Last Updated 10 Mar 2020

Purpose and Importance of Business Communication

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B USINESS C OMMUNICATION : A N I NTRODUCTION 1. 1 I NTRODUCTION 1. 2 R OLE OF C OMMUNICATION IN B USINESS 1. 3 D EFINITIONS OF C OMMUNICATION 1. 4 P URPOSE OF C OMMUNICATION 1. 5 T HE C OMMUNICATION S ITUATION 1. 6 T HE C OMMUNICATION P ROCESS /C YCLE 1. 1 INTRODUCTION The word “communication” derived from the Latin word ‘communicare’ that means to impart, to participate, to share or to make common. It is a process of exchange of facts, ideas, opinions and as a means that individual or organization share meaning and understanding with one another.

In other words, it is a transmission and interacting the facts, ideas, opinion, feeling and attitudes. It is the ability of mankind to communicate across barriers and beyond boundaries that has ushered the progress of mankind. It is the ability of fostering speedy and effective communication around the world that has shrunk the world and made ‘globalization’ a reality. Communication had a vital role to play in ensuring that people belonging to a particular country or a culture or linguistic group interact with and relate to people belonging to other countries or culture or linguistic group.

Communication adds meaning to human life. It helps to build relationship and fosters love and understanding. It enriches our knowledge of the universe and makes living worthwhile. 1. 2 ROLE OF COMMUNICATION IN BUSINESS The term business communication is used for all messages that we send and receive for official purpose like running a business, managing an organization, conducting the formal affairs of a voluntary organization and so on. Business communication is marked by formality as against personal and social communication.

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The success of any business to a large extent depends on efficient and effective communication. It takes place among business entities, in market and market places, within organizations and between various group of employees, owners and employees, buyers and sellers, service providers and customers, sales persons and prospects and also between people within the organization and the press 2 / Business Communication ¦ ¦ ¦¦ ¦ ¦ ¦ ¦ ¦¦ ¦ ¦ ¦ ¦ ¦ persons. All such communication impacts business. Done with care, such communication can promote business interests.

Otherwise, it will portray the organization in poor light and may adversely affect the business interest. Communication is the life blood of any organization and its main purpose is to effect change to influence action. In any organization the main problem is of maintaining effective communication process. The management problem generally results in poor communication. Serious mistakes are made because orders are misunderstood. The basic problem in communication is that the meaning which is actually understood may not be what the other intended to send.

It must be realised that the speaker and the listener are two separate individuals having their own limitations and number of things may happen to distort the message that pass between them. When people within the organization communicate with each other, it is internal communication. They do so to work as a team and realise the common goals. It could be official or unofficial. Modes of internal communication include face-to-face and written communication. Memos, reports, office order, circular, fax, video conferencing, meeting etc. re the examples of internal communication. When people in the organization communicate with anyone outside the organization it is called external communication. These people may be clients or customers, dealers or distributors, media, government, general public etc. are the examples of external communication. • Communication is the life blood of the business. No business can develop in the absence of effective communication system. • Communication is the mortar that holds an organization together, whatever its business or its size. •

When people within the organization communicate with each other, it is internal communi- cation and when people in the organization communicate with anyone outside the organization it is called external communication. • Ability to work well in teams, to manage your subordinates and your relationship with seniors, customers and colleagues depends on your communication skill. Exhibit : 1 1. 3 DEFINITIONS OF COMMUNICATION Communication may be defined as interchange of thought or information between two or more persons to bring about mutual understanding and desired action.

It is the information exchange by words or symbols. It is the exchange of facts, ideas and viewpoints which bring about commonness of interest, purpose and efforts. American Management Association defines, ‘Communication is any behaviour that results in an exchange of meaning’. Peter Little defines communication as, ‘Communication is the process by which information is transmitted between individuals and/or organizations so that an understanding response result’. Newman and Summer Jr. state that, ‘Communication is an exchange of facts, ideas, opinions or emotions by two or more persons’.

According to Keith Davis , ‘The process of passing the information and understanding from one person to another. It is essentially a bridge of meaning between the people. By using the bridge a person can safely across the river of misunderstanding’. ¦ ¦ ¦¦ ¦ ¦ ¦ ¦ ¦¦ ¦ ¦ ¦ ¦ ¦ Business Communication : An Introduction / 3 Louis A. Allen defines, ‘Communication is the sum total of all the things that a person does, when he wants to create an understanding in the mind of another. It involves a systematic and continuous process of telling, listening and understanding’.

Therefore, the main purpose of communication is to inform, or to bring around to a certain point of view or to elicit action. 1. 4 PURPOSE OF COMMUNICATION 1. For instruction: The instructive function unvarying and importantly deals with the commanding nature. It is more or less of directive nature. Under this, the communicator transmits with necessary directives and guidance to the next level, so as to enable them to accomplish his particular tasks. In this, instructions basically flow from top to the lower level. 2. For integration: It is consolidated function under which integration of activities is endeavoured.

The integration function of communication mainly involves to bring about inter-relationship among the various functions of the business organization. It helps in the unification of different management functions. 3. For information: The purposes or function of communication in an organization is to inform the individual or group about the particular task or company policies and procedures etc. Top management informs policies to the lower level through the middle level. In turn, the lower level informs the top level the reaction through the middle level.

Information can flow vertically, horizontally and diagonally across the organization. Becoming informed or inform others is the main purpose of communication. 4. For evaluation: Examination of activities to form an idea or judgement of the worth of task is achieved through communication. Communication is a tool to appraise the individual or team, their contribution to the organization. Evaluating one’s own inputs or other’s outputs or some ideological scheme demands an adequate and effective communication process. 5. For direction:

Communication is necessary to issue directions by the top management or manager to the lower level. Employee can perform better when he is directed by his senior. Directing others may be communicated either orally or in writing. An order may be common order, request order or implied order. 6. For teaching: The importance of personal safety on the job has been greatly recognized. A complete communication process is required to teach and educate workers about personal safety on the jobs. This communication helps the workers to avert accidents, risk etc. and avoid cost, procedures etc. 7. For influencing:

A complete communication process is necessary in influencing others or being influenced. The individual having potential to influence others can easily persuade others. It implies the provision of feedback which tells the effect of communication. 8. For image building: A business enterprise cannot isolate from the rest of the society. There is interrelationship and interdependence between the society and an enterprise operating in the society. Goodwill and confidence are necessarily created among the public. It can be done by the communication with the different media, which has to project the image of th

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