Why is communication important to all businesses?



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krishna-agrawala's profile pic

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Communication is not just important for business. It is essential for the very existence and operation of any business or any other organized effort.

Business managers spend most of their time communicating, that is talking, listening, writing and reading. Higher the level of management, greater the time spent on communicating. The ability to communicate well is essential for their success. Peter Drucker, one of the greatest management thinker of our time says:

For managers in big organizations ... this ability to express oneself is perhaps the most important of all the skills a person can possess.

Communication is essential to people who work cooperatively and need to coordinate their their activities. It is essential for transfer of knowledge from one person to another.

Communication is used to exchange understanding and knowledge on various issues like jobs to be performed, methods to be used, responsibilities, suggestions, agreements, situational factors, and work status.

While communication has always been very important in business, it becoming increasingly important because of various trends like (1) widening of interaction among people including globalization, (2) Use of increasingly varied assets and processes in industry and business, (3) Increasing pressure on efficient utilization of resource because of higher consumption levels induced by growing population and rising aspirations of consumes., (4) Use of more complex decision making processes, and (5) accelerating pace of change in business that demands ever increasing need for motivating people obtaining their cooperation.

For more information, particularly relating on the statement of Peter Drucker quoted above refer to:

Lesikar, R.V., and Flatley M.E. 2005, Basic Business Communication, Tenth Edition, Tata McGraw-Hill, New Delhi.


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