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Significance of effective communication in business

I have been to different companies and/or organizations around the world and have seen the direct or indirect negative impact of ineffective communication on me as a client or just an ordinary person interacting with that organization or its employees/people. In an organization, bad or poor communication reduces productivity and profitability, paves way for low employee morale as well as misconceptions which ultimately negatively affects the clients to a point that that they may choose to leave. I have seen and felt the negative impact of bad or poor communication and it is not good for business at all.

Communication in simpler terms is the act of transferring information from one place/point to another. It is the imparting or exchanging of information by speaking, writing, or using some other medium. It is a way of sending or receiving information. It is complex when it comes to how important communication is in/to an organization or in business. From an organizational or business perspective, communication is not conveyance of the message and it does not imply the message itself. It is correlative of reciprocity in understanding starting with the receiver. Communication must be effective in an organization as it is the nub of management. Primary functions of management are to control, direct, organize, plan and recruit etc.  and these cannot be executed properly in the absence of effective communication. Effective communication involves constant and consistent flow of information in an organization. Feedback which is an effective way to evaluate organizational performance is an inherent aspect of communication in an organization as it involves many people at different/various levels of hierarchy in an organization and plays a very vital role in the process of controlling and directing the people of/in an organization. Immediate and timely feedback can be obtained and this helps in avoiding misunderstandings that would potentially arise. There should be effective communication between those that delegate and those that are delegated to in an organization as well as between the organization and customers and/or people in general. This is viatal for the success and growth of a business and/or organization. Gaps in communication within and outside the organization should be avoided always. In an organization, communication aims at achieving specific goals and objectives. The rules, regulations and policies of a company or organization must be effectively communicated to people within and outside the organization. With the advent of technology, we have mobile phones, video conferencing, emails, and satellite communication to mention just a few as a means of supporting the flow of information within and outside an organization. Effective communication also aids employee motivation by informing and clarifying the task/s delegated to them by their superiors and the procedure/s or way/s it should or is expected to be done or carried out.  Employee/individual attitudes can be reshaped through effective communication as informed individuals will have a good attitude compared to those who are less-informed or not informed at all. Organizational magazines, journals, meetings and other various forms of oral and written communication help in shaping employee’s attitudes. Effective communication also helps in building the goodwill of an organization and will ultimately impact positively on customer satisfaction!.


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