The communication plays an important role in very aspect of our life. This article speaks about the role of communication in business organizations.
Imagine what would have happened to a business had there been no communication among its people. The whole system would have become chaotic and so the situation would be no less problematic than any limit to cause a business to face failures. Communication since time immemorial has played a major role in the lives of the individuals. Communication skills have a great impact on both personal and organizational level. It has been viewed as indispensable in business. Communication skills are important to all levels of an organization.
The need and importance of interpersonal communication cannot be underestimated.
Communication ensures that the goals are being shared among the people and the ideas, opinions, facts and suggestions are being interchanged. While it’s a great way for the information to exchange and flow across the organization helping the employees to produce the desired results, it aids greatly to improve social skills of the individuals allowing them to express their feelings, emotions, interests, experiences, ideas and attitudes. Communication is significant for managers in an organization so as to perform their managerial tasks effectively and efficiently. A manager needs it in order to get his point across to others, whereas subordinates need to understand what they are expected of and to perform the assigned tasks in a way as wanted. A manager spends most of his time in communication. Studies show that managers spend as much as 80 percent of their workday communicating. This emphasizes the role and importance of communication.
In order that all the functions of management, such as, planning, organizing, directing and controlling may be performed effectively and efficiently, communication is required. And it is through the communication process that the employees are aware of policies and objectives of a business. While at work communication is important to promote motivation and good working atmosphere, it is absolutely necessary for the daily operations of a business, as it helps in achieving the organizational objectives successfully.
It is worth mentioning what Henry Mintzberg has pointed out in relation to managerial roles: interpersonal roles, informational roles and decisional roles. The first two roles need to be done well in order to undertake the third one. So, these roles highlight the importance of communication in an organization. Thus, the communication is so important in a business that it is considered the lifeblood of a business organization to succeed and survive.
Effective communication plays a vital role in an organization to perform the basic functions of management. It acts as a foundation for planning as all the important information has to be communicated in a right way so that plans can be implemented accordingly..
Decision making is an integral part of management. Managerial economics helps in effective decision making and a business manager is essentially involved in the processes of decision making as well as forward planning.
Working capital is defined as being the capital of a business which is used in its day-to-day operations. It is the net of current assets minus current liabilities.