Business Studies XI Content

Importance of business communication

Importance of communication

  1.  Managerial efficiency: – Communication helps in smooth operation of management. Managerial task can only be performed when communication system is effective.
  2.  Enhance morale and relations: – Effective communication emphasizes the employee’s participation in management. It helps to build the employees morale and cordial industrial relations between management and employees
  3.  Effective leadership: – Effective leadership depends upon effective communication. Two-way communication helps in effective communication. Managerial leader must handle the subordinates. For ordering qualitative leadership is essential. And that can be obtained from proper system of communication.
  4.  Mutual trust and confidence: – Mutual trust and confidence between labor and management is necessary for effective movement of organization. When there is effective communication, it helps to reduce misunderstanding and develop mutual trust.
  5. Better decision: – The success of organization can be measured in better decision. When the information, data and other fact are not effectively communicated, it hampers the decision making. So, when the facts are communicates to concerned department, organization and person. It is easy to make decisions promptly.
  6.  Staffing: – When the information are correctly communicates in time, it helps in the function of selection, placement, socialization , promotion and transfer.
  7.  Better managerial concern: – all managerial functions such as planning, organizing, directing, controlling etc can’t be conducted without communication.

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