All the communication that takes place in carrying out works and tasks within a business is known as internal communication. It is helpful for office works. This is the communication that takes place among the business managers, employees and workers to create, implement and to make plans. It helps to maintain coordination. It is classified into inter departmental and interdepartmental It includes letters, memos, reports, announcement, circular etc.
When people of one organization transmit information to the people of other organization, then that communication is called external communication. It maintains good relationship with outsiders such as supplier, customers etc. It is very important for the business. It is classified into two types: Inward communication and outward communication.