Purposes of Communication

Information Distribution

Communication is vital in businesses for distributing information internally and externally.
Inside the organisation, information about policies, strategies, and objectives must be clearly communicated so that activities can be coordinated and goals can be achieved.
Externally, information about goods, services, and corporate social responsibilities must be distributed to clients, investors, and the general public.

Problem-Solving and Decision-Making

Effective communication facilitates problem-solving. Issues can be discussed openly, and potential solutions can be debated before a decision is made.
Similarly, businesses rely on communication to make well-informed decisions, which often involve different views from various stakeholders.

Relationship Building

Communication is key to building and maintaining relationships in a business context. It helps establish trust and mutual understanding, which are crucial for fostering a healthy working environment.
Regular, clear, and open communication with employees can also improve staff morale and loyalty.

Facilitating Change

Companies are often subject to change, due to internal factors (such as restructuring) or external factors (like market forces).
Communication is critical in managing these changes effectively. It helps to minimise resistance, reduce anxiety among staff, and ensures everyone understands the need for and the nature of the change.

Persuasion and Negotiation

Communication is also essential in persuasion and negotiation. This could relate to negotiating contracts, convincing clients to buy products or services, or persuading employees to accept new policies.
Good skills in persuasion and negotiation often translate to achieving better business outcomes.

Control and Coordination

Communication is used to control and coordinate all activities within a business. Policies, regulations, and managers’ instructions are examples of communication tools used for this purpose.
Viable communication is vital for coordinating different departments and achieving organisational objectives.

Remember, the purpose of communication can vary between organisations and situations. Effective communication is critical for various aspects of business operations, from nurturing relationships and motivating employees, to making strategic decisions and facilitating change.