Question

Why do you think communication is vital to the success of every business organization? Explain briefly in three paragraphs

Answer 1

Answer :

Communication plays important role in the success of the business. It is the responsibility of the management to make effective communication plan as per the business needs.

In an organization, ,downward communication refers to the communication where it is directed from upper to lower level. Upward communication refers to the communication where it is directed from lower level to higher level in an organization. Horizontal communication is the communication that is directed across functional areas at particular level in an organization.

The benefits of using communication plan in managing business are:-

• The communication plan helps in setting expectation as to when and how the communication needs to take place. This helps in controlling the project and keeping all the stakeholders in loop.
• It helps in providing consistent information to all the stakeholders so that they will be up to date about the progress of the project.
• Effective communication plan help the members to focus on meeting the project goal and increase the productivity.
• Communication plan give the idea to the manager to lead the team in right direction which can help in meeting the outcome in time.
• Answer :

• Irrespective of the industry, any business organization wants to work as a close nexus of stakeholders whose interests are interrelated. On one side, it must work seamlessly with the supplier base while on the other side, it wants to develop relationships with the customer and community. Similarly, to improve the internal efficiency, it wants to minimize the functional barriers and let the employees work together as a team.

  All these are possible only when there is an effective communication among the organizational stakeholders who include the suppliers, employees, customers, community and so on. In doing so, the organization can realize the following benefits.

• It can develop closer ties with significant communities in the marketplace
• It leverages opportunities to influence conversations, perceptions, and trends in the market
• Internal communication can increase efficiency and productivity leading to faster problem solving
• It can get early warning of potential obstacles
• It can develop stronger decision making based on timely, reliable information
• Communication leads to better employee engagement and motivation.
• It can convince the investors and lenders effectively regarding the intended strategy and change in strategy if any.

• All the above benefits of communication lead to better financial results and significant improvement in the bottom line.