Upward Downward Lateral And External Business Communication Along With Paypal Case Study Training Ppt

Slide 1

This slide showcases the information regarding the two major types of business communication. The two major types of business communication are internal communication and external communication.

Slide 2

This slide shows information about upward communication. It emphasizes the use of the bottom-to-top management approach in internal communication. It also mentions that information flows from subordinates to managers or anyone higher up in the hierarchy in upward communication.

Instructor’s Notes:

The following are the characteristics of upward internal business communication:

• It includes a bottom-to-top approach, in which subordinates report to superiors
• It is participatory
• The main goal is to provide timely feedback, suggestions, requests, and escalation of any issues or concerns to superiors, and so on
• The information flows from lower to the upper levels

Slide 3

This slide depicts information regarding the advantages of upward communication. The benefits are improved relations, knowing employee attitude, prompt appreciation, decision making, motivation, creativity development, and favorable organizational environment, etc.

Instructor’s Notes:

Following are the advantages of upward business communication:

• Improved Relations: Subordinates express their views through upward communication. As a result, there is a harmonious relationship between superiors and subordinates
• Providing Suggestions: Through upward communication, subordinates can provide constructive feedback to superiors. These perspectives may be useful in achieving organizational objectives
• Favorable Organizational Environment: Upward communication strengthens the bond between subordinates and superiors. As a result, the organization achieves continuous growth
• Knowing Employee Attitude: Every company offers some kind of employee welfare program. If upward communication is active, the management will know how satisfied employees are with these welfare activities
• Feedback: Subordinates communicate their reactions to the superiors' decisions via upward communication. As a result, upper-level management can check to see if lower-level employees have accepted the message that superiors sent
• Prompt Appreciation: Subordinates have the opportunity to praise their boss for any positive or effective action as a result of upward communication. It eventually leads to a friendly relationship between superiors and subordinates
• Decision Making: Before making decisions, upper management wants to know specific information about the production, procurement, marketing, and financial matters, among other things. Subordinates provide relevant information through upward communication, making decision-making more manageable and faster
• Development of Creativity: Upward communication necessitates the development of a creative environment in which employees can demonstrate their development initiatives
• Motivation: Lower-level employees can express their attitudes or opinions to upper-level employees through upward communication. As a result, subordinates are influenced to work harder to meet the target
• Development of Plan: Through upward communication, upper-level management can gather information from lower-level management. The evidence gathered from such communication can be used to create and implement any plan

Slide 4

This slide depicts information on the disadvantages of upward communication. The disadvantages include providing only favorable information, a general reluctance to communicate the problem, willful manipulation of information, the threat of negative reaction from the superior, etc.

Instructor’s Notes:

The following are the disadvantages of upward business communication:

• Provides only favorable information: Subordinates only provide information that is favorable to upper management
• Discouraged due to lack of proper response: It may be discouraged as a result of top management's failure to respond appropriately
• Takes time to communicate the problem: It takes a long time to communicate problems at a higher level due to the various levels they must pass
• Willful manipulation of information: There could be deliberate manipulation of information to achieve personal goals
• The threat of negative reaction of the superior: There is a risk that the superior will react negatively

Slide 5

This slide illustrates information regarding downward communication. In downward communication, the information flows from top-level management to employees in an organization. It also mentions that managers use downward communication to list out and define various goals, procedures, policies, guidelines, decisions, instructions, etc., to their subordinates.

Instructor’s Notes:

The following are the characteristics of downward internal business communication:

• It includes a top-down approach, with superiors communicating with subordinates
• It is directive in nature
• The primary goal is to communicate organizational goals, plans, procedures, and instructions to subordinates
• The information flows from the upper level to the lower level

Slide 6

This slide depicts the advantages of downward communication. The advantages are organizational discipline, efficiency, effective communication of goals, and ease of delegation.

Instructor’s Notes:

The following are the advantages of downward communication:

• Organizational discipline: Downward communication follows the organization's hierarchy, making organizational discipline and member compliance much easier to maintain
• Efficiency: Downward communication provides efficiencies because instructions and information are delivered from sources in power who can coordinate activities at the top of the organization. Employees receive feedback from the managers who supervise them
• Effective communication of goals: Upper management can easily communicate goals and delegate responsibilities for meeting those goals
• Ease of delegation: Delegation is much easier if it comes directly from the vertical communication structure representing the chain of command

Slide 7

This slide illustrates the disadvantages of downward communication. The disadvantages are time-consuming, distortion of information, lack of feedback, enthusiasm, and frustration.

Instructor’s Notes:

The disadvantages of downward communication are as follows:

• Time consuming: Downward communication is a time-consuming process, as information flows through different levels of hierarchy. By the time when information reaches lower-level employees, it may have lost its significance
• Distortion of information: People in downward communication tend to change or manipulate information. As a result, when information is passed from one level to another, the authenticity of the information is lost
• Lack of feedback: Top-level executives usually give little or no importance to the messages received from subordinates. Subordinates rarely send feedback as a result of their superiors' negligence. Communication becomes ineffective as a result
• Lack of enthusiasm: Managers use downward communication to send orders, instructions, and advice to subordinates. As a result, a delay in the downward flow of information harms employee enthusiasm
• Creates frustration: Downward communication makes it difficult for subordinates to discuss any issues with their superiors. Furthermore, subordinates are forced to follow the orders and instructions of their superiors, which creates frustration in the minds of employees

Slide 8

This slide illustrates a case study on PayPal. It highlights background, approach, outcome, and learning from the case study.

Slide 9

This slide illustrates information about lateral communication. It emphasizes that lateral communication involves verbal or written communication between co-workers. It also mentions inter-departmental communication or communication across departments and between people of the same or similar rank within a company as lateral communication.

Slide 10

This slide depicts the advantages and disadvantages of lateral communication. The benefits of lateral communication are better understanding, improved coordination, increased productivity, end of misunderstanding, and job satisfaction. The disadvantages include lack of control, wastage of time, lack of cooperation & coordination, and low productivity in certain situations.

Slide 11

This slide illustrates information regarding external communication. It highlights that external business communication refers to interactions with people outside of the organization. These people can be customers, shareholders, suppliers, partners, regulatory bodies, etc.