Best Definition of Business Communication
Read this article to learn about Business Communication. After reading this article you will learn about: 1. Business Communication—Definition and Meaning 2. Elements of Business Communication 3. Features 4. Objectives 5. Steps 6. Channels 7. Classification of Channels 8. Levels 9. Importance.
Business Communication—Definition and Meaning :
The word "Communication" has come from the Latin word "communis", which means common. Thus, communication signifies sharing of ideas in common. The dictionary meaning of communication is to convey or exchange information and share ideas.
It is a process through which two or more persons transmit or exchange thoughts and ideas among themselves. According to W. H. Newman and C. F. Summer, "Communication is an exchange of facts, ideas, opinions or emotions by two or more persons."
Communication is the process of transmitting information and understanding from one person to another or from one unit to other unit with a view to getting the desired response from the receiver. Through this process two or more persons exchange ideas and understanding among themselves to achieve the desired effect in the behaviour of another person.
It is a two-way channel for transmitting ideas, feelings, plans, commands, instructions, reports and suggestions that influence the attitude towards an organisation's objectives. The communicator's goal is to convey the meanings or ideas without distortion. Success of the leader and the enterprise depends upon adequacy of communication.
It is the responsibility of the managers to establish and maintain the channels whereby they can convey their own thinking and policies to the subordinates, and can receive their reactions and an account of their problems.
Louis A. Allen defines communication in the following manner:
"Communication is the sum total of all the things one person does when he wants to create understanding in the mind of another. It is a bridge of meaning. It involves a systematic and continuous process of telling, listening and understanding."
The definition involves two aspects in communication.
First, there is something which is transmitted, such as facts, feelings, ideas, etc. It implies that there must be a receiver if communication is to occur.
Second, the definition emphasises the understanding element in the communication process. Sharing of understanding would be possible only when the person to whom the message is sent, understands in the same sense in which the sender of message wants him to understand.
So, communication involves something more than mere transmission of the message or transmission and physical receipt thereof. The correct interpretation and understanding of the message is important from the point of view of organisational efficiency. Effective communication, as such, might be the accurate transmission and receipt thereof, and its correct understanding.
In their book "Business Communication Today" C. L. Bovee, J. V. Thill and B. E. Schatzman write: "Communication is the process of sending and receiving messages. However, communication is effective only when the message is understood and when it stimulates action or encourages the receiver to think in new ways."
Communication made among persons to convey their personal information, message or thought are personal communication; but exchange of information, facts and ideas relating to business may be termed as "Business Communication". Business Communication refers to the communication relating to business activity which means providing goods and services to the consumers with a view to earning profit.
It is a process through which information, facts, ideas, orders, advices, decisions, etc. are conveyed, sent or exchanged between/among the persons associated with business. Thus, Communication relating to trade, law, Finance, administration, management, etc. of a business enterprise may be termed as 'Business Communication'.
The success of a business enterprise depends largely upon good communication. Effective communication wipes out the hindrances in achieving the target of a business enterprise. Ineffective communication or communication failure may cause loss of money, time, energy, opportunity and even goodwill of a business.
In this age of globalisation every business enterprise, big or small, requires proper communication for its existence. The success of any business concern largely depends upon successful communication.
In this age of speed, complexity and competition, sending of information regarding the product to the ultimate consumer is very important. Unless they know about the product of the business enterprise, it is not possible for them to make contact and buy the product. Communication plays a vital role in this sphere.
Elements of Business Communication :
Business communication involves six basic elements. They are as follows:
1. Message:
This is the subject-matter which is transmitted or passed by the sender to the other party or group of persons. This might be opinion, order, suggestion, attitude, feeling, view, etc.
2. Sender:
He/she is the person who intends to make contact for passing information and understanding to other person.
3. Receiver:
The person to whom the message is meant for is known as receiver or communicate.
4. Channels:
Information is transmitted through certain channels (e.g., radio, television, telephone, letter, e-mail, etc.). The media is selected by the sender considering various factors.
5. Symbols:
These are the words, actions and signs which are passed on by the sender while communicating with the receiver.
6. Feedback:
When the receiver acknowledges the message of the sender and responds back to him/her, feedback takes place. Without feedback communication is incomplete.
