Purpose of Communication in business


Meaning of Communication

Communication is the medium through which wide information is exchanged within the business. It is simply a process of exchange of ideas, facts and information from one person to another person through a verbal or non-verbal medium. There are at least two persons within the communication process that is one sender and other receivers. Communication is a two-way process requiring equal response from both sides, merely sending and receiving messages is not a communication process.

Communication is termed as lifeline of business and has an important role in the achievement of organisational goals. It helps the managers in proper management by timely providing all relevant information about the organisation. Managers can properly formulate and implement better policies within the organisation by having better understanding through information provided by the communication process. Information flows both upwards and downwards in a communication process that is from employer to employees and from employees to the employer. It helps in creating a better understanding and work culture among people in a business environment by the proper flow of information.

Everyone working with the organisation gets the right to express their views and problems through a communication network. It motivates and makes them satisfied thereby improving the work efficiency of the organisation. Communication process is required by every business for its successful functioning. Purpose of the communication process is explained in the points given below:

Purpose of Communication

Purpose of Communication
Purpose of Communication

Helps in Decision Making

Communication has an effective role in effective decision making of the business. Better decision making by managers is possible if they have a sufficient amount of information available to them. Communication helps in the continuous flow of information about the organisation to the management team. Quality of decision making depends directly on the quality of information available. Proper communication system ensures better decision making within the organisation.

Ensures Smooth Functioning of Business

Proper working of the business is dependent upon the system of communication. Communication network within the business is the basis for organizing all its affairs. It provides full detail about business operations and ensures that all activities go in accordance with the plan. Managers can take all necessary steps timely whenever required through proper knowledge of business affairs. In the absence of communication, it becomes difficult to implement strategic policies and achieve targeted goals. 

Creates Effective Team

Communication process helps in bringing people together efficiently and the creation of a good team. It helps team leaders to boosts their subordinate’s morale and clearly directs them about company vision and goals. Through better communication, all people working in business can clear their doubts and ask for support easily through it. It improves the confidence and team spirit of all members working within the organisation. Regular and better communication within the organisation helps in developing an efficient team.

Boosts Customer Relationship

Customers are important for every business and every business aims to win their confidence. Better communication between business and customers helps in improving their relationship with them and winning their loyalty. Customers can contact the business in case of any grievances and get it resolved easily. Listening and understanding your customer problems will help in providing better customer service and thereby improving their satisfaction level.

Increase Productivity and Reduce Cost

Communication support business in improving their productivity and minimising their cost. Employer and employees are able to contact each other through the communication process. Employers can easily guide and suggest the ways to its subordinates to work effectively towards goals. Employees also get a proper understanding of what they have to do and can clear their all queries by communicating to their superior. When employees are fully aware of their roles and targets they work efficiently thereby increasing the productivity.

Promotes Motivation

Communication helps the organisation in boosting the morales of their manpower. Better communication of information results in better relations within the organisation as all disputes are easily managed. Employees are free to communicate and can present their ideas and plans to the organisation. They can easily bring their grievances in notice of management and get it resolved timely. It develops mutual trust and faith in the internal environment. Employees feel that the organisation care for them and they are a valuable part of it. It motivates them towards their defined roles.

Enhances Business Goodwill

Adequate communication process helps the business in developing a better image in the market. It helps business to stay connected with all its stakeholders and provides all information timely. All stakeholders can easily interact with business and acquire all required information through a well-established network. Better image help the business helps in winning a competitive advantage in the market.