More Effective Communications - Assignment Example

Business Communication Communication is the exchange of information by different methods. Communication can be either verbal or non-verbal. It is possible to exchange information through auditory means, such as speaking or singing, and non-verbal, physical means, such as body language, sign language, paralanguage, touch, eye contact, or the use of writing. Businesses today are a world-wide program and are not just restricted to a certain location. In today's global business environment, communication is the most important and a more complex subject. Good communication is the core to all business opportunity. The investment made on the communication tools is so high that if these mediums are not utilized to its maximum potential, the very purpose of business i.e. to make profit becomes highly impossible. Business communication is defined as the communication which is used to promote a product or a service or any other processes in an organization. Effective business communication plays a vital role in the profitability. This paper discusses in detail how communication in business can have an impact on profitability. Business communication is a major subject in many of the management studies. It encompasses a variety of topics such as Marketing, Branding, Customer relations, Consumer behavior, Advertising, Public relations, Media relations, Corporate communication, Community engagement, Research & Measurement, Reputation management, Interpersonal communication, Employee engagement, Online communication, and Event management. And each of these topics is linked to the basic idea of effective communication. The various channels through which business communication takes place include print media, television, radio, internet, and also on a one-to-one bases which is called the word of mouth (Wikipedia n.pag). Therefore, every communication either to an employee or to a prospect or a customer is of great value as effective communication can make a long-lasting relationship or because of a bad communication the business can go for a loss. If it is in a marketing field, each communication presents a golden opportunity to increase sales, build customer loyalty, edify the company and in the process achieve the business goals. The major problem today is that many companies are wasting their precious resources on ineffective communications that cause confusion among the customers or clients and result in costly customer dissatisfaction. Business communications is not just a simple subject for management studies but it involves a whole range of pre- and post-sale communications, including welcome kits, account statements, invoices, applications, policies, manuals, customer educational materials, announcements of changes in terms and much more (Lundy 2-11). There are several models to show that business communication is one of the most important aspects and is linked to profitability. Under the Universal Business Model (UBM), communication between the three basic functions of production, marketing and accounting increase profitability. For instance, if the marketing unit has not been informed by production as to what it currently manufactures or the amount of stock, the marketing unit may face problem. Similarly, if manufacturing is not told by accounting what products are profitable to produce, they may operate at a loss. This kind of communication between different units of the same organization also plays a vital role in business communication (Universal Accounting Center n.pag. 2007). The importance of business communication and its link to profitability was expressed clearly from the results of Sage Research. Through the study it was discovered that 22 percent of the organizations polled experienced monthly communication-caused delays-and 13 percent experienced such delays weekly. As a result of communications delays there was disruption in the efforts to streamline business processes or adopt the emerging "best practices". Additionally, the disruption in these processes decisions and projects are negatively affected by lack of timely access to decision makers and collaboration with important peers, and communications and technology resources are worthless. As a result of all these communication problems the organization incurs loss and the customers are unsatisfied. This puts a question on the long term customer relationship. In fact the mode of communication used within an organization determines the success. For instance, if an employee has to be contacted, and is not accessible through telephone, then what is the best way to contact them immediately. Delay and disruption caused by communication- is a pervasive business problem. Sage Research study found that the multiplicity of communications devices especially in cases where the employee works in a mobile environment. And it is still a problem how to access an important colleague or primary decision maker on the right device the first time. Indeed, 36 percent of respondents in the Sage Research said they usually cannot reach remotely located colleagues on the first attempt, and 52 percent had to use multiple means of contact on a daily basis. This is a major loss of time and indirectly the profitability. The Forrester study discovered that 78 percent of the 67 IT decision makers it polled experienced delays in their project no less than quarterly because of the helplessness to quickly communicate with colleagues, supervisors, or subordinates. 