Direction and leadership: direction and effective leadership requires an effective system of communication. As a leader, the manager has to influence the behavior of his subordinates so that they willingly accept him as their leader. Unless the effective communication is there, he cannot influence and inspire them. He has to create an environment of trust, understanding and co-operation through communication.
For the execution of the work, he has to issue necessary instructions, order and invite suggestions and opinions of the workers. Again, communication is involved in this directing function so management.
Motivation: an efficient system of communication enables management to change the attitude of the subordinate's manager feels that is friction or frustration among employees; he has to remove it through proper and timely communication. He has to understand the needs and interests of the employees and motivate them by making their goals congruent to the organizational goals.
Coordination: in order to achieve the desired objectives, it is very necessary to coordinate the efforts of labor engaged in the various activities of production and the organization. Co-ordination requires mutual understanding about the organizational goals and the mode of their accomplishment; and the interrelationship between the works being performed by various individuals. This can all be achieved only through effective communication.
Control: communication facilitates in controlling and channelized various activities of the individuals, departments and segments of the organization. In this, the expected and corrective action should be taken. When actual performance is compare, there is a feedback from the employees regarding their progress and when corrective actions are taken, they are communicated to them either orally or in writing by their superiors.
Maximum production at minimum cost: an efficient communication system helps in improving public opinion, having contacts with government departments and getting market information in order to achieve the primary goals.
It can seek cooperation of the workers by telling them the goals of the organization and the ways to achieve them.
Prompt decision and its implementation: information must be received before any meaningful decision and, for this purpose, communication is a primary requirement. Again, to implement the decision effectively, its communication to subordinates concerned is essential. Thus decision-making and its implementation require an effective system of communication.
Building human relations: healthy industrial relations are conducive to industrial peace and prosperity. This is possible not only with good working conditions and environment but also with communication among the management and workers. Through effective communication the management can convey its expectation to workers and workers can put their suggestions and grievances before the management.
Thus, the two-way communication promotes co-operation and understanding among management and workers.
Job-satisfaction and good morale: morale is the human element that motivates a man to work in the right spirit. Good communication removes the possibility of misunderstanding among the parties concerned. Workers know what they have to do and how it creates of co-operation among them. It increases the morale of the workers and each worker will have job satisfaction.
Avoid illusion: while passing through various stages information may be distorted by interested parties, and may create illusion and misunderstanding among persons. Illusion is the great enemy of communication. An efficient system of communication aims at removing illusions and mis-understanding by communicating facts and figures. Thus, communication cements an organization.
Contacts with external parties: contacts with outside agencies such as customers, associations, other manufacturers, advertisers, suppliers, trade unions, research councils and institutions, etc. are necessary for furthering the interests of organization. It increases the goodwill of the firm and helps in creating a favorable public attitude towards the organization.
Thus, effective communication is not only essential for uninterrupted working of any enterprise, but also for maintaining good relations with external parties.