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What are the benefits and purposes of effective communication? Why effective communication is needed?

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Benefits of Effective Communication

  1. Stronger decision making based on timely, reliable information
  2. Faster problem solving
  3. Earlier warning of potential problems
  4. Increased productivity and lower costs
  5. Stronger business relationships
  6. Clearer and more persuasive marketing messages
  7. Enhanced professional images for both employers and companies
  8. Greater employee engagement with their work , leading to higher employee satisfaction and lower employee turnover
  9. Better financial results and higher return for investors
  10. It strengthens the connection between a company and all its STAKEHOLDERS, those groups affected in some way by the company’s actions: customers, employees, shareholders, neighbors, the community, and the nation. If communication breaks down, the results can be anything from time wasting to tragic. Top managers spend as much as 85 percent of their time communicating with others.

Objectives/Purposes of Business Communication

  • To Give and Receive Information
  • To Provide Advice : Mangers need specialized advice from experts. It is more effective through face-to-face contact. It should be confidential.
  • To Provide Counseling: Counseling is an organized and specialized activity requiring professional expertise and objective approach.
  • To issue orders and Instructions
  • To Impart Education and Training
  • To Receive Suggestions
  • To Persuade People
  • To Issue Warning and Notice
  • To Improve Morale ( amount of confidence and enthusiasm)
  • To Motivate People
  • To Improve Discipline ( oral and written communication)

Importance Of Communication

To perform the basic functions of management—planning, organizing, motivating and controlling, communication is important for the development of an organization.

  • Efficient Planning
  • Training and Development
  • Motivation and Morale
  • Coordination
  • Leadership
  • Effective Control ( Managers have the good judgement from a correct feedback)
  • Sound Industrial Relations ( between employers and employees and between management and unions)
  • Corporate Image ( a business concern can keep itself in touch with its customers, investors, dealers, suppliers and other sections of the society through various forms of communication)
  • To facilitate Innovation
  • To ensure transparency 

Need for Communication / Why Communication is needed?

  • Increase in size of the organization
  • Growing specialization
  • Technological Advancements
  • Cut-throat competition
  • Trade Union Movement
  • Human Relations
  • Public Relations
  • Personal Asset
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