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Why Is Communication Critical to Your Organization?

Updated on March 22, 2019
Erudite Scholar profile image

Jeff Zod loves business, startups and enterpreneurship.He loves designing business strategies and learning about business success.

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People talking | Source

What is communication ?

We all use some form of communication in our lives.Communication is derived from the Latin word 'Communicare'. It means to share. It is the process of transmitting information and understanding. It is the transfer of meaning between individuals and the means of reaching, understanding and influencing others. This implies that mere transmission of information does not imply that communication has taken place. Communication in management is a combination of personal attributes and organization aspects. Effective communication is critical for all organizations as management functions in organizations are carried out through communication.

Importance of Communication to your organization

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Effective management is a function of effective communication. Interpersonal communication takes place every time we interact with others. Ineffective communication can be very expensive to the organization by way of reduced co-operation, collaboration and subsequent ill feeling between employees. For communication, to be effective, it has to be planned and executed so that it evokes the desired response from the targets.

Communication is a complex two-way process that may involve several iterations before mutual understanding is achieved. The communication process takes place in multifarious ways, these include the use of words, symbols, graphics, voice, tone, clothing, facial expression and body language.

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People in meeting | Source

Communication in an organization has the following roles:

  • Helps in fostering motivation
  • Aids in the function of the control
  • Provides information for decision making
  • Gives one an outlet for expressing their feelings
  • Helps in the satisfaction of social needs

Communication is initiated by the sender. He or she conceptualizes the idea that is to be transmitted. This idea is encoded with the aid of language, symbols etc. into a message.

The message, which is the product of encoding, is transmitted from the sender to the recipient through a channel.

Communication is initiated by the sender. He or she conceptualizes the idea that is to be transmitted. This idea is encoded with the aid of language, symbols etc. into a message.

The message, which is the product of encoding, is transmitted from the sender to the recipient through a channel. The channel or medium can be physical presence e.g. face to face interaction, interactive channels such internet, telephone and other electronic media, the personal static channel such as memos, letters or impersonal static channels such as general reports, circulars etc.

The effectiveness of each communication channel is determined according to its capability in eliciting feedback.Face to face interaction is considered the most effective while the impersonal static channel is considered to be the least.

In order to make communication more efficient, the sender has to choose the appropriate channel depending on the urgency of the message. After the message is transmitted through the channel to the recipient, he deciphers it back to the idea and assimilates it.

The effectiveness of communication depends upon the extent to which the sender has succeeded in making the receiver comprehend his or her idea. This can be evaluated through feedback, where the receiver responds to the sender. Feedback is critical since it helps to evaluate the effectiveness of the communication. It also makes communication a two-way process.

People in a meeting
People in a meeting | Source

Verbal Communication

Verbal communication contributes to forty-five percent of our communication. It involves the use of language and meaning (either oral or written). The words used in communication are concrete or abstract. Concrete words are used to represent an object (e,g Tree) and hence they convey ideas easily. Abstract words, on the other hand, has a built-in ambiguity because the ideas conveyed by such words are subjective and so the effectiveness of communication is in question (e.g. beauty, intelligence etc.).

Non-Verbal Communication

Non-verbal communication is the conscious and unconscious body movements in communication that couple with physical and environmental surroundings. Non-verbal communications are those which are not expressed orally or in writing and includes human elements associated with a communication.
These form an important and inevitable

Types of communication in an organization

Communication in organizations can be broadly categorized into formal and informal communication. Formal communication takes place through the communication protocols laid down by the organization.

Informal communication, the hierarchy has a very important role to play and the parties communicating should adhere to the procedures in the system.

In organizations, formal communication is effected in upward (subordinate to superior), downward (superior to subordinate) and horizontal (between same levels) directions. Informal communication, usually called the grapevine, in an organization is very active and powerful. Nature of communication through this medium is oral and the speed with which the messages are spread through this network is astounding.

As a consequence, distortion at any stage cannot be identified. This is presumably the reason why grapevine is said to be the medium for spreading of rumors or propaganda.

Importance of Communication in an Organization

Communication is one of the fundamental functions of management in any organization and its importance can not be overemphasized. It is a process of transmitting information, ideas, thoughts, opinions, and plans between various members of an organization. Effective communication is required at various levels and for various aspects in an organization such as

For manager-employee relations:

A manager will find it difficult to get the work done by employees unless they can communicate effectively what he or she wants to be done. Ineffective communication is the root cause of most management problems. Managers use as much as eighty percent of their time in verbal interaction with other people i.e. Manager spends time:

(i) receiving and giving directives

(ii) participating in Conferences

(iii) receiving telephone calls

(iv) instructing subordinates

(v) resolving conflicts and grievances, discipline and counseling staff

(vi) reading emails, memos, letters, reports, etc.

