importance of communication in business essay

importance of communication in business essay

The Importance of Communication in Business: A Comprehensive Analysis

1. Introduction to Communication in Business

The reason we communicate is to get something we want or need. Communication is a process that consists of the following elements: a sender, a message, a communication channel, a receiver, and a response. To be effective, communication must transmit the message in an easily understandable form, and it must yield a constructive response. Communication is the life-blood of all organizations, especially organizational work systems. Through communication, managers coordinate both human and material resources. They make decisions. They set the goals and direction for their organizations and then inspire people to work hard so that the goals are achieved and the direction maintained. They also inspire their employees to improve the organizations so that goals may be changed when necessary. Communication is also a means by which people express their feelings, project their heart, share their knowledge, and bond with one another. At other extremes, communication is often used to evaluate and control others. The impact of communication is extremely important to any business and specifically to the discipline of management.

Communication is the life-blood of all organizations, and it is what the interpersonal and public communication systems are all about. Through communication, managers coordinate human and material resources, make decisions, set directions for people, and inspire change. It is extremely important in any managerial, supervisory, or administrative position that a person be an effective communicator. This paper provides an in-depth examination of various facets of business communication and provides some observations about the business world in multiple cultures.

2. The Impact of Effective Communication on Business Success

In conclusion, we might note that institutional analyses, in general, seem to depend heavily on the content, organization, and quality of communication between the stakeholders. Well-developed information systems, developed communication channels and procedures are crucial for effective institutional interaction. When stakeholders are less informed and hence have limited information available, communication becomes cumbersome. It becomes harder for them to develop efficient working relationships and cost-benefit analyses of their strategies and actions become more difficult. For a stakeholder analysis which focuses on external and internal firm stakeholders, communication is crucial for creating commitment and channeling efforts towards creating value. In other words, communication may serve to reduce uncertainty and stickiness. Coordination costs can then be reduced and firm-specific investment encouraged. Providing more communication benefits to a specific group reduces the danger of internal squabbles and raises internal commitment and this could compensate external stakeholders for some of the risks they bear while reducing agency costs.

In today’s competitive business environment and due to varying needs and demands in the market, small and big companies spend large amounts of money on research to produce exemplary products and services. This can unfortunately often incentivize communicators to misuse research and manipulate data in order to achieve organizational goals. As a fundamental component of a communication process in organizations, good communication behaviors are essential for success. Most business organizations also attach great importance to communication. Successful organizations are always exploring new ways to improve their business communications, and why we think controlling employee interaction creates ethical responsibility lessons. By establishing a friendly communication model, it increases the productivity level of business organizations and the satisfaction level of employees. Good communication is important in an organization because it forms a circle of advantages, including increasing effectiveness and productivity, good understanding, good relationships, and efficient management.

3. Barriers to Communication in the Business Environment

In the business world, it is important to make correct and understandable communication in the right time and in the right place. People working within business organizations need to make communications clearly for a number of reasons in order to perform their duties. Businesses often fail because of poor communication between their employees, groups, leadership, and the participants. No matter how perfect the production facilities, products or financial resources a business has, it will be unsuccessful if it is operated unprofessionally. Even if its faults attract the most attention, poor communication also a rightful floor. Due to erroneous communication, countless waste of times and financial resources has been encountered. Non-communication negatively affects trust, morale, and motivation of the employees in particular, and productivity in the working environment. Reorganizations and mistakes realized during the change period may reveal the negativities between the names.

Although communication is the key to success, both on an individual and organizational basis, it has been determined that 70% of mistakes and misunderstandings within the organization are due to poor communication. Poor communication may cause interpersonal tensions, disturbances, and productivity reductions. The barriers of communication may be listed as physical, perceptual, ambivalent, linguistic, emotional, and cultural barriers. In this study, these barriers were checked in order to analyze their effect on the communication level of the organizations operating in Isparta. According to the results, all of the barriers have an effect on the level of communication. Specifically, linguistic and cultural barriers negatively affect the communication level.

4. Strategies for Improving Communication in Business

The management of a company’s external image must be developed with a complex perspective by integrating the global corporate policy. This goes beyond marketing. Business communication is a multifaceted activity of corporate management since it covers all interactions of the latter. Therefore, communication is also a key factor in identifying the structural crisis of companies in the sense of external institutional legitimacy with frequent difficulties and crisis situations concerning company reputation. This legitimacy is defined as conformance to the rules resulting from social behaviors that are constantly being transformed by a search for innovative business methods. Failure of the system to function due to a crisis can cause the downfall of the company. For example, in the financial sector, “the ego celebration of the new economy did not last long because the prices of new economy shares collapsed, and the people who had bought them at high prices were ruined.” Today SMS and Java “share the same terrible fate as the internet companies.” The answer to this is that “what fell was a disproportionate stock market excitement,” because we must be aware of the fallacy of the wishful numbers expressed in the very recent past to distinguish clearly from the quite or little possible, to lead to the most probable.

The mission, objectives, marketing strategy, organizational chart, systems, and procedures of the company need to be well defined. The regulatory objectives must be compatible with political decisions and must be understood and credible. The procedural objectives within the company must be simple, easily understood, flexible, adaptable, effective, and environmentally supportive. The inter-sectorial concord needs to be easy and transparent and avoid difficulty and confrontation between people. Increases in the capacity, knowledge, skills, management model, and innovative ability of the company’s employees are beneficial to external and interpersonal relationships. Consensus and support from each individual who is related to the company are beneficial, so it is necessary to involve them closely in the context of a global communication strategy.

4.1 Communication Strategy

5. The Role of Technology in Enhancing Business Communication

3. The Web and Podcast Business communication has also been revolutionized thanks to the web and podcasts. Webcasts, for example, allow businesses to stream live events, enhancing their relationships with their stakeholders. A webcast could also be available on-demand, such that the viewer can watch the presentation or meeting whenever they want, enabling them to stay updated in real time. Moreover, a podcast is an audio file that can be downloaded from the internet and saved in MP3 format on a PC or MP3 player. Podcasts offer great assistance to businesses who want their audiences to listen to their mini radio show with fewer problems.

2. Chat and Video Conference Business communication software available online to businesses has been developed to enable businesses to communicate with stakeholders as well as internally. Chat is one such example that has proven popular with many businesses. This involves real-time communication between two people or a group of people who are using instant messaging software. Chat provides businesses with a cost-effective, efficient manner by which they can maintain communication links with their potential customers, clients, employees, and colleagues. On the other hand, video conferencing allows two or more people in different geographical locations to see, hear, and communicate with one another. Video conferencing itself offers businesses a cost-effective way of reducing expenses. The expenses that can be reduced include the cost of travel, especially when employees from different regional offices or businesses need to communicate with one another and they are miles apart.

1. Introduction Technological advancement has proven to be essential for improved business communication. It has made it relatively easy and efficient for businesses to communicate both internally and externally. The role of the internet in business communication cannot be overlooked. Currently, the role played by the internet in business communication is quite expansive considering that many businesses utilize corporate blogs in order to keep their stakeholders updated on various issues, especially when changes are being made. Additionally, social network sites such as Facebook and Myspace are used by businesses to interact with their stakeholders and to keep them informed about anything that may be of interest to them.