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How crucial is organisational communication?

April 10, 2019

Communication is like a glue which keeps an organisation together.

Foundation of a successful organisation is laid down by effective communication with the internal and external stakeholders involved in the business.

From managers to clients and superiors to subordinates, efficient communication allows transparent flow of information among multiple parties, lowering the chances of misunderstanding, disappointment and distrust.

What are various types of Organisational Communication?

To know the impact of organisational communication on companies, it is essential to know the various forms in which it takes place.

1. Formal and Informal Communication

Formal communication also know as official communication is information flowing through officially approved channels. For instance, departmental meetings, conferences or company newsletters are formal means of doing official communication. This kind of communication is connected with the hierarchical structure within the organisation.

On the other hand, informal communication  is more free following as compared to formal channels of communication. It is also called grapevine communication. It relies on personal relationship dynamics which exits between various individuals.

2. Vertical and Horizontal Communication

This type of communication is based on the direction of communication.

If the communication takes place between superiors and subordinates then it is vertical communication.

This can be further divided into downward and upward communication. If the communication goes from top managers to supervisors at the bottom  then it’s known as downward communication.

Similarly, if communication flows from bottom to top in terms of designation hierarchy then it is called upward communication.

And when communication happens between individuals who share the same status in the hierarchy of the organisation, such communication is known as horizontal communication.

Why is Organisational Communication Crucial?

Organisational communication is often done verbally, electronically or in print. It is not just a cog in the wheel but a diamond in the rough in the overall functioning of business.

The significance of organisational communication is discussed below.

1. Reliable source of Information

It is with the help of the communication that information moves around the organisation. Formal communication acts as a driving force behind various decision-making procedures. It also aids in classifying and evaluating other possible plans of action.

For instance, the production department requires regular communication with the sales department regarding the quarterly sales target to fix output goals.

Efficient and effective communication ensures everyone is on the same page, reducing the risk of misinformation which can lead to the company bearing heavy losses.

2. Employee Engagement

Performing beyond passion and commitment, that can be bound to duty, employee engagement is straight away linked to how treasured the members feel.

By adopting such communication policies which make individuals feel valued, organisations would be successful in getting more out of individuals, lower the chances of turnover and enhance the organisation’s base line.

3. Client Satisfaction

Client satisfaction refers to how content a customer is with an organisation, whether it is regarding a service, a product or interaction with the company in general.

Clients feel content when they are being heard and timely responded to by  the organisation.

For example, if a customer undergoes a poor experience with some service or product, such a customer can be retained if after sale interactions with the organisation leave them feeling valued.

How Can you Improve your Company’s Organisational  Communication?

Below mentioned are some proven and actionable methods companies can adopt to strengthen their organisational communication.

1. Employee Feedback

Listen to the concerns of your employees by holding weekly or bi-weekly meetings. Hear their feedback and implement any remedies wherever deemed fit.

2. Start a monthly newsletter

A newsletter where official updates about important deals, information about new employees, current openings and collaborations, etc can be shared. This will put a stop on rumours and false news.

3. Promote Cross Functional Team Interaction

Organizers monthly or quarterly sports or recreation activities in the organisation. This will encourage interaction across different teams and departments. Which will lead to improved coordination and better relationships among employees.

Thus, an effective and efficient  communication system can only be accomplished if all the communication barriers are identified and eliminated from the organisation. Also, both employers and employees need to make joint efforts at ensuing a smooth system of communication.


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