Concept, Process and Importance of Communication

Concept of Communication


Communication is the exchange of facts, opinion, idea or emotion between two or more than two persons of common interest. It is the chain of understanding that binds an enterprise from top to bottom and from side to side. No organization can accomplish the goal without effective communication.

The term communication is derived from Latin word ' communis', which means to inform, to tell, to show to spread information. Communication refers to the transformation of information ,It is a key function of management. It can play the important role in the success of the business organization. In the organization, ideas, goals, plans, instructions, suggestions, etc have to be communicated to the managerial staff for the purpose of coordination.

Many writers have defined communication in different ways, some of them are listed below:

In the words of Keith Davis, " Communication is the process of passing information and understanding from one person to another. It is essentially a bridge of meaning between people. "

In the words of Koontz and Weihrich," Communication is the transfer of information from a sender to a receiver with the information being understood by the receiver. "

Communication is the way of sending information. It is the process of exchanging information between two or more persons to achieve mutual understanding to each other. The basic steps of communication are message composition, message encoding, transmission of a signal, to people by using technology. Finally, the message decodes and interpretation of the message by the recipient.

Process of Communication


Communication is the process by which one person or group conveys the message. In communication process sender is responsible for encoding the message and sending it through a channel to a receiver, who then decodes the message into a perceived meaning. The process of communication in an organization are as follows:

1. Sender

The person who conveys the message to another person is known as the sender. The sender must have the message, idea or information which he wants to convey. He formulates message which he wants to convey. The sender thinks what message should be sent.

2. Message

It is the subject matter of communication which a sender creates in his mind and conveys to the receiver. The sender creates a clear message in his mind. A message may consist of facts, opinions, information etc. