Importance of communication

Communication can be described as the life blood of the business No business can develop in the absence of effective external and internal communication.

Communication is a vital tool of management.
One of the major functions of an office is communication. This involves receiving, recording, processing of information and communicating the information two various functions of the organizations.

Importance of communication can be discussed under two points of view.
1.Internal communication
2.External communication.

Importance of internal communication
Internal communication refers to exchange of information or message between persons of same organization, e.g. between employer and employee.

  1. Better understanding between employer and employees.
    – If complaints of employees are forwarded to employer on time and in the right way it will minimize the chances of misunderstanding.
  2. Greater efficiency.
    The sound communication system enables the management to instruct the supervisions and subordinates on changes of policy – this results to the increase in efficiency of workers.
  3. Effective co-ordination:
    Effective communication leads to effective co-ordination of employees e.g if demand increase the marketing department will inform the production department to increase its production.
  4. Proper communication avoids losses:
    If there is a machine breakdown or shortage the management can be informed quickly to take timely action to avoid any possible losses.

External communication.
This refers to exchange of information between an organization and other organizations or persons outside the organization.
The following facts indicate the importance of external communication.

Effective communication with customers and either business enables company establish good reputation this increases prestige of that company.

  • Improvement in public relations:
    When a company communicates with general public to keep them informed of its activities more people become interested to deal with that company.
  • Better business prospects –
    Due to good communication the company can abstract more customers.
  • Choice of customers –
    A company can get information about the liking and disliking of customers. This information will help company produce goods according to the choice of customers.
  • Government department –
    The business will deal with licensing authorities, foreign trade offices, custom authorities, banks and other financial institutions. All these institutions require good communication when negotiating.
  • Job requirements –
    Most jobs require communication skills such as personnel public relations, marketing, editing, research, advocates, etc.
    Executives are expected to make speeches they are expected to give interviews to media. All these require communication skill.
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