Although interpersonal communication can encompass oral, written, and nonverbal forms of communication, the term is usually applied to spoken communication that takes place between two or more individuals on a personal, face-to-face level. Some of the types of interpersonal communication that are commonly used within a business organization include staff meetings, formal project discussions, employee performance reviews, and informal chats. Interpersonal communication with those outside of the business organization can take a variety of forms as well, including client meetings, employment interviews, or sales visits. In order to understand the principles of effective interpersonal communication, it is helpful to look at the basic process of communication.

The basic process of communication begins when a fact is observed or an idea formulated by one person. That person (the sender) decides to translate the observation into a message, and then transmits the message through some communication medium to another person (the receiver). The receiver then must interpret the message and provide feedback to the sender indicating that the message has been understood and appropriate action taken.

Unfortunately, errors can be introduced during any phase of the communication process. For example, misunderstandings can occur when the sender does not possess a clear idea of the message he or she is trying to communicate, or has a clear idea but is not able to express it well. Errors in the process can also occur when the receiver does not listen carefully, infers a different meaning than what was intended by the sender, or fails to provide feedback. Ultimately, unclear, inaccurate, or inconsiderate business communication can waste valuable time, alienate employees or customers, and destroy goodwill toward management or the overall business.

In general terms, interpersonal