The Importance of Good Business Communication

Communication is vital in an organization because it not only connects members within a specific department but also connects them to members from other departments, from other branches, and, in today’s global economy, from around the world. Moreover, communication can make the difference between success and failure for a company.

Good communication helps ensure the efficient operation of all levels of an organization, from lowest to highest, whereas poor communication often results in inefficiency; and as successful business leaders know, inefficiency equals a loss of productivity and, consequently, a loss of profits.

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Increased efficiency isn’t the only corollary of good communication, however, since it also creates a sense of unity between members, resulting in their feeling that they are working together toward a common goal, and that goal is the success of the organization.

Categories of Business Communication

There are two categories of communication within an organization: external and internal.

1. External Communication involves the transfer of information either to or from individuals outside the organization, and the goal of this type of communication is often to obtain a favorable response to the organization’s needs. For example, a company might send a sales advertisement to an existing customer or a proposal, prospectus, or solicitation to a potential client; or an organization might post an ad in hopes of attracting qualified applicants for a job vacancy.

2. Internal Communication involves the transmittal of information between individuals within the company, and its aim is usually to accomplish internal objectives. For example, management might let employees know when and how a particular task should be completed, or employees might ask for clarification of the specifics for a task. Additionally, management might suggest improvements to products or services, or employees might present their qualifications when asking for a promotion or pay increase.

Tone of Internal and External Communication

According to Kenneth Zimmer, Professor Emeritus of the School of Business and Economics at California State University, and Sue C. Camp, Associate Professor of Business Administration at Gardner-Webb College, “Tone, as it applies to communication, usually refers to the general quality or effect of a conversation, discussion, or speech.” Moreover, “the tone of internal communication compared to that of external communication is usually quite different.” (1990, p. 15)

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When one is transmitting information internally, one’s tone tends to be friendlier and rather informal, but when one is transmitting information externally, one’s tone tends to be more reserved and formal.On the other hand, there are different levels of internal communication; for example, when an employee is conversing with a coworker, he or she is likely to use different wording, phrasing, inflection, and intonation than when conversing with a supervisor or the company’s president.