Business Communication: Meaning, Importance, Characteristics, Elements


Meaning of Business Communication

Business Communication is the process of passing information and understanding from one person to another. it is the process of imparting ideas and making oneself understood by others. Communication may be defined as interchange of thought or information to bring about mutual understanding and confidence.

Business communication is one of the important elements to grow business. The goal of communicators is to convey their thoughts in the mind of people. Business communication plays a vital role in the growth of the business.

Importance of Business Communication

Improves managerial performance

Communication system plays an effective role in flexible operations of the business and it is all possible only when there is an effective and smooth communication system. It helps to remove grievances and improves mutual understanding of the employees.

Increase the morale of the employees

Better communication increases the participation of the employees in the management. It helps to build better relations between the employees and management. It also helps management to get new ideas and ground problems of the organisations.

Mutual trust

Better mutual trust between employees and management is very crucial for effective functioning of the organization. When there will be better and effective communication it will reduce the misunderstanding and develop better trust.

Better staffing

Communication helps to understand the leadership qualities of the employees. It also helps the management in the proper functioning of staffing functions like selection, socialization, transfer, and promotion thereby helps in placing the right man at the right job.

Helps in proper management

Effective communication process helps to perform in better managerial functions such as planning, directing, controlling and organizing, that can’t be conducted without proper communication channel.

Improve Public Relations

Effective communication with the external groups such as shareholders, customers, suppliers, trade unions, press and government is very important for a modern business. It can build a good public image of the business .

Characteristics of Business Communication

Practical in nature

Effective communication deals with the real and genuine aspect of information which clearly explains requirements of the customers. It completely removes any impractical and unnecessary information to avoid any wastage of time.

Factual in nature

The message related to business basically consists of some factual data which depicts the full information relating to business. Critical information like date, time and place should be clearly shown in the message meant for business.

Precise and easy language

The message for communication should be written in an easy and precise language. There should be the use of pictures, diagrams, and charts for easy clarification of the information. it helps to understand the message of the sender effectively.

Two Way Traffic

Communication is a two – way traffic. The process of communication is not completed until the message has been understood by the receiver. Understanding is an essential part of communication, but it does not imply agreement .

Pre-planned target

The communication process of business must contain certain pre-decided objectives and full efforts should be made in order to achieve them. The pre-decided objectives pushes the sender during communication to achieve the goals.

Persuasive in nature

The communication process has a persuasive effect. It forces an employee to perform his or her duties in order to achieve the pre-decided goals.

Elements of Business Communication


Clarity is most thing in order to make communication effective. Communicator should use common words and should get to the point. Communicator should make the communication more available to the listener or the reader.


Communication must have a structure from beginning to end. Communicator should know the logical structure that would be to reader or listener. Communicator should avoid overly wordy.


Understanding the audience and their taste is the key to whole communication, Because when the communicator aware the preference of their audience then communication will be worthy.


Communicator should use the right medium to address his audience. Communicator should know what kind of medium, his audience prefer. it would be voice-to-voice or face-to-face communications.