Features of Business Communication :
Business Communication has certain features or characteristics which enable us to distinguish it from other communication.
A communication to be business communication must be:
1. Practical,
2. Factual,
3. Clear and brief,
4. Target-oriented,
5. Persuasive.
1. Practical:
Effective business communication deals with the practical aspect of the information explaining why, how, when and the like queries. It avoids impractical, imaginary, unnecessary or repetitive information to eliminate waste of time. It conveys important information to the receiver.
2. Factual:
In general a business message contains facts and figures in place of overall idea. Important date, place, time, etc. should be clearly mentioned in a business communication.
3. Clear and Brief:
The language used in business communication should be simple, clear, brief and without ambiguity. Sometimes charts, photographs, diagrams, etc. are used to condense or clarify the information.
4. Target-Oriented:
A business communication must have a specific objective and must be planned properly so that the objective can be achieved.
5. Persuasive:
Business communication often plays a persuasive role. It persuades an employee to perform his/her duties, a customer to buy a product or service etc. The basic characteristics mentioned above are related to the message or information of the communication.
The process of business communication has certain other characteristics. They are:
1. Integral Part of Management Process:
Communication encompasses those activities by which the ideas, opinions and decisions of the managers are conveyed to the subordinates of different ranks. It also involves the exchange of facts, feelings, suggestions and responses between the superiors and subordinates.
Communication, in this way, puts the people into action, guides and directs their activities, regulates and co-ordinates them for proper work performance. A manager, thus, performs the management functions through communication and managerial positions become the communication centres to receive information from various sources for its transmission to relevant points.
So, communication is a part and parcel of management function, and is, thus, an integral part of management process. That is why, Chester I. Bernard remarks, "the first executive function is to develop and maintain a system of communication".
2. Two-Way Traffic:
Communication does not only mean its downward movement from superior to the subordinates it implies both the transmission and reception. So, when conveying any information, a manager should know its reactions and responses. Otherwise, managerial task of guiding and directing will be ineffective.
A man should, thus, not only speak, inform and order, but should also be able to listen, answer and interpret. Communication, therefore, involves two-way traffic from the managers to the employees and from the employees to the managers. It is not complete unless the message has been correctly understood by the receiver and its response becomes known to the sender.
3. Mutual Understanding:
The basic purpose of business communication is to bring about understanding between individuals in the organisation. It is an important element for establishing human relationships. A leader can lead and a manager can direct effectively by establishing perfect understanding with the subordinates, peers and superiors in the organisation.
The greater the degree of understanding presents in the communication the more possibility that human action will proceed in the direction of accomplishing the goals.
4. Pervasive:
The subject-matter of business communication covers a wide range and extends to all functions—purchases, production, sales, finance, recruitment, wages, dividends, market standing, innovation, productivity, etc. It also moves through all levels of management— upward, downward and sideways. Business communication is, thus, said to be a pervasive function.
5. Continuity:
Communication is an ever-present activity and without it an organisation cannot exist. Communication is as necessary to an organisation as blood circulation in a living body. Therefore, the managers should ensure that adequate and smooth communication flows in all directions.
Breakdown of communication results in misunderstanding, creation of unfavorable attitudes, hostility and conflict. So, communication must be a continuous process and move up, down and sideways for active participation of all concerned.
6. Specific:
A business communication is generally specific in nature. It means that a particular communication should deal with a single subject at a time. This is necessary for the effectiveness of communication. Multiplicity of subject in a communication has the possibility of creating confusion which is dangerous to sound management. It must be specific with regard to the information intended to be conveyed or received.
7. Result and not Cause:
Sound communication is the result of competent management, not the cause of it. Business communication is a means to an end and acts as a tool in the hands of the managers. Successful handling of this tool depends upon the competence of the managers. It is not an independent activity, rather an essential ingredient of managerial function.
So, good communication does not produce good manager. But good manager is nearly always a good communicator. Misconception of management process often leads to poor communication.
8. Internal and External:
Business communication is primarily internal. It is, thus, a part of administrative function and intended to apply to the members belonging to an organisation. Orders, instructions, suggestions and even public notice announcing the annual general meeting of a company are some of the examples of internal communication.
