Communication is defined as the exchange of information between two or more parties and is vital for business. Historically, communication evolved from oral traditions to the development of writing. In business, effective communication is essential for smooth operations, prompt decision making, building relationships, motivating employees, promoting the business, and establishing contacts with external stakeholders. It is the foundation for managerial functions like planning and controlling. Overall, communication is considered the lifeblood and nervous system of organizations.

1. Define Communication. What is the importance of Communication in
business?
History
Communication has a rich history. The ancient world, both the east and west, depended on
oral communication. In ancient Greece and Rome, it was necessary to communicate, when
dealing with matters in assemblies and the courts. During the medieval and Renaissance
periods, the oral tradition progressed. As writing became more important as a permanent
record of communication, authors and books on written communication principles
appeared.
INTRODUCTION:
The word communication has been derived from the Latin word “Communis” which
mean “common”. The act of sharing information, feelings and ideas is called
communication.
“Process of passing information by one person to another is called communication.” It may
be oral, written or any form.”
In our routine matters, we try to convey our ideas, messages or information to other.
Communication is the act of sharing or transmission f knowledge, information and proposals
to other. It is a two way process. Literally communication means to inform, to tell, to show,
or to spread information.
Definition:
Communication is defined in various manners by various authors; some of them are as
under:
“Communication is a sum of all things, one person does when e wants to create
understanding in the mind of the other; it involve a systematic and a continuous
process of telling, listening and understanding.”
Important points of definition:
The definition of Allen Louis emphasis over the following important points:
It is a sum of all things.
It creates understanding.
It includes telling, listening and understanding.
According to Oxford Dictionary:
“The action of conveying or exchange of information and ideas.”
According to Harold Janis
“Communication is process by which message effects response”.
According to George Terry:
“Communication is an exchange of facts, ideas, opinion or emotions by two or more
persons.”
According to Aristotle
“The search for all available means of persuasion”.
IMPORTANCE IN BUSINESS
Communication is the nervous system of an organization it keeps the members of an
organization well informed about internal and external happening relevant to the task and
interest of an organization. If you want to ensure proper implementation of your policies

2. there must be coordination among all the relevant parties and this is only possible when
there is effective system of communication. Thus communication is an essential to the
business as blood to human body. The following points will prove its importance in business.
1. Smooth working:
Communication is necessary for the successful and unrestricted working of an
organization. The manager co-ordinates the human and physical elements of an
organization into an efficient and working unit that achieves the common objectives.
2. Maximum output with minimum input:
“Basic dream of an organization is to maximize the output with minimum input. So
for this purpose food communication attached with it directly or indirectly.”
Every organization aims at getting the maximum production with minimum cost and for this
purpose, it requires an effective communication system.
3. Prompt Decision:
“Decision making is important part of company for increasing the earning and well
organizing company.”
Fact collecting process is necessary in order to make decision. Communication not only
helps in seeking the required information before making meaningful decision but also in the
implementation of that particular decision. Thus decision-making and its implementation
require effective communication.
4. Building Human Relation:
“Effective relation increases the activities of business and communication gives
birth to good relations.”
A successful business organization knows the worth of human relation in aims at developing
healthy relations with all such members who are connected with the firm directly or
indirectly. It all depends upon effective system of communication. If an organization ahs
effective system of, it wins the true sincerity and devotion of the members connected with
it.
5. Job satisfaction and high morale:
“Good communication makes high morale of employee and removes
misunderstanding between management and employee.”
Morale is a human element that motivates a man to work in high spirits, to fill the member
of your organization.
6. Contact with external parties:
“External contacts are necessary for business and communication makes it
possible.”
Communication plays a vital role in establishing contacts with the outside world.
Communication is essential not only for the internal management for the organization but it
also helps contact outside world. Good communication can ensure the positive attention of
the external parties. Contact with outside agencies such as customers, retailers, whole
sellers, agents, associations other4 manufacturers, advertisers, suppliers and institutes etc
are necessary to run the business properly.

3. 7. Basis of managerial function:
“Communication plays very important role for managerial function like planning
and control etc.”
Communication plays vital role in performing the various functions of management. No
function of management is possible without communication process. Its importance in
performing various functions is as under.
· Planning:
Every organization is based on its planning. Planning is based on effective
communication. So communication is important in executing planned programme and
controlling the activities of individuals.
· Control:
Communication helps in controlling the activities of the individuals, departments and
groups.
8. A key to success”
Communication is a key to success not only for individual but also for different
organizations that struggle for excellence. Senior Government officer and executives in
business and industry have often expressed their concern about the need for better
communication. If you possess strong communication skills, the chances of promotion and
being hired are better.
9. Basic needs:
In the modern world, employers want people who can communicate effectively.
Daily newspapers relate various sorts of job advertisements by different organizations
demanding for skilled persons. No business or government can function properly without
communication.
10. Life blood of an organization:
Communication runs in the veins of an organization just like the blood circulates in
the veins of human body. From the activities, in an organization, require effective and timely
communication and relation. From the higher management to the lower staff; from the
internal to external activities, organization requires effective network of communication.
11. Motivation among members:
Performance management is almost conducted in good organization. If the
proper intimation is not made to the members about their performance they will lose their
confidence in the organization. It is necessary to inform the active members of their good
performance and the reward they are going to receive. This will definitely work positively
and all the members will start working efficiently.
“When employee receive appropriate downward communication from management, they
can be better motivated and more efficient,”(H.A. Murphy)
12. Career builders:
One job promotion and success often depend on doing well in written and
oral communication. Our ability to communicate effectively is a valuable thing which can

4. lead us towards success of life. Communication is primary source in many careers such as
customer relations, public relations, sales and law.
13. Promotion of an enterprise:
The promotion of your business depends on communication as the ability to
communicate effectively with other in repeatedly named as a top quality of a successful
business man. The more effectively you communicate, the more easily you influence on
others, thus, you can put into practice without any resistance. Ultimately your business will
flourish in no time.
14. Builds goodwill:
In any organization only skilled people can develop the goodwill of the
organization. In this modern age of competition for excellence and success organizations
need effective communication. Executives and the other members of an organization
continue fast communication and obtain the high status among different competitors.
15. Build organizational image:
Through communication you can get a valuable place in market. Your ability to
speak and write effectively helps you to be successful in dealing with international business
people. This ability promotes the image of your organization also.
Conclusion:
Hence one cannot overlook the importance of communication. The success
goodwill and progress of any organization largely depends upon the communication system.
Communication is the mouthpiece of an organization. The role of communication becomes
more critical as the organization grows in size, complexity and sophistication.
“Effective business communication is the life blood of every organization.”
(H.A. Murphy)