Communication is an important supporting service requires for the successful
operation of a business. Communication is known as the exchange of messages,
information and ideas among different parties through any medium.
Importance of communication for business activities
Today, a revolutionary growth can be observed communication parallel to the
development of information technology. Accordingly, different communication
methods are in use. In this competitive market, communication technology has
become an essential service for the success and survival of businesses.
The communication is important to obtain required information for the business as
well as to provide information to the various stakeholders of the business. Since
we are now living in an information technology era, communication is vital for
businessmen in order to make different decisions.
Communication can be divided into two main parts depending on the various
stakeholders.
01. Internal communication
02. External communication
Internal communication
This means communicating messages, information and ideas via various mediums
between different parties within an organization. This communication always occurs
among owners, managers and other employees. Since internal communication is
required when performing the business activities, the frequency of occurrence of
this communication is very high. Further, in internal communication the distance
between the sender and the receiver is minimum.
External communication
External communication is the communication of a business with external
individuals and external organizations. This communication occurs with individuals
such as different customers, suppliers, retailers, wholesalers and agents and with
governmental and other organizations. The external communication occurs in less
frequency compared to internal communication. Further, the distance between the
sender and the receiver is relatively high.
Different communication mediums used by businesses
A business uses different communication mediums for communicating with internal
and external parties. Depending on their nature the communication mediums can be
categorized as follows.
Although the above communication mediums are categorized broadly into four,
most of the time they cannot be limited only to one category depending on the
nature of the communication.
Example :-
Telephone conversations – Electronic/ Verbal
E mail – Electronic/ Written
Skype – Electronic/ Verbal/ Written
Process of communication
Communication is not a single activity but a process comprised of few common
elements.
Sender - the person or the institution sending the message
Message - information conveyed by the sender
Medium - the communication medium used for sending the message
Receiver - the person receiving the message
Response - how the receiver act on the message
Feedback - reply, either verbally or non-verbally, regarding the message
sent from the receiver to the sender
Factors to be considered when selecting an appropriate medium of communication
Any individual or an institution need to consider several factors when selecting a
communication medium in order to carry out communication activities productively
and effectively.
Appropriateness
An appropriate communication medium requires to be selected depending on
the information expected to be communicated and the objectives of communication
Speed
An appropriate communication medium needs to be selected depending on
how quickly the information to be delivered.
Cost
The total cost for communication is an important factor to be considered.
Due to the advancement in technology, low cost communication methods
have been created.
Example :-
Short Message Service (SMS)
Clarity
The receiver should be able to understand the message clearly.
Easy to use
The communication medium should be easy to use depending on the
knowledge and skills of the sender and the receiver.
