Chapter: 3

Business communication process and Business

organization
3.1 Formal and Informal Communication

The messages which are circulating on regulated, preset channels, of an

organization are creating the formal communication. The content of the
communication is related to the organization’s activity, to the work and to
anything which is related to those. The formal communication can consist in
verbal messages, nonverbal messages, written, under the shape of letters,
telephone messages, radio messages, printed, internal notes. Even some gestures
an consist in formal communication. The messages are transmitted by the
authorized ones: on official channels, these arrive to the ones who need to react,
to people or machines which need to know the content of these messages.
Usually, all formal communications are recorded and kept in the organization’s
evidence. Are retained copies of these by the transmitter, by the receiver, by all of
the desks from the organization which need to know and keep the information. In
Gurdian life Insurance company,these communications are given by work
commands, reports and financial evidence, reports over sells / inventory,
statements referring to the company’s policies, post descriptions, etc. The formal
communication network is formed out of formal channels, created by setting a
formal system of responsibilities according to the hierarchical structure of the
organization.The perfect network is the one which contains communication
channel from bottom up,downwards and horizontally. Often the direction of
horizontal communication is missing or it is inefficient and in this way the
accuracy of the information decreases. The situation is appearing because of the
lack of permanent circulation of the information between departments, although
this is vital for the organization in conditions of existent competition,or the lack of
specialists in organizational communication. The number of communication
channels available to a manager has increased over the last 20 odd years. Video
conferencing, mobile technology, electronic bulletin boards and fax
machines are some of the new possibilities. As organizations grow in size,
managers cannot rely on face-to-face communication alone to get their message
across. A challenge the managers face today is to determine what type of
communication channel should they opt for in order to carryout effective
communication.
Informal communication arises out of all those channels that fall outside the
formal channels and it is also known as grapevine. It is established around the
societal affiliation of members of the organization. Informal communication does
not follow authority lines as in the case of formal communication. Informal
communication takes place due to the individual needs of the members of an
organization and subsists in every organization. Normally, such communication is
oral and may be expressed even by simple glance, sign or silence. Informal
communication, is implicit, spontaneous multidimensional and diverse. It often
works in group of people, i.e. when one person has some information of interest;
he passes it on to his informal group and so on. Gurdian Life Insurance company
can make efficient use of informal channels to fortify the formal channels of
communication. It acts as a valuable purpose in expressing certain information
that cannot be channeled via the official channels. It satisfies the people desires
to identify what is happening in the organization and offers an opportunity to
express dreads, worries and complaints. Informal communication also facilitates
to ameliorate managerial decisions as more people are involved in the process of
decision-making. In spite on many advantages, informal communication has
certain disadvantages. Informal communication contains facts, deceptions,
rumors and unclear data. The informal channels of communication may transmit
completely imprecise information that may harm rather than help an
organization. In addition, it is impossible to fix the responsibility for its origin or
flow of information. However, for the efficient working of any organization both
formal and informal communications are required.

3.2 Internal & External Communication

The communication is said to be internal, when the exchange of information,

message, facts, opinions, etc. takes place between the members of the
organization or various units of the organization, for business purposes. It can
occur between individuals, groups, departments or units. It can be:
  Formal Communication: Communication that passes through predefined
channels is formal communication.
 Informal Communication: Communication that flows in all directions and
that arises out of social and personal needs is informal communication.
Internal Communication works to establish and disseminate the objectives of the
undertaking, developing plans for accomplishment, organizing the resources in an
optimum way. It assists in selecting, training and appraising participants within
the organization. It is a business tool which leads and motivates the employees to
put their best in the job. Internal Communication uses memo, circulars, staff news
letter, fax, notice, minutes on meetings, video conferencing, presentations,
seminars, agenda, manuals, etc. as a mode of communication.

External Communication can be understood as the sharing of information

between the company and any other person or entity from the external
environment, i.e. customers, suppliers, investors, clients, dealers, society,
government agencies, general public, etc. In general, external communication is
formal and largely documented.
External Communication determines the way organization connects or
disseminates information to the audiences external to business. These have a
great impact on the minds of stakeholders, as their opinion about the company,
brand and its variants largely depends on it.
It focuses on facilitating cooperation with the groups so as to build and maintain
good public image through relationships. Advertisements, customer’s feedback
material, service calls, press releases, invitations, circulars, price lists manuals,
customized reports, etc. are some of the methods of external communication.
On the basis of analysis Gurdian Life insurance company Ltd.,The internal and
external communication factor is given below:
Internal Communication:
1. Formal Communication:
 Meetings: Regular team meetings, departmental meetings, and all-
hands meetings facilitate information sharing and collaboration.
 Company Memos: Official documents distributed within the
organization to communicate policies, updates, and important
information.
 Newsletters: Periodic newsletters that highlight achievements, share
news, and reinforce organizational culture.
2. Informal Communication:
 Watercooler Conversations: Casual interactions among employees
that occur spontaneously, fostering relationships and informal
information sharing.
 Internal Social Platforms: Usage of internal messaging apps or social
platforms to facilitate quick and informal communication between
team members.
3. Upward and Downward Communication:
 Upward Communication: Employees providing feedback,
suggestions, and information to higher levels of management.
 Downward Communication: Information flowing from higher levels
of management to lower levels, such as instructions, policies, and
goals.
4. Team Collaboration Tools:
 Project Management Platforms: Tools like Trello, Asana, or Jira for
organizing tasks and facilitating collaboration.
 Internal Wikis: Platforms where employees can create and edit
content collaboratively, fostering knowledge-sharing.
 5. Training and Development Programs:
 Workshops and Seminars: Conducted internally to enhance skills,
communicate new policies, and align employees with organizational
goals.
 Online Learning Platforms: Providing employees with access to
training resources for continuous development.

