Importance of Effective Business Communication

Definition of Communication 

"Communication is the process of sharing ideas, information and messages with other people at a time and place. "

Importance of Business Communication

Basically, communication is to give each other signals. Communication is the transmission of information is clear, and understandable. The process of sending a signal that can be through speech, writing or through gestures.

In a business, reputation and credibility must be established in order to customers feel comfortable to give confidence to you. Especially in long-term business relationships with employees and customers, having the sensitivity of professionalism will deliver a lot of positive values​​. This is where the need to play the role of business communication. The success of any business depends on communication effectiveness. The more effective a communication, the more positive the resulting value. The effectiveness of a real communication is measured by how much produce the action from your audience and readers.


Effective communication in business is most essential in order to survive and make progress. It is a fact that successful communication is the foundation of a good relationship between seniors and subordinates, between employees and management, and between customers and sellers. Good communication systems and efficient will help to better coordination and efficient control. A good communication system produces a clear understanding, good production, and healthy climate within an organization.
Business communication includes not only communication with outside contacts, but also communication with the workers in a company, if it is done it will really help your company well organized. Effective business communication may be represented to a manager who can motivate employees, provide recommendations and feedback to improve the efficiency and effectiveness in business.

Ability to communicate effectively must be possessed by a businessman. A person who has the intelligence only, can simply not able to translate for him for his intelligence in communicating their message to others. Creating and bringing in the idea that a common thing, but the ability to convert them into a presentation that is easy to understand, not everyone can. Have knowledge of effective communication both verbally and in writing is an asset for a communicator. Communication can be understood and responded well to bring someone to the gates of success. 

Functions of Management

1. Planning

   It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals. According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.
   
   
2.  OrganizingIt is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”. To organize a business involves determining & providing human and non-human resources to the organizational structure. Organizing as a process involves:
   
   • Identification of activities.
   • Classification of grouping of activities.
   • Assignment of duties.
   • Delegation of authority and creation of responsibility.
   • Coordinating authority and responsibility relationships. 
   
   
3.  Staffing
   
   It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. According to Kootz & O’Donell, “Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure”.
   
   Staffing involves:
   
   • Main-power Planning(estimating man power in terms of searching, choose the person and giving the right place).
   • Recruitment, selection & placement.
   • Training & development.
   • Remuneration.
   • Performance appraisal.
   • Promotions & transfer.

4. Directing

   It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals.
   
   Direction has following elements:
   
   • Supervision
   • Motivation
   • Leadership
   • Communication 
   
   Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers.
   
   Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.
   
   Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction.
   
   Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding.
   
   
5.  Controlling
   
   It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”. According to Koontz & O’Donell “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”.
   
   Therefore controlling has following steps:
   
   1. Establishment of standard performance.
   2. Measurement of actual performance.
   3. Comparison of actual performance with the standards and finding out deviation if any.
   4. Corrective action.

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