QS Study

Importance of Communication in Business Management

Communication is one of the most central aspects of managerial activities. It has been estimated that a manager spends 90 percent of his time in communicating-reading, writing, listening, guiding, instructing, approving, reprimanding, etc. All modern managers need to ensure communication is effective; communication might be oral, face-to-face, written, by telephone, fax, email or internet, but whichever method is used it must be effective. The effectiveness of a manager depends significantly on his ability to communicate effectively with his superiors, subordinates and external agencies such as bankers, suppliers, union and government.

The importance of communication in management can be judged from the following:

  • Acts as the basis of coordination: Communication acts as the basis of coordination. It provides coordination among departments, activities and persons in the organization.
  • Helps in the smooth working of an enterprise: Communication makes possible for the smooth and unrestricted working of the enterprise. All organizational interactions depend on communications.
  • Acts as the basis of decision making: Communication provides needed information for decision making. In its absence, it may not be possible for the managers to take any meaningful decision.
  • Increases managerial efficiency: Communication is essential for the quick and effective performance of managerial functions. The management conveys the goals and targets, issues instructions, allocates jobs and responsibilities and looks after the performance of subordinates.
  • Promotes cooperation and industrial peace: Efficient operation is the aim of all prudent management. It may be possible only when there is industrial peace in the factory and mutual cooperation between management and workers.
  • Boosts morale and provides motivation: An efficient system of communication enables management to motivate, influence and satisfy the subordinates. Good communication assists the workers in their adjustment with the physical and social aspect of work.