Importance of Communication in an Organization

Effective Communication is significant for managers in the organizations so as to perform the basic
functions of management, i.e., Planning, Organizing, Leading and Controlling.

Communication helps managers to perform their jobs and responsibilities. Communication serves as a
foundation for planning. All the essential information must be communicated to the managers who in-
turn must communicate the plans so as to implement them. Organizing also requires effective
communication with others about their job task. Similarly leaders as managers must communicate
effectively with their subordinates so as to achieve the team goals. Controlling is not possible without
written and oral communication.

Managers devote a great part of their time in communication. They generally devote approximately 6
hours per day in communicating. They spend great time on face to face or telephonic communication
with their superiors, subordinates, colleagues, customers or suppliers. Managers also use Written
Communication in form of letters, reports or memos wherever oral communication is not feasible.

Thus, we can say that “effective communication is a building block of successful organizations”. In other
words, communication acts as organizational blood.

The importance of communication in an organization can be summarized as follows:

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.

Communication is a source of information to the organizational members for decision-making process as

it helps identifying and assessing alternative course of actions.

Communication also plays a crucial role in altering individual’s attitudes, i.e., a well informed individual
will have better attitude than a less-informed individual. Organizational magazines, journals, meetings
and various other forms of oral and written communication help in moulding employee’s attitudes.

Communication also helps in socializing. In todays life the only presence of another individual fosters
communication. It is also said that one cannot survive without communication.

As discussed earlier, communication also assists in controlling process. It helps controlling organizational
member’s behaviour in various ways. There are various levels of hierarchy and certain principles and
guidelines that employees must follow in an organization. They must comply with organizational
policies, perform their job role efficiently and communicate any work problem and grievance to their
superiors. Thus, communication helps in controlling function of management.

An effective and efficient communication system requires managerial proficiency in delivering and
receiving messages. A manager must discover various barriers to communication, analyze the reasons
for their occurrence and take preventive steps to avoid those barriers. Thus, the primary responsibility
of a manager is to develop and maintain an effective communication system in the organization.

Importance of effective communication

In this age of competition, the communication is the number one problem of the management.
Competition, complex methods of production, large scale operations and specialisation in production
functions have increased the importance of communication. Without effective communication, a
manager cannot perform his obligations well. Communication is as essential to the business as blood to
the human body. The following points will prove its importance in the business :

1. Smooth Working of an Enterprise : Communication is necessary for the successful, smooth and
unrestricted working of the enterprise. All organizational interaction depends upon the communication.
The manger co-ordinates human and the physical elements of the organization into an efficient and
working unit that achieve common objectives. Be it an activity of purchase or sale or production or
finance, it is the process of communication that makes co-operative action possible. The internal and
external communication process of the organization decides the various activities to be done and
various objectives to be achieved. Communication is basic to an organization's existence-from birth of
the organization through its continuing life. When communication stops, organized activity ceases to
exist.

2. Basics of Managerial Functions : Communication plays an important role in discharging the various
functions of management. No function of management is possible without the communication process.
Its importance in performing the various functions is as follows :

(i) Planning : Planning, the most important among the functions of management, requires extensive
communication among the executives and the other personnel. Communication is important in
executing a planned programme and then controlling the activities of the personnel with the help of
feedback information. The planning is useless in the absence of communication. It is also necessary in
evaluating the performance of the personnel in the light of planned objectives.

(ii) Organization : Organization is the second important function of the management which decides the
various activities of the organization, divides them into workable units, delegates authority to perform
them. For this purpose, communication is a must because different persons, departments and groups
come to know their powers and jurisdiction only through an effective means of communication. In the
words of George R. Terry "Communication is the means by which the act of delegation is accomplished".
According to him, communication serves as the lubricant fostering the smooth operation of the
management process.

(iii) Direction and Leadership : Direction and effective leadership requires an efficient system of
communication in the organization. A good leader can direct or lead his subordinates only when an
efficient system of communication is present. It brings both leader and subordinates in close contact to
each other removes misunderstanding if any. It promotes co-operation and helps in getting the work
done in the desired direction.
Communication is a very important tool in the hands of management to get the work done effectively.
The importance can be judged from the following facts :

1. Communication is necessary for the smooth running of the enterprise.

2. Communication is the basis of managerial functions, i.e.,

(i) Planning needs communication among executives and workers.

(ii) Organization decides the various activities of the organization and suggests best ways to perform
them. It requires communication.

(iii) Direction and leadership requires efficient communication system to remove misunderstanding and
getting work done effectively.

(iv) Motivation requires communication for the change in the attitude of workers.

(v) Co-ordination of the efforts of subordinates and of organization is the result of efficient
communication.

(vi) Control requires feedback, evaluation of work, locating the deviations and their removal in the next
plan. It can be done only with the help of good communication system.

3. Maximum production at minimum cost needs efficient internal and external communication system
by promoting the efficiency of workers and improving social relations.

4. Prompt decision and its implementation is the outcome of an efficient communication system.

5. It promotes human relations, co-operation and industrial peace in the organization.

6. Job-satisfaction and good morale improves the productivity of the enterprise and communication
fulfills that need.

7. Communication avoids illusion and misunderstanding.

8. Contacts with external agencies is possible only through an effective system of communication.

The role of communication in organizational behavior is a vital one, as miscommunication typically

reduces productivity and increases error and waste. Accurate communication transmitted in a
supportive manner often results in increased morale and may also lead to a greater sense of
camaraderie among staff. Within organizations, having a more open communication policy may provide
a safety valve to vent problems before these issues impact productivity. Another role communication
plays in organizational behavior includes equipping stakeholders to clearly communicate the
organization's mission. Maintaining an accurate record of the organization's activities and encouraging
civil and positive engagement with customers and stakeholders are two other important roles played by
communication in organizational behavior.
Failure to transmit accurate instructions may negatively impact communication. This may result in an
increased error rate, and diminished productivity in the workplace. If a supervisor's instructions are
misunderstood, serious consequences may result. These may include injury to employees or offending a
highly valued client.

Clear, consistent communication, on the other hand, often encourages more productive workplace
behavior and increases morale.

The role of this type of communication in organizational behavior results in workers feeling more in
control of their environment. Encouraging productive communication between staff and clients has
been demonstrated, in many cases, to increase customer satisfaction as well.

Equipping stakeholders to accurately communicate an organization's values and mission is another

important aspect of communication in organizational behavior. Sometimes companies take new
employees or board members through an orientation session in order to give them a historical and
current picture of the organization. This helps ensure that all of those associated with the organization
communicate similar messages about its mission and goals.

Instituting an open-door policy for employees may also be a part of facilitating accurate communication
about the organization to those outside it. This often supports public relations initiatives, as disgruntled
employees or those who have unresolved issues may disseminate hostile reports, thus causing a public
relations problem for the organization. From a proactive standpoint, equipping stakeholders with
accurate information about the organization often facilities positive public relations.

For example-

My husband has a few employees who speak Spanish and very little English. This can be a frustrating
situation from both sides.

When my husband explains something to them that he wants done, they appear to understand what he
is communicating to them. He has found that many times they appear to understand what he is saying,
but really don't, and then they don't accurately complete the task.

From the employees' point of view, they may feel somewhat embarrassed to admit they don't
understand, and just try to figure it out.

Communication at work can be hard no matter what, but when you are dealing with separate languages,
that can be even more challenging