In this article we will discuss about the importance of business communication. This article will further help you to learn about:
- Importance of Communication
- Importance of Effective Communication
- Importance of Communication in Business
- Importance of Business Communication
- Importance of Business Communication in Organization
- 10 Importance of Communication
- Importance of Communication in an Organisation
Importance of Communication:
Communication is the foundation of all group activity. It is the element, which sets the enterprise in motion and provides life to the dead structure. It is essential not only in business but in all types of organisations. In fact, it is difficult to imagine any kind of inter-personal activity without Communication.
Let us analyse the basis of its importance:
(i) Adequate and timely Communication is necessary for the Managerial functions of planning, organizing, directing and controlling to be carried out successfully.
(ii) Sound Communication enables workers to express their grievances which reduce tensions and industrial unrest.
(iii) Communication inspires change which is the moving symbol of living organisations.
(iv) Communication plays a vital role in building up high moral in the organisation.
(v) Managers use communication to secure acceptance of their ideas and orders.
(vi) Communication helps to create team work and integration and its serves as cementing forces.
(vii) Communication facilities delegation and decentralization.
(viii) It is helpful to the management in decision-making process.
(ix) It brings co-operation and co-ordination in the organization.
(x) It ensures an effective leadership.
(xi) It increases the goodwill of the organization.
Importance of Effective Communication in Business (10 + Importance of Communication )
The desire to socialize and form organized groups necessitates the need for communication. In the fast changing business world of today, whenever there is change in technology, structure or people, managers communicate these changes to subordinates. If the communication system is well organized, it will be easier for subordinates to understand and act upon the message. Communication plays important role in the lives of individuals and organisations.
The following points highlight the importance of communication:
1. Basis for Planning:
Planning is the basic function of management. If plans are well designed and communicated for their implementation, it leads to organizational success. Planning requires extensive environmental scanning and information about internal and external organisational elements. An effective system of communication helps in obtaining this information. Implementing plans requires communicating them to everybody in the organisation. Communication is, thus, the basis of planning.
2. Motivation to Work:
Employees are motivated to work hard if their needs are satisfied. Communication helps managers know needs of the employees in order to adopt suitable motivators and inspire them to develop positive attitude towards the work environment.
3. Job Satisfaction:
Exchange of information develops trust, confidence and faith amongst managers and subordinates. They understand their job positions better and, thus, perform better. This results in high job satisfaction.
4. Commitment to Organizational Objectives:
If managers understand employees’ needs, they adopt suitable motivators to satisfy them, appraise their performance, provide them regular feedback and follow an effective system of communication. The employees also work with commitment towards organizational objectives.
Communication coordinates organizational human resources with non- human resources, individual goals with organizational goals and internal environment with the external environment. Coordination is the key to organizational success and communication is an active contributor to coordination.
6. Adaptability to External Environment:
In order to survive in the changing, dynamic environment, managers continuously interact with external parties like government, suppliers, customers, etc. This requires effective communication system in the organisation.
7. Internal Functioning of the Enterprise:
Managers interact with various parties internal to business enterprises. They constantly obtain and provide information to them. Effective system of communication provides accurate information.
8. Promotes Healthy Industrial Relations:
Satisfied workers contribute to healthy organisations. Communication brings managers and trade unions closer, develops mutual understanding amongst them and promotes industrial peace and harmony. This increases industrial production.
9. Helps in Performing Managerial Roles:
According to Henry Mintzberg, managers perform three major roles – inter-personal, informational and decisional. Communication helps managers in performing these roles effectively. In interpersonal roles, managers interact with their superiors, peers and subordinates; in informational roles they receive and give information to people inside and outside the organisation and in decisional roles, they take important decisions and communicate them to organizational members for their effective implementation.
10. Facilitates Leadership:
Effective leaders interact with followers and inspire them to perform their individual and organizational goals. Effective communication process facilitates leaders to effectively carry out the leadership functions.
11. Facilitates Control:
Planning is meaningless unless accompanied by an effective control system. Control is possible when managers assess subordinates’ performance, correct and prevent deviations and provide them regular feedback of their performance. Control function largely depends upon communication system of the organisation. How effectively managers’ control organizational activities depend upon how effective is the communication system.
