Assignment Cover

Region : Mashonaland Central, Zimbabwe

Programme : Bachelor of Commerce Honours in Marketing Management

Intake : 35

Full Name (Student) : Muzondo Itai Lionel

Student Pin : P2019517B

National ID Number : 63-2255872 S18

Mailing address : 1884 Mutamba Circle, Chiwaridzo Bindura

Email address : [email protected]

Contact Number : +263 77 396 9160 / +263 77 449 8984 / +263 71 410 5122

Course name : Principles of Economics (microeconomics)

Course Code : BHIR102

Assignment Number : 1 Due Dates : January 18th 2021

Date of submission : December 31st 2020

Assignment Title : Critically discuss the importance of effective communication in a

business (25 marks)

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Muzondo Itai Lionel, P2019517B, Bcom (Hons) Marketing Management 1|

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Communication since the time of mankind’s creation has played a pivotal role in his
advancement as a civilisation. It is a natural process that defines how societies move ahead on
the basis of relationships formed due to interaction as well as exchange of feelings and ideas.
according to Keith Davis, “Communication is the process of passing information and
understanding from one person to another.” From this definition, the passing of information
and understanding involves the use of mutually acceptable signs and symbols (Wikipedia).
Business communication therefore can be defined as relating to the dissemination of
information within the business enterprise, for the sole purpose of its own benefit. It can be
viewed as the means by which people are linked together in an organisation to achieve a
common purpose (Barnard, C., 1938). Business’ are successful because they have triumphed
in harnessing the benefits that effective, efficient communication brings to the entity. It can
hardly be disputed that such success is acquainted with how the business handles its internal
and external communications. J.M Millet ascertains this by giving a description of
communication as the “lifeblood of an organisation.” Hence it becomes imperative to note
that business communication is very important to a business.

Barnard remarks that,” The first executive function is to develop and maintain a system of
communication.” This he said, was essential to form the foundation of group activity. This
shows that communication is of vital importance as it allows management or executive of the
business to perform its mandate of planning, organising, leading and controlling.

Information received from lower-tier employees allows the manager to plan. Without an
effective communications protocol, this cannot be achieved. The organisation requires the
manager to be up to date with information so that he/she can be able to delegate tasks to
subordinates in an effective and efficient manner. The control function is only achievable
through use of effective verbal and non-verbal communication within the business. Various
media and platforms may be used to achieve this. Information is shared through in-person,
electronic which can be verbal, as in phone calls, cloud meetings; or can be written, which
includes electronic mail and the traditional letter on paper. Effective use of these tools is very
much important especially if the manager intends to promote productivity. This allows the
manager to identify, assess and implement alternative course of action where necessary. To
the employee, effective use of communication will help alter their behaviour or attitude
towards work as this keeps the employee informed of the happenings in the business.

According to Barnard, effective communication gives the executive some form of “moral
authority” in the organisation. The executive can set up hierarchical information structures
that allow everyone in the workplace to receive information pertaining to the organisation’s
expectations at each level of employment. The flow of information becomes hierarchical
hence allowing effective control of the business’ processes. Communication ensures the
business operates at peak levels in this way.

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An organisation has three main elements that are; common purpose, willingness to contribute
and communication (Barnard, 1938). Communication allows the creation of organisational
attitude, the adoption of purpose. Purpose forms the basis of any organisation. Herbert A.
Simon (1958) also shares this view. He stresses, “absence of communication destroys the
chances of influencing an individual to align to the organisation’s goals and objectives”. He
argues that there cannot be the existence of a decision-making structure without
communication, hence no organisation.

Studies conducted by Norbert Weiner (1982) indicate that organisations have a tendency
towards positive entropy. This is a natural process of organisational systems tending towards
dis-order, dis-integration and ultimately, self-destruction. Effective communication allows
the business to shift towards negative entropy, that is, order, integration and stability.

The managers in any business maintain contact with critical stakeholders in the business.
These include investors, shareholders, suppliers and customers. Communication is of key
importance in that it is a catalyst in the formation of healthy business relationships.
Stakeholders require constant engagement particularly in the decisional premise of the
organisation. Information must be honest and timely, allowing space for the constructive
exchange of ideas. This ensures smooth advancement of the organisation in achieving its
long-term goals and objectives.

Communication allows socialisation in the workplace. The benefits of this is that it fosters a
healthy working relationship and can make the controlling process of management much
easier. Socialisation in the workplace creates an attitude of teamwork, and allows conflict
resolution in a cooperative manner.

