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Why communication is important in business?

Updated: Sep 26, 2021

Survival needs communication, every aspect of existence needs communication, even business being one of the characteristic of human existence needs communication.

The word communication derived from the Latin word Communicare, which means to impart or take part or participate. In the course of our day to day living, we need to take part with other human beings and also with things around us.

During the course of participation it becomes required to accept as well as to provide. This process of participation can be different, such as talking, writing, interacting, etc but all of this means communication. In business, people come together to perform tasks that requires communication with one another. Such a work situation makes communication essential and vital.

The business world today has become global, which make communication even more difficult. Communicating across different traditions requires communication skills that would allow people from different places to interact with each other in order to achieve extensive goals. So it is required to improve good communication skills. However, one of the ignored areas of human growth is communication.

Educational hubs teach the one thing that is perhaps most important for the future employees to know but very few bother to learn. This one basic skill is the ability to manage and express ideas in writing and speaking.

The moment you move ahead, your competency depends on your ability to reach others through your communication skills i.e. either spoken or written and the further away our job is from manual work the larger the organization of which you are an employee, the more important it will be that you know how to express your thoughts either in writing or speaking. In the very large organization, this ability to express oneself is perhaps the most important of all the skills a person can acquire.


Since communication is so important in any business, organizations want to have people with good communication skills and so many surveys have also indicated the same. According to a survey it’s found that more than 90% of the executives reported that today’s employees must have good communication skills to get ahead. Besides another survey indicated that one of the greatest teaching priorities of an MBA programme is the subject on Communication.

Unfortunately, there is a big gap in between demand and supply and the need for employees with good communication skills is often not fulfilled in the business world. A recent study also indicates that there is a correlation between communication and income and the career success is very much dependent upon good writing and speaking skills, along with proper etiquettes and listening. In other words, having good communication skills would result in advancement of career thus, monetary gains in terms of income.

The use of technology in communication makes a huge difference and the skills to communicate more obvious. For example, Email often displays one’s written communication skills or use of language to different people all together, while audio and video will reveal one’s verbal caliber and diplomacy strength as well.

Over the years, people have recognized the importance of communication in an organization as they noticed that communication plays a vital role by which people are linked together in an organization to achieve a common purpose. More of any group activity is next to impossible without proper communication, because coordination and change cannot be effected.

In an observation of CEO’s showed that they spend 78% of their time on communication related activities involving direct contact with others, scheduled and unscheduled meetings, telephone calls, etc.

It is also observed that managers considered activities involving direct communication with others, to be more interesting and valuable than more routing activities.

The skills that require attention, during oral presentations, memo writing, basic grammar, informational report writing, or any analytical report writing is none other than the skill of your communications and developing communication skills always ensures the development of your visual skills, written skills, spoken skills and reading skills.

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