Business Communication

Communication is neither the transmission of a message nor the message itself. It is the mutual exchange of understanding, originating with the receiver. Communication needs to be effective in business. Communication is the essence of management. The basic functions of management (Planning, Organizing, Staffing, Directing and Controlling) cannot be performed well without effective communication.

Business communication involves constant flow of information. Feedback is integral part of business communication. Organizations these days are verly large and involve large number of people. There are various levels of hierarchy in an organization. Greater the number of levels, the more difficult is the job of managing the organization. Communication here plays a very important role in process of directing and controlling the people in the oragnization. Immediate feedback can be obtained and misunderstandings if any can be avoided. There should be effective communication between superiors and subordinated in an organization, between organization and society at large (for example between management and trade unions). It is essential for success and growth of an organization. Communication gaps should not occur in any organization.

Business Communication is goal oriented. The rules, regulations and policies of a company have to be communicated to people within and outside the organization. Business Communication is regulated by certain rules and norms. In early times, business communication was limited to paper-work, telephone calls etc. But now with advent of technology, we have cell phones, video conferencing, emails, satellite communication to support business communication. Effective business communication helps in building goodwill of an organization.

Business communication is used to promote a product, service, or organization; relay information within a business; or deal with legal and similar issues. It encompasses a variety of topics including: consumer behavior, advertising, public relations, corporate communication, research and measurement, reputation management, and event management. Business communication may also refer to internal communication: a communications director will typically manage internal communication and craft messages sent to employees. It is vital that internal communications are managed properly because a poorly crafted message could foster distrust or hostility among employees.

Failures of human communication can become amplified in professional settings. In business transactions, especially those involving large amounts of money, a small miscommunication can have devastating effects. For this reason, clarity is absolutely essential. Communication must be consistent, concise, and honest in order to ensure the intended message is received.

Business Communication can be of two types:

1. Oral Communication - An oral communication can be formal or informal. Generally business communication is a formal means of communication, like : meetings, interviews, group discussion, speeches etc. An example of Informal business communication would be - Grapevine.
2. Written Communication - Written means of business communication includes - agenda, reports, manuals etc.

The success of a business depends on the efficacy of business communication. For this, communication is regarded as the lifeblood of business. The role or importance of business communication is discussed below:

1. Exchanging information: Communication is mainly the exchange of information between two or more parties. Through communication, organizations exchange information with internal and external parties. Communication also brings dynamism in organizational activities and helps in attaining goals.
2. Preparing plans and policies: Communication helps in preparing organizational plans and policies. Realistic plans and policies require adequate and relevant information. The managers collect required information from reliable sources through communication.
3. Execution of plans and plaices: For timely implementation of plans and policies, managers must disseminate those in the whole organization. In order to disseminate the plans and policies to the internal and external parties, managers rely on communication.
4. Increasing employee’s efficiency: Communication also helps in increasing the efficiency of employees. With the help of communication, organizational objectives, plans, policies, rules, directives and other complex matters explain to the employees that broaden their knowledge and thus help them to be efficient.
5. Achieving goals: Effective communication helps the employees at all levels to be conscious and attentive. It ensures timely accomplishment of jobs and easy achievement of goals.
6. Solving problems: Through various communication channels, the managers can be informed of various routine and non-time problems of the organization and accordingly they take the necessary actions of steps to solve the problems.
7. Making decisions: Making timely decisions requires updated information. Through effective communication, managers can collect information from different corners and can make the right decisions.
8. Improving industrial relation: Industrial relation is the relation between workers and management in the workplace. Good industrial relation is always desired for business success. Communication plays a vital role in creating and maintaining good industrial relation.
9. Publicity of goods and services: In the modern age, business is becoming highly competitive. Almost very competing manufacturer produces products of common consumption. However, all of them cannot sell equally well. The organization that can communicate better, can also sell better.
10. Removing controversies: Effective communication allows smooth flow of information among various parties involved in the negotiation or transaction. As a result, conflicts, controversies and disagreements can be resolved easily.
11. Enhancing employee satisfaction: If there is free and fair flow of information in the organization, it will certainly bring mutual understanding between management and workers. Such understanding enhances the satisfaction of employees.
12. Enhancing loyalty: Effective communication helps the managers to be aware of the performance of their subordinates. In such a situation, the subordinates try to show their good performance. Later on, if management praises their performance, it will enhance employees’ loyalty.