Q. Discuss the role of effective business communication within and
outside the organization OR
Q.Why Business Communication is called, “Life blood” of an
organization? OR
Ans: A business Organization is a group of people associated to earn profit. Various kinds of
activities have to be performed by the people of an organization so as to earn profit. These activities
need an effective and systematic communication. Without efficient communication, one can not even
imagine to do work and hence will be unable to earn profit. Since the aim of business organization is to
earn profit, the organization will die without profit and this death is a result of the absence of
communication. This is why communication is called life blood of a business organization. We can
prove this statement in the following manner.
COMMUNICATION INSIDE AN ORGANIZATION:
Different employees and officials in an organization need to communicate to each other.
This internal communication with its importance is shown in the following way:
1. Setting goals and Objectives:-
Mostly, the organizations have a variety of formal and informal objectives to accomplish.
These objectives may be financial results, product quality, market dominance, employees satisfaction,
or service to customers. So the communication enables all the persons in an organization to work
towards a common purpose.
2. Making and Implementing decision:-
In order to achieve the objective, people in a business organization collect facts and
evaluate alternatives, and they do so by reading, asking questions, talking or by plain thinking. These
thoughts are put into a written form. Once a decision has been made, it has to be implemented which
requires communication.
3. Appraisal:-
Having implemented the decision, management needs to determine whether the desired
outcome is being achieved. Statistics on such factors as cost, sales, market share, productivity and
inventory levels are compiled. This is done through computers, manual papers, memos or reports.
4. Manufacturing the products:-
Getting an idea for a new product out of someone’s head, pushing it through the production
process and finally getting the product also require communication. Designing the plan regarding
product, introducing the workers, purchasing raw material, marketing and distributing the product all
require effective communication.
5. Interaction between employer & employee:-
Employees are informed about policies and decisions of employers through circulars,
reports, notices etc. Employers also get in touch with employees through application, complaint etc.
So, communication plays a vital role in the interaction of employer and employee.
EXTERNAL COMMUNICATION:
1. Hiring the employees:-
If a company wants to hire some one, it advertises the vacancy, receives applications, calls
the candidates, takes the interview and then offers job to the successful candidates. The whole process
requires communication.
2. Dealing with customers:-
Sales letters and brochures, advertisements, personal sales calls, and formal proposals are
all used to stimulate the customer’s interest. Communication also plays a part in such customer related
functions as credit checking, billing, and handling complaints and questions.
3. Negotiating with suppliers and financiers:-
To obtain necessary supplies and services, companies develop written specification that
outlines their requirement. Similarly, to arrange finance, they negotiate with lenders and fill out loan
applications.
4. Informing the investors:-
Balance sheet, income statement, and ratio analysis are used to inform the investors
regarding performance of business.
5. Interacting with Govt.:-
Government agencies make certain rules to regulate the economy. These rules are communicated to organizations through various papers. These organizations try to fulfill, these
requirement like filling taxation form and other documents.