Discuss the role of effective business communication within and outside the organization.

Posted by Ripon Abu Hasnat on Thursday, June 11, 2015 | 0 comments


A business Organization is a group of people associated to earn profit. Various kinds of activities have to be performed by the people of an organization so as to earn profit. These activities need an effective and systematic communication. Without efficient communication, one cannot even imagine to do work and hence will be unable to earn profit. Since the aim of business organization is to earn profit, the organization will die without profit and this death is a result of the absence of communication. This is why communication is called life blood of a business organization. We can prove this statement in the following manner.

COMMUNICATION INSIDE AN ORGANIZATION:
Different employees and officials in an organization need to communicate to each other. This internal communication with its importance is shown in the following way:
1. Setting goals and Objectives:-
Mostly, the organizations have a variety of formal and informal objectives to accomplish. These objectives may be financial results, product quality, market dominance, employee’s satisfaction, or service to customers. So the communication enables all the persons in an organization to work towards a common purpose.

2. Making and Implementing decision:-
In order to achieve the objective, people in a business organization collect facts and evaluate alternatives, and they do so by reading, asking questions, talking or by plain thinking. These thoughts are put into a written form. Once a decision has been made, it has to be implemented which requires communication.

3. Appraisal:-
Having implemented the decision, management needs to determine whether the desired outcome is being achieved. Statistics on such factors as cost, sales, market share, productivity and inventory levels are compiled. This is done through computers, manual papers, memos or reports.

4. Manufacturing the products:-
Getting an idea for a new product out of someone’s head, pushing it through the production process and finally getting the product also require communication. Designing the plan regarding product, introducing the workers, purchasing raw material, marketing and distributing the product all require effective communication.

5. Interaction between employer & employee:-
Employees are informed about policies and decisions of employers through circulars, reports, notices etc. Employers also get in touch with employees through application, complaint etc. So, communication plays a vital role in the interaction of employer and employee.

EXTERNAL COMMUNICATION:
1. Hiring the employees:-
If a company wants to hire someone, it advertises the vacancy, receives applications, calls the candidates, takes the interview and then offers job to the successful candidates. The whole process requires communication.

2. Dealing with customers:-
Sales letters and brochures, advertisements, personal sales calls, and formal proposals are all used to stimulate the customer’s interest. Communication also plays a part in such customer related functions as credit checking, billing, and handling complaints and questions.

3. Negotiating with suppliers and financiers:-
To obtain necessary supplies and services, companies develop written specification that outlines their requirement. Similarly, to arrange finance, they negotiate with lenders and fill out loan applications.

4. Informing the investors:-
Balance sheet, income statement, and ratio analysis are used to inform the investors regarding performance of business.

5. Interacting with Govt.:-

Government agencies make certain rules to regulate the economy. These rules are communicated to organizations through various papers. These organizations try to fulfill, these requirement like filling taxation form and other documents.

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