- Basis of decision-making: Communication is essential for decision making and planning. The quality of managerial decisions depends on the quality of communication. At the same time, decision and plans of management need to be communicated to the subordinates. Effective communication is also helpful in the proper implementation of plans and policies of the management. It is the basis of effective leadership because it makes the leader’s idea and opinions known to the subordinates.
- Facilitates co-ordination: Communication is the most effective means of creating cooperation among individual efforts. Exchange of ideas and information helps to bring about unity of action in the pursuit of common purpose. Communication binds people together.
- Sound industrial relations: Effective communication helps to create mutual understanding and trust between the employer and the employees. It enables the management to come into close contact with workers. It serves as a bridge between management and labour and creates team spirit in the organization. Thus, an effective communication system is a prerequisite of good labour management relations.
- Smooth and efficient operations: An effective communication system serves as a lubricant, fostering the smooth and efficient functioning of the enterprise. The achievement of enterprise goals is of paramount importance and communication is one of the important tools available to the manager seeking to attain them. It is through communication that a manager changes and regulates the behavior of subordinates in the desired direction. Effective communication promotes managerial efficiency.
- Industrial democracy: Communication is essential for worker’s participation in management. It is helpful in delegation and decentralization of authority. Effective communication is the basis of training and development of managerial personnel. The process of leadership itself depends upon effective communication.
- Employee motivation and morale: Through communication, management can keep the employees fully informed of plans, job changes, etc. The motivation and morale of employees tend to be high when they clearly understand what they are supposed to do. Communication is the means by which employees can brings their suggestions, difficulties and grievances to the notice of the management. Upward communication ensures greater job satisfaction and stimulates worker’s enthusiasm and loyalty to the enterprise. Effective communication satisfies personal and social needs of employees.
- Public relations: In the today’s time, every business enterprises must create and maintain a good corporate image in the society. Communication is an indispensable means of developing a favorable public opinion. It is through communication that management can keep cordial relations with the government, trade unions, customer and the community.
Importance of Communication within the Management Group
Communication is an essential function and an important problem of management. Since the job of a rational manager is to secure the willing co-operation of his subordinates in the accomplishment of goals, communication is an indispensable part of management. Communication is a continuous and pervasive activity and a manager spends the major portion of his time in communicating. To be more specific communication offers the following advantages.
Thus, communication is the heart of the management process. It serves as the nerve system of the organization.