The Importance of Effective Communication in an Organization – 25 Points essay

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The Importance of Effective Communication in an Organization – 25 Points

What is Communication? The word ‘communication’ comes from the Latin word for ‘to share’. Communication is thus about sharing information with other people in a way that is meaningful and effective.

By definition, communication is the use of different mediums to exchange information. The medium includes writing or just speaking.

Communication can also be said to be the transmission of information between a sender and a recipient using the telecommunication mediums.

Communication is very important for any organization.It enables the flow of information from the top management organs to the person at the lowest level of the organization. It increases understandability helping in the growth of the organization.

Another important aspect of this notion of sharing is the fact that communication is a two way process. As well as speaking to others, we need to listen to them when we communicate.

Below, we give 25 key reasons why it is essential to develop good communication skills in your business or work life.

Related: 50 Reasons Why Good Communication Skills are Important.

Importance of Effective Communication in an Organization

The importance of effective communication in an organization is discussed below in points.

1. Creating a good impression. Most people pay attention to their verbal communication skills: what they say to employees and colleagues – as well as to consumers. However, it is essential to have good non verbal communication too, which essentially comes down to good body language. Both of these are important for creating a good impression.

2. Easy Management of organization policies. Communication make the management of the organization easy as there are many ways of communicating with the employees. It makes each person in the organization know the organizational policies. They then work with the acceptable organization policies, hence achieving the right results.

3. Promotes working toward the same goal. Effective communication ensures that each employee knows the organization’s goal. They do everything to achieve the goals.

4. Maintaining a good relationship with employees. It is so crucial to stay on good terms with your staff. Communicating well with workers is the foundation of a good business strategy. That way, you know all about your workers’ concerns and can give them encouragement and constructive criticism at any time. This flow of communication between everyone in the organization is often called B2E communication. In short, the boss knows what to expect, and the subordinate knows what to deliver! Employees will also feel more able to ask for a raise when the relationship between seniors and subordinates is a good one.

5. Organizational growth and profit. Since effective communication increases performance of the employee. This means that the organization will increase its scale of production. If you cannot communicate well with marketing teams and the human resource management section of your business, you will find it hard to manage your resources, and profit making marketing strategies. Communication can thus be sales oriented – one example of this is when giving a sales forecast to your employees.

6. Promotes sharing. Communication ensures that information is shared from one person to another with much ease.

7. Promotes unity. When departments in an organization are communicating, their unity as the organization works as one unit.

8. Promotes learning. With effective communication, learning is made easy as one can consult when they have a problem.

9. Effective leadership & motivation. With effective communication, leaders are able to lead the organization to prosperity. Communication in an organization makes it clear what the employee is supposed to do and how to do it. When everything is clear, the person is not frustrated not knowing what to do and this increases their desire to work more.

10. Dealing with higher authorities. Business to government (B2G) communication is another cornerstone of good business practice. You will need to use this type of communication when, for instance, you are dealing with regulatory approvals or writing a formal letter for tax or legal purposes.

11. Increases efficiency and productivity. Communication makes the employees to become more efficient as they know what to and how to do it. Effective communication makes the employees more productive since they know what they are supposed to do at the right time.

12. Improved personal attitude. A person who is well-informed, will have a positive attitude towards the organization unlike the one not well-informed. This means that effective communication, helps improve one’s attitude at work.

13. Informal contexts. There are informal contexts to every organization. From networking lunches to nights out with colleagues, and from chatting with customers when you meet them on the street to talking about your business with friends and family, you will find that informal communication skills are also very important.

14. Promotes accountability and responsibility. Communication makes one accountable for their actions in the organization and makes them understand their responsibilities at work.

15. Helps in decision-making. Communication helps in ensuring that the members of the organization are well-informed. This impacts their decision-making capability, making them to make decision that are the best for the organization.

16. Makes it easy to control the organization. The organization controlling process is made easy as communication makes sure that all members knows the Do’s and the Don’ts of the company. This controls their behavior.

17. Teamwork and Understandability. With good communication, people work in harmony, making the organization more profitable. Good communication ensures that people understand what they are supposed to do since they can ask for clarification.

18. Being successful in formal contexts. Formal communication skills are essential if you want to acquit yourself with success in formal settings. One example is when you are engaging in B2B (business to business) deals.

19. Increases transparency in the organization. When there is regular communication in the organization, there is transparency and this increases trust between the employees and the employer hence improving organization output.

20. Prevents time-wasting. Employees don’t waste time not knowing what to do. They produce what the organization wants produced in/on time.

21. Increase preparedness. Effective communication ensures that the people are well prepared if it’s done early enough. It offers time to get ready. When the communication is done on time.

22. Promotes innovation. It makes the employee more innovative in the jobs that they undertake.

23. Reduces fear of the unknown. Communication reduces uncertainty in the organization making the employees confident of what they are doing.

24. Expands the market. Through good communication, more customers will know about the organization’s services, hence making the market for the services larger.

25. Consumer Protection and Engagement. Through the communication of recommended retail prices, the customer is protected from exploitation. They are able to buy the organization services at the right price. B2C or ‘business to consumer’ communication skills enable you to engage your consumers’ interest, understand their needs, and demonstrate to them that you can meet those needs. You might use these communication methods when making a client presentation to secure orders, for example.


Both formal and informal communication skills are absolutely essential to any organization. We could all benefit from enhancing our communication skills. Doing so will help our relationships with colleagues, customers, bosses and indeed everyone else in our life will markedly improve.

In conclusion, communication is very vital in an organization. It makes the organization a good place to work and promoting harmony at work. This will impact the organization’s overall performance.

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