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Communication is not just important for business. It is essential for the very existence and operation of any business or any other organized effort. Business managers spend most of their time communicating, that is talking, listening, writing and reading. Higher the level of management, greater the time spent on communicating. The ability to communicate well is essential for their success. Peter Drucker, one of the greatest management thinker of our time says: For managers in big organizations ... this ability to express oneself is perhaps the most important of all the skills a person can possess. Communication is essential to people who work cooperatively and need to coordinate their their activities. It is essential for transfer of knowledge from one person to another. Communication is used to exchange understanding and knowledge on various issues like jobs to be performed, methods to be used, responsibilities, suggestions, agreements, situational factors, and work status. While communication has always been very important in business, it becoming increasingly important because of various trends like (1) widening of interaction among people including globalization, (2) Use of increasingly varied assets and processes in industry and business, (3) Increasing pressure on efficient utilization of resource because of higher consumption levels induced by growing population and rising aspirations of consumes., (4) Use of more complex decision making processes, and (5) accelerating pace of change in business that demands ever increasing need for motivating people obtaining their cooperation. Communication is neither transmission of message nor message itself. It is the mutual exchange of understanding, originating with the reciever. Communication needs to be effective in business. Communication is essence of management. The basic functions of management (Planning,Organizing, Staffing, Directing and Controlling) cannot be performed well without effective communication. Business communication involves constant flow of information. Feedback is integral part of business communication. Organizations these days are verly large. It involves number of people. There are various levels of hierarchy in an organization. Greater the number of levels, the more difficult is the job of managing the organization. Communication here plays a very important role in process of directing and controlling the people in the oragnization. Immediate feedback can be obtained and misunderstandings if any can be avoided. There should be effective communication between superiors and subordinated in an organization, between organization and society at large(for example between management and trade unions). It's essential for success and growth of an organization. Communication gaps should not occur in any organization. Business Communication is goal oriented. The rules, regulations and policies of a company have to be communicated to people within and outside the organization. Business Communication is regulated by certain rules and norms. In early times, business communication was limited to paper-work, telephone calls etc. But now with advent of technology, we have cell phones, video conferencing, emails, satellite communication to support business communication. Effective business communication helps in building goodwill of an organization.

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