Importance of Effective Communication in Organizations

Running head: COMMUNICATION
Organization as a Whole and Formal Communication Channels
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1COMMUNICATION
Introduction
Communication is the key that determines the success of an organization and is
considered as a significant factor as this enables the business organizations to be productive by
ensuring effective operation. In addition to, effective communication throughout workplace is
essential in aligning the effort of the individuals in order to achieve the organizational goals
successfully. In spite of the prevalent significance of effective communication at workplace,
communication problems are encountered and mentioned continuously as one of the main
difficulties for the organizations (Karanges et al. 2015).
This report is conducted on behalf of the CEO of ABC Company that highlights the
reason why managers need to make effective communication a priority throughout the business
organization by applying both formal and informal communication techniques.
Organizational communication
Effective communication is one of the significant factors that determine the success of
the business organizations. Rise of similar type of business organizations has lead to tough and
intense business market that needs to be survived. Thus, it is important for the managers both at
lower level and higher level make effective communication a priority. In order to ensure smooth
working of a organization, transparency needs to be maintained. As mentioned by Arvanitis and
Loukis (2015), effective communication ensures clear flow of information throughout the
business organization. Thus, it is important for the managers to make communication a priority,
as it ensures clear flow of information thereby, maintaining transparency at workplace.

2COMMUNICATION
On the other hand, the managers need to make effective communication a priority, as this
helps in reducing inter-departmental competition and promotes a healthy and positive working
environment. As a result, the employees at workplace are able to work as a team by maintaining
harmony thereby, resulting in higher integrity, productivity and responsibility. Working as a
team helps in achieving organizational aim and objectives more efficiently by supporting each
other (Keyton et al. 2013). In addition to, the managers need to make effective communication a
priority because communicating with the sub-ordinates openly helps in fostering positive
relationships thereby, benefitting the company as a whole. The managers are able to boost
employee morale, motivate them, understand their concerns and find ways of mitigating them by
communicating effectively (Goetsch & Davis 2014).
Issues in maintaining effective organizational communication
Taking into account the diversified nature of the workplace, communication issues are
very common. As mentioned by Keyton et al. (2013), mixing work and personal communications
is one of the main reasons of communication issues at workplace. This is because some of the
employees at workplace tend to mix their personal lives into workplace communication thereby,
resulting in detraction from professionalism eventually leading to gossips and accusations of
harassment. However, as argued by Cheruvelil et al. (2014), background and cultural difference
due to diversified nature of the employees’ results in communication barriers. Lack of common
ground makes it difficult for the employees to relate and understand the others at workplace
thereby, making communication an issue. In addition to, cultural differences also results in
communication issues within the organization thereby, establishing and maintaining both formal
and informal communication an issue.