Discuss importance and role of communication in modern business organization.
(U.P.T.U. MBA 2006-07)
Or
Explain the importance of effective communication in business.
Ans. Importance of Communication
Communication is the lifeblood of business. No business can develop in the absence of effective internal and external communication.
Internal Communication:
Effective internal communication is considered important for the following reasons:
- Business has grown in size:
Large business organisations have a number of branches. The central organisation of a large business house is its nerve centre. For its healthy and even growth, it is extremely important that the central organisation maintains a thorough and up-to-date knowledge of the various activities at the branch offices, and keeps the branch offices well acquainted with the activities at the centre. This calls for an effective and efficient network of communication. - Business activity has become extremely complex:
This being an age of specialisation, planning, production, sales, advertising, financing, accounting, etc. are handled by different departments. If these departments do not communicate with one another as well as with the management, there will be no coordination among them. - Effective communication promotes a spirit of understanding and cooperation:
If there exists effective communication between the management and the employees, it helps to bring about an atmosphere of mutual trust and confidence. The employees know exactly what is expected of them; the management is aware of the potentialities and limitations of the employees and knows how to exploit the first and make up for the latter. The management gets better returns; the employees get job satisfaction. They also develop a sense of belonging and loyalty to the enterprise.
External Communication:
External communication includes communication with the government, distributors, retailers, individual customers, and the general public.
- Government agencies and departments:
Business organisations are required to deal with licensing authorities, foreign trade offices, customs authorities, banks and other financial institutions, income-tax and sales tax offices, post offices, transporters, etc. That can be handled only through tactful communication. - Distributors, retailers, individual customers, etc.:
Modern business is a highly competitive phenomenon. Each product is available in a number of brands, not all of which sell equally well. Organisations that can communicate better can sell better. Sales are promoted through persuasion, another aspect of communication.
Communication Skill as a Job Requirement:
Executives are also expected to make speeches, prepare pamphlets, brochures, souvenirs, and give interviews to the media in order to project a favourable image of their organisation. Thus, the ability to communicate effectively has become an important job requirement.
Important Factor for Promotion:
The ability to communicate is the most essential requisite for the promotion of executives. This ability ranks higher than such essential attributes as the capacity for hard work, the ability for making sound decisions, academic qualifications, and ambition-drive.
