood as intended. Effective and clear communication is essential in a business. When someone speaks of communication many people assume it only relates to oral communication, however business communication encompasses many basic tasks such as: writing memos or letters, oral and written presentations, emails, faxes, phone calls, team meetings, staff meetings and many more common workplace interactions.
Many skills are needed by employees and managers to communicate effectively such as reading, listening, speaking, and writing. Though it may not come easily to some people, in order to thrive in a demanding and competitive work environment, it is essential to know how to communicate ideas clearly in the workplace. There are two main business communication functions: internal and external communication. Internal communication occurs when superiors, coworkers and subordinates transmit ideas and messages to one another and external communication occurs when the business communicates with the public, customers, and suppliers. There are many business communication functions, however they can be encapsulated in three basic groups: to inform, to persuade, and/or to promote goodwill (Guffy, Business Communication 4th edition, 2003).