Importance of communication in business

Importance of communication in business can hardly be overemphasized. Communication is essential in business as in other spheres of life. Without communication no business can run. Organization cannot function without open and effective communication. In every business activity it requires human beings to interact and react, that is to communicate. Communication is the life-blood of any business organization. Its importance in modern business may be discussed under the following points: 

1.   Basis for effective leadership: Effective communication has long been recognized as a prerequisite for effective organizational leadership, communication transmits the leader's ideas and opinions to the followers. Many people rate communication as one of the most important aspects of business leadership. The prime requisite of a promising business leader is the "ability to communicate." Too often those who cannot communicate effectively become unsuccessful in business. Members of management spend 60 to 90 percent of their working time communicating speaking, writing, reading and listening. Many surveys and articles have confirmed the idea that effective communication is essential for success and promotion in business.                       
2.         Sharing ideas and information: Communication is the means of moving ideas and information from one person to another which is very important for business. Business activities require human beings to interact. They exchange information, ideas, plans;make,decisions, rules,proposals,contracts and agreements. All these activities are related to communication. 
3.        Rational decision making: Organizations are decision making networks and individuals engaged in communication make decisions. Communication helps managers to obtain data for decision making, to assist in searching problem and to know what actions are needed to run the business smoothly. So communication is very important for decision making. According to P.F.Drucker, "The new organization, whether an army or a business, is above all a decision system." 
4.       Interacting with environment: Communication helps in performing all managerial functions, such as planning, organizing, directing, coordinating, motivating and controlling. Communication facilitates the managerial functions. It is through information exchange that managers become aware of the needs of customers, the availability of supplies, the claims of stock holders, the regulations of government and the concerns of a community. It is through communication that any organization becomes an open system interacting with its environment, a fact whose importance is widely known. 
5.       Developing company's public image: Ability to communicate orally and in writing affects the company's public image. Messages written to national and international clients, customers, suppliers and other business contracts must be especially sensitive to audience concerned. Daily routine messages are just important for image building. Each message communicates the essential quality and culture of the organization and can either build goodwill or destroy it.
6.    Helps delegation of authority and responsibility : Communication helps in decentralization of authority and delegation of responsibility to right person. Through downward communication managers delegate authority and responsibility to the subordinates.