But nowadays, many communications move beyond the organisational horizons and touch the outside population exceeding the organisation's own (e.g., advertisement). Business communication may thus be internal and external.
9. Different Types:
Business communication may be of different types—formal, informal, upward, downward, sidewise, written, oral, etc.
10. Feedback:
A communication cannot be complete unless and until feedback or response of the recipient is made. Feedback may be written, oral or gestural. Sometimes mere silence may also constitute a feedback.
Objectives of Business Communication :
The main objective of communication is to give information and to persuade different persons. Other objectives include conveying suggestion, opinion, idea, advice, request, etc.; imparting instructions, guidance and counseling; providing training; giving warning; appreciating good work; boosting of morale; etc. In the case of a business enterprise the main objective of communication is the improvement of its activities, all-round development of the organisation, and ultimate success in its operation.
1. Giving Information:
The primary object of communication is to make the members of an organisation aware of its goal and acquaint them with all the relevant information. This helps the business enterprise to achieve success through concerted efforts of all the people concerned. It is a fact that well-informed people can achieve better.
The managers should know in details the social, political, economic and other conditions of the place where the business is situated. Information regarding the employees, consumers and competitors should be at their fingertips. Employees, likewise, should be well-informed about their positions, powers and responsibilities in particular, and the aims and objectives of the organisation in general.
Information regarding demand for a particular product, the taste, liking, etc. of the consumers; availability of raw materials, credit facility, advertising media; latest government rules and regulations, etc. are required for the production and selling of the product.
Information can be obtained from past records, books, journals, newspapers, government publications, seminars, conferences, exhibitions, trade fares, etc. The other sources of information are the chambers of commerce, structured questionnaires, radio, television, internet, etc. Whatever might be the sources, the information must be reliable, accurate, complete and latest.
2. Persuasion:
To persuade means to make other people decide to do something, especially by repeatedly asking them or telling them the reasons why they should do it; in other words, influencing other people to believe or to do what one wants. This is one of the important objectives of communication.
The seller often influences the buyer through persuasion to buy his/her products rejecting earlier decision to buy other products. This persuasion should be so planned that the buyer becomes least conscious of being persuaded and even if he/she becomes conscious, he/she should be made to understand that it is for his/her own interest. Actually persuasion is an art which should be suggestive in nature rather than coercive.
3. Conveying Suggestion:
Communication helps in conveying suggestions, opinions and ideas. The workers who are actually engaged in the work know better the loopholes in it and can suggest to the managers the ways to plug the loopholes. This is an example of upward communication. In big offices, suggestion boxes are provided and suggestions are received throughout the year. Sometimes further communication is made with the suggestions for clarification. Interaction of suggestions and ideas help the progress of an organisation.
Suggestions are not in the nature of order or advice and are, therefore, never obligatory to follow them. Either acceptance or rejection is possible in the case of a suggestion. Some executives, supervisors or managers who have a false notion of self-dignity, self-respect, higher position, etc. may not accept a suggestion, even though it is good one because it comes from lower level. But dynamic executives welcome constructive suggestions in the interest of the organisation.
4. Advice:
One of the objectives of business communication is to advise an individual or a group of people. The manager advises the subordinates about the ways and means of better performance. Advice involves personal opinion and it influences the opinion and action of the other person(s) to whom advice is being given.
Today's business world is very complex and no one can be an expert in all the spheres of business. So, a businessman has to take advice from experts regarding the matters in which he is not well-informed. For example, he may need advice regarding banking, insurance, stock exchange, tax rules, legal procedures, etc. Within the business the managers, supervisors and executives may advise each other (a case of horizontal communication) and the subordinates (downward communication).
5. Motivation:
Communication is made to inspire, to motivate, and to create a sense of loyalty among the employees. Through communication their morale is boosted up and it leads to better performance. Regular communication is necessary for motivating the employees and infusing in them a positive attitude towards work and a healthy relationship with the managers. This, ultimately, increases managerial efficiency.
Motivating someone means inspiring but not forcing him/her to do something. A motivated worker is an asset of any organisation. The greater the motivation, the lesser is the cost of supervision, because a motivated worker never neglects his duties.
