Effective Business Communications: Importance, Types, and Functions

This essay discusses the importance of effective business communication in organizations, including its types, functions, and characteristics. It covers internal and external communication, media, organizational structure, and informal communication.

Running head: EFFECTIVE BUSINESS COMMUNICATIONS
EFFECTIVE BUSINESS COMMUNICATIONS
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1EFFECTIVE BUSINESS COMMUNICATIONS
There has been an immense development in technology and growth in worldwide
business leading to globalization (Taylor & Derudder, 2015). With this growing globalization
there is a growing demand of effective business communication and it is changing its traditional
ways of employee communication (Christensen & Cornelissen, 2013). Effective communication
is an important part of business success. It helps building relationships with other organization,
interaction between employees existing in the organization and other relevant external individual
or group. The interaction among people will depend on various factors such as the place of
communication, the position of the people and the network. This reflective essay aims to discuss
the learnings on effective business communication. In the essay I emphasis on the ways effective
of communication in organization keeping in concern the organizational structure. In the essay it
make gives the literature review of effective organizational communication.
According to Fan, Wong & Zhang (2013), organizational structure can be defined as
systematic structure of formal relationship between people existing in the organization or related
to the organization. The relation is primarily among various positions and position holders. The
organizational structure can be defined on three dimensions, complexity, formalization and
centralization. The differentiation degree that exists within an organization is the complexity and
it is of three type, horizontal, vertical and spatial. The component that is in relation of direct
proportionality with complexity, horizontal and vertical differentiation. Formalization is the
degree to which jobs activities are standardized using rules and procedures, job descriptions
within an organization. The primary object of formalization is rendered by the employees’
behavior. Centralization can be defined as the degree to which decision-making process is
concentrated at a single level within the organization.

2EFFECTIVE BUSINESS COMMUNICATIONS
In an organization, employees need to have effective communication which would aid in
achieving excellence in job performance. The three main functions of organizational
communication in an organization are, production function, maintenance function and innovation
function. The production function of organizational communication to set standards for the
system. The production function lets set criteria which on fulfillment achieves a goal. The
maintenance function of the organizational communication is to keep a check on the standard
that has been set. It continue communication to keep the standards of the organizational
communication. The third function of the organizational communication is innovation which is a
method of bringing changes in the organizational communication for the betterment of the
organization (Kramer, 2014).
The inertial communications will include the sharing of information among the member
of the organizations such as conversations between leaders, managers, employees or employers
within the organization. Organizations often employ wide range of strategies on internal
communication including vertical, horizontal, formal and informal communication. There are
various forms through which internal organizational communication take place such as meetings,
face-to-face interaction, email, telephone and written documents. The major functions of internal
organizational communication is orientation and indoctrination. Effective internal
communication also acts a safety and loss prevention method. It is way to regulate compensation
and benefits. It brings organizational change and development. Through effective internal
organizational communication it generates the sense of satisfaction for the employees. For the
training and development purpose organization requires innovative and effectives ways of
communication. Also, it is the function of internal communication to process facilitation.

3EFFECTIVE BUSINESS COMMUNICATIONS
According to Goetsch & Davis, 2014 the external communication is referred to the
communication designed for the member related to the organization externally. It primarily
focuses on the audiences who are external to the origination. There are various forms of external
communications that includes advertising and promoting products and services. It creates a
desirable public image of the organization that helps in shaping public opinion that are
considered important to the organization. The function of external organizational communication
is advertising and promoting products and services. One of the important function is creating a
desirable public image for the organization that includes any communication relating to the
process of creating the organization’s identity. It is also a function of external communication to
share public opinion on issues related to the organization.
According to Ruppel, Gong & Tworoger, 2013 media is one of the important factor of
communication. It creates ways of communicating among the members. There is a dual capacity
of media choice. Media has the capacity of carrying data and essential symbolic carrying
capacity. A communication environment will have uncertainty that is lack of information which
needs information to be carried out. Equivocality is a stat of possessing information however
with multiple interpretations. There should be urgency in the communication.
According to media richness theory, the timely feedback is crucial in effective business
communication. There should be the ability to convey multiple cues. Communication media
should be able to convey personalized message. There has to be variety language and the range
of meaning it can convey such as numeric, spoke language and written language. The messages
that should be used in communication should be able to have clarity, volume, relevance, valence
without complications (M. Badger, Kaminsky & S. Behrend, 2014).

