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The Importance of Communication in an Organization

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 — November 29th, 2023

The Importance of Communication in an Organization

Successful organizational sustainability is critically hinged on effective employer and employee communication.

This piece casts a spotlight on the imperative role of communication in organizations, ranging from fostering team cohesion, nurturing relationships, facilitating innovation, to propelling change. In a world where businesses are rapidly evolving, understanding the different communication strategies and their impact on organizational efficiency forms a compelling subject of interest.

Therefore, through this article, we will delve into the importance of organizational communication and its significant impact on overall company performance and success.

Effective communication helps unleash the power of an organization. It helps to create a healthy working environment, fostering collaboration, and increasing productivity.

Business comprises of continuous interactions with multiple parties – managers, employees and clients. Successful communication ensures the flowing of information between all relevant parties, reducing the potential for misunderstanding, dissatisfaction and lack of trust.

The Ultimate Guide to Internal Communications Strategy

The Importance of Effective Communication in an Organization

The importance of communication in an organization can't be understated. Effective communication is the bedrock upon which lasting organizations are built. It's the lifeline that connects every corner of an organization, and it's this connectivity that fosters a sense of unity and shared purpose. Through it, everyone can collaborate to achieve a common outcome, enhancing the overall productivity and efficiency of the organization.

Organisational communication particularly plays an important role in this aspect. It not only helps in the dissemination of information but also in the coordination of tasks. When communication in an organization is clear and open, it paves the way for a healthy organizational culture where every member feels heard, understood, and valued.

Indeed, the importance of effective communication in organizations cannot be overemphasized. It's an asset that ensures the smooth running of organizations and nurtures a positive environment that promotes growth and innovation. It's a tool that bridges the gap between different hierarchies within the organization, promoting mutual respect and understanding among all members.

How Communication Builds and Maintains Relationships in an Organisation

Understanding how communication builds and maintains relationships in organisations is essential. Various communication methods play a significant role and employees must embrace them to foster a harmonious environment. For instance, effective communication helps employees understand their roles better, creating a strong bond among coworkers. The same employees perceive themselves as valuable team members and therefore, feel motivated to contribute even more. Utilizing clear communication promotes clear expectations and understanding among employees, thus minimizing misunderstandings and redundancies.

Ideas, Concerns and Feedback

Further, communication acts as an avenue for employees to express their ideas, concerns, and feedback—this openness can result in stronger relationships. Consequently, healthier relationships will lead to a pleasant work atmosphere and will certainly drive the employees' productivity up. More importantly, communication is essential in managing employee-related changes. As most employees may perceive organisational changes as threats, clear and timely communication can help mitigate these fears, indirectly building trust and confidence within the workforce. Undeniably, communication is not just an activity within organisations—it forms the backbone of any thriving work environment.

The Ultimate Guide to Internal Communications Strategy

Managerial Communication Skills Help Build Relationships

Crucially, good communication needs to come from the top down. The way a manager communicates with direct employees is generally regarded as an indicator of how an organization communicates with its workforce. As described by Bisel (2012), "the supervisor-subordinate relationship is a microcosm of the organizational universe…when supervisors communicate with subordinates their interactions are an observable manifestation of an organization in action."

An interesting survey of 46 CEOs/ Senior Leaders in the UK by the Marketing Society (2013), revealed what they considered essential leadership skills for senior management:

  1. Giving a clear sense of direction
  2. Bringing the customer into the boardroom
  3. Communicating clearly – both inside and out
  4. Being flexible but not floppy
  5. Taking risks but not ‘betting’ the company
  6. Building the team around you
  7. Listening with humility, acting with courage
  8. Earning your reward through building trust

What's worth noting is that communication is, without a doubt, a basic function of management. Over 90% of personnel officials at 500 US businesses said increased communication skills are needed for success in the 21st century. This is supported by the list above where we can see that all of the named skills are in some way communication related and some, for example, number 3, are wholly focused on communication.

