Importance or role of business communication

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The importance of communication in an organization can be summarized as follows:

  1. Exchanging information: Communication is mainly the exchange of information between two or more parties. Through communication, organizations exchange information with internal and external parties. Communication also brings dynamism in organizational activities and helps in attaining goals.
  2. Preparing plans and policies: Communication helps in preparing organizational plans and policies. Realistic plans and policies require adequate and relevant information. The managers collect required information from reliable sources through communication.
  3. Execution of plans and places: For timely implementation of plans and policies, managers must disseminate those in the whole organization. In order to disseminate the plans and policies to the internal and external parties, managers rely on communication.
  4. Increasing employee’s efficiency: Communication also helps in increasing the efficiency of employees. With the help of communication, organizational objectives, plans, policies, rules, directives and other complex matters explain to the employees that broaden their knowledge and thus help them to be efficient.
  5. Achieving goals: Effective communication helps the employees at all levels to be conscious and attentive. It ensures timely accomplishment of jobs and easy achievement of goals.
  6. Solving problems: Through various communication channels, the managers can be informed of various routine and non-time problems of the organization and accordingly they take the necessary actions of steps to solve the problems.
  7. Making decisions: Making timely decisions requires updated information. Through effective communication, managers can collect information from different corners and can make the right decisions.
  8. Improving industrial relation: Industrial relation is the relation between workers and management in the workplace. Good industrial relation is always desired for business success. Communication plays a vital role in creating and maintaining good industrial relation.
  9. Publicity of goods and services: In the modern age, business is becoming highly competitive. Almost very competing manufacturer produces products of common consumption. However, all of them cannot sell equally well. The organization that can communicate better, can also sell better.
  10. Removing controversies: Effective communication allows smooth flow of information among various parties involved in the negotiation or transaction. As a result, conflicts, controversies and disagreements can be resolved easily.
  11. Enhancing employee satisfaction: If there is free and fair flow of information in the organization, it will certainly bring mutual understanding between management and workers. Such understanding enhances the satisfaction of employees.
  12. Enhancing loyalty: Effective communication helps managers be aware of the performance of their subordinates. In such a situation, the subordinates try to show their good performance. Later on, if management praises their performance, it will enhance employees’ loyalty.

As a final note, communication is the basic essence of organizational survival. Effective communication helps in all the functions of a business industry: planning, organizing, leading, and controlling. The managerial efficiency depends on the communication efficiency of the manager and team members. It is the duty of the organization and its management to figure out possible barriers that might exist in the communication structure and to rectify them to establish an effective communication network.


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Organizational Communication COMM 3893 & MGT 3123 Copyright © 2017 by Julie Zink, Ph.D is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License, except where otherwise noted.

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