Motivating factors include monetary incentives, security of job, job satisfaction, good working environment, participation in decision-making, fixation of target, etc. Money works as a good motivator. A worker works overtime when he/she is allowed extra wages. Security of job motivates an employee to devote himself/herself wholeheartedly to the job.
If an employee is satisfied with the job, he/she gets pleasure in doing it. Good working environment attracts him/her to work in co-operation with other members. Workers' participation in decision-making gives them a sense of being part and parcel of the organisation. Fixation of production target, sales target, etc. of an organisation helps the workers to work together to achieve the target. Thus, different factors of motivation contribute to achieve performance excellence of an organisation.
6. Training:
To meet the need of an organisation, senior employees may need to be trained to update them about the new technological developments so as to adjust themselves to changing work environment or job demands. The new employees may also require training at the initial stage to cope up with the methods, techniques and systems of work in the organisation.
Communication is the key to all these kinds of training. Such communication can be made through classroom teaching, lectures, seminars, short courses, conferences, educational tours, film shows, etc. Not only the ordinary employees, but the managerial staffs also need to be trained in the process stated above.
7. Instruction, Guidance and Counselling:
One of the objectives of business communication is to manage the employees by means of imparting instruction, providing guidance and arranging for counseling. Legal, vocational and medical guidance and counseling are provided free of cost for the employees in a good business organisation. Doctors, lawyers, coaches, etc. are employed for the purpose. The underlying objective of such assistance is to keep the employees physically fit and mentally alert so that they can work whole-heartedly for the well-being of the organisation.
8. Giving Warning and Appreciating Good Work:
It is very much necessary to appreciate a good worker. It will encourage him/her to strive for better performance and greater involvement. It makes the employee conscious about his/her responsibilities. On the other hand, it is also necessary to give warning to the employees who tend to be in disciplined, non-accountable and unproductive or create disturbance. The objective of both appreciation and warnings may be accomplished through oral or written communication.
9. Resource Utilisation:
Communication checks wastage of the resources of the organisation and helps their better utilisation. Lack of knowledge or lack of proper direction in time may cause the waste or misuse. Communication helps to bridge the gap of knowledge through instruction, advice, etc. and waste or misuse of resource is minimised. Not only material resources, but also the financial resources, human resources and other resources are utilised properly through communication.
10. Management Efficiency:
One of the objectives of business communication is to increase efficiency of the management. If there is a good network of communication (formal and informal), the organisation can be managed efficiently and effectively.
Steps of Business Communication :
The process or steps of communication involves a series of actions and operations undertaken for the fulfillment of a certain end or objective.
According to Lawrence A. Appley, the basic communication process involves the following steps:
(i) Clarifying the idea or problem,
(ii) Getting participation in developing a solution to the problem,
(iii) Transmitting the idea or decision,
(iv) Motivating others to take action agreed upon, and
(v) Measuring the effectiveness of communication.
Charles E. Redfield states that the following elements are involved in the process of communication:
(a) A communicator (a speaker, sender, issuer),
(b) Transmits (says, sends, issues),
(c) Stimulus (message, orders, reports) to a
(d) Communicate (addressee, respondent, audience) to influence his behaviour as seen in his (e) response (reply, reaction).
The process of communication can best be expressed by Laswell's popular five 'Whs': "'who' says 'What' in 'Which Channel' to 'Whom' with 'What effect'?"
In the light of the above, the process or steps of business communication can be described as follows:
1. Sender's Idea:
The first thing in communication process is to be familiar with the idea or problem to be communicated. If the communicator has no clear view of this idea or problem, its reception on the other end may give similar obscure idea and may thus be misunderstood. So, the process of communication demands full and clear view of the idea or problem to be communicated.
2. Encoding the Idea:
When the idea is converted into a symbolic form in terms of some kind of language, it may be termed as the encoding of the idea. The language may consist of words, symbols, charts, diagrams, gestures, etc. This encoding depends upon the personal characteristics of the sender as well as the receiver. The style, length, form, clarity, etc. of the message varies from person to person.
3. Transmission:
In transmitting the ideas or decisions, certain matters are to be taken into consideration. The first consideration should be to select an appropriate channel (i.e., verbal, non-verbal, written, etc.) and a medium (telephone, e-mail, letter, face to face conversation, etc.).
