Why There Is a Need of an Effective Business Communication?


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What is business communication?

Business communication is the process of communicating with people inside and outside the business to exchange information such as ideas, news, etc.

Communication is a very important element of business. Without communication, there wont be any coordination and thus will lead to haphazard environment and working of the business.

What are the different types of business communication?

Business communication is based on 4 types that are further divided up into their own sub types. They are as follows -  

1. Based on flow of direction

· Upward Communication

This type of communication means that all the people working in the organization can share their thoughts, views, opinions, ideas, etc. with their seniors. It takes place within the same department.

· Downward Communication

This type of communication takes place when the seniors give orders, pass on policies, ideas, etc. to their subordinates. For example: top level management giving orders to the middle level management on how to produce efficiently and effectively.

· Diagonal Communication

It takes place when one senior passes orders to other information to the subordinate of another department.

· Horizontal Communication

This type of communication is the most common and normal form of communication. It takes place when two people working on the same level in the same department communicate with each other.

2. Based on response


· One-way Communication

In this way of communication, only one person communicates with another person. There is no obligation to give a response. For example: advertisements shown on the television.

· Two- way Communication

In this way, two or more people communicate at once, one asks and the other one gives a reply. For example: a manager discussing the plans to be executed in order to achieve the objectives of the organization with his subordinates or colleagues, etc.

3. Based on medium

· Verbal Communication

Verbal communication refers to the type of communication where words are involved. Words can be involved orally, written on paper, displayed on a screen, etc.

· Non- Verbal Communication

In this type of communication, actions play a superior role than words in order to explain something. It includes the use of Kinesis, i.e. the use of body language, facial expressions or eye contact; artifacts, i.e. the dressing sense or personality of a person, and haptic or touch.

4. Based on structure

· Formal Communication

It refers to the communication happening within an organization on a daily or routine basis. It can take place in any order, like from CEO to a subordinate or from one colleague to another, etc.

· Informal Communication

This type of communication the unofficial communication taking place in the firm. It includes casual friendships, gossip, relations, etc. It is not necessarily about the business.

What is the importance of business communication?


1. Improves employee involvement and engagement

Business communication encourages involvement of employees at all levels. This helps in bringing out every employee’s leadership quality, innovative ideas, thoughts, advice, etc. this in turn helps in better decision making in the organization.

2. Acts as a source of information

When people communicate with each other, they learn new and more things. This way every person in the organization involved in communication gains information and knowledge.

3. Assists controlling process

Communication helps in the controlling function of management. It allows other people to learn how to follow policies of the firm in order to achieve the predetermined goals.

4. Helps in socializing

Socializing with other people through the means of communicating helps the introverts in the organization also make an effort to open up to the idea of interacting with others to gain knowledge, discuss ideas and plans, generally socialize with them, etc.

What are the objectives of business communication?

Business communication has a number of objectives that mostly overlap with its importance. They are as follows - 

1. Creating a good image in the market

Communication helps the organization to gain competitive advantage in the market through timely and continuous communication with the stakeholders, media, advertising agents, etc.

2. Decision making

If people communicate well within the organization, the decisions made in the interest of the firm will be made in a better manner and might help in giving efficient results. Business commutation in this case is very much necessary at all levels.

3. Solving problems

Business communication leads to greater interaction between colleagues and subordinates, which might help them in thinking of better solutions for all the problems. Problems will be solved easily and faster.

4. Creating relationship with external partners

Communication is important not only within the organization but also outside it. If people are communicating with people outside the organization such as media partners, reporters, etc., they will have a greater chance of maintaining a good image and relationship with them, which may help them in the future.

5. Maintaining good relations in the firm

Interacting with each other in the firm will lead to a better sense of understanding between everyone working in the organization. This will lead to better coordination that will help in producing better and efficient results.

6. Increasing efficiency

Communication helps to increase the efficiency and productivity by providing timely and adequate information.

What are the 7 C’s of business communication?

1. Credibility

Communication leads to a closer relationship between everyone within and outside the organization. This builds trust and helps in the future dealings.

2. Courtesy

If there is better communication, there will be better relationships between everyone.

3. Clarity

Since information will be exchanged easily, there will be work clarity and easy comprehension.

4. Correctness


Communication will lead the interaction between people that will help them understand each other and help in solving problems with better solutions. This will promote correctness.

5. Consistency

Interaction between people will introduce and maintain stability of the working of the organization.

6. Concreteness

With better interaction, there will be confidence among the subordinates.

7. Conciseness

If people talk to each other, share problems, find solutions, discuss plans, etc., it will save time and results will be more efficient.

What are the problems of business communication?

1. Difference in opinion

Communication means interacting with people. When people interact with each other, they are likely to have difference of opinions. In a business organization specially, where there is enough room for new ideas, innovations, etc., it is somewhat a given that as and when people discuss them, they might have differences of opinion which may or may not lead to an argument. This disturbs the peace of the organization.

2. Loss of confidentiality

When people talk to each other about the business’s prospective aim sand ideologies that the firm would follow in order to achieve them, there is no guarantee that this information exchanged with someone else will remain safe. Some people who are disloyal to the business might tell people from other firms under the same type of business intentionally or unintentionally who can further copy the ideas. This leads to loss of confidentiality.

3. Communication with the team

Communication with the team means when a person tells his team members about what he wants them to do with no scope of personal intervention with ideas. Communication for the team means that if one person is speaking, he gives others a chance to speak and put in their thoughts and views. Listening is given importance in this case.

Sometimes people feel that communication is merely related to communication with the team and often forget the importance of listening to others as and when they speak. This leads to inefficiency in the working of the organization. 

Written by - Hunnar Kaushal

Edited by - Chhavi Gupta

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