Importance Of Effective Business Communication

| October 31, 2014 | 0 Comments

Communication is the lifeblood of every organization. It is as essential to business as blood to human body. Success of business wholly depends on the effective communication. Expansion in business has increased its importance. Without the effective network of communication, the matters of business cannot be run in a befitting and successful manner. Its importance can be discussed under the following heads:-

Importance Of Effective Business Communication

Smooth Functioning Of Business Organisation:

Communication is quite essential in order to run the affairs of a business organisation in a successful way. Without it no organisation can function. The activities of a business organisation require its members to act and react, They exchange information, ideas, proposals, opinions etc. to  achieve their common objectives. Every matter whether it pertains to purchase or sale, finance or production, can be better looked after through the smooth flow of downward, upward and horizontal communication and coordination of the members of organisation.

Planning And Controlling Business Matters:

The purposes of every organization is to earn maximum profit. It is possible when maximum production is achieved at the minimum cost. This objective can be achieved only when there is an effective internal communication system. In order to boost up the sales of the products of the company. external effective communication is required. It helps in improving public opinion, establishing links with the suppliers, whole sellers, retailers and customers.Production, regulation of quantity, quality control and distribution of goods and services are not possible without effective communication.


Communication plays a very important role in decision making. In order to make prompt decision, information, proposals, opinions and facts are required so that the decision may be just and accurate. when a decision is made in the light of comments and opinions of the decision effectively, its communication to lower-level workers or subordinates is essential. Therefore, both the activities of decision-making and its implementation require effective flow of communication.

Building Good Relations:

In fact, effective communication is the bedrock of good and pleasant relationship between the seniors and the subordinates, between the management and the workers, between the sellers and customers. Good and efficient system of communication helps in better co-ordination and mutual understanding. Good relations helps in removing misunderstanding, grievances promoting business and building goodwill.

External effective communication is as much important as internal communication. Cont acts with the outside agencies as customers, suppliers, trade unions, stock holders, potential employees, government agencies, the press, the research institutes and general public are essential for the achievement of the objectives of the organization.

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