Upward communication is a communication channel from a lower level to the upper level of management within an organization. This type of communication is becoming more popular these days as the lower level employees find it easy to express their feelings, thoughts, ideas, feedback, or complaints. This information is important for the top management to take business decisions. Upward communication also plays a fundamental role in business process re-engineering. Another use of upward communication is fraud prevention or whistleblowing.
A low-level employee can directly communicate with the top management to report any fraudulent activity happening inside the organization. It not only opens the communication channel among employees irrespective of position, but it also increases the mutual trust among employees.