Research Journal of English Language and Literature (RJELAL)

A Peer Reviewed (Refereed) International Journal Vol.11.Issue 2. 2023

Impact Factor 6.8992 (ICI) http://www.rjelal.com; (April-June)
Email:[email protected]; ISSN:2395-2636 (P); 2321-3108(O)

REVIEW ARTICLE

THE ROLE OF BUSINESS COMMUNICATION FOR BUSINESS SUCCESS: A

COMPREHENSIVE REVIEW

Dr.Shaloo Manocha
Assistant Professor
IPS Academy, Indore
Email:[email protected]

Abstract
Communication is considered a key characteristic of business performance and
growth. To enhance business growth or to become successful, the business relies on
effective communication with both clientele and employees. Ineffective
communication typically leads to the mismanagement of an association and
undesirable business results. This study aims to highlight and explain the importance
Article info of good communication and its impact on any business's success. From the time of
Article Received:19/04/2023 enlightenment, the sprouting of communication is always being a cardinal factor for
Article Accepted:02/06/2023
the reformation. Effective communication is essential in both personal and
Published online:07/06/2023
DOI: 10.33329/rjelal.11.2.169 professional contexts, as it enables individuals to express their ideas, thoughts, and
feelings clearly, and to understand others' perspectives. To achieve the expected
outcome from the business there is no substitute for effective communication.
Communication is an essential component used to deal with customers and
employees. The study's findings highlight the importance of effective
communication in any business organization, as it can have a significant impact on
its growth and profitability. By prioritizing clear and concise communication,
organizations can create a more collaborative, productive, and profitable
environment for all stakeholders.
Keywords: Business Communication, Job Satisfaction, Communication Skills,
Effective Communication, Organizational Performance.

Introduction of messages verbally and non-verbally, it is a much

more complex process than this simple definition
“Communication is the flow of accurate
implies. Effective communication involves not only
information which people want need and
the transmission of a message but also the
are entitled to have for successful
understanding of that message by the intended
completion of the job.”
recipient. This means that communication requires
The ability to communicate effectively with active listening, interpretation, and feedback to
people both inside and outside of an organization is ensure that the message has been correctly received
critical for the success of any business. Effective and understood. Communication is used to transfer
communication fosters positive relationships with information to the audience about the
employees, customers, vendors, and other organization’s mission and vision, policies,
stakeholders, and it helps businesses achieve their procedures, tasks and duties, and various activities
goals and objectives. While the basic definition of
communication involves the sending and receiving