12. Training and Development:
Imparting training and development facilities depends upon how well the superiors communicate with the employees. Trainers having good communication skills can train better than those who have poor communication skills.
Importance of Communication in Business:
Communication is one of the most important aspects of management. The success of an organisation is dependent upon effective communication between leaders/managers and subordinates towards achieving organisational goals.
The importance of communication can be evaluated from the following:
1. Basis for decision-making and planning – Communication assists in formulating and implementing plans consisting of detailed goals and objectives of an organisation. Superiors/managers use communication to convey the details of plans and make decisions on allocation of relevant resources, scheduling of tasks, etc.
2. Facilitates smooth operations – Communication fosters smooth operations by ensuring uniformity and consistency in information between superiors and subordinates, free from any friction or irregularities. In the steel plant example, till the iron ore arrives in 1-2 days, the production manager will allocate relevant resources for efficiently managing and complete tasks as planned and communicated for steel production.
3. Facilitates coordination – Communication facilitates coordination by synchronising and integrating all activities, responsibilities and command/control structures. Managers communicate the arrangement of tasks and procedures to their subordinates and ensure efficient and effective utilisation of resources.
4. Increases managerial efficiency – Good communication can assist managers/ subordinates to perform their duties and responsibilities systematically that increases efficiency as well as effectiveness.
5. Promotes industrial peace – Effective communication develops understanding and builds camaraderie among managers/subordinates thus promoting industrial peace.
6. Facilitates control – Communication helps control the transmission of information and enables tracking performance of the subordinates in accordance to the information. For example, a manager communicates to their subordinates to complete a report in two weeks and regularly seeks updates on the report till the final date of completion. The manager accordingly controls the workings of the subordinates and ensures that the report is completed on time.
7. Basis of leadership – Communication is the basis for a leader to demonstrate his/her leadership qualities among his subordinates/colleagues. A good communication leads to effective leadership.
8. Motivation – Communication promotes motivation by informing and clarifying employees about completion of relevant tasks. Employees are motivated to perform a task in a particular manner ensuring productivity and quality, which supports accomplishment of organisational goals.
9. Job satisfaction – An effective communication creates mutual trust and confidence among subordinates/colleagues, which also leads to job satisfaction. For example, subordinates who are coached and motivated by managers look forward to learning new ideas and experiences motivating them to work efficiently that lead to job satisfaction.
10. Democratic management – Effective communication allows workers to participate in management and the decision making process. It thus facilitates democratic management.
11. Public relations – Effective communication facilitates good image and reputation of the company. As public relations is a practice of managing the spread of information regarding a company, effective communication undertaken internally and externally creates a positive environment in and around the organisation, which boosts their image and reputation.
Importance of Business Communication: Top 5 Reasons
Communication is important because of the following reasons:
Reason # i. Basis of Action:
Communication keeps the people working in accordance with the desires of managers. It is the means through which objectives, policies and procedures of an organisation are transmitted from superiors to subordinates. Information from right sources is passed on to right persons at a right time.
Reason # ii. Facilities Planning:
Communication helps the planning process in a number of ways. It helps executives to interact and provide vital inputs to plans. It helps through communication executives can strike rapport with subordinates, seek their opinions and provide realistic information on which sound plans could be prepared. It helps executives to communicate what is contained in the plans in a clear way and secure their acceptance.
Reason # iii. Helps in Decision-Making:
The quality of decisions made in an organisation depends largely on the amount and quality of information available to the decision-maker. Communication provides the right type of information to a manager and enables him to consider the pros and cons thoroughly before arriving at a decision. It helps him to move closer to subordinates, identify their problems and solve them amicably.
Reason # iv. Means of Coordination:
Communication is the foundation of all group activity. In the absence of communication, members may fail to realise the importance of working unitedly towards a common goal. It is only through communication that people can attain a common viewpoint and understanding and cooperate to achieve organisational objectives. In the words of Hicks, “When communication stops, organized action comes to an end”.
Reason # v. Improves Relationships:
Communication builds better relationships among employees working in an organization. It binds individuals to a common purpose. Exchange of facts, opinions, feelings and sentiments and interchange of information concerning work would enable employees to understand each other.
