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Communication in Business 

Why is communication in business important?

It has been acknowledged by every business guru in the world that good communication in business is the key to an operation’s success. Regardless of the size of one’s business, good communication within an organization is a prerequisite to business growth. For small or medium-sized organizations, good communication within an organization is pivotal to ensuring smooth and effective process flow leading to greater productivity and profitability.

For large multinational companies that have offices located in major cities in the world, the role of communication is even more critical. In large organizations, employees not only have to deal with enhancing their verbal and written communication skills but should also be aware of cultural issues when dealing with colleagues based in another part of the world.

Communication in business can affect many aspects of an organization. As an organization is run by people, who are inherently social beings born with natural inclinations to interact with other fellow humans, it is important to ensure the level of communication in any commercial operation is managed and geared towards business growth and good teamwork.


Management Objectives

A good management is one that is able to communicate effectively with all levels of its employees, especially with regards to corporate objectives, direction, plans and operation information. Without communication, an organization is likened to a ship sailing without a compass.

Employees Relations

Communication is critical to a teamwork environment. Employees should be provided with resources and training to communicate effectively with one another with regards to operational matters so that every employee is able to contribute effectively to the organization as a whole.

Employee Motivation

When employees are kept in the dark about company direction and objectives or are inhibited from communicating freely with one another and with the management, dissatisfaction among employees may arise. They may feel powerless and become disgruntled in the long run. Therefore, management should provide a channel for employees to voice their opinions and ideas and encourage creative sharing of information that may profit the organization as a whole.

Conflict Management

Effective communication is the best way to resolve conflicts at the workplace. Misunderstanding between employees or feelings of dissatisfaction about perceived unfair treatment at work should be addressed using appropriate communication mechanisms.

Customer Relationship

Good communication in business also helps to enhance an organization’s relationship with its customers, shareholders, investors and the public. An organization that values effective communication in its daily operations often provides regular training to equip its employees with adequate communications skills when dealing with external parties.

The following are ways to establish a solid communication in business model that can be managed and measured on a regular basis for continuous improvement purpose.

Resources and Communication Tools

It is pertinent that an organization facilitate tools to enhance communication internally as well as externally. Communication tools such as emails, memos, notice boards, company’s intranet and walkie talkies should be made available depending on the nature of the operation.

Communication Training and Seminars

Employees should also be given the opportunity to attend training and seminars that help to improve their communication skills in the organization such as written communication, ethics in business communication, negotiation skills and public speaking skills. For members of the management that have to deal with external parties such as customers and the media, should also be trained on customer service etiquette, handling media interviews and handling customers’ complaints.

Effective Top-Down Communication

An organization needs to ensure that announcements, ideas and plans be conveyed clearly and consistently to all levels of its employees. The management may utilize emails, memos, notice boards or meetings to communicate to employees. Regular dialogue and frequent updates from the management help to boost the morale of employees by making them feel important and appreciated.

Effective Communication Channel for Employees

Organizations should also provide a formal channel for employees to make their voices heard on matters pertaining to their workplace condition. Many organizations encourage regular department meetings where employees discuss their ideas with their direct supervisors. On many occasions, a workflow process is often enhanced and improved based on input from employees who work the machine or those who perform the specific task on a daily basis.

Recreation and Social Events

Recreation and social events such as anniversary parties, family day events and company sports events help to enhance ties between co-workers outside of work. These occasions enable employees to interact and forge personal bonding that can build mutual trust and understanding in the workplace. 


An effective communication in business model is one that has a smooth information flow process in place as well as a friendly culture where positive idea-sharing is encouraged.

                      Communication in Business -  Related Articles

Effective Business Communication - Effective business communication is key to your effectiveness as a manager.  You cannot be successful if you cannot communicate effectively. 


Definition of Business Communication -
The definition of business communication has taken a whole new meaning in today's  environment  with technology, virtual teams, horizontal sharing etc.

Good Listening Skills -
You can have good listening skills. You can stop some of the main causes that prevent you from becoming an effective listener. All you have to do is make a few changes in your work environment and in your approach to listening. 

Effective email communication -
Effective email communication is often an overlooked business skill, when you think about the fact that over 80% of our communication is now done over email; it pays to be good at this skill.

Effective Communication in the Workplace - It does not matter if you work for a company that has nine employees or 9,000; effective communication in the workplace is an essential part of any organization.

How to Improve Communication Skills - In order to improve communication skills, you must know exactly what it is. The word communicate is rooted in the Latin word communicate, which means to make common or to share.






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