This selection depends upon urgency, distance, availability of means, cost and time factor, etc. Next thing is to determine the person or persons to whom such ideas or decisions are to be communicated. So, the selection of right course and right person for communication is essential for its effectiveness.
4. Getting the Message by the Receiver:
The receiver must get the message to make the communication fruitful. Suppose a letter or e-mail is sent to a person. It is not possible for him/her to go through it and understand its meaning unless it is received by him/her.
5. Decoding the Message:
Decoding means understanding or bringing out the meaning of the message. It is very vital. If the receiver understands the message in the same sense as the sender intends, the objective of communication is presumed to be fulfilled.
6. Sending Feedback:
Feedback is the receiver's response to the message. Having understood the message the receiver reacts to it and responds accordingly. The feedback evaluates the effectiveness of the message. If the sense of the message is realist properly, the feedback or the response will be desirable and, if it is not, one has to understand that there are some barriers in the process. Steps are required to be taken for the removal of such barriers.
7. Channel:
Channels are the routes or paths of the communication. The sender's idea is transmitted to the receiver through this path. Again, the receiver sends feedback to the sender through the channel. Thus, channel is used at least twice in the process of communication. Oral or telephonic message, letter, different audio and video media, computer, e-mail, fax, etc. are the popular channels of communication. Selection of channel depends upon the nature of the message, necessity, urgency and situational conditions.
8. Noise:
It is not a separate step in the process. It may be present at every step and make the communication less effective or ineffective. Noise distorts the message and conveys ideas not intended by the sender resulting in chaos, confusion and complexity.
Channels of Business Communication :
Channels are the routes or paths through which messages are sent or received.
Examples of Channels:
1. Here ABC are the three persons and there are three channels of communication between AB, BC and CA.
2. Here, ABCD are the four persons and there are six channels of communication between AB, BD. DC, CA, AD and BC.
3. Here the number of persons are five— ABCDE—and ten channels of communication between AB, BC, CD, DE, EA, AC, AD, BD, BE and CE.
If channels are used for the purpose of communication relating to any business activity, such channels may be called 'the channels of business communication'. A departmental manager issuing orders to the supervisors in writing is an example of business communication.
Its direction is downwards as it is made by a superior to his subordinate. Here a downward channel is used. Again, the communication is expressed in writing. Therefore, a written channel of business communication is in operation. Once again, as the communication is carried on through an official route, it is a formal communication channel also.
Classification of Channels of Business Communication :
Channels of business communication may be classified from different viewpoints as follows:
1. On the basis of Organisational Structure:
On the basis of organisational structure, the channels of business communication may be divided into:
(i) Formal, and
(ii) Informal.
i. Formal Channel:
When communication is carried on through structured, organised or official route, the channel is called 'Formal Channel'.
ii. Informal Channel:
Non-structured, unofficial and unorganised route of communication is 'Informal Channel'.
2. On the basis of Direction:
The direction of business communication channels may be:
i. Downward,
ii. Upward and
iii. Horizontal or Lateral.
i. Downward Channel:
Channels used for flowing information from top towards bottom are called 'Downward Channel'.
ii. Upward Channel:
Communication of information from lower level to upper level is possible through 'Upward Channel'.
iii. Horizontal or Lateral Channel:
When communication takes place between the persons of same rank a 'Horizontal Channel' is said to be formed.
3. On the basis of Way of Expression:
On the basis of the ways or means of expression business communication channels are of two types:
(I) Written, and
(II) Oral.
I. Written Channel:
When communication takes place in writing through letters, memos, reports, proposals, e-mail, faxes, etc. 'Written Channel' is said to be in use.
A written channel is often selected in the following cases:
A. immediate feedback is not required;
B. the receiver stays in a far off place and cannot be brought to contact easily;
C. distortion of message is not desirable;
D. detailed, complex and planned messages are required to be sent; and
E. permanent record is necessary for future reference.
II. Oral Channel:
'Oral Channel' includes different media e.g., face-to-face conversations, speeches, meetings, telephone, voice mails, audio and video tape, teleconference or video conference, etc.
An oral channel is to be selected if:
A. feedback is required immediately.
B. the receiver of message or audience can be brought to contact easily.
C. interaction is necessary.
D. simple messages are communicated.
E. no permanent record is to be kept.
Levels of Business Communication:
Levels of business communication may be determined on the basis of direction of communication and the ranks or positions of the persons with whom communication is being made.
