Question

Explain the importance of communication in business.

Explain the importance of communication in management of a business organisation.

“Effectiveness of a manager depends on his ability to communicate effectively”. Explain how.

Answer 1

1. Efficient planning and decision making: Making the appropriate judgments at the right time requires accurate and current information about both internal and external factors. The effectiveness of information transmission and its quality have a significant impact on the caliber of managerial plans and decisions.
2. Training and development of staff: For executives and employees to receive orientation and continuous training, communication is crucial. Knowledge is acquired through communication, and the trainer’s communication abilities have a significant impact on the level of learning. Delegating authority is made easier via communication, and this is crucial for the growth of executive skills.
3. Motivation and morale: When it comes to encouraging positive attitudes and motivating people to work hard, communication is crucial. Managers that maintain strong communication with their staff can boost their self-esteem and job happiness.
4. Coordination and Teamwork: The best way to coordinate and integrate people’s efforts towards shared objectives is through communication. It promotes teamwork and acts as a stabilizing factor when faced with limited specialization. Gellerman states that “an organization can be more efficient than the system by which it informs its members of what is expected of them so that their efforts will reinforce each other and create a momentum towards the attainment of the organisation’s purpose”.
5. Leadership: By using subtlety and persuasion, a leader can change the way his followers behave. The leader must be a skilled speaker and a patient listener in order to do this. Through two-way communication, he may overcome reluctance to change and sell his views. 
6. Effective control: The boss’s communication provides the foundation for how staff members manage their work and assess their performance. Based on feedback from his subordinates, a manager can accurately assess their performance and implement the necessary corrective measures.
7. Sound industrial relations: A meeting of the hearts and minds is produced by communication. It has the power to unite people. Employer-employee and employer-trade union relations can both be enhanced by effective and transparent communication.
8. Corporate image: For every organisation to establish and preserve a positive reputation or goodwill in society, communication is essential. Through a variety of communication channels, a firm can maintain tight relationships with its clients, investors, dealers, suppliers, and other societal segments.