Internal communications includes all communication within an organisation. It may be oral or written, face to face or virtual, one-on-one or in a small group.

Effective internal communication ‒ which can be said to be "downward, upward, and horizontal" ‒ is a vital means of addressing organisational concerns. Good internal communication helps to establish formal roles and responsibilities for employees.

Communication is often defined as an exchange of information. Effective communication requires a two-way process (a dialogue, not a monologue), where the message is sent, received and acted upon in the way intended. That is, feedback is permitted. "Information" can be presented orally, through writing, face-to-face, virtually, one-on-one, or in small groups. Listening to employees (an integral part of two-way communication) enables management to identify strengths and weaknesses, which helps in the process of decision making.

Internal communications departments have broken away from HR since the 80s and 90s and now report directly to senior management in most organisations. In some organisations where internal communication has not been established as a separate communications function, it may be coordinated by Human Resources, Marketing and PR departments.

Internal communications helps employees to understand the organisation's vision, values, and culture. It may involve staff members in issues that affect working life and keeps staff informed on important decisions taken by management. Furthermore, internal communication, when implemented effectively, can be crucial in a time of crisis, providing employees with not only a strategy to handle a crisis, but the facts surrounding such an event. As arguably some of the most invested individuals in an organisation, trusted and valued employees can prove to be excellent partners when addressing a crisis. By maintaining open lines of communication between management and employees, effective internal communications can enhance stronger relationships throughout all levels of the organisation and forge a sense of community.

Excellent internal communications cannot simply be implemented and left alone; the process must be ever-changing and adaptable for success. While more and more organisations begin to spend more time identifying special interest groups within their own walls, internal communications methods are becoming increasingly diverse to match the varying needs of each organisations' internal staff and stakeholders.

The way messages are presented can have a negative or positive impact upon the reader, regardless of the core content of the message. While this could be condemned as «spin», organisations who strive to practice excellent public relations will avoid manipulative and ambiguous messages as they destroy trust in the organisation. The most effective way is to find a balance between being «his Master's voice» and representing employees' interests.

Traditionally, internal communication within an organization has favoured «official», tightly controlled, top-down channels. However, recent organizational changes and the emergence of social media and new technologies have meant that viral communication now forms an important part of effective internal communication strategies.

Internal communication should be:
* transparent and timely (when details have been confirmed and approved, messages should be presented to employees before any external public);
* clear;
* concise;
* informative; and
* independent.

Internal communications practitioners should adhere to certain values such as:
* openness;
* honesty;
* and two-way communication.

An internal communications department can become a moderator of interaction between official organisational representatives and employees.

The internal communications department should be responsible for developing and maintaining a number of «channels» that allow effective communication to take place. These channels include:

* intranet website;
* a regular «Town Hall» (an informal session where employees can listen to and talk with the organisational representative such as a managing director/Director);
* conference calls;
* internal newsletters;
* email;
* message boards;
* print materials; and
* virtual meetings
* meetings

Phillip Clampitt [Clampitt, P. Communicating for Managerial Effectiveness. Thousand Oaks, CA: Sage Publications, Inc., 2005] lists three approaches managers use to communicate with their employees.

Arrow approach – Communications are carefully constructed and aimed at a target audience. It assumes the more accurate the message, the clearer the understanding of the recipient. Problems arise when it is taken for granted that information is mostly transmitted by words and that recipients are passive receptors.

Circuit approach – Communications are achieved with positive relationships and job satisfaction of employees through understanding and discussion. It assumes that communicating is grounded in mutual understanding. Problems arise because of the myopic view that understanding will lead to agreement and that this understanding should be the sole goal of communications.

Dance approach – Communications are achieved through an intricate combination of the practice, understanding, and intuition. It believes that the communication involves the coordination of meanings, the understanding of common rules, and the recognition of patterns between two or more people.

(http://en.academic.ru/dic.nsf/enwiki/835426)