169 Dr.Shaloo Manocha

Research Journal of English Language and Literature (RJELAL)
A Peer Reviewed (Refereed) International Journal Vol.11.Issue 2. 2023
Impact Factor 6.8992 (ICI) http://www.rjelal.com; (April-June)
Email:[email protected]; ISSN:2395-2636 (P); 2321-3108(O)
within the company (Farmer, Slater, & Wright, growth and desire to attain business objectives are
1998). aided by effective communication (J. C. Bennett and
R. J. Olney 1986).It helps in the good working
Communication is the backbone of all
relationship between the owners and employees,
business activities and interactions, including team
improving morale and efficiency. This also helps in
collaborations, customer service, marketing,
developing relations, leading to successful
negotiations, and decision-making. Communication
teamwork. Employee happiness, client retention,
can build or ruin a business's existence as
and a company's public image all benefit when
communication acts as a link between decision-
communication is done successfully.
makers and all staff members. All businesses rely on
communication for their functioning. Effective Communication is also a cornerstone of
communication basically enhances the association decision-making; making decisions is a process of
among the organization and minimizes determining, choosing, or selecting something that
misunderstandings between the employees and must occur. It is a means for people to voice their
management. Ineffective communication opinions on proposed initiatives or to develop
sometimes defeats organizational purposes and solutions to issues. By talking, they may be able to
goals which lead to uncertainty, apprehension and choose the best way to proceed (K. O. L. and S. K.
dissatisfaction. Effective business communication Kaczmarek 2016). Communication's role in society
aims to reduce errors and enhance organizational cannot be emphasized. It is essential for survival and
procedures. It is of great significance that employees fulfils a variety of functions in an organization. It's
always communicate with the management, co- also used for many other things, such as to advertise,
workers and teammates. To convey messages to share ideas, engage, and inform people. If there is no
employees or to external clients a proper communication, there'll be no understanding and it
communication channel is required which helps will lead to misinterpretation. As a result, it is a vital
them to be updated about company information. component of corporate success.
When communication is delivered effectively, it
According to Brian Tracy, the ability to
increases employee satisfaction, customer retention
communication with general business people
and improves a company’s brand name. Ineffective
accounts for almost 85% of the successful
communication in a business organization can lead
achievement in case of business as well as in life
to confusion, misunderstandings and which may
(Bovée, Thill, & Raina, 2016). So it is evident when
result in an unpleasant working environment.
the communication is quite strong between the
Ineffective communication in the workplace may
employees and the management it definitely ends
lead to miscommunication, misconceptions, and an
up running the business smoothly. According to
uncomfortable working environment (P.M.
Stephen, it has been evident that communication is
Podsakoff, S.B. MacKenzie, N.P. Podsakoff, D.G.
the most critical factor in the case of mobilizing as
Bachrach 2008).
well as organizing and planning the work to the
Communication is the heart of the business accomplishment of the objectives, mission and goals
and is also important within the business. Effective of the organization. With the help of creating an
communication plays a vital role in the survival and understanding environment, there is a great chance
progress of a business. Communication acts as an of enhancing cooperation and promoting efficient
elucidative element for the progress of the business. performance. Therefore, it's essential for businesses
It can be very well stated that for any to prioritize effective communication strategies to
organization/business to be successful, it is a ensure their employees can perform to the best of
prerequisite to establish proper communication their abilities.
methods/channels across the relevant segments –
An organization uses different
internally with employees or externally with clients.
communication techniques, which may include face-
Communication abilities are required for the
to-face meetings, phone calls, text messages, emails
marketing and promotion of a business. Employee

170 Dr.Shaloo Manocha

Research Journal of English Language and Literature (RJELAL)
A Peer Reviewed (Refereed) International Journal Vol.11.Issue 2. 2023
Impact Factor 6.8992 (ICI) http://www.rjelal.com; (April-June)
Email:[email protected]; ISSN:2395-2636 (P); 2321-3108(O)
and other conventional forms of writing. There are communication is important for organizations as it
several forms of corporate communication. A few facilitates collaboration, teamwork, and knowledge
types of business communication used in an sharing across departments or teams. It allows
organization are: Internal communication, lateral individuals or groups to share information, ideas,
communication and external communication. and perspectives, which can lead to innovative
Lastly, external communication is considered the solutions and better decision-making. Lateral
most important type to smoothly run the business. communication can also help to break down silos
within an organization and promote a culture of
Internal communication: Internal business
open communication, where all members feel
communication refers to the exchange of
empowered to contribute to the success of the
information and ideas within an organization,
organization. However, lateral communication can
among its employees, departments, and other
also pose some challenges, such as potential
stakeholders. Effective internal communication is
misunderstandings, conflicts, or competition
critical for the success of any organization as it helps
between departments or teams. Therefore,
to align everyone towards common goals, fosters
organizations should establish clear communication
collaboration and teamwork, promotes a culture of
protocols and guidelines to ensure that lateral
openness and trust, and enhances employee
communication is effective, respectful, and aligned
satisfaction and productivity. Effective internal
with the overall goals and objectives of the
communication can take many forms, including
organization.
formal channels such as memos, reports, meetings,
and emails, as well as informal channels such as face- External communication: External communication
to-face conversations, chats, and social events. By refers to the exchange of information, messages,
providing employees with timely and relevant and ideas between an organization and external
information, internal communication can help them stakeholders, such as customers, suppliers, partners,
understand their roles, responsibilities, and investors, regulatory bodies, and the general public.
expectations, and enable them to make informed Effective external communication is essential for
decisions. organizations as it helps to build and maintain
relationships with stakeholders and to promote the
In addition, effective internal
organization's brand and reputation and support the
communication can help to identify and address
achievement of its goals and objectives. External
organizational concerns, such as conflicts, issues
communication can take many forms, including
with policies or procedures, or changes in the
advertising, public relations, corporate social
market. By creating a culture of open
responsibility initiatives, social media, email, phone
communication, employees are more likely to share
calls, or in-person meetings.
their ideas, concerns, and feedback, which can lead
to improvements in processes, products, and Effective external communication is critical
services. Overall, effective internal business for organizations as it helps to build and maintain
communication is essential for creating a positive relationships with stakeholders, promote brand
and productive work environment, improving awareness and reputation, and ultimately drive
employee satisfaction and engagement, and driving business growth and success. Moreover, external
organizational success. communication should be aligned with the
organization's values, mission, and objectives. It
Lateral communication: Lateral communication
should be respectful, transparent, and honest to
refers to the exchange of information, ideas, and
build and maintain trust with stakeholders. Overall,
messages between individuals or groups at the same
effective external communication is a critical
hierarchical level or functional area within an
component of an organization's success, and it
organization. In other words, it's the communication
requires careful planning, execution, and evaluation
that takes place among colleagues or peers who do
to achieve its desired outcomes.
not have a hierarchical relationship. Lateral