Reason # v. Improves Motivation and Morale:
Communication improves morale and motivation by keeping people informed. Good communication induces people to give their best to the organization. Without communication, it would be impossible to understand others and make them understand. Communication brings about a meeting of minds.
Employees can communicate their grievances, troubles, and problems to the management. Managers, in turn, can explain the importance of organizational rules, policies and procedures properly. Without facts, understanding and acceptance, efforts to promote productivity are doomed to fail.
Importance of Communication
The importance can be judged from the following facts:
All organisational interaction depends upon the communication. The manager coordinates human and the physical elements of the organisation into an efficient and working unit that achieve common objectives.
The internal and external communication process of the organisation decides the various activities to be done and various objectives to be achieved. Communication is basic to an organisation’s existence—from birth of the organisation through its continuing life. When communication stops, organised activity ceases to exist.
Communication plays an important role in discharging the various functions of management. No function of management is possible without the communication process.
Its importance in performing the various functions is as follows:
Planning, the most important among the various functions of management requires extensive communication among the executives and the other personnel. Communication is important in executing a planned programme and then controlling the activities of the personnel with the help of ‘Feed-back’ information. It is essential in evaluating the performance of the personnel in the light of planned objectives.
Organisation is the second important function of the management which decides the various activities of the organisation, divides the various activities of the organisation into workable units, delegate authority to perform them.
For this purpose, communication is a must because different persons, departments and groups come to know their powers and jurisdiction only through an effective means of communication. In the words of George R. Terry- “Communication is the means by which the act of delegation is accomplished.”
(c) Direction and Leadership:
Direction and effective leadership requires an efficient system of communication in the organisation. A good leader can direct or lead his sub-ordinates only when an efficient system of communication is present. It brings both leader and sub-ordinates in close contact to each other and removes misunderstanding if any.
It promotes co-operation and helps in getting the work done in the desired direction. A leader can make his orders and directives more useful by inviting opinions, suggestions, etc., from his sub-ordinates and it requires communication.
An efficient system of communication enables management to change the attitude, to motivate, influence and satisfy the sub-ordinates. Most of the conflicts in business are not basic but are caused by misunderstood motives and ignorance of facts. Proper and timely communication between the interested parties, reduce the points of friction and minimise those that inevitably arise.
Good communication assists the workers in their adjustments with the physical and social aspect of work. It is the basic of participative and democratic pattern of management.
According to William H. Newman- “Good communication aids in coordinating activities”. The present day big organisations are designed on the basis of specialisation and division of labour, constitute a large number of persons. In order to achieve the desired objectives, it is very necessary to co-ordinate the efforts of labour engaged in the various activities of production.
Co-ordination requires mutual understanding about the organisational goals the mode of their accomplishment and their inter-relationship between the works being performed by various individuals. This all can be achieved only through effective communication.
Communication aids in controlling the activities of the individuals, departments and groups. The facts, standards and information are communicated to the concerned parties and they performed their respective obligations according to standards set forth in the plan.
The management evaluates their performance in the light of standards fixed bringing out the deviations and tries to locate them. It tries to remove such deviations in the next plan. It all requires proper communication.
Every organisation aims at getting maximum output at minimum cost and for this purposes it requires an effective:
(a) Internal and
(b) External communication system.
(A) In Internal Field:
Effective communication system co-ordinates the physical and men powers and makes the maximum output at minimum cost possible by removing misunderstandings among people, establishing good human relations and operating production activities efficiently and economically.
(B) In External Field:
An efficient communication system helps in improving public opinion having contacts with government departments and getting market information in order to achieve the primary goal. It can seek co-operation of the workers by telling them the goals of the organisation and the ways to achieve them.
In order to take prompt decision over any matter, fact collecting process is very essential. Information must be received before any decision is to be taken and for this purpose, communication is a primary requirement. Further to implement the decision effectively, its communication to sub-ordinates concerned is essential. Thus, decision-making and its implementation require an effective system of communication.
Man is the most active and effective factor of production and good human relations are the basis of co-operation and industrial peace that requires good working conditions and work environment. The efficient downward communication helps the management to tell the sub-ordinates what the organisation wants and how it can be performed. On the other hand, the upward communication helps the workers in putting their grievances, suggestions and reactions to the policies before the management.