Effective Communication Strengthens Team Bonding


In any company, effective communication plays a crucial part in strengthening team bonding. It's the glue that holds the staff together, providing a platform for mutual understanding and collaboration. As employees engage in meaningful conversation, not only is their job satisfaction enhanced, but their sense of belonging to the team is also bolstered.

It's worth understanding that communication goes beyond exchanging information. Emotionally resonant, effective communication in the workplace can foster a culture of openness and trust among employees. This, in turn, fuels their motivation and commitment to the company's goals.

Effective strategies and tools for communication are instrumental in streamlining processes and enhancing productivity. From senior management to the newest recruit, everyone in the organization has a role to play in maintaining open channels of communication.

Therefore, emphasizing and practicing effective communication is essential in creating a cohesive, efficient, and productive workforce. The significance of communication in an organization can't be overstated as it carves the path towards collective success. Remember, a well-informed and united workforce is the backbone of a thriving business.

The Ultimate Guide to Internal Communications Strategy

Building a Communication Strategy in Organizations

Incorporating a solid communication strategy in organizations is key to fostering effective organizational communication. Organizations need to ensure every bit of communication, formal or not, is geared towards achieving particular objectives. This strategy isn't just about business dealings, it's also influential in creating an environment for effective communication that strengthens all areas of the organization.

One critical aspect of the communication strategy is the careful selection and use of communication channels. Channels, whether they're formal communications like business meetings or less structured avenues, play a significant role by setting the tone and facilitating effective communication overall.

Recall the importance of communication in organizations: It's necessary for building and maintaining relationships. For instance, well-planned communication strategy enhances team bonding by ensuring everyone is on the same page. With an established strategy, organizations can foster a thriving communication culture that contributes to the overall success of the business, ultimately highlighting why effective communication is so critical in the business sector.

Create a Culture Where Communication Flourishes

"A crucial, but often overlooked function of leadership is creating a culture in which effective communication can flourish," said Greg Satell in a Harvard Business Review article citing an incident at Google where a certain style of communication is understood because it is ingrained in the specific culture of the organization.

In this instance, "THESE ADS SUCK" could have been seen as a dressing down to Google AdWords specialists by Larry Page, however, because of the culture that had been created at Google it was instead seen as a call to action to technical engineers to use their skills to fix the problem.

What we can extrapolate from this example is that an organization's communication style is a natural extension of its culture. An open, transparent culture will naturally have an open approach to communication. Without a company culture that promotes open communication, silos can occur where valuable information and communication does not flow easily between departments and employees.

Poor workplace culture is one of the main factors that influence ineffective communication within a company leave employees may feel disconnected from the organization and their colleagues, leading to decreased morale and decreased performance.

Encourage Managers to Communicate With Employees and Promote an Open Culture

To ensure effective communication, organizations must develop creative ideas that engage employees and keep them interested. 4 tried and tested ideas are:

  1. Newsletters: One way to do this is by creating employee newsletters that contain interesting stories, news updates, and other relevant content. This can help to keep employees engaged and motivated while also helping to build a sense of community within the organization. Ensure all newsletter and email content are relevant and targeted to the employees receiving the content.
  2. Video Conferencing and Virtual Meetings: This one is a given for most teams since the shift towards hybrid work models. However, however, managed well, without overkill video conferencing and virtual meetings create more interactive conversations.
  3. Doing Fun Things to Boost Morale: "All work and no play makes jack a dull boy". Keep your team morale up by doing fun things that are not work-related. They could be team nights out with karaoke, to something as small as a short online quiz once a week. It can break up the monotony of work and help team members connect outside of work - even if only for 5 minutes before a meeting starts.
  4. Being Available. Managers are likely to have tight schedules, jam-packed with meetings and deadlines. However, remaining open for communication is incredibly important when trying to foster a culture where communication will flourish.

By coming up with creative communication ideas, organizations can ensure that their employees stay connected, motivated, and informed.

