Need and Importance of Communication in Business

Need and Importance of Communication in Business

Human beings cannot live in society without communication. Communication has great importance in day to day life.

According to Herter A. Murphy. “Effective communication is the life blood of every organization and a key to success in your business, career as well as in your personal life.”

Importance of communication in business is depicted in the image below.

Image credits © Manoj Patil.

Role of communication in business are followed:

1. Helps in the international and national market
2. Helps in Effective Business
3. Helps in Effective Business
4. Image building
5. Check on competitors
6. Assist to collect information
7. Avoid Stress
8. It helps Research and Development
9. Better Industrial Relations
10. Increases Turnover

Need for effective communication in business are discussed in brief.

1. Helps in the international and national market

Communication helps in the development of international and national market. This is the age of big business. Many business houses are so large that they may be termed 'Empires'. Now-a-days, the modern business has not remained the local business. It has expanded its geographical boundaries and spread over regions and countries. It has now become national and international in its nature and scope.

2. Helps in Effective Business

Communication aids in the effective management of businesses. A businessman spends 90% of his time in communicating. This means that unless he is effective, speedy and uses the best means and instruments he will be wasting valuable time and will lag behind his rivals / competitors.

3. Help in Better Co-ordination

Communication helps in creating good co-ordination among the employers. Ours is an age of specialization. Within an organization, the work is assigned to different people depending upon their ability and their status. Each person does a small part of the job and unless these parts of work are co-ordinate, the organization may not function properly. If there is poor or no communication among these persons as a result of which the work will suffer.

4. Image building

Communication leads to goodwill in an organization. Lack of communication leads to misunderstandings. The present cut throat competition in the widely expanded market has made it indispensable for the seller to communicate with the buyer more carefully, regularly and effectively.

5. Check on competitors

Communication assistances in keeping an eye on rival activity. The businessman has to keep a check on his competitors if he has to keep his business prosperous.

6. Assist to collect information

Communication helps to collect latest information about the market. Information, like the expansion plans of the competitors, their position in the market, their quality of products, etc. is needed by every businessman who wants to remain in the market.

7. Avoid Stress

Effective Communication leads in avoiding stress. This is an age of tension. Not being able to communicate can result in tremendous mental tension, especially when the businessman knows that his rivals are more successful only because they are better communicators.

8. It helps Research and Development

Communication makes helps in research and development of the company. Businessman has to conduct market research and study different trends concerning demand, supply and as well as the taste of the customer.

9. Better Industrial Relations

Communication aids in maintaining better industrial relationships with the customer. A deep study of the modern psychology guides the management to have better industrial relations with the workers, which can motivate the workers, raise their morale, create an atmosphere of co-operation and increase productivity.

10. Increases Turnover

Efficacious communication helps in increasing the turnover of the business. If the businessman fulfills these communications needs, he will certainly be successful with increased turnover, fame and prosperity.