Business Communication – Importance of Business Communication

For any business to become successful and stand out among its competitors,’ communication has to be there. This ensures that everyone in the organization is on the same page and moving towards the main goal. There are various types of business communication

Internal upward communication

This is a kind of communication that happens when a subordinate relays information to the manager or director. This kind of information enables the top management to know how things are being done in the organization. The senior official has to evaluate this information and ensures it is in line with the firm’s objective and vision.

Internal downward communication

It refers to information that has been set down from the top management to the staff. The communication can be done in the form of a memo, a letter, or a verbal directive. The information is given it has to be concisely. It ensures that there is no room for the employee to interpreter the memo differently.

Internal lateral communication

This refers to information sent between core-works. This can either be through a phone, email, or verbal. In a firm, it is important to have such communications since it enables the employees to function as a unit. However, every communication done should be professionally and respectfully.

External communication

This is a message that targets consumers, suppliers, and even shares holders. When messages are sent outside the firm, they are supposed to be concise and straight to the point. It has to be clear to ensure there is an understanding between the firm and external parties.

Business Communication

Importance of business communication

The flow of information in a firm determines the profit at the end of the financial year. Hence, companies, whether small or big, must have the right channels of communication. Here are some reasons why business communication is vital for a business to survive in the local or international market.

  • Management efficiency: For a business to be successful, there has to management of operations. Therefore, when there are appropriate communication channels information flows correctly. This is from the top, middle and lower management; it increases efficiency and production of goods and services.

    An example is a warehouse, whereby order comes in at different times. If an order has been placed, and the buyer changes his mind the firm has to notify the employees. The information about this should be sent immediately to the processing team to stop production. This saves time and maximizes on resources.

  • Resource utilization: maximization of profits and minimization of cost is the main aim of a business. Therefore when the available resources are utilized accordingly then, the firm is bound to make profits. However, this can only be achieved if the information is given to the right personnel at the right time. Through communicating the management can know the number of staff needed to work on a product.

    The top management ensures the employees are not over-staffed or under-staffed. For example, if information about employees being overstaffed at a particular section is relayed to the senior management on time, changes shall be made immediately. This guarantees maximum utilization of the human resource, reducing time wastage.

  • Giving information: It’s the main aim of any communication that happens between the top, middle, and lower management. Once the message is channeled to the relevant authorities in the firm it is then distributed to the staff.

    This ensures that every personnel is on the same page regarding the mission and goals of the company. This, in turn, unites them and makes them function as one and later improves the quality of goods and services.

  • Persuasion: For the company to improve its sales advertisements are needed to promote the product. The language used by the firm to lure a buyer must be polite and enticing. Hence communication is required to educate the consumer about the product and its benefits. In return, the consumer can relate to the product and buy it, which increase sales and profits.
  • Warning and appreciation: Human beings like to be appreciated for the work done. Hence, employers need to appreciate their employees since this motivates them. Nonetheless, if an employee is an indiscipline, a warning should be issued. This can be done through a written document or orally.

Final word

Communication plays a huge part in the business today. If there is a problem in the channels used, it can be devastating to the firm. Therefore all companies need to ensure they have proper working channels to relay information.

Let there be no delays in the flow of information as this affects productivity and sales. Therefore, the right channels need to be established and made public to the consumers, suppliers, and even employees.


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