Thus, efficient communication system builds good human relations.
Morale is that element of human aspect which motivates the man to work in a right spirit. Good communication removes the possibility of misunderstanding among the parties concerned. Workers know what they have to do and how, it creates a sense of co-operation among them. It increases the morale of the workers and each worker will be satisfied from his work.
An efficient system of communication aims at removing illusions and misunderstanding by communicating facts and figures. Thus, communication cements an organisation.
Communication is essential not only for the internal management of the organisation but it helps contacts with the outside world. Contacts with outside agencies such as customers, associations, other manufacturers, advertisers, suppliers, trade unions, research councils and institutions, etc., are necessary for bringing up the interests of the organisation. It will increase the goodwill of the firm. It helps in creating favourable attitude of the public towards organisation. Thus, communication contributes towards maintaining good relations with the outside world.
We can say that communication is a vital element for the very existence of the organisation. Emphasising the importance of communication Chester I. Bernard has said-“The first executive function is to develop and maintain a system of communication.” Further, George R. Terry has remarked-“Communication serves as a lubricant fostering for the smooth operations of the management process.”
Importance of Communication at Individual and Organization Level
Communication is a social activity. Need to communicate arise whenever one being has to convey his message to the other. The world of business is no different. It consists of organizations and individuals working and interacting with each other. Thus we can see the communication from the perspective of an individual and from the perspective of an organization.
1. Communication at Individual Level:
In business, one has to deal in person with all kinds of people. You may have to interact with people within your company- these may be your colleagues or co-workers, superiors or subordinates – who may work with you in your own department, in another part of the building or in another branch.
And you may also have to deal with people from outside the organization- clients, suppliers, visitors and members of the public. Moreover, these people may be friends, acquaintances or strangers – people of your own age, or people who are younger or older than you.
The relationship you have with the persons determines the kind of language you use. This relationship may even affect what you say when you meet people- for example- it is not appropriate to say “Hi! How are you!” when meeting the Managing Director of a large company, or to say, “Good Morning, it’s a great pleasure to meet you” when being introduced to a new person you will be working closely within the same team.
Remember that people form an impression of you from the way you speak and behave – not just from the way you do your work. Remember also that your body language, gestures and expressions may tell people more about you than the words you use.
2. Communication at Organization Level:
All managerial functions like planning, organizing, directing, coordinating and controlling can be well per formed with the tool of good communication.
The process of communication makes it possible for managers to carry out their task responsibilities. Information must be communicated to managers so that they will have a basis for planning; the plans must be communicated to others to be carried out. Organizing requires communicating with people about their job assignments.
Leading requires managers to communicate with subordinates so that group goals can be achieved. Oral, written, and, increasingly, electronic communications are an essential part of controlling. Managers can carry out their management functions only by interacting with and communicating with others. The communication process is thus the foundation for the management functions.
Similarly, communication connects the organization with the outside world, be it customers, suppliers, government authorities, or anybody else. Effective dealing with everybody requires good communication skills.
Not to forget the exchange of information which takes place within an organization and between organization and its environment. Information is very vital for the survival and prosperity of any organization in the today’s fast changing environment. Passing and receiving information needs communication. More effective the communication process, more efficient and accurate the information will be.
3. Why Communication has Gained Importance in Modern Scenario?
The importance of communication in business has all the more increased with the passage of time as the society is becoming more and more complex and the businesses are getting global.
The factors responsible for growing importance of communication are as follows:
i. Global Business Environment:
Now day’s organizations operate at transnational level. This needs dealings with people of different cultures and language. Need for effective communication increases all the more.
ii. Large-Scale Operations:
With the expanding economies, businesses are being done on large scale. Consequently size and decentralization of the organization increase. Coordinating the whole affair needs effective communication.
iii. Technological Advancement:
With fast moving technology, the methods and techniques of work change very fast. Making people understand the newer ways of doing things needs effective communication.
iv. Role of Information:
The organizations need for information has increased. The business environment is changing very fast, and to keep pace with this changing environment, organizations have to be abreast with the latest.
v. Change in Management Style:
Earlier the style of working was – management decides and orders and workers perform. Over the period of time, there has been a substantial change in the approach. Now the emphasis is on participative management.
vi. Need For Better Human Relations and Higher Motivation Level:
With the growing aspirations of work force and its awareness, keeping the workers motivated and maintaining good relations with them is an important task of the management.
vii. Increasing Social Role:
Modern business is being recognized as a social institution. It has to deal with different segments of society in different capacities, such as its shareholders, customers, suppliers, trade unions press, government, etc.
