Internal communication means the exchange of messages, ideas, proposals, opinions and information within the organization i.e. Between the structural set-up of a business concern. It is highly important for the growth of business and the continuous development of the affairs of the organization. This internal communication is three-fold---downward, upward and horizontal. Downward Communication: The management takes decisions, frames policies and issues job directions in order to run the affairs of the business organization in a successful manner. Then these policies, decisions and instructions are conveyed to the lower level for their implementation. The lower staff—workers—also want to know about other benefits like insurances health facilities, promotions, pensions, and retirement etc. Employers who communicate effectively have more productive employees and make them more efficient. Upward Communication: Upward communication is just as vital as downward communication. To solve problems and make intelligent decisions, managers or executives must learn what is going on in the organization. They depend on lower-level employees to give them accurate and timely reports on problem, emergency trends, opportunities for improvement, grievances and improvement. Horizontal communication: Horizontal communication means communication between peers. It flows from one department to another. It is essential and helpful for the management to solve complex and difficult problems, perform duties, prepare for meetings and coordinate their tasks, strategies and planning about some important projects. Horizontal flow of communication gives the executives the opportunity to exchange their views, opinions, and proposals to take some decision in important matters.
