Importance of communication in business needs no emphasis. The great developments in trade and commerce over the years have led to a corresponding increase in its importance.
Referring to the importance of business communication, Herbert Simon says:
“Without communication, there can be no organizations for there is no possibility then of the group influencing the behavior of other individuals.”
The activities of a business organization require its members to act and react. In other words, members of business organizations are required to interact with each other for exchange information, ideas, plans, terms of business transactions, make proposals, decisions, contracts, and agreements.
The world of business is a world of action. Products are designed, made and sold. Terms of sales and purchases are offered, discussed and agreed upon to finalize business transactions.
The parties involved in a business deal are interested in their respective benefits. The consumer is interested in his satisfaction whereas the seller is interested in his profit.
There is no practical way in which any of these events can take place without communication.
Today commerce and trade have been extended to a great space, and it is not possible for a businessman or a business house to accomplish successful business deals without leveling its path through fruitful business correspondence.
It is so vital that without it no business activity can be carried out. The more effective is the communication, the more is the possibility of success in business.
Below are different points which show the importance of business communication for an organization. You can also say that these are the chief elements of business communication:
See Also: What is Business Communication
Importance of Business Communication
Life-blood of an organization
Communication is so vital to every conceivable type of business that it serves as the life-blood of an organization. Just as a body cannot be thought of without blood so an
organization cannot be thought of without communication. An organization that cannot communicate, it not only fails to achieve its goals but it eventually ceases to exist.
It is, therefore, very imperative for every organization to develop an effective system of Communication to meet its targets.
Initiates Business “Transactions
Such is the importance of communication that no business transaction can be initiated without it.
Whether a company desires to sell its product or wants to make purchases, it begins the process by involving in one or the other form of communication.
In fact, no organized business activity, whatsoever, can be launched without having an interaction with the individual or individuals at the other end.
Accomplishes Successful Business Transactions
Doing something is important but doing it effectively and successfully is more important.
Every business individual and every business house look for successful business transactions, and no successful business transaction can be accomplished without communication.
No decision can be taken and no plan can be made without obtaining necessary information prior to taking any step.
Finally, no plan can be implemented and executed without making communication. Hence, it is important to make communication at all the required levels to obtain the desired results.
Basis of Managerial Functions
All management functions in organizations are performed through communication. Without question, communication is the tool that enables organizations to perform their functions.
The basic management functions probably carried out through transportation, which comes under it.
This also assist you to control the activities of individual or group of individuals. This is all about the effective managerial communication.
Builds Better Business and Human Relations
All business activities are carried out through organized efforts. Organizing of efforts asks for cooperation and coordination that can be had only through better human relations.
Managers, subordinates and skilled and unskilled workers in an organization share ideas at different levels to meet the challenges that confront them from time to time.
Similarly, two organizations in business with each atom have frequent communication contacts.
This in turn develops mental understanding and cooperation which promotes better business and human relations.
Communication is thus one of the most important activities that creates and promotes such human relationship as binds the people inside and outside the organizations together.
Enhances, Knowledge, Skill and Experience
A frequent opportunity of holding communication and interaction with other people enhances knowledge, skill and experience of the person or persons involved in the process.
By exchanging information communicators get newer and better ideas that enrich their knowledge of the business strategies.
Through communication, they develop their own sense of their skills, their abilities, their knowledge, their competencies and their deficiencies.
They learn who they are, what they are good at, what they need to change or improve, and how people react to how they behave.
The feedback that they get from their counterparts helps them beyond any other thing to develop their business skills.
This ultimately enables them to take a realistic view of their own perceptions and the perceptions of others.
