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Why Is Effective Business Communication Important?

What Is Business Communication?

Business communication is the sending and receiving of effective communications within a corporation, organization, or business.
Effective business communication is essential for the success and growth of every organization. It is a vital part of everyday management affecting understanding, and efficiency in every layer of a business. In business management this may be most often seen in:
  • Planning
  • Organizing
  • Staffing
  • Directing
  • Controlling.

Effective business communication is also essential in ALL areas of a business including:

  • Marketing
  • Meetings
  • Providing information to employees and customers
  • Presenting options/new business ideas
  • Making plans and proposals (business writing)
  • Executing decisions
  • Reaching agreements
  • Sending and fulfilling orders
  • Providing feedback to employees and customers.

In all of these areas, business communication involves a constant flow of information from the sender to the receiver and is the main method for directing and controlling people in the organization.


Modern Businesses

Many modern organizations have multiple departments and branches. Many operate internationally or include international customers. In this modern globalized world, clear and effective communication is even more important to ensure business success. Sadly, evidence shows that businesses with large numbers of people often struggle to manage their communications effectively. There must be effective communication between superiors and subordinates in an organization (internal communication) and between the organization and society at large (External communication).

Business communication is goal oriented with rules, regulations, policies, directions and information of a company being communicated internally and externally. Communication methods are not limited to letters and telephones as they used to be, email, messaging, and video conferencing all support the business communication process and add a new level of understanding to the modern mix of communication methods.


Why is business communication important?

Business communication is important in the following areas:

  • Improving relationships

Enabling management and workers to communicate their thoughts, feelings and requirements improves working relations which are critical to the success of any business.

  • Boost motivation and morale

Improved relationships and understanding between employees and employers increase motivation. Being involved in planning, policies, issues, and goal setting improves the knowledge, commitment, and understanding of everyone involved. Making staff and managers more efficient and motivated when performing their duties.

  • Job satisfaction

An improved understanding of the business, and involvement in its development through effective and fair two-way communication improves understanding between employees and management. Contributing to higher levels of job satisfaction.

  • Higher productivity

Effective business communication increases productivity by improving understanding, trust and encouraging teamwork. Cooperation with employees and understanding their wants and desires are required for effective communication.  It also reduces the possibility of making mistakes during their task.

  • Helps the decision-making process

With a greater understanding of the situation, there is a larger pool of current knowledge to draw on. through effective communication, decision-makers can get a wide range of information from various sources and use it to make sound decisions.

  • Minimize conflicts

Effective communication means that misunderstandings are minimized, and cooperation and a common understanding are promoted. This results in a reduced number of conflicts, debates, and disagreements which improves the operational efficiency of the business.


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Posted in Business Communication Skills, Leadership.