It may be classified as:
1. Lower Level Communication
2. Upper Level Communication
3. Horizontal or Side-wise or Lateral Communication.
1. Lower Level Communication:
When information flows from the persons occupying higher positions to those at lower levels, it is called 'Lower Level Communication'. The flow of communication being downward it is also called 'Downward Communication'. It is usually conveyed through oral or written orders, reports, manuals, etc. and is the most common practice in all business organisations.
In an organisation, people at lower levels have a high degree of loyalty, faith, respect and sometimes a mixed feelings of fear and obedience towards the people of higher levels. This leads to high degree of acceptance of the communication.
In the lower level communication there is a possibility of distortion of information through gossip or 'grapevine' communication. In such a case the ultimate objective of communication is lost. So, care should be taken to send the information, message or order and receive feedback without any loss, alteration or distortion of information.
2. Upper Level Communication:
When communication moves upward from the subordinates to the superiors, it is called 'Upper Level Communication'. The means of upper level communication includes the submission of reports and suggestion, opinions and attitudes, complaints and grievances, etc.
The upper level employees can understand the pulse of the lower level employees through such communication. But, it is less common because it is less favoured by the top managers due to its troublesome and perplexing nature.
The effectiveness of such communication depends upon good superior-subordinate relationship and intention of the superiors to remove the grievances and honour the emotions of the subordinates. The subordinates should also be co-operative and avoid unnecessary criticism, fault-finding attitude, complaining for fake or baseless grievances, etc.
3. Horizontal or Side-Wise or Lateral Communication:
'Horizontal or Sidewise or Lateral Communication' takes place between the people of same level in the positional hierarchy of the organisation through oral or written method. Communication between the employees or supervisors or managers of the same department or another department is examples of horizontal or lateral communication. It helps to promote understanding and coordination in the organisation. It is especially important in large or decentralised organisation.
Importance of Business Communication :
The significance or importance of business communication is increasing very rapidly day-by-day. The business world of today cannot move smoothly without the help of communication. It makes a business enterprise dynamic and increases its efficiency. It is regarded as the motivating force that leads to industrial harmony.
It can be used as a device for controlling the business activities to ensure the achievement of organisational goals. According to Keith Davis, the role of communication in business is as essential as the blood veins or arteries in human body. In its absence, a business organisation would cease to exist.
Business communication has a significant role to play in management whose objective is to direct the individual efforts for securing overall co-ordination of organisational activities. It performs the energizing function in the organisation by transmitting information, facts and ideas and thereby making co-ordinated efforts possible. Communication can, as such, be regarded as basic to the functioning of an organisation.
Theo Haimann has rightly said that the success of management activities, to a great extent, depends on good communication system. Communication creates favourable work environment, motivates the workers to work hard and, thus, management activities become easier. Through communication process it is possible to supply all necessary and important messages or information at all levels of the organisation.
Business communication promotes managerial efficiency and induces the human elements in an organisation to develop a spirit of co-operation which finally leads to peak performances. The process of leadership depends on effective communication. Sound communication system is an essential requirement of good labour-management relations.
With the help of communication there is better understanding of the objectives and policies which encourage co-ordination. Growing importance of human relations in every business with customers and workers has made communication the life-line of business. Producers are required to make sales appeal to their customers.
The subordinates are required to communicate their grievances and complaints to their superior, otherwise they may lead to conflicts. Proper communication helps in implementing the decisions effectively and leads to smooth running of the business. It creates mutual trust and confidence and builds up the morale of the employees and, thus, provides job satisfaction to them.
Business communication is all the more important in management because the success of an enterprise depends upon how effectively its employees understand one another. Most of the problems of business can be attributed to poor communication between the managers and workers.
So, lack of communication or poor communication will affect a business in different ways. It will greatly affect understanding of the employees, place them in utter confusion, create apathy to their work, hinder their willing co-operation, put co-ordination out of gear and invite dislocation, chaos and conflict in all business affairs and, ultimately, the very survival of the business will be at stake.
The importance of effective communication in management has been widely recognised in recent years. It has become one of the most vital factors in the efficient performance of management. It has an important bearing on management affairs from different points of view.
