Internal and external communication — common mistakes

In exam answers, do not just state that communication 'provides information'. Specify what kind of information is being provided (e.g., sales data, customer feedback) and what specific decision it enables (e.g., launching a new product, changing a marketing strategy).

This is a common misconception. While giving instructions (downward communication) is one purpose, effective communication is a two-way process. It also involves employees providing feedback to management (upward communication), sharing ideas, and communication between colleagues (horizontal communication) to solve problems. Furthermore, a key purpose is motivation, which is about engagement, not just instruction.

No, advertising is just one form of external communication. The purpose of external communication is to manage relationships with all outside stakeholders. This includes public relations (PR) to build a corporate image, investor relations to communicate financial performance to shareholders, communication with the government to ensure legal compliance, and dialogue with local communities to maintain a positive social presence.

Not necessarily. The quality and clarity of communication are more important than the quantity. Excessive communication can lead to 'information overload', where employees and managers are overwhelmed with messages, emails, and meetings. This can cause important information to be missed and lead to stress and inefficiency. The purpose of communication is to achieve a specific outcome, so it should be targeted, relevant, and concise.