Communication is the lifeblood of business. Success of the communication system affects the success of business. The following points will prove its importance:
Smooth working of a business firm: it is through communication that healthy and conductive environment is created. "Communication is basic to an organization existence from birth of the organization through its continuing life-when communication stops, organized activities cease to exist".
Basic of managerial function: no function of management is possible without the communication process. It helps in discharging various functions as follows:
Planning: forming of various plans, policies, programmers and procedures require through communication among employees and various executives. Again when their purpose and philosophy is conveyed, communication comes into operation.
Organizing: organization is concerned with deciding the necessary activities of business, dividing it into various departments and delegating authorities to perform them. For this purpose, communication is a must because different persons, departments and groups come to know their power and jurisdiction only through an effective means of communication
In the words of George and terry, "communication is the means by which the act of delegation is accomplished".