4EFFECTIVE BUSINESS COMMUNICATIONS
A communicator must possess the characteristics such as competence, access, comfort,
self-monitoring and flexibility. The communicator should have the ability to communicate
effectively and comfortably with flexibility. Self-monitoring is an important trait of a good
communicator who would be able to monitor own behavior and pattern of communicating in the
organization. It is also relevant to consider the recipient’s characteristics (Seidman, 2013). The
education level and physical characteristics are of concern including the level of media
familiarity. In a communication the history of interaction has a vital role to play. Often
interaction history give better understanding of the way communicator can exchange
information. Knowledge of communication context and norms of interaction are important
factors of effective organizational communication.
A formal communication network displays the pattern of the communication which
would convey the way through which formal communication is facilitated. The formal
communication can be four type, downward, upward, horizontal and diagonal. Often the flow of
the communication is facilitated from a superior to the subordinates (Brughmans, 2013).
Every organization has communication network that is followed and it is essential to see
beyond the organizational chart. Every organization has members who serves as a critical
conduits for the exchange of information and ideas. The pattern of communication and
interaction is described through network. There are chain network, wheel network, circle
network and y network (Leonardi, Huysman & Steinfield, 2013).
According to Dwyer communication links between the sections and individuals that
bypass the formal structure in organization is informal interaction. Informal interaction is often
based on the friendships, common career, proximity and common extracurricular activities.
Functions of informal communication in organization is related to formal context. Often informal

5EFFECTIVE BUSINESS COMMUNICATIONS
communication plays the functions of confirming formal messages. It plays the role of ‘filler’ in
the gap aroused by the formal communication. Contradicting formal messages is often done
through the informal communication. Informal communication finds ways for the formal
channels that are time consuming and hard to be carried out easily (Tsaturyan & Müller, 2015).
Rumor is defined as the information that are not verified however relevant information
that arise in confusion, danger or potential threat and that function to help people make sense and
a risk (Olsson, 2014). Rumors are within the context of ambiguous context and it is often not
clear what make the rumors arise. Rumors are informative statement therefore it is declarative
rather than directive or interrogative. It a communication communicated among people and the
contents are useful rather than frivolous (Roshan, Warren & Carr2016).
The essay has discussed the importance of organizational communication. For the
effective organizational communication I would implement the learnings. Organizational
communication techniques can differ from organization to organization, however these
techniques can be used in small, medium or large organizations. The appropriate ways to
communicate with each important members of the organization is important. For that constant
interaction internally I can utilize email, meetings and social network groups. For the external
communication, usage of social media, advertising agents and mass media will be able to suit the
criteria. The most important factor to keep in consideration is ongoing information exchange
among the co-workers and the members of the organization.
Organizational structure is the pattern that is followed to achieve the objective of the
organization. Organizational communication is an important aspect of organization that is
required for any business to succeed. However, in the end of the essay I have learnt that there are
various components and aspects of organizational communication. Organizational

6EFFECTIVE BUSINESS COMMUNICATIONS
communication is of two type, internal and external and the characteristics of business
communication depends largely on it. Media plays an important role in communication as it is
the only source of communicating with large audience. In the end there is rumour under the
broad aspect of organizational communication. All the components discussed in the essay
provided me clarity on the role each performs in organizational communication and the function
they have.

7EFFECTIVE BUSINESS COMMUNICATIONS
References:
Brughmans, T. (2013). Thinking through networks: A review of formal network methods in
archaeology. Journal of Archaeological Method and Theory, 20(4), 623-662.
Christensen, L. T., & Cornelissen, J. (2013). Bridging corporate and organizational
communication: Review, development and a look to the future.
In Organisationskommunikation und Public Relations (pp. 43-72). Springer VS,
Wiesbaden.
Fan, J. P., Wong, T. J., & Zhang, T. (2013). Institutions and organizational structure: The case of
state-owned corporate pyramids. The Journal of Law, Economics, and
Organization, 29(6), 1217-1252.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Kramer, M. W. (2014). Managing uncertainty in organizational communication. Routledge.
Leonardi, P. M., Huysman, M., & Steinfield, C. (2013). Enterprise social media: Definition,
history, and prospects for the study of social technologies in organizations. Journal of
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M. Badger, J., E. Kaminsky, S., & S. Behrend, T. (2014). Media richness and information
acquisition in internet recruitment. Journal of Managerial Psychology, 29(7), 866-883.
Olsson, E. K. (2014). Crisis communication in public organisations: Dimensions of crisis
communication revisited. Journal of Contingencies and Crisis management, 22(2), 113-
125.

8EFFECTIVE BUSINESS COMMUNICATIONS
Roshan, M., Warren, M., & Carr, R. (2016). Understanding the use of social media by
organisations for crisis communication. Computers in Human Behavior, 63, 350-361.
Ruppel, C. P., Gong, B., & Tworoger, L. C. (2013). Using communication choices as a
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Seidman, G. (2013). Self-presentation and belonging on Facebook: How personality influences
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Taylor, P. J., & Derudder, B. (2015). World city network: a global urban analysis. Routledge.
Tsaturyan, T., & Müller, R. (2015). Integration and governance of multiple project management
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