why effective communication is important in business

Communication plays a fundamental role in all facets of business. It is therefore very important that both internal communication within your organisation as well as the communication skills of your employees are effective. The following six reasons will explain why effective communication should be a focus in your business:
1. Builds and maintains relationships Relationships are built and can be maintained by positive encounters with others. Communication will be key to this process without effective skills, it will be difficult to properly construct and foster productive relationships. 2. Facilitates innovation When employees feel comfortable in openly communicating new ideas, cooperation and innovation will be at an all-time high. In addition, if staff are unable to convey their ideas due to limited communication skills, it is likely that the idea will not be implemented to its full potential. 3. Builds an effective team If open communication within a workplace is encouraged, a more cohesive and effective team will emerge.


Good communication within a team also tends to boost employee morale. When employees feel that they are well informed of the company s direction and vision, they will feel more secure within their role. Regular internal communication can also lead to an improved work ethic if staff are reminded of achievements and feel that they are working towards a common goal. 4. Managing employees When managers are effective communicators, they are more able to inform staff adequately of their responsibilities and what is expected from them. Good communication skills also helps managers to provide constructive feedback to their staff, build better relationships, and understand personal goals that staff may wish to work towards. 5. Contributes to growth of the company A lack of communication can lead to the collapse of any organisation. Whilst that is a bold statement without proper marketing collateral and communication internally and externally, most organisations will struggle to survive. Communication can also lead to productivity and helps to avoid unnecessary delays in the implementation of policies. 6.


Ensures transparency When regularly communicating both internally and externally, organisations remain more transparent. This is important in building trust in your brand, in your services and also internally when it comes to the trust that employees have in higher management. Tony Deblauwe from adds that when tough decisions need to be made, transparent leaders will have an easier time explaining why. What do you think? Do you have any suggestions that can be added to this list? I would love to hear how you or your organisation approaches communication. Is it overlooked as an area of professional development, or is there a focus on it? Feel free to share your experiences in the comments section below. from AIB, Australia s most popular MBA programme. This article was written by Laura Hutton on behalf of the Australian Institute of Business. All opinions are that of the writer and do not necessarily reflect the opinion of AIB. The following sources have been used to prepare this article: Ineffective communication is expensive.


The National Commission on Writing found that American businesses spend $3. 1 billion annually training people to write. At least 80 percent of companies in finance, insurance, real estate and services assess writing skills during their hiring processes--and also happen to be the industries with the greatest growth potential. Nearly half of the businesses surveyed said they paid for writing training programs for salaried employees with writing inefficiencies, highlighting the need for effective workplace communication. The University of Wisconsin pointed out that in an interview with the "New York Times," National Commission on Writing chairman Bob Kerrey said: БWriting is both a БmarkerБ of high-skill, high-wage, professional work and a БgatekeeperБ with clear equity implications. People unable to express themselves clearly in writing limit their opportunities for professional, salaried employment. Б

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