Common Mistakes Management Makes in Communications

Poor communication can lead to misunderstandings, delays, and even conflict between managers and employees. It is essential for managers to be aware of the pitfalls of management communication in order to ensure that their team is working effectively and efficiently.

Some of the most common mistakes include;

  • Sending too many emails
  • Not personalizing and tailoring emails and messages
  • Using the wrong communication platforms
  • Poor listening
  • Poor levels of feedback
  • Little recognition of employee work
  • Unclear goals and expectations

The list goes on. These common communication mistakes can have a lasting impact on the organization as a whole and must be avoided at all costs.

By understanding these common errors in communications, management can work towards creating a positive environment where everyone's opinions are heard and respected. This will help them build trust with their employees and ensure that everyone is working towards achieving the same goals.

Reap the benefits of effective organizational communication

Research has consistently shown that effective communication has a significantly positive effect on an organization. Among its established benefits are:

  • increased productivity
  • higher quality of services and products
  • greater levels of trust and commitment
  • increased employee engagement and higher levels of creativity
  • greater employee job satisfaction and morale of employees
  • better workplace relationships
  • greater acceptance of change
  • decreased absenteeism
  • reduced staff turnover
  • less industrial unrest
  • reduced costs
The Ultimate Guide to Internal Communications Strategy

How Organizational Communication Shapes External Communications

Organizational communication is vital and plays a key role in shaping a company's external communications. It's the pulsating heart of any business, dictating how this business communicates with the outside world. Be it sharing the company's accomplishments or addressing issues, the way an organisation communicates its message can have profound effects.

It's the business's ability, built on the foundations of effective communication, that strengthens the perception of the company externally. Robust organisational communication helps in aligning the internal communications in tune with external communications.

Consistency in the message sent out is crucial, and this is where good communication comes into play. When a business communicates effectively, it builds and maintains strong relationships not just internally, but also with customers, investors and the broader public. Shaping the narrative about the company is in the hands of the communication team.

A well-crafted communication strategy is thus essential in the realm of organisational communication, solidifying the company's standing in the market and ensuring long-term success.

Improving Communication Skills for Effective Organization

Developing communication skills in an organization is a must for an effective organization. Excellent communication is the backbone that allows for every aspect of an organization to function cohesively. The skills needed for effective communication don't just benefit the organization as a whole, but every staff member as well. When these communication skills are honed, productivity increases significantly, creating a more effective organization. It's well-known that communication shapes external communications, meaning good organizational communication directly impacts the public perception of your business.

An effective organization also relies on strong employee relationships. In fact, reinvesting in improving communication skills fosters stronger relationships, team bonding, and an overall healthier workplace culture. With a solid communication strategy, an organization's message becomes clearer and more consistent, increasing the organization's effectiveness. The importance of communication in an organization can't be understated - it's instrumental in every aspect of business operations. Remember, effective communication isn't a luxury, but a necessity for any organization aiming for success.

Strategies to Develop Communication Skills for Effective Organisational Flow

Implementing strategies to develop communication skills has always been crucial in ensuring an effective organisational flow. Effective communication, as essential as it is, helps foster a synergetic environment where every team member feels heard and valued. It's all about organizing thoughts and ideas in a way that's easily interpretable and most effective.

This isn't limited to just verbal communication. In an organisation, communication includes the exchange of information through various channels. It plays an impactful role in coordinating teams and ultimately achieving the objectives of the organisation. The ability to communicate effectively, thereby, isn’t just a skill but a necessity.

Hence, an organization will greatly benefit from focusing on communication skills. By employing strategies like workshops and meetings, employees' communication skills can be honed. This, in turn, will lead to effective communication and overall organisational success. Remember, effective communication isn't only about transmitting your ideas but also about understanding those of others.

Remote Work and Organizational Communication

In recent years, remote work has grown significantly, necessitating a shift in organizational communication strategies. This form of work demands a more diligent approach to maintaining communication, particularly from leadership. Strong communication fuels a thriving remote workplace environment, instilling a sense of unity among disjointed team members. It's important to remember that communication in this setting isn't just about email blasts and routine video calls. It extends to how well messages are crafted, received, and understood within an organization and beyond.