External Communication:
1. Marketing and Advertising:
 Social Media Campaigns: Leveraging platforms like Facebook,
Instagram, and Twitter for advertising products or services.
 Traditional Advertising: Utilizing channels like TV, radio, print, and
outdoor advertising to reach a broader audience.
2. Public Relations (PR):
 Press Releases: Issuing official statements to the media to announce
significant events, product launches, or organizational changes.
 Media Relations: Building relationships with journalists and media
outlets to manage the organization's public image.
3. Customer Communication:
 Customer Service Channels: Utilizing phone, email, and live chat to
address customer inquiries and concerns.
 Newsletters and Email Campaigns: Keeping customers informed
about promotions, updates, and relevant news.
4. Corporate Website:
 Information Hub: Providing a central online location for company
information, product details, and news updates.
 Blogs and Articles: Publishing content that showcases expertise,
industry knowledge, and company culture.
 5. Community Engagement:
 Sponsorships and Partnerships: Involving the company in community
events or partnering with organizations for mutual benefit.
 Corporate Social Responsibility (CSR): Communicating the
company's commitment to social and environmental responsibility.

6. Investor Relations:
 Financial Reports: Providing shareholders and potential investors
with regular updates on the company's financial performance.
 Annual Shareholder Meetings: Facilitating direct communication
between executives and shareholders.
3.3 Forms of Communication

Communication is the exchange of information from one person to another

person. This can be on a one–on–one basis within or a group of people. Almost
every type of communication exchange involves at least one sender and one
receiver. When we communicate with one another, we need to consider our
emotions and that of the others, cultural considerations, the location, and the
medium that we use to communicate. All forms of communication are a very
important part of our lives personally as well as professionally.
Gurdian Life Insurance company Ltd. Establishes their communication maintaining
following form:
1. Email:
 Formal communication within the company, used for official
announcements, updates, and correspondence.
2. Memo:
 Internal memoranda for conveying important information, policy
changes, or updates to specific departments.
3. Instant Messaging (IM):
 Real-time communication for quick exchanges between employees
within the company, facilitating immediate responses.
4. Meetings:
 Both in-person and virtual meetings to discuss strategies, updates,
and address internal matters.
5. Intranet:
 Internal website or portal for sharing documents, policies, and
important information accessible to employees.
6. Newsletters:
 Periodic publications highlighting company news, achievements, and
important updates for employees.
7. Email:
 Communication with clients, policyholders, and external partners
regarding policies, claims, and general information.

8. Official Letters:

 Formal letters sent to clients for policy-related matters, renewals, or

other official correspondence.
9. Brochures and Pamphlets:
 Printed materials providing information about insurance products
and services for distribution to potential clients.
10.Social Media:
 Platforms like LinkedIn, Twitter, or Facebook for marketing, engaging
with the public, and sharing industry insights.
 11.Customer Portals:
 Online platforms where clients can access and manage their
insurance policies, submit claims, and communicate with the
company.
12.Customer Service Hotline:
 Telephone communication for addressing customer inquiries,
providing support, and handling claims.
13.Website Updates:
 Regular updates on the official website regarding company news,
product information, and policy changes.
14.Press Releases:
 Official announcements to the media about significant events,
partnerships, or achievements.
3.4 Use of Social Media in communication

It’s no surprise that the widespread use of social media for communicating ideas,
personal and professional stories and experiences has had a profound effect on
the overall way people communicate today. Social media can be described as the
collection of online platforms that involve sharing and collaborating with an
online community by posting, commenting, and interacting with one another. The
most commonly used social media platforms today are Instagram, Facebook,
Twitter, Pinterest, LinkedIn, and Snapchat. Around 3 billion people use social
media today, which means that 40% of the world uses social media for
communication. It’s no surprise that this widespread use has social media effects
on communication. 11% of adults reported preferring staying home on Facebook
than going out on the weekend. Communication is affected in ways such as
personal expression, our expectations of others, and the way companies
communicate with customers.
The social media Gurdian Life Insurance Company use for communication is given
below:
 Facebook: https://www.facebook.com/GLIL.bd/
 Instagram:
https://www.instagram.com/guardian_life_insurance_ltd/
 Linked-in: https://www.linkedin.com/company/guardian-life-
insurance-limited/
 Youtube:
https://www.youtube.com/channel/UCH0hpdVbitkYbyCUhQYQiKw