Importance of Communication:
Communication makes an organisation a dynamic or a moving structure. It sets the enterprise ii.to motion. It pours life into an organisation. People in the organisation through effective communication can behave logically, meaningfully, and unitedly towards the enterprise objectives.
Communication and human behaviour have reciprocal relationship. Each influences and is influenced by the other. An open communication environment encourages frank and open behaviour. Reserved and secretive behaviour quickly taints the organisation environment.
The relationship between communication, motivation, and behaviour is so close that it is impossible to study one without studying the other. Behaviour is the most revealing mode of communication. In fact, the functions of leading and motivating totally rely on communication as an integral part of management-in-action.
(1) It can promote managerial efficiency and performance. It serves as a lubricant fostering the smooth operation of the process of management.
(2) Communication is essential for making all managerial functions effective. Manager must be an effective communicator. Planning and control are essentially information processing activities. Leading, motivating, directing and supervising are based on communication.
Organisational behaviour, organisation development and management of change require effective communication. In short, communication is the master-key to the entire process of management as well as organisational effectiveness.
(3) The will- to-do can be ignited through proper understanding and acceptance on the part of employees. Only effective communication can build up good employee morale and harmonious industrial relations between labour and management. In fact, participative management rests on best communications.
(4) The Two-way personal communication is necessary for effective leadership.
(5) Effective communication alone can establish mutual trust and confidence between management and labour. This gives job satisfaction to workers.
(6) The sincere desire to express your thoughts and ideas simply, directly and supported by facts is a long step towards the development of a chain of understanding.
Receiver of a message should be free to ask questions, make suggestions and comments. Two-way communication is more accurate in terms of developing understanding than one-way communication. Free feedback alone will create trust and only with trust can there be any real communication.
In short, it is not how much manager says, but what he says. Even more important is what he does to warrant confidence in the motives and sincerity of the management, before employees will accept management information and facts.
Importance of Business Communication
For nearly a century now the importance of communication has been growing more and more. What are the factors responsible for its growing importance?
Let us have a look at them as they are given below:
(a) Large Size of Organizations:
In earlier times organizations used to be small. Many of them were family businesses run on a small scale. Over a period of time they grew in size and opened branches in far-off places.
Now we are living in the age of very large scale companies and multinational corporations spread across the globe. In such a scenario communication becomes very, very important. In fact it is indispensable, because without it we cannot direct people and get feedback.
(b) Growth of Trade Unions:
For more than half a century trade unions or associations of workers have been growing strong. They have their own demands and great bargaining power. The management has, therefore, to be very careful in dealing with them. And that is possible only through regular communication with them.
(c) Technological Advancement:
Advancements in science and technology, specially IT (Information Technology) have brought communication to the very centre of organizations. Everybody knows that the world has become a ‘global village’.
Just a click of the mouse puts us in touch with the people at the other end of the world. All this is communication, and more and more communication.
(d) Human Relations Aspect:
It has been felt that management must deal with employees as human beings. Gone are the days of master-servant relationship. Now the employees are being treated as partners. Communication helps a manager in developing meaningful relationships within the organization.
(e) Public Relations Aspect:
Communication helps an organization in building up good relations with the society. It has to serve various sections of society, specially the customers, Government, suppliers and public at large. Management has to take care of it. Communication plays a vital role in this respect.
Importance of Communication in Management
In this world of competition, communication plays a very important role. Competition, complex methods of production, large-scale industrial complexes and specialisation in production have increased the importance of communication. If the manager is in a position to communicate effectively, he will perform his managerial obligations well.
The importance of communication in management can be judged from the following facts:
Importance # 1. Necessary for Planning:
Planning is the primary function of management, which requires extensive communication among the executives and the other personnel. Communication is important in executing a planned programme and then controlling the activities of the personnel with the help of feedback. In order to evaluate the performance of the personnel in the light of the planned objectives, communication is necessary.