171 Dr.Shaloo Manocha

Research Journal of English Language and Literature (RJELAL)
A Peer Reviewed (Refereed) International Journal Vol.11.Issue 2. 2023
Impact Factor 6.8992 (ICI) http://www.rjelal.com; (April-June)
Email:[email protected]; ISSN:2395-2636 (P); 2321-3108(O)
External communication can also have a significant customer relationships and positive word-of-mouth
impact on an organization's success or failure. referrals.

Poor communication can lead to misunderstandings, 3. Facilitates decision-making: Effective

loss of trust, reputational damage, and loss of communication is essential for making informed
business opportunities. Therefore, organizations decisions. It provides the necessary information,
should establish clear communication protocols and data, and insights that enable managers to make
guidelines to ensure that external communication is sound decisions. This enables them to identify
effective, transparent, and aligned with the overall opportunities and risks, and make informed
goals and values of the organization. Organizations decisions that are aligned with the organization's
should also regularly monitor and evaluate the goals and objectives. Without clear and accurate
impact of their external communication strategies to information, decision-making can be compromised,
identify areas for improvement and adjust their which can have negative consequences for the
approach as needed. organization.

Impact of Effective Communication on the 4. Increased innovation and creativity: Effective

Organization communication can promote innovation and
creativity by encouraging employees to share their
Effective business communication is
ideas and collaborate on new projects. This can lead
essential for the success of any organization, as it
to the development of new products, services, and
helps to build a healthy working environment, boost
processes that can give the organization a
employee engagement and satisfaction, improve
competitive edge. Creativity also produces
organizational performance and help a business
phenomenal results in employees' productivity and
outperform its competition. Here are some key
encourages them to manage their work with more
reasons why communication is important in
efficacies.
business organizations:
5. Managing conflicts: Effective communication
1. Setting direction and goals: Effective
helps to manage conflicts and misunderstandings
communication helps to align the goals and
within the organization. When employees feel
objectives of the organization and its employees at
comfortable expressing their concerns, issues can be
all levels of management. It ensures that everyone
addressed before they escalate into larger problems.
understands the direction of the organization and
It also enables managers to address issues and
what is expected of them in achieving those goals.
concerns in a timely and effective manner, thereby
Communication facilitates coordination and
reducing the negative impact of conflicts on
collaboration between different departments and
organizational performance.
teams within the organization. It helps to ensure
that everyone is working towards the same goals 6. Improves customer satisfaction: Effective
and that tasks are being completed efficiently and communication also leads to better customer
effectively. satisfaction. When employees communicate clearly
and effectively with customers, it builds trust and
2. Enhances relationships: Good communication
helps to meet their needs and expectations.
fosters positive relationships between employees,
departments, and external stakeholders. Effective 7. Facilitates change management: Effective
communication can help to build stronger communication is essential during times of change,
relationships with customers and stakeholders by such as when a new policy is implemented or when
providing clear and timely information about the organization is undergoing a restructuring. Clear
products, services, and organizational changes. This communication can help to reduce resistance and
can lead to better teamwork, increased job confusion among employees and stakeholders.
satisfaction, increased trust, loyalty, improved
8. Supports organizational culture: Communication
helps to establish and reinforce the culture of an

