Role of Communication in a Business Organization

by Anam Ahmed - Updated June 27, 2018
They go above and beyond to achieve success

The seven Cs of communication, a commonly used checklist for effective communication, helps to ensure that the message is understood the way it is intended, which is particularly important in a business environment. In order to be effective, communication needs to be clear, concise, concrete, correct, coherent, complete and courteous.

To successfully get your point across in business and in life, it’s important to use clear language, instead of technical terms or buzzwords, to ensure the message is understood correctly. In addition, people have short attention spans, so it’s imperative to keep the communication concise and short. In business, it’s important to be consistent with any form of communication in order to decrease confusion and chaos.

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Communication takes a front seat in developing a fruitful business. Whether it’s internal or external, hierarchical or flat, all forms of communication within a business environment help to increase efficiency and improve organizational performance.

Increasing Employee Efficiency

Imagine a work environment where you didn’t receive any information from your manager on how you were supposed to do your job. It wouldn’t go very well, would it? By communicating effectively within an organization, employees are able to perform more efficiently as they have all of the knowledge and information they need to complete their duties.

Employees can better meet organizational objectives, develop strategic plans and follow complex directives with clear communication with their team members and superiors. Business decision-making and problem-solving are also much easier when effective communication is used.

Enhancing Business Performance

External communication plays an important role in improving business performance. Efforts such as public relations, marketing and advertising all rely on communication vehicles to get the message across to the consumer. Regardless of the industry, businesses generally face fierce competition. By communicating clearly and effectively with their target market, organizations can tell compelling stories about why their products and services should matter to their consumer.

When controversies involving the business arise in the media, effective communication can be used to douse the flames. By allowing for a smooth flow of information, the business can negotiate and resolve tense situations.

In addition to communicating with customers, organizations also need to deal with vendors, suppliers and other business partners. By communicating frequently with these stakeholders, organizations can ensure everyone is on the same page and heading towards meeting a definitive goal.

Creating a Successful Work Environment

A business is not only about working effectively and making sales, it’s also the place where employees spend a large part of their day. Socialization is an important aspect of a business organization, and communication plays a key role in creating a welcoming environment. When employees are better informed about where the business is going, they may be inclined to be more loyal. In addition, feeling comfortable in a work environment enables employees to be more creative and motivated, which can lead to better employee performance overall.

About the Author

Anam Ahmed is a Toronto-based writer and editor. She has experience ghostwriting and editing business books, especially those in the "For Dummies" series, in addition to writing articles for small business owners and entrepreneurs. Anam earned an M.A. from the University of Toronto and a B.A.H. from Queen's University. Learn more at

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