Importance # 2. Basis of Coordination:
The present-day big organisations are designed on the basis of specialisation and division of labour, they constitute a large number of persons in order to achieve the desired objectives, it is very necessary to coordinate the efforts of the labour engaged in the various activities of production in the organisation.
Coordination requires mutual understanding about the organisational goals, the mode of their achievement and their interrelationship between the works being performed by various individuals, this all can be achieved only through effective communication.
Importance # 3. Establishment of Effective Leadership:
Communication is the basis of effective leadership. By developing the skills of communication, a manager can be a real leader of his subordinates. A good communication system brings them in close contact with each other and removes misunderstandings.
Importance # 4. Increases Managerial Efficiency:
For the smooth running of the organisation, management conveys directions, goals and targets, issues instruction, allocates jobs and responsibilities and looks after the performance of subordinates. All this is not possible without effective system of communication. As a matter of fact it lubricates the entire organisation and keeps the organisation at work.
Moreover, management cannot work efficiently unless it knows the grievances of its subordinates and removes it. Thus, the skill of communication has become an essential quality of successful management.
Importance # 5. Promotes Cooperation and Industrial Peace:
Communication is a two-way traffic which helps promoting cooperation and mutual understanding between both the parties. The efficient downward communication helps the management to tell the subordinates what the organisation wants and how it can be performed.
The upward communication helps the workers in putting grievances, suggestions and reactions before the management. Thus, it promotes the industrial peace and good relations.
Importance # 6. Basis of Decision-Making:
In order to make prompt decisions, facts and information should be collected. Thus, communication is a primary requirement of decision-making. Again to implement the decisions effectively, it becomes essential to convey the decisions to the subordinates concerned through an effective system of communication.
Importance # 7. Morale Building and Motivation:
Communication system enables management to change the attitude to motivate, influence and satisfy the subordinates. Proper and timely communication between the interested parties reduces the points of friction and minimises those that inevitably arise. Good communication improves good industrial relations and ensures participative and democratic pattern of management.
Importance # 8. Smooth Working of Enterprise:
Communication makes the working of the enterprise smooth. All organisational interaction depends upon the communication. It is the process of communication which makes cooperative action and coordination possible. When communication stops, organised activity ceases to exist.
Importance # 9. Job Satisfaction:
Good communication reduces the possibility of misunderstandings among the parties concerned. Workers know what they have to do and how. It creates a sense of cooperation among them. It will increase the morale of the worker and each worker will be fully satisfied with his work.
Thus, we see that communication is vital for the very existence of an organisation.
“The first executive function is to develop and maintain a system of communication.” —Chester I. Bernard
“It (communication) serves as the lubricant fostering for the smooth operations of the management process.” — George R. Terry
“Good communication is essential for coordination. They are necessary upward, downward, and sideways through all the levels of authority and advice for transmission, interpretation and adoption of policies, for the sharing of knowledge and information and for the more subtle needs of good morale and mutual understanding.” -Mary Cushing Nyles
Importance of Communication in an Organization
The importance of communication in modern organisations can hardly be overemphasized. It is a common process of human behaviour. McFarland has described the importance of communication process thus- “The ability to communicate has enabled humans to build societies, organisations and other social groupings that make for survival and better living. At the same time, many of our problems—individual, organisational and social—arise from the inability to communicate clearly.”
Theodore Herbert says, “Without communication, no organisation could long exist.” Chester Barnard writes, “Communication both makes the organisation dynamic and links the organisation purpose to the human participants.” The importance of communication in management has been widely accepted. It is a vital force and deserves the manager’s fullest attention.
Communicating is important for the following reasons:
1. Efficient Functioning of an Enterprise:
The force that makes the business organisation alive, effective, and dynamic is communication. Without communication, an organisation is only an inert, lifeless and schematic attempt to run the business.
Arnold Schneider says, “Communication is to the business organisation what electrical current is to a wiring system.” Redfield also writes, “Communication may cement an organisation or disrupt it.” Thus, the function of communication is vital for any organisation as, without effective communication, the superior-subordinate cannot thrive.
