Importance of Communication in Business Organizations

This article will introduce you to business communication by establishing the importance of communication in business organizations. Business and organizational activities require effective interpersonal and group communication strategies in order to meet set objectives. This is because, getting clients and retaining the best workforce, enjoying the loyalty and patronage of the customers, working in teams and small groups, leading others, relating positively with others, achieving goals and assuring the success of the business depend on communication.

In business environment, it important the general workforce know effective communication skills needed for working in the organization and with other people to achieve the objectives of the organization.

Research has it  that business executive spends more than 75 percent of time communicating. Therefore, business managers and their subordinates need to devise communication strategies to cope with the dynamic world of business. Employees must relate with one another and with the employers through communication; usually, there is a need for customers and or consumers to exchange information on products, and shareholders would need information on business performance. These and other activities of a business outfit make business communication the most important activities in running a business.

There are two classes of  business communication, they includes: internal and external communication.

  • Internal  Communication: It refer to every exchange of information between and among people working in an organization.
  • External Communication: It involves the relationship that people within the business environment maintain with the customers, consumers, consultants, suppliers and every other person or group of people who are not directly employed within the four-wall of the organization.

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Types of Communication in Business

Communication in a business organization can be divided into two, namely: Verbal and Non-verbal Communication.

1. Verbal Communication.

Verbal communication is a form of writing letters, memos, composing electronic and other forms of written messages. Also, when people involved in communication encounters exchange information through speech which can be face to face or mediated. Verbal communication is usually complemented in day to day official interaction among workers and employees as routine tasks are performed.

2. Non-verbal Communication

Non-verbal communication in the business environment refers to other ways of sending and receiving messages apart from the use of words. This involves the use of hands, body movement, space, distance, color etc. to communicate.

Importance of Communication in Business

Communication in business is important for meaningful response and understanding in the business environment. Employees, employers and other stakeholders must clarify issues, set objectives and understand one another for the organization to progress.

Another importance of communication in business organization is that communication is needed to build favorable relationship. This is because people must relate personally, positively and professionally by creating and maintaining favorable relationship. This encourages participants in the communication encounters to help one another and contribute to their professional and personal growth that influence the business positively.

Business  organizations depend on the goodwill of their customers or clients to survive. It is important for employees to build goodwill and ensure that the business reputation and products are successful. To sum it up, business efficiency and effectiveness greatly depend on the ability of managers and the entire workforce to send and receive messages inside and outside the business organization with maximum efficiency.

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Communication in business is pervasive and an inevitable activity in the business environment. In a business environment, workers, employers and customers need to constantly relate by exchanging information for mutual understanding and organizational success. Therefore, these participants engage in verbal and non-verbal communication to achieve set goals, ensure mutual understanding, send and receive favorable response and maintain favorable relationship. That is why it is important for business organizations to promote effective communication between and among their internal and external stakeholders. For this to happen, they must possess the following abilities:

  • To send clear and complete messages;
  • To listen, read and interpret messages appropriately;
  • To encode messages using the right symbols that the receiver understands;
  • To decide the most appropriate environment for sending and receiving messages;
  • To avoid all forms of distortion or noise that hamper meaning;
  • To include feedback procedure in the messages;
  • To prevent rumour from spreading by offering information as and when due;
  • To understand diversity issues in workplace communication.

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