Effective organizational communication not only builds and maintains healthy relationships at work but also contributes to strengthening team bonding, ensuring everyone is rowing in the same direction. A sound communication strategy ensures a well-oiled work operation and a harmonious workplace, breaking down complex processes into digestible tasks. Furthermore, external communications are directly influenced by internal communications; what's well understood within, flows well outside. Organizational communication must aim at improving communication skills, developing strategies that facilitate effective organisational flow in this new era of work.


Importance of Communication while Working Remote

It's hard to overstate how important communication is when you're working remotely. Employees immersed in their work, yet isolated, require clear, effective ways to communicate. This keeps them connected and prevents crucial information from getting lost in the shuffle; it's the foundation why communication is important in the first place. Especially now, with organizations increasingly relying on remote work, we should focus on how we're communicating to ensure we maintain the same level of productivity and team bonding that we've developed in our offices.

Good communication skills are paramount, as they can make or break the dynamics of an organization. Employees who don't communicate well may miss out on key information, leading to lower efficiency. With the right communication strategies, however, we can foster an organizational flow that feels identical to the one we'd have if all the employees were in the same room. Therefore, an open line of communication is vital when you work remotely, underscoring the need for effective organizational communication. This not only maintains internal communication but also shapes our external communications.


The Challenge of Gossip and Communication in Organizations

Gossip, often overlooked, poses a real challenge for communication in organizations. It's surprisingly common in organizational settings and can significantly affect the efficiency of communication systems. It's vital to recognize this issue as part of the overall importance of communication in an organization. Gossip can undermine the trust and openness that form the bedrock of effective communication. It can distort the clarity of organizational communication, thereby posing a serious challenge to the harmony within organizations. Communication strategy often aims to eliminate or reduce gossip, focusing on fostering clear and direct communication paths.

When working remotely, the focus on communication becomes even more critical since the lines can blur easily, and gossip can thrive in the absence of face-to-face interactions. However, with the right communication skills and the willingness to confront and manage gossip, organizations can ensure a robust organizational flow. This comes down to remembering not just the importance of communication itself, but also the importance of the manner in which that communication unfolds within an organization.

Create a Comprehensive and Effective communication Strategy for Your Organization

Developing a comprehensive and effective communication strategy is essential for any organization to ensure that its employees, managers, and HR departments are on the same page. A well-crafted communication strategy should include steps that will help your organization communicate better with its employees and stakeholders. It should also be flexible enough to accommodate changes in the workplace and adapt to new technologies.

By implementing a communication strategy, your organization can improve internal communications, increase employee engagement, and ensure that everyone is kept informed of important developments. Knowing where to start can be tricky. An employee survey about the work environment could be a great starting point. With the right information and employee feedback, you can create an environment where everyone feels heard and has access to the information they need to do their job effectively.

Broadly speaking, consistent and open communication across an organization ensures all employees, from senior management to entry-level staff, understand the company's goals and culture, as well as how it presents itself to its customers and clients. In this open environment, feedback is encouraged and sought out, either through face-to-face meetings or regular surveys.

A Business Outlook study revealed that US workers send and receive an average of 1,798 messages each day via telephone, email, faxes, papers, and face-to-face communications, while a number of industry experts estimate that the average business executive spends three-quarters of their day engaged in oral communication or written communication. What we're seeing is that the need for good communication isn't exclusive to one or two sectors, it's vital at every level of every role, in every organization.

In conclusion, organizational communication plays an indispensable role in an organization's success. It breeds better relationships, fosters understanding, ensures transparency, and fuels growth. Without effective communication, an organization cannot function optimally, leading to a compromise in productivity and employee morale. Hence, understanding and implementing efficient communication should be a top priority for every business aiming to succeed in the present competitive environment. Remember, in the realm of an organization, communication is not just a tool, but the heart that pumps vitality into every effort towards achieving a common goal.

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