(vii) writing a wide variety of reports and memorandums

For motivation and employee morale:

Effective communication motivates the employees in an organization. Inappropriate or ineffective communication among employees or between a manager and his subordinates is the root cause of conflict and low morale at work.

For increased productivity:

With effective communication, one can maintain good human relation in the organization and by encouraging ideas or suggestions from employees and implementing them possible. Effective communication increases employee production at a low cost.

People holding placards
People holding placards | Source

For employees:

Employees submit their work reports, comments, grievances and suggestions to their seniors or management through communication. The organization should have effective and efficient communication policies and procedures to avoid delays, misunderstandings, confusion or distortions of facts and to establish harmony among all the concerned people and departments.

Importance of written communication:

Written communication or message should be clear, purposeful and concise with correct words, to avoid any misinterpretation of your message. Written communications provide a permanent record for future use and it also gives an opportunity for employees to put up their comments or suggestions in writing.


Stakeholders are persons or organizations who have a special connection or interest in your organization. Successful companies have strong relationships with the relevant stakeholders in their business. Management of stakeholder relations is critical for organizations today. The most successful organizations cultivate strong relationships with employees, suppliers, shareholders, and clients. They achieve this through effective communication. The following are examples of stakeholders:

People holding placards
People holding placards | Source

Communication as the hallmark of an effective organization

The most successful business leaders and organizations take cognizance of the fact that effective communication is a critical component of their success. Successful organizations have elaborate communication protocols that are strictly followed. This ensures that communication is effective and efficient for their employees, stakeholders, clients, and competitors.

Haphazard or ineffective communication protocols and strategies have led to the annihilation of many an organization. Effective organizations have strived to ensure that there is no breakdown of the communication process at any point in time. Lapses in communication have proved to be very expensive in terms of time lost and expenses incurred.

Elaborate and effective communication protocols have the following functions in an effective organization They ensure that communication is crystal clear to all the parties involved. They ensure that the chain of command is followed by everybody in the organization They ensure that there are procedures to be followed in cases of emergencies.

They ensure that the acceptable modes of communication are clear to everybody in the organization. Formal communication is the rule rather the exception of ineffective organizations. Formal communication in organizations includes the use of memorandums, letters, electronic mail, telephone, and fax.

Effective organizations regularly train their employees on how to become better communicators. Research has shown that organizations which are successful have mastered the art of effective communication. In these organizations, employees and their managers communicate freely and effectively.

This, in turn, enhances transparency, increases cooperation and collaboration and inspires and motivates the members of the organizations. Many employees often feel a sense of pride when their ideas and feelings are reciprocated. It gives them a sense of accomplishment and further strengthens their loyalty to the organizations.

On the flip side, ineffective communication in any organization leads to disarray, chaos and ultimately failure. Ineffective communication is costly to any organizations. Many organizations have experienced increased employee turnover, decreased employee morale, loss of revenue, loss of clients and increased conflict due to ineffective communication.

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People laughing | Source

© 2018 Jeff Zod

Importance of Communication to an organization

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    • Erudite Scholar profile imageAUTHOR

      Jeff Zod 

      2 years ago from Nairobi

      Hi Liz,

      Yeah for sure.Online men are women,women are men,children are FBI agents and dogs are people.

    • Eurofile profile image

      Liz Westwood 

      2 years ago from UK

      You are right. Online you are never quite sure who you are communicating with.

    • Erudite Scholar profile imageAUTHOR

      Jeff Zod 

      2 years ago from Nairobi

      @Liz, Yes I agree.It has become easier to communicate with others but it has also become more impersonal.

    • Eurofile profile image

      Liz Westwood 

      2 years ago from UK

      On the positive side it is now much easier to keep in touch and communicate with people located a long way from us. But I agree with what you say about face to face communication as opposed to using technology.

    • Erudite Scholar profile imageAUTHOR

      Jeff Zod 

      2 years ago from Nairobi

      Hi @Eurofile Thank you so much for always taking time to read my articles and leave insightful comments.I really appreciate it so much.Communication is critical to any organization.Modern technology has made it so easy to communicate but people have in tandem lost the human aspect(touch) of communication.Communication has become so impersonal that you can be communicating to someone across the room or next to you using a smartphone or a device.This is a very sad state of affairs indeed!

    • Eurofile profile image

      Liz Westwood 

      2 years ago from UK

      Communication is very important in so many areas of life. This is a great article. I especially liked the start with the Latin basis of the word.


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