Shivam Tyagi

MBA-107(Business Comm.)

Presentation on:-
Business communication and its
importance
Introduction

Communication is an essential element in the success of any business. The process

of transferring information from one person to another, within and outside the
business environment, is termed as ‘Business Communication.’ The term
‘Business Communication’ is derived from general communication which is
associated with business activities. In other terms, communication between
business parties or people for business-related tasks is considered as ‘Business
Communication.’ 

Definition
According to Ricks and Gow defined Business Communication as a system that
is responsible to affect change throughout the whole organization.

According to W.H. Business Communication is exchanging business-related

different views, ideas, and news within the related parties.

Prof. J. Haste stated that when the communication occurs between either two or
more than two business people for the purpose of effective organization and
administration of business then it is considered as Business Communication.

Employees and management use effective business communication to achieve

organisational goals. The goal is to increase organisational efficiency by reducing
errors. Marketing, public relations, customer relations, corporate and interpersonal
communication, and so on are all aspects of business communication.

Basic elements of Business communication:

 Sender
 Business information
 Receiver
 Feedback

Types of business communications

1. Internal Business Communication
Internal Business Communication means communication that occurs within the
members of the organization. This communication includes
both formal and informal communication. Also, different departments that
transmit communication by different means to employees come under internal
communication. Internal communication should be effective as it is a vital source
of viewing and representing organizational issues. Effective internal business
communication may increase job satisfaction level, productivity, the efficiency of
employees by decreasing their turnover and grievances and helps in increasing
profits.

2. Horizontal/Lateral Business Communication

Communication between coworkers, whether verbal or written, is referred to as

lateral or horizontal communication. This can include inter-departmental
communication or communication across departments, as well as communication
between people of the same or similar rank within a company. This is an
important communication in order to achieve the desired results. As a result, this
communication occurs among employees with equal hierarchy levels. Horizontal
or lateral communication is required for seeking mutual cooperation and mutual
help in order to achieve the functional effectiveness of different organisational
units.

3. External Business Communication

External business communication refers to the transfer of information between a

business and other businesses or individuals outside of the business environment.
Organizations are expected to communicate with other organisations or
individuals in order to achieve their goals. These individuals could include
investors, current or prospective customers, shareholders, society, government
organisations, or other business units, among others. As a result, external
communication occurs when business organisations exchange information with
the previously mentioned business units or entities.

External communication generally has different mediums of communication like

email, advertisements, brochures, newsletters, content marketing, etc. The
purpose of external communication is to have smooth communication between
different organizations or entities.
Importance of business communication
1. Helps in increasing productivity: Effective business communication
boosts employee productivity by encouraging teamwork. It fosters
an environment of trust and understanding among employers and
employees. Cooperation with employees and understanding their
needs and desires are required for effective communication.
Employees can complete their tasks more effectively and efficiently
this way. Furthermore, effective communication reduces the
possibility of making mistakes or errors during their work.
2. Helps in increasing customers:  Customers are an important part of
any business, and effective business communication can help to
attract new customers while also retaining current ones. An
organization's well-defined marketing strategy and public relations
campaign generates customer interest in its goods or services and
aids in the development of the corporate image in customers.
3. 3. Enhances business partnerships: Business communication also
improves business partnerships. It is crucial when dealing with
external business clients or vendors. Vendors may be required to
communicate on products on a regular basis in order to improve
them. Furthermore, an organization's future success is determined
by an effective and harmonious relationship with other businesses.
Through effective communication, a business unit that has
developed its image as an entity for easy partnership can attract
other business units to form business relationships with them.
4. Facilitates innovations in business: Business communication also
strengthens business relationships. When dealing with external
business clients or vendors, this is critical. Vendors may be required
to communicate with customers on a regular basis in order to
improve their products. Furthermore, the effectiveness and harmony
of an organization's relationships with other businesses determines
its future success. A business unit that has developed its image as an
entity for easy partnership can attract other business units to form
business relationships with them through effective communication.
5. Information exchange: Business communication is required by an
organization for exchanging information with internal and external
stakeholders. This helps in achieving its goals effectively.
6. Preparation of plans and policies: Through effective business
communication, organizations can make their plans and policies
properly. Relevant information is required for preparing these plans
and policies. Through communication, different managers source
information through reliable channels.
7. Execution or implementation of plans and policies: To implement or
execute the prepared policies and plans in a timely manner,
managers are supposed to communicate these throughout the
organization. Through effective communication, they are able to
disseminate plans and policies to the internal and external
stakeholders.
8. Boost the efficiency of employees: Effective business
communication plays a key role in increasing the efficiency of staff.
Through communication, different plans and policies, critical issues,
goals of an organization, etc. are described to employees that
enhance their knowledge and make them efficient to do their tasks
effectively.
9. Goals achievement: Through effective business communication
employees become attentive and productive in doing their jobs that
result in the timely accomplishment of their tasks and easy goals
attainment.
[Link] in solving problems or issues: Through different
communication channels, managers get information about different
routine and non-routine issues and based upon that they can take
required actions to sort out those issues.
[Link] decision-making: Effective decisions require up-to-date
information. Using effective communication, managers can acquire
information from different sources and can utilize it for making
correct decisions.
[Link] worker-management industrial relations: In the
workplace, workers and management have an industrial relation.
The success of any business depends upon the healthy industrial
relation. Business communication plays a significant role in
maintaining harmony in this.