What is business communication? its types and purposes

Communication is an integral activity of human beings. Communication in its simplest form means transferring of information from one person to the other. The word communication has been derived from the Latin word ‘communicare’ which means ‘to share’.

Hence, it can be defined as the process of transferring, sharing, exchanging or transmitting, ideas, facts, feelings, data, information and experience from one entity to other through a medium.

Introduction to Business Communication

Business communication is the process of sharing/exchanging information between people within and outside the organisation in order to accomplish organizational goals and have mutual understanding of the commercial benefit of the organization. 

Business Communication can be of two types: 

(i) Oral Communication 

An oral communication can be formal or informal. Generally business communication is a formal means of communication, like: meetings, interviews, group discussion, speeches etc. An example of Informal business communication would be Grapevine. 

(ii) Written Communication 

Written means of business communication includes – agenda, reports, manuals etc.Communication is about understanding, and how it is mutually transmitted between a sender and a receiver. That said, if there is no such mutual understanding, then communication isn’t happening.

Significance/Purpose/impo of Business Communication 

The significance of business communication can be summarised in the following points:

  Managerial efficiency: 

Communication helps in the smooth operation of management. An organisation must communicate its goals in a way so that all parties involved are on the same page and can carry out the tasks required to achieve those goals.

  Building a dedicated and loyal employee base:

 Effective communication emphasizes the employee’s participation in management. It creates a positive environment where an employee can flourish. It helps to build the employees morale and cordial industrial relations between management and employees. 

 Effective leadership:

 Effective leadership depends on effective communication. A leader must communicate and listen to views and share feedback to his/her subordinates for smooth functioning of tasks.

  Mutual trust and confidence: 

Mutual trust and confidence between workers and management is essential for the effective functioning of the organization because it helps to reduce misunderstandings and resolve conflicts. 

  Human resources management:

 Effective communication helps in the proper human resource management, Communication also plays a major role in teaching and training employees. 

 Managerial functions:

 All managerial functions such as planning, organizing, directing, controlling, etc cannot be conducted without communication. 

 Improving customer service:

 Effective communication with customers by answering questions and providing solutions helps to improve the business’ reputation and enhance customers’ satisfaction.