172 Dr.Shaloo Manocha

Research Journal of English Language and Literature (RJELAL)
A Peer Reviewed (Refereed) International Journal Vol.11.Issue 2. 2023
Impact Factor 6.8992 (ICI) http://www.rjelal.com; (April-June)
Email:[email protected]; ISSN:2395-2636 (P); 2321-3108(O)
organization. By promoting open and honest long-term relationships with them. Therefore, it is
communication, organizations can create a culture essential for organizations to recognize the value of
of trust, transparency, and collaboration. communication and invest in developing
communication skills among their employees.
Effective communication is essential for the
success of any business organization. It is critical for Reference
decision-making, coordination, relationship-
1. Bennett, J. C., & Olney, R. J. (1986). Executive
building, change management, and the
priorities for effective communication in an
establishment of a positive organizational culture. It
information society. Journal of Business
promotes a healthy working environment, enhances
Communication, 23(2), 13-22.
employee engagement and satisfaction, and
https://doi.org/10.1177/0021943686023002
improves organizational performance in a variety of
024
ways. Therefore, communication is essential for
every area of a business organization, from 2. Farmer, B. A., Slater, J. W., & Wright, K. S.
formulating policies to day-to-day operations. It is (1998). The Role of Communication in
the lifeblood of an organization, and without it, the Achieving Shared Vision under New
organization's performance and success may be at Organizational Leadership. Journal of Public
risk. Relations Research, 10, 219-235.
https://doi.org/10.1207/s1532754xjprr1004
Conclusion
_01
Communication is a crucial element in the
3. Podsakoff, P. M., MacKenzie, S. B., Podsakoff,
modern world of global competition, and every
N. P., & Bachrach, D. G. (2008). Scholarly
business entity, regardless of its location or size, is
influence in the field of management: A
affected by it. The advancements in technology have
bibliometric analysis of the determinants of
made communication much easier and efficient, and
university and author impact in the
it has become an integral part of every business
management literature in the past quarter
strategy. Effective communication is the foundation
century. Journal of Management, 34(4), 641-
of successful relationships and businesses. It enables
720.
individuals to express their thoughts, ideas, and
https://doi.org/10.1177/0149206308319533
concerns, which leads to greater understanding,
collaboration, and ultimately success. In the context 4. Hynes, G. E. (2012). Improving employees’
of corporate organizations, effective communication interpersonal communication competencies:
plays a crucial role in managing change, as it helps A qualitative study. Business communication
employees understand the reasons for the change, quarterly, 75(4), 466-475.
the expected outcomes, and their role in the 5. Bovee, C. L., Thill, J. V., & Raina, R. L. (2016).
process. This helps build trust and a sense of Business communication today. Pearson
community, which in turn motivates employees to Education India.
participate in the change process and work towards
the organization's goals. Effective communication 6. K.O. L., & Kaczmarek, S. K. (2016). Business
can also foster trust and cooperation within an Communication: Building Critical Skills.
organization, which can positively impact business
development. By recognizing the different forms of
business communication and understanding their
various benefits, businesses can leverage
communication to build stronger relationships and
achieve their goals more efficiently. Effective
communication also helps in building a positive
brand image, attracting customers, and building

173 Dr.Shaloo Manocha