Why Is Effective Communication Important in Business?
Effective communication is a fundamental part of the business world because it provides an essential link between the people who make up an organization. According to the December 2005 issue of "Wisconsin Business Alumni Update," the average manager spends about 75 to 80 percent of his day engaged in oral or written communication.
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Productivity
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According to BNET, the lack of effective communication in a company, among various business components, leads to decreased productivity and can serve as an obstacle to a business's performance. Effective communication eliminates the questions and confusion that may cause projects to delay or assignments to be put off due to the need for further clarification. When people communicate effectively in the office, employees can be more productive because they'll know what is expected of them the first time around.
Good Management Skills
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Effective communication enables managers to give understandable instructions to their teams, which decreases the chance of there being mistakes made due to miscommunication or misinterpretation. Being an effective leader means knowing how to communicate in a way that is clear and comprehensible. According to FMLink, everything a manager does has something to do with communication. Managers use communication to motivate their teams, create company policies and give presentations in meetings.
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Cost Effectiveness
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The December 2005 article in "Wisconsin Business Alumni Update" explains that ineffective communication can be costly to companies. Employees who struggle with their communication skills may require training to amp up their communication abilities. Consequently, this can be expensive for companies to pay for. Since communication is such a necessary attribute in the business world, employers may also terminate employees who do not exhibit effective communication skills. Firing employees is another expense, because businesses lose money from having an empty position and then have to pay recruiting costs.
Customer Relations
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The U.S. Office of Personnel Management explains that effective communication is the cornerstone to satisfied customers. Effective communication is used to improve conversations with customers and make customers feel like they are being heard and valued by employees. In turn, this can help employees and companies build strong customer relations.
Globalization
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According to the "Wisconsin Business Alumni Update," businesses are becoming increasingly globalized. The globalization process calls for effective communication because in many instances, employees will not converse or interact with people face-to-face. As such, the way employees communicate with one another will have to change. Global businesses rely on technology to provide communication tools, such as e-mail. However, employees will need to practice effective communication skills so that co-workers in different parts of the world can understand one another and get the job done.
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References
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