Communication is life blood of business. Explain and also discuss the importance of communication in business.
Answers
answer . according to Henry Mintzberg, managers perform three major roles-Interpersonal, Informational and Decisional. Communication helps managers in performing each of these roles effectively.
In interpersonal roles, managers interact with their superior, peer and subordinates.
In informational roles, they receive and give information to people inside and outside the organisation
In the decisional roles, they take important decisions and communicate them to organizational members for their effective implementation.
It is through communication only that the manager informs the employees about what they have to do and how the work has to be done. The importance of effective communication system increases with the increase in the size of business, growing competition, and advancement in technology.
‘Communication is the life-blood of business or nervous system of a business organisation’, as it helps the management and its business in the following ways:
1. Facilitates Planning: Communication facilitates planning in number of ways. Participation of executives in planning is a precondition for getting the task done. This can be secured only through interaction and communication.
2. Basis for Decision-making: Communication helps management in arriving at vital decisions. If the right type of information is not available at the proper time due to lack of communication, it may not be possible for management to consider all the pros and cons before taking a decision.
3. Achieve Effective Coordination: Communication helps in synchronising activities of different individuals and groups to bring about the unity of action. Liaison men who are employed to coordinate work of different individuals in the organization need to evolve communication between different parts of the organisation.
4. Facilitates Better Administration: Communication is important in the performance of all managerial functions. Planning which is one of the primary functions of management requires detalle communication among the managerial and other personnels.
5. Creates Mutual Trust and Confidence: An effective communication system helps the man to convey his ideas, views, decisions, suggestions and feelings to the employees. On the other the employees also get the opportunity to express their feelings and communicate their ideas reactions.
6. Motivation of Employees: Motivation of employees largely depends upon the effectiveness of communication. Sharing of information with employees helps management to secure their willing
Communication is a process which involves a sender of message and a receiver. Communication is complete only when the receiver is able to interpret the message as desired by the sender and responds to it. Communication is regarded as a two-way process. It includes sending of a message and response to that message. The receiver may or may not agree with the point of view of the sender of the message. However, for communication to be complete, the receiver must understand the message in the same sense as intended by the receiver.
- Reduces employee turnover: Companies with more engaged and satisfied employees enjoy much lower turnover rates.
- Coordination:Communication coordinates organizational human resources with non- human resources, individual goals with organizational goals and internal environment with the external environment. Coordination is the key to organizational success and communication is an active contributor to coordination.
- Communication promotes motivation by informing and clarifying the employees about the task to be done, the manner they are performing the task, and how to improve their performance if it is not up to the mark.
- Adaptability to External Environment:In order to survive in the changing, dynamic environment, managers continuously interact with external parties like government, suppliers, customers, etc. This requires effective communication system in the organisation.
- Improve Relationships: Good communication among the partners/shareholders improves their relationships.
- Enforce Rules: The company can’t enforce the rules without conveying them to the employees and the internal audience. Communication is necessary to let them understand what the company wants from them and how it wants it to be done.