The significance of effective communication in a modern organisation is recognised all over the world. It is of vital importance for efficient and smooth functioning of an enterprise. The importance is evidenced by the fact that every manager on an average spends 80-90 percent of his time in the communication process.
Let us analyse the basis of its importance.
1) Adequate and timely communication is necessary for the managerial functions of planning, organising, directing and controlling to be carried out successfully.
It is on the basis of information communicated to them that plans can be developed by top management. On the other hand, plans, policies and procedures must be communicated to operating managers and employees without which implementation of plans can hardly be possible. Similarly to establish organisational relations, people must be informed about their position, tasks, and authority in the organisation. The directing function also requires proper communication between managers and their subordinates and between members of work-groups. Only then it is possible to achieve group goals as well as organisation goals. Again, timely feedback of actual performance against planned targets forms the basis of the control function of management.
2) Effective communication contributes a great deal to higher efficiency in job performance. It ensures willing cooperation of others due to the close understanding of ideas and instructions established through communication. Indeed a direct relationship exists between the effectiveness of communication and efficiency in an organisation.
3) The quality of decisions made in an organisation depends largely on the amount and quality of information available to the decision maker. However, the quality of information depends on the effectiveness of the communication system. Thus, a good communication system contributes positively to the quality of decisions.
4) Communication is the means by which delegation and decentralisation of authority is accomplished in an organisation. Operating managers must have a clear understanding of their respective limits of authority and accountability and the jobs assigned to them. This is possible only through the existence and use of communication channels.
5) Coordination of interdependent activities requires communication to flow horizontally as well as through all levels of authority.
6) The effectiveness of communication also helps in moulding attitudes and building up employee morale. It plays an important role in removing misunderstanding and developing harmonious labour-management relations.
