IMPORTANCE OF COMMUNICATION IN BUSINESS

 1. It helps the entrepreneur to search for, establish and disseminate organizational goals to the different departments in the organization.

2. It facilitates development of plans and strategies to achieve goals. Once goals have been articulated, strategies are evolved, discussed and communicated.

3. It facilitates the allocation of resources of the organization in the most effective way. This is done through agreeing on discussions and directives on how the resources will be deployed.

4. It facilitates identification, selection, development and appraisal of organizational members.

5. It helps an entrepreneur to implement organizational policies by giving instructions to subordinates and their supervisors.

6. It enables managers to influence, direct, motivate and create a conducive working environment for organizational members. This is done through written or verbal communication which involves giving workers instructions and guidance.

7. It enables the entrepreneur to get feedback from organizational members about performance of tasks given to them as they make periodic reports on supervisors on what they have done.

8. Communication helps in keeping good relationship with old customers and creating new ones.

9. It enables the entrepreneur to pass on relevant information all the time to his or her staff, the customers, shareholders and the general public. For example information about performance of the business.

10. Communication enables the organization to identify suppliers who are competent and can avail inputs like raw materials used in the production process.

11. It helps to link the entrepreneur to important services and needs like banking services, insurance, transport, e.t.c which help in the day to day running of the business.

12. Communication enables the organization to relate to society and know the needs of the society. For instance, the organization may need to address social problems like HIV/AIDS and global warming.

13. It enables the entrepreneur to get information about macro policy intentions of government, tax policies and other information that the government makes available in form of regulation from time to time.

14. It aids market research through the use of interviewing, questionnaires, e.t.c. An entrepreneur can be able to gather necessary information concerning people’s opinions about his or her products in the market.

15. It opens and promotes trade through effective communication. Various markets are linked up so that shortages in one market can be solved by transferring surplus goods from other markets. For instance a multiple shop which has a shortage can communicate to another branch with a surplus to solve the shortage.

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