Effective Communication and its Impact on Organization"

Effective Communication and its Impact on Organization

Introduction

Communication in organizations encompasses all the means, both formal and informal, by which information is passed up, down, and across the network of managers and employees in a business. These various modes of communication may be used to disseminate official information between employees and management, to exchange hearsay and rumors, or anything in between. The challenge for businesses is to channel these myriad communications so they serve to improve customer relations, bolster employee satisfaction, build knowledge-sharing throughout the organization, and most importantly, enhance the firm's competitiveness.

Literature Review: Effective Communication and its Impact on Organization

Perhaps the importance of good communication is best understood by considering what things would be like in its absence. For instance, if a company has no mechanism for recording and transmitting special order requests from its customers, and the employees in the sales and fulfillment areas only interact minimally, there's a good chance that when it receives a special request the company will have difficulty delivering what the customer wants. It may even lose the sale as employees grapple with an unusual request the management hasn't prepared them for.

Now consider a company going through a merger. Top executives at the merged entity proclaim that there will be thousands of layoffs to boost efficiency, but management is slow to say who will be affected, what the criteria are for deciding who is laid off, and what the separation terms will be. To make matters worse, an unauthorized list of persons facing the ax is rumored to be circulating, and specific names are bandied about as being on or off the list. This situation continues for weeks before management comes forward with the full details. It is hard to see how such a scenario could be anything but detrimental to employee morale, and it might well lead to valuable employees who were not slated to be let go jumping ship because of the chaos and management's thoughtless tactics.

As a final example of poor communication, imagine a business with a large, young workforce that is highly trained. However, the company is very hierarchical and a premium is placed on seniority over originality and other employee traits. A few younger employees have approached management with a new business idea, but their immediate supervisors haven't taken the proposal seriously and upper management is largely inaccessible to these employees. As a result, the small group decides to leave the company and start their own firm, which grows quickly and proves to be incredibly profitable.

If these scenarios seem rather predictable (some are based loosely on real events), they serve to illustrate obvious communication gaps and missteps businesses must surmount. In each case, not only were employees or customers left unsatisfied, but each incident also could have led to monetary losses for the companies. In short, communications—both internally and externally—must be open, timely, complete, and accurate to keep a business running smoothly and to maximize its returns on its human ...