What is meant by ‘communication’? Explain how communication is an important function of management.

Meaning of Communication: It refers to passing information from one person to another.

Importance of Communication: According to a research, a manager spends 90% of his time in this process. The importance of communication can be understood with the help of the following study:

(i) Acts as Basis of Coordination: Today, in industrial units the form of the organisation is decided by division of work. To get the work done successfully, coordination among various activities is needed. For the purpose of coordination, it is essential that the people should have a mutual understanding regarding the goals of the organisation and they should know the means with the help of which these goals can be accomplished. They should also have the knowledge about the relationship of their activities. This is possible only with the help of effective communication.

(ii) Helps in Smooth Working of an Enterprise: Communication begins with the thought of establishing an enterprise and continues till its closure. All the decisions taken in the organisation and all the activities being carried on therein depend on communication.

(iii) Acts as Basis of Decision Making: Before taking any decision, many sorts of information have to be collected on the basis of which an idea is given the final shape. Information connected with the decision making can be obtained only with the help of communication. Not only this, but the use of communication is made for the purpose of effectively implementing the decisions.

(iv) Increases Managerial Efficiency: It is through communication that the managers pass on the information about the objectives laid down, issue directions, divide work and control the activities of the subordinate employees. Therefore, in the absence of communication a manager remains an inactive part of the organisation while the presence of communication increases his efficiency.

(v) Establishes Effective Leadership: In order to become an efficient leader, a manager must possess the knowledge of the art of communication. In other words, in the absence of the knowledge of effective communication, it is futile to think of leadership. A manager can become an efficient leader by improving the art of communication.