1. Setting objectives
The organization has variety of goals to accomplish. They are profitability, product quality, market dominance, keeping customers happy or employee satisfaction. Effective communication helps in setting and disseminating the goals of an organization.
2. Making and execution of plan
Business plans are made to perform business activities efficiently and to achieve organizational objectives. Once the plan has been made, it has to be executed and communication plays a key role in the execution of plan by spreading it among employees and by providing them required directions.
3. Source of information
It is the source of information. A person in an organization having unique information can be transferred to other persons through communication that can be helpful in making decision. If there is no communication in an organization, the information and ideas cannot be shared.
4. Improvement of managerial efficiency
The managerial task such as planning, organizing, staffing, leading and controlling can only be performed when there is effective communication. Through motivational tools the behavior of employees can be influenced to perform well. So the managerial efficiency can be improved by communication.
5. Interaction between employer and employees
There is a strong relation between employer and employee in an organization. They are get in touch through policies, circulars, reports, notices, memos, applications and complaints. Thus, communication plays a crucial role in the interaction between employer and employees.
6. Advertising of goods and services
Communication plays a vital role in advertisement of goods and services among actual and prospective customers. Through media such as newspapers, signboards, radio, television and internet the products and services can be introduced to general public.
7. Human resources management
Human resources are recruited and trained through communication. Recruitment is the process of inviting applications from prospective candidates for positions. Once the applications have been received, suitable candidates are selected after interview. Then they are introduced to the company’s environment and trained for the work. This whole process requires communication.
8. Interaction between central and branch offices
If an organization have many branches. In such a case the head office must be informed about the activities of branch offices and the branches must follow the instructions given by the head office. This process can only be possible by efficient and effective communication.
9. Dealing with customers and supplier
Sales letters and sales promotion letters are used to persuade customers directly and indirectly to buy goods and services. Adjustment letter is used to satisfy customer’s dissatisfaction. Announcement letter is written to convey general information such as opening of a new branch, introduction of a new product, change in address or premise etc. Similarly, to buy material from supplier order letter is used. Furthermore, if organization need credit facility, it will get the credit facility from its supplier by mutual agreement. So business communication enables the organization to deal with its customers and suppliers.