2. Key to Management:
Managers carry out their functions only by interacting with and communicating with others. Communication is the process by which the management functions of planning, organizing, leading, and controlling are accomplished. Almost, every aspect of management involves communication. It is the foundation for the management functions.
According to Mel Grosz- “planning and control, two principal responsibilities of management, are essentially information-processing activities. It takes communication to make these processes work.” Chester Barnard stated that the first executive function is to develop and maintain a system of communication.
Management is in essence the act of communication, for it provides a common thread for all management processes.
3. Crucial Managerial Skill:
Gronn says that managers do not spend most of their time sitting at desks planning and thinking. 75 to 95 percent of a manager’s time is spent communicating. McFarland writes, “The working day of every manager is crammed with communications of many kinds—orders, directions, conversations, requests, reports, rumors, and so on.” Clearly, communication skills are crucial to managerial success. Benjamin Balinsky has rightly said that, “If there is any shortcut to executive effectiveness it is the mastery of the art of face to face communication.”
Communication helps the manager in his decision process. The quality of decisions made in an organisation depends largely upon the amount and quality of information available to the manager. Communication is a basic tool for providing information for making sound and logical decisions. The decisions will be based on facts that have been communicated to the managers. The managers in turn, will have to communicate those decisions to others.
Importance of Effective Communication in Business Management
In this age of competition, the communication is the number one problem of the management. Competition, complex methods of production, large scale operations and specialisation in production functions have increased the importance of communication. Without effective communication, a manager cannot perform his obligations well. Communication is as essential to the business as blood to the human body.
The following points will prove its importance in the business:
1. Smooth Working of an Enterprise:
Communication is necessary for the successful, smooth and unrestricted working of the enterprise. All organizational interaction depends upon the communication. The manager co-ordinates human and the physical elements of the organization into an efficient and working unit that achieve common objectives.
Be it an activity of purchase or sale or production or finance, it is the process of communication that makes co-operative action possible. The internal and external communication process of the organization decides the various activities to be done and various objectives to be achieved.
Communication is basic to an organization’s existence-from birth of the organization through its continuing life. When communication stops, organised activity ceases to exist.
2. Basics of Managerial Functions:
Communication plays an important role in discharging the various functions of management. No function of management is possible without the communication process.
Its importance in performing the various functions is as follows:
Planning, the most important among the functions of management, requires extensive communication among the executives and the other personnel. Communication is important in executing a planned programme and then controlling the activities of the personnel with the help of feedback information. The planning is useless in the absence of communication. It is also necessary in evaluating the performance of the personnel in the light of planned objectives.
Organization is the second important function of the management which decides the various activities of the organization, divides them into workable units, delegates authority to perform them. For this purpose, communication is a must because different persons, departments and groups come to know their powers and jurisdiction only through an effective means of communication.
In the words of George R. Terry “Communication is the means by which the act of delegation is accomplished”. According to him, communication serves as the lubricant fostering the smooth operation of the management process.
(iii) Direction and Leadership:
Direction and effective leadership requires an efficient system of communication in the organization. A good leader can direct or lead his subordinates only when an efficient system of communication is present. It brings both leader and subordinates in close contact to each other remove misunderstanding if any. It promotes co-operation and helps in getting the work done in the desired direction.
Communication is a very important tool in the hands of management to get the work done effectively.
The importance can be judged from the following facts:
a. Communication is necessary for the smooth running of the enterprise.
b. Communication is the basis of managerial functions, i.e.
(i) Planning needs communication among executives and workers.
(ii) Organization decides the various activities of the organization and suggests best ways to perform them. It requires communication.
(iii) Direction and effectively.
(iv) Motivation requires communication for the change in the attitude of workers. leadership requires efficient communication system to remove misunderstanding and getting work done
(v) Co-ordination of the efforts of subordinates and of organization is the result of efficient communication.
(vi) Control requires feedback, evaluation of work, locating the deviations and their removal in the next plan. It can be done only with the help of good communication system.
c. Maximum production at minimum cost needs efficient internal and external communication system by promoting the efficiency of workers and improving social relations.
d. Prompt decision and its implementation is the outcome of an efficient communication system.
e. It promotes human relations, co-operation and industrial peace in the organization.
f. Job-satisfaction and good morale improves the productivity of the enterprise and communication fulfills that need.
g. Communication avoids illusion and misunderstanding.
h. Contacts with external agencies is possible only through an effective system of communication.
