Importance of Effective Communication

IMPORTANCE OF EFFECTIVE COMMUNICATION In this age of competition 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  effectivecommunication  a  manager  cannot  perform  his  duties  well. Communication  is  as  essential  to  business as blood is to the human body. Success of the communication system affects the successof business. The following points will prove its  importance in business: 1.Smooth  Working of a  Business Firm Communication is necessary for the successful smooth and unrestricted working of anenterprise. All organisational interaction depends upon working of an  enterprise. All organisationalinteraction depends upon communication. The manager co-ordinates the human and the physicalelements of an organisation into an  efficient and working unit that achieves common objectives. Beit an activity of purchase or sale or production or finance it is the process of communication thatmakes  cooperative  action  possible.The  internal  and  external  communication  process  of  anorganisation  decides  the  various  activities  to  be  done  and  various  objectives  to  be  achieved. â€Å"Communication is basic to an organisation’s existence from birth of the organisation through itscontinuing life when communication stops, organised activity ceases to exist. † 2. Basis of Managerial Function Communication  plays  an  important  role  in  discharging  the  various  functions  of  management. No function of management is possible without the communication process.Itsimportance in performing the various functions is as  follows:i. Planning : Planning the most important among the functions of management, require sextensive communication among the executives and the other personnel. Communication isimportant in executing a planned programme and then controlling the activities of the  personnel with the help of feedback information. ii. Organisation :  Organisation  is  the  second  important  function  of  management  whichdecides  the  various  activities  of  an  organisation,  divides  them  into  workable  units,delegates authority to perform the.For this purpose, communication is a must becausedifferent persons, departments and group come to know their powers and jurisdiction onlythrough an effective means  of communication. iii. Direction and Leadership : Direction and effective leadership requires an efficient systemof communication in an organisation. A good leader can direct or lead his subordinatesonly when an efficient system of communication is present. It brings both the leader andthe subordinates in close contact with each other and r emoves  misunderstanding if any. iv. Motivation An efficient system of communication enables management to change theattitude  of  the  subordinates  and  to  motivate,  influence  and  satisfy  them. Most  of  theconflicts in business are not basic but are caused by misunderstood motives and ignoranceof facts. Proper and timely communication between the interested parties, reduces the  points of friction and minimises those  that inevitably arise. v. Co-ordination : The present day big organisations, designed on the basis of specialisationand division of labour are constituted of a large number of people.In order to achieve thedesired objective, it is very necessary to co-ordinate the efforts of labour engaged in thevarious  activities  of  production  and  the  organisation. Co-ordination  requires  mutualunderstanding about  the  organisational goals  and the  mode of  their accomplishment;  andthe interrelationship betwee n the works being performed by various individuals. vi. Control : Communication aids in controlling the activities of the individuals departmentand groups. The facts standards and information are  communicated to the concerned partiesand they perform their respective obligations according to the standards set forth in the  plan. . Maximum Production at Minimum Cost Every organisation aims at getting the maximum output at the minimum cost and for this  purpose it requires an effective internal and external communication system. In the external field,and efficient communication system  helps in  improving public  opinion  having  contacts  withgovernment departments and getting market information in order to achieve the  primary goals. 4. Prompt Decision and  its Implementation In order to make prompt decisions, fact collecting process is necessary. Information must  be received before any meaningful decision and for this purpose communication is a primaryrequi rement.Again to  implement the  decision  effectively its  communication to  subordinatesconcerned is essential. Thus, decision-making and its implementation require and effective systemof communication. 5. Building Human Relations Man is the most active and effective factor of production and good human relations are the  basis  of  cooperation  and  industrial  peace  that  requires  good  working  conditions  and  work-environment. As  we  have  discussed  earlier  communication  is  a  two-way  traffic  which  helps  promote  cooperation  and mutual  understanding between the  two partners of  an  organisation.Efficient  downward  communication  helps  the  management  to  tell  the  subordinates  what  theorganisation wants and how it can be performed. On the other hand upward communication helpsthe workers in putting their grievances and suggestions and reactions to the policies, befor e themanagement. 6. Job-satisfaction and  Good Morale Morale is the human element that motivates a man to work in the right spirit. Goodcommunication removes the possibility of misunderstanding among the parties  concerned. Workersknow what they have to do and how it creates a sense of cooperation among them.It increases themorale of the workers and each worker will have job satisfaction. 7. Avoids Illusion While passing through various stages information may be distorted by interested partiesand many create illusion and misunderstanding among persons. Illusion is the great enemy of  communication. An  efficient  system  of  communication  aims  at  removing  illusions  andmisunderstanding by communicating facts and figures. 8. Contacts  with External  Parties Communication is essential not only for the internal management of the organisation but italso helps contacts with the outside world.Contact with outside agencies such as customers,associations,   other manufacturers, advertisers,  suppliers,  trade  unions,  research  councils  andinstitutions, etc. are necessary for furthering the interests of the organisation. It increases thegoodwill of the firm and helps in  creating a favourable public attitude towards the organisation. Steps to Make Communication Effective In order to remove barriers to communication an open door communication policy should  be prepared and followed by managers at all levels.The superiors in the organisation must createand atmosphere of confidence and trust in the organisation so that the credibility gap may benarrowed down. Major efforts in this direction are: 1. Two-way communication The  organisation’s  communication  policy  should  provide  for  a  two-way  traffic  incommunication upwards and downwards. It brings two minds closer and improves understanding  between the two parties the sender and  the receiver. A sound feedback system should be  int roducedin the organisation so that distortion in and filtering of messages should be avoided.There should  be no communication gap. 2. Strengthening Communication Network The communication network should be strengthened to make communication effective. For  this  purpose  the  procedure  of  communication  should  be  simplified,  layers  in  downwardcommunication should be reduced to the minimum possible. Decentralisation and delegation of  authority  should  be  encouraged  to  make information  communication  more efficient,  throughfrequent meetings, conferences and timely dissemination of information to the subordinates. 3. Promoting  Participative  Approach