Importance of Communication in Business

The purpose of communication is to effect change and to influence action towards the welfare of the enterprise. Communication is essential because it integrates the managerial function. Every aspect of a manager’s job is planning, organizing, staffing, directing, or controlling involves communication.

Business persons share their business information with employees, suppliers, customers, distributors, Government, banks, insurance companies, etc. This sharing of information regarding business activities and their results is known as business communication.

Importance of Communication in Business

Business communication plays a very important role in the success of any business enterprise. The importance of communication in business is discussed below:

  1. Provide Information
  2. Quick Decision Making
  3. Effectively Managing Business Affairs
  4. Handling Grievances
  5. Improved Offerings of Business
  6. Achieving Objectives and Implementing Policies
  7. Sharing of Views between Management and Subordinates
  8. Correct Interpretation of Messages
  9. Morale of Organizational Members

Provide Information

Business communication helps in providing information to the customers regarding the products and services of the business organization.

Quick Decision Making

Effective communication facilitates quick decision-making. In today’s world of competition, quick decisions are necessary. Proper Communication saves time, reduces wastage and cost, and induces prompt action.

Effectively Managing Business Affairs

Proper communication helps businesspersons in managing the affairs of the business more efficiently. If the right type of information is made available at the right time through proper communication then the management can utilize it in the best possible manner.

Handling Grievances

In any organization where communication is proper, employees are motivated to work more because their complaints, suggestions, and grievances are taken care of properly.

Improved Offerings of Business

In every field, technology is continuously changing. Proper communication places a business person in a better position to improve his products, and relationship with employers, customers, and others.

Achieving Objectives and Implementing Policies

The management of an organization is effective only when its communication machinery is effective. The very existence of management depends upon an effective machinery of communication.

Effective communication machinery is important because it communicates, and helps in implementing, the policies and objectives of the organization on the one hand, and also helps in understanding the nature and behaviour of the people at work.

Sharing of Views between Management and Subordinates

Effective communication between management and subordinates is vital. It should be a continuous two-way process, allowing both parties to express their thoughts, ideas, grievances, and opinions. Communication must flow both downward and upward, benefiting both management and workers.

One-sided communication where managers only give orders without listening to subordinates’ suggestions or concerns is ineffective. Without giving subordinates a chance to be heard, their feelings may be suppressed, leading to potential breakdowns in the future.

Correct Interpretation of Messages

A message can be interpreted by the recipient according to the image of the communicator in the mind of the recipient. If the image is bad, the version of the message may be distorted and interpreted differently.

The bad image can be erased through proper communication from the other side, which is possible only when there is two-way communication in the organization.

Morale of Organizational Members

Thus, the creation of organizational systems allowing two-way traffic will improve the morale of the workers on the one hand because they think that they have a say in the management, and will improve the working of the organization on the other hand, because management-worker relations develop in a cordial atmosphere. Thus, two-way communication is necessary for effective management.


FAQs Section Importance of Communication in Business

What is the importance of communication in business?

These are the reasons for the importance of communication in business:
1. Provide Information
2. Quick Decision Making
3. Effectively Managing Business Affairs
4. Handling Grievances
5. Improved Offerings of Business
6. Achieving Objectives and Implementing Policies
7. Sharing of Views between Management and Subordinates
8. Correct Interpretation of Messages
9. Morale of Organizational Members.