Business Communication: Meaning, Objectives, Importance, and Functions

What is Business Communication?

Business Communication is the process by which we understand others and endeavor to be understood by them within and outside the organization and industry. It is dynamic, constantly changing, and shifting in response to the situation.

What is Business Communication?
What is Business Communication?

In simple words, business communication is the specialized branch of general communication that is especially concerned with business activities.

When communication takes place among business parties concerning business affairs or business-related issues, it is known as business communication.

Objectives of Business Communication

Let us discuss the objectives of Business communication:

Instruction and Order

An order is an oral or written command directing the start, end, or modification of an activity. This form of communication is internal and is carried out within a business house. This function deals with the commanding nature.

Under this, the communicator transmits necessary directives and guidance to the next level, so as to enable them to accomplish his particular tasks. The order may be written or verbal. In this, instructions basically flow from the top to the lower level. Written orders are given when the nature of work is very important or the person who would perform the task is far away.


The objective of a business is to pass on information and make people more informed. Through communication, the organization informs the individual or group about the particular task or company policies and procedures, etc. Information can flow vertically, horizontally, and diagonally across the organization.

Education and Training

Communication is an integral component of any training program. Business organizations need to train people to achieve proficiency in specific skills. They must provide a working knowledge and attitudinal inputs through training programs to employees at various hierarchical levels.


Communication in business is also necessary to increase the level of motivation in the workers. If the communication is done properly, the workers are motivated enough to work easily, efficiently, and independently without supervision.

Communication can be used to create the right working environment so that hard-working employees are recognized and rewarded for their achievements. Employees working at a lower level in the hierarchy of the organization should be encouraged to provide suggestions and inputs on how to improve the working of an organization.

To Integrate

Large business organizations have different business units, departments, and territorial divisions. Each of them pursues different goals, sub-goals, and target sections. Communication provides the means for an integrated approach to pursuing organizational goals.

To Relate and Connect

Good business relationships are a must for the continued success of any business organization. It is communication that provides the means for building and nurturing mutually beneficial relationships.

These relationships are both internal and external. They may be among and/or between employees, supervisory staff, top management, customers, suppliers, other players, the press, and other media.

To Promote

Promotional efforts are a must for any organization to achieve its objectives fully. One of the Ps of marketing (the others being Product, Price, and Placement), promotion relates to various activities such as advertising, publicity, public relations, and communication, which aim at customer information, customer education, customer communication, and customer retention.

In the marketing concept, the customer is said to move from stage to stage till the transaction is completed.

Facilitates Decision-making

Decision-making constitutes an important function for any business organization. Well-thought-out decisions, quickly taken, lead to better results. Such decision-making is spread across all the functional areas personnel, marketing, accounts, production, and maintenance.

Day in and day out, people in organizations keep taking decisions at various hierarchical levels. People at higher levels in the organization command respect depending on their decision-making abilities.


Examination of activities to form an idea or judgment of the worth of a task is achieved through communication. Communication is a tool to appraise the individual or team and their contribution to the organization.

Evaluating one‘s own inputs or other‘s outputs or some ideological scheme demands an adequate and effective communication process.


Communication is necessary to issue directions by the top management or manager to the lower level. An employee can perform better when he is directed by his senior.

Directing others may be communicated either orally or in writing. An order may be common order, request order, or implied order.

Image Building

A business enterprise cannot remain isolated from rest of the society. There is an interrelationship and interdependence between society and an enterprise operating in society. Goodwill and confidence are necessarily created among the public. It can be done by communication with different media, which has to project the image of the firm in society.

Importance of Business Communication

The importance of business communication is discussed in the following points:

Helps in Decision Making

Communication is essential for decision-making and planning. It helps management in getting information without which it may not be possible to take decisions. The quality of the decision of management depends on the quality of information available to it.

Helps in Delegation of Authority

Management is the art of getting things done through others. Delegation of authority needs well-designed and well-drafted communication. It helps in giving clear and timely guidelines, and instructions and getting regular feedback and suggestions.

Effective Control

Controlling means the measurement of actual performance and comparing it with the planned performance. Communication acts as a tool for effective control. The actual performance is measured and informed to the top management and corrective actions are planned after that.

Ensures Effective Leadership

There cannot be any leadership action without communication between managers and employees. Effective leadership involves freely exchange of ideas, feelings, opinions, and grievances between officers and subordinates.

Boost Employee Morale and Motivation

Motivated employees are the best asset of an organization. The behavior of subordinates can be modified through communication. Communication is the means through which the workers are motivated to achieve the goals of the enterprise and their morale is boosted.

Provides Job Satisfaction

Effective communication reduces the gap between management and employees. It provides feedback from employees also. When employees feel that the management hears their problems and tries to solve them, the employees feel connected with the company which helps in providing job satisfaction to them.

Functions of Business Communication

The functions of business communication are discussed below:

Information Function

It involves passing information between people working in the same organization and between the organization and others. It fulfills the desire of workers for awareness about those actions or policies that affect them.

Command Function

It makes the employee aware of his obligations to the formal organization and guides him about the procedures related to the performance of his duties in the organization.

Control Function

Communication (written, oral, or even nonverbal) is also used as a part of management control for the planning of operations, evaluating performance, and directing and motivating staff.

Integration Function

It refers to the fact that communication of messages and ideas if properly handled, should integrate the activities of the employees so that their communication exercises complement the efforts of one another.

Motivation Function

The difficulty is for the managers to find a balance between control and motivation and efficiency. Too much control may reduce initiative and lead to lower productivity with less response to what the customer wants and more emphasis on what the workers think the management wants.


What is Business Communication?

Business Communication is the process by which we understand others and endeavor to be understood by them within and outside the organization and industry.

What are the objectives of business communication?

Objectives of Business Communication:
1. Instruction and Order
2. Information
3. Education and Training
4. Motivation
5. To Integrate
6. To Relate and connect
7. To Promote
8. Facilitates Decision-making

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