Contemporary organisations of the twenty first century are made up of culturally diverse
employees. Communication plays the role of bridging the gap between the executive and its
subordinates. Communication as a process will allow the person who is communicating to
understand the differences of the audience whilst acknowledging sensitivity in the message so
as to avoid conflict based on cultural grounds. Factionalism on cultural grounds lowers
productivity. The communication along this line must maintain neutrality in the message.

Effective communication involves attentive listening, offering empathy as well as helpful

feedback. Its importance cannot be understated as it fosters the building of trust amongst the
employees as well as reinforcing it. As a result, communication promotes the mutual
achievement of goals and responsibilities.

Innovation is an important result of effective communication. Consistent flow of information

in the organisation between the managers and their subordinates, the business and its
customers, will instigate creativity and innovation as exchange of ideas from within and
without the business takes place. Loyalty is encouraged in the process as effective two-way
communication instils mutual trust, commitment and increases productivity.
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Management can better identify hidden talent through communication. For instance, Douglas
is hired as a data capture clerk, but through effective communication, the supervisor identifies
experience in customer service. Douglas will be subsequently moved from data capture to
sales and customer service where he would most likely perform better.

Effective use of communication can boost productivity and profits of a business. It is an

essential element in dealing with customers whose primary aim is to get satisfaction in their
conduct of business with the organisation. Customers are turned into clients as a result and
increases the business’ chances at repeat business.

On the contrary, when there is poor communication the results are devastating to the
business. Business productivity, income and work-force are adversely affected. Ineffective
communication or lack of it creates an uninformed and communication-disoriented employee
base. There is lack of constructive engagement and consequently, no defined purpose.
Conflicts run amok in the organisation, innovation and creativity is suppressed. The end
result is that the business registers declining profits and loses customers to competition.

Managers are unable to execute their basic management function and cannot exert “moral
authority” on their subordinates. Job responsibilities are unconcise and unclear. Employees
rely on their management to provide them with information. However, with poor
communication, this is just not possible.

Without communication, the reputation of the business is damaged in the long run. Lack of
access to people and information resources will reduce the morale of the employees and
hence the business will register a decline in productivity. Organisational behaviour is
negatively affected and timeous delivery of products becomes an unachievable feat.

Poor communication or lack of it can be a source of distrust and confusion. Opaque

leadership causes gossip (grapevine) to spread like a wildfire. Gossip creates conflict which
in turn generates confusion. If such distrust is directed at management, then loyalty falls.
Commitment is vital in any organisation if it is to achieve its set goals and objectives.

Poor communication also causes an employee to miss an opportunity at promotion. The

willingness to contribute can only be affected by communication that is effective in nature. If
an employee fails to communicate interest in a job opening, then he/she might not be
considered for the job. This damages self-development of the employee. The business will
suffer from poor employee exploitation.

Lack of communication will construct a barrier between the employees and management as
well as between the business and its other key stakeholders. The business will suffer limited
performance optimisation. The absence of purpose signifies the absence of purpose (Barnard,
1938).

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Without direction, individual roles and that of the business become uncertain and at most,
obsolete. The likelihood of inefficiencies rises (www.hotelexecutive.com). The decisional
premise is also affected as there exists confusion in the decision-making hierarchy. There will
be inefficiencies in the delegation of tasks and may lead to one-way communications which
may be dictatorial in nature, further straining relations between the business and its
stakeholders.

Without communication, co-worker relationships are also affected. Mistakes are made and
employees blame each other. Feed back from lower-tier employees may not reach the
executive. Conflicts are created amongst workers and between workers and their superiors.

In conclusion, based on the works of Barnard (1938) and Millet (1977), it is evident that
business communication plays an unequivocal role in ensuring that it succeeds. Effective
communication builds trust, loyalty, opens up an arena for motivation and innovation.
Communication also allows healthy relationships amongst workers themselves and between
the business and its key stakeholders. Productivity increases as a result. Poor communication
on the other hand, will encourage positive entropy and ultimately uncertainty, confusion and
self-destruction.

Reference:

1) Millet, J, Communication (Volume. 4), 1977

2) Barnard, C, Functions of the Executive, 1938
3) Tutorials Point, Effective Communication, 2016
4) Garber, A, Mahoney, J., Systems approach to nurturing Organisations, 2010
5) Dr. Marume.S.B.M., Jaricha. E and Chiunye. M.T., Communication, Zimbabwe Open
University, 2016
6) www.hotelexecutive.com
7) Weigner, N., Entropy and Communication, 1982

Muzondo Itai Lionel, P2019517B, Bcom (Hons) Marketing Management 5|

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