27 percent reported that it happens on an every day or weekly basis. As a result of this 63 percent of them reported a delay of projects, while 25 percent reported complete project to be stopped due to delayed communications. Moreover, productivity suffers when communications opportunities are lacking. Employees are forced to leave voice and e-mail messages, and try other means of contacting their colleagues or other decision makers. Several studies have found that the complexity in communications affects long-term productivity, business process reform, and financial performance. The Forrester Consulting study commissioned by Cisco found that, several organizations, communication-caused delays are considered a usual practice. As a result of poor communication, important processes or just-in-time manufacturing, supply chain optimization, and customer relationship management all comes under crises. Ultimately it can have devastating results in high-turnover environments that are highly dependent on customer service or any other aspect. A good example is that of highly perishable goods such as vegetable, if the marketing unit is delayed due to miscommunication with the transportation unit, all the vegetables get spoiled causing heavy loss (cisco.com). The leaders in an organization need to have good communication skills. Leaders are able to effectively communicate and motivate the team to perform the set goals. While communication is the most important quality of a leader, psychological research has discovered the following positive personality variables associated with strong leadership that includes warmth, friendliness, self-confidence, ability to stand up to pressure. These researches have also found that the absence of the negative qualities of arrogance, hostility, boastfulness, egotism, and passivity are correlated with positive leadership (Romney, 1996). Many small scale businesses are a failure today because of small communication mistakes that could have been easily avoided, where as some of the top companies that are excelling due to their great communication. In fact, in these top ranking companies the employers look for communication as the top leadership skill for employees. Effective communication of information and decision is an essential component for management-employee relations and there by have a direct link to the profitability of an organization. For instance, the top business person or the boss or manager cannot get the work done from their team or employees if they are not communicated effectively of what out come is expected. Most of management problems in a business happen because of lack of effective communication. In fact likelihood of misunderstanding and misrepresentation can be minimized with clear communication system. Another most important aspect of communication is that is should be a motivation factor for an employee. Communication is an important tool for motivation, which can improve morale of the employees in a business environment. On the other hand, improper or faulty communication among employees or between top management and subordinates is the major cause of conflict and low morale at work. Top management should clarify to employees about what need to be done, how well they are doing and what can be done for better performance to improve their motivation. This is especially true when it comes to the sales field. Hence, when employees are motivated to perform better the profitability automatically increases. Good and harmonious communication allows new ideas to develop. With effective communication, it is possible to have good human relation in the organization and by encouraging ideas or suggestions from employees or workers and implementing them whenever possible, often times it is possible to increase productivity and profitability. It is important to understand and pay attention to all the communication that employees submit in their work reports and suggestions or even to the problems they face on a day-to-day basis. It is important for organizations to have efficient and speedy communication policy and procedures to avoid delays, misunderstandings, confusion or distortions of facts and to establish harmony among employees and also the customers (Thomsonn.pag). When it comes to the communication skills of the employees, it is a proven fact that to get into a decent job, communication skills are a must. Employers identify communication as one of the basic competencies even a fresh graduate need to have, asserting that the ability to communicate is important for obtaining employment and maintaining successful job performance. The communication skills necessary in the businesses include basic oral as well as writing skills. Besides, an individual need to have the ability to communicate in the teams, with persons of diverse background, race, and also when engaged in problem solving and conflict management. In conclusion, it can be said that communication is of vital to a business because it involves each and every individual in the organization. Since all the persons and organizations connected with the business are involved in communication, it is important to have good communication skills. This will not only help improve interpersonal relationship but also increase the profitability, customer relation and overall business output. Good communication will guarantee that each individual involved in a communication understand the message sent. Where as bad communication will have exactly the opposite effect. People will be confused by the message and is less likely to do what the business wants. This is the reason that good communication is so essential. Work cited cisco.com, Enhancing Business with Smarter, More Effective Communications 19 August 2007 Lundy, P. Communication Engineering: A Scientific Approach to Customer Communications. Xerox Global Services, December 2006 pp 2-11. Romney, P. Being a Leader, (1996), 21 August 2007 Thomson, S. Importance of Communication in an Organization EzineArticles.com, 19 August 2007 Universal Accounting Center, Improve Communication for Increased Profitability (2007) 21 August 2007 Wikipedia, Business communication Wikimedia Foundation, Inc., 19 August 2007 Read More