Importance of Communication in Management:
Just as blood has an important place in a body, in the same way communication has an important place in an organisation. Management functions cannot be carried out without an efficient system of communication. Communication is a medium through which the activities being carried out in the organisation are explained, changes are implemented, and the spirit of cooperation is aroused by establishing unanimity of work among the people working at the higher level and their subordinates.
In modern age the ability to have effective communication is considered an important quality of a person connected with the organisation. People working at the higher level of the organisation spend more time in communication while the people working at the lower level of the organisation spend less time in the process of communication. According to a research, a manager spends 90% of his time in this process.
The importance of communication can be understood with the help of the following study:
Importance # (1) Acts as Basis of Coordination:
With the enlargement of the scale of business the importance of communication has increased. In big industrial units the form of the organisation is decided by specialisation and division of labour, where a large group of people work. In case of such big organisations, work can be accomplished without any hindrance only with the help of coordination.
For the purpose of coordination it is essential that the people working in the organisation should have a mutual understanding regarding the goals of the organisation and they should know the means with the help of which these goals can be accomplished. They should also have the knowledge about the relationship of their activities. This is possible only with the help of effective communication.
Importance # (2) Helps in Smooth Working of an Enterprises:
Communication begins with the thought of establishing an enterprise and continues till the closure of it. All the decisions taken in the organisation and all the activities being carried on therein depend on communication. No activity is completed without the help of communication. For example- a production manager will be able to produce goods only when the sales manager tells him about the possibility of sales.
In the same way, the activities of the purchase department, financial department, personnel department, etc. depend on communication. Therefore, if free and timely communication continues taking place, all the activities of the enterprise will be smoothly accomplished.
Importance # (3) Acts as Basis of Decision Making:
In the absence of communication it is not possible for the higher management to take any decisions. Before taking any decision many sorts of information has to be collected on the basis of which an idea is given the final shape. Information connected with the decision making can be obtained only with the help of communication.
Not only this, but the use of communication is made for the purpose of effectively implementing the decisions. Without effective communication it cannot be known as to what was asked to be done, what has been done, what is being done and what remains to be done.
Importance # (4) Increases Managerial Efficiency:
Communication is absolutely necessary in order to perform managerial functions quickly and in an orderly manner. It is through the medium of communication that the managers pass on the information about the objectives laid down, issue directions, divide work and control the activities of the subordinate employees. Therefore, in the absence of communication a manager remains an inactive part of the organisation while the presence of communication increases his efficiency.
Importance # (5) Promotes Cooperation and Industrial Peace:
Industrial peace means the existence of sweet labour-management relations. The chief objective of every organisation is to earn profit by increasing production. This is possible only when there exists a sweet relationship between the labour and the management. Two-way communication is important for the maintenance of clean and healthy environment. Downward communication explains to the subordinates the expectations of the manager and thus helps the managerial class.
On the other hand, upward communication helps the subordinates in presenting their complaints, suggestions and reactions to the managerial class. In this way, both the categories get an opportunity to put forward their view point through the medium of communication and consequently, it promotes cooperation and helps industrial peace to grow.
Importance # (6) Establishes Effective Leadership:
In order to become an efficient leader, a manager must possess the knowledge of the art of communication. In other words, in the absence of the knowledge of
effective communication, it is futile to think of leadership. A manager can become an efficient leader by improving the art of communication. A good communication system brings the employees close to one another and removes their differences.
Importance # (7) Boosts Morale and Provides Motivation:
Motivated employees with high morale play an important role in the success of the organisation. Now, the question arises as to how to develop these two things among the employees. Its answer is inherent in communication. Effective communication helps in boosting the morale of the employees and motivates them.
For example- if the employees are made partners in the process of decision-making, it will give them an identity of their own in the organisation. In such a situation they will definitely be motivated and their morale will be at the highest level.
An effective communication is the key to the success of an organisation. Success comes automatically to the employees of an organisation who are familiar with the art of communication. Good communication is the foundation of sound management.