Above discussion of the significance of business communication may be stated point- wise as follows:
1. Movement of Information:
Communication helps to move information from one place to another and from one person to another. It develops a chain of understanding among the workers of different levels in a business enterprise.
2. Efficient and Smooth Running of Enterprise:
The smooth and efficient functioning of an enterprise entirely depends upon the effectiveness of the system of communication. It provides the basis of direction and actuates people to action in accordance with the desires of the management authority. According to G. R. Terry: "Communication serves as the lubricant fostering the smooth operation of the management process."
3. Promotion of Management Efficiency:
Communication encircles all the functions of business management. So, without it, no function of business management can proceed towards its desired goal. It is the tool of managerial efficiency. The managerial efficiency depends upon getting things done through other people by making them know and understand what the manager wants them to do. It is the work of communication to keep the employees informed of everything necessary for smooth work performance.
4. Proper Planning:
Communication is very helpful in planning the activities of business. It provides the managers information and ideas necessary for sound planning. According to Theo Haimann "Only through good communication can company policies and practices be formulated and administered." Secrecy of information creates suspicion among the workers and separates them. Understanding of the common problems unites them for showing a better record of their performance.
5. Basis of Decision-Making:
Communication helps the managers to take essential decisions and conduct vital operations. The quality of decisions made in an organisation entirely depends on the volume and quality of information available to the management authority. In the absence of effective communication it may not be possible for top management personnel to come in closer contact with their subordinates.
6. Basis of Co-Operation:
By promoting mutual understanding and meeting of minds, communication paves the way for co-operation. Communication creates condition for mental acceptance of the work before its actual performance. This mental acceptance is the will- to-do before actually doing it. Communication involves understanding and willing acceptance of orders and instructions and acts as the basis for individual and co-operative efforts.
7. Means of Co-Ordination:
Co-ordination implies orderly group efforts to provide unity of action. This unity of action is the result of team work which, in turn, depends, to a great extent, upon clear understanding of the organisational goals, the mode of their achievement and situation of the work. The function of the business communication is to get the workers fully informed of everything relating to the work and bring a perfectly tuned harmony in their work.
8. Job Satisfaction:
Proper communication system extends mutual trust and faith. It thus creates confidence in the ability of their manager, promotes their loyalty to the enterprise and stimulates their job interest. Proper communication system enables the subordinates to bring to the notice of the managers their viewpoints, grievances and troubles. This facility raises the morale of the workers and, ultimately, leads to job satisfaction for high performance.
9. Establishment of Public Relations:
A business enterprise comes into contact with several social groups, e.g., customers, investors, trade unions, government and the local community. It must maintain cordial relations with each of these groups to develop a favourable image. It must continuously strive to convince the public in general that its actions are taken in the interest of the society. No public relation can be established without communication.
10. Establishment of Effective Leadership:
Effective leadership is established through communication. The ideas, orders, instructions, direction, etc., of the leader or manager is transmitted to the subordinate employees through communication. The manager can influence them and create a healthy relation by wiping out misunderstanding and distrust between management authority and subordinates through communication.
11. Assisting Motivation:
Communication creates motivation. Through it the managers and employees are well-acquainted with the latest information relating to the organisation. This leads to avoidance of hostility, acceptance of reality, change of attitude, consciousness of responsibility and—ultimately—motivation to work.
12. Loyalty:
The confidence and loyalty of the lower employees on the management personnel increases as they become aware of the competence of efficiency of their boss through communication. It helps to strengthen mutual trust.
13. Accomplishment of Goals:
Communication fulfills the organisational objectives through co-operation and co-ordination among the managerial and working staff. Interconnections between the managers and subordinate employees are established through effective communication system.
14. Industrial Peace:
Workers' unrest is a problem today. It is communication which can establish peace in the industry. Two-way communication helps to develop mutual cooperation and understanding. Through downward communication the management personnel send their orders, instructions, directions, etc. to the subordinates.
On the other hand, the upward communication helps the subordinates to convey to their superiors their demands, grievances, complaints, suggestions, etc. Thus, through communication of facts and information between the superiors and subordinates, industrial peace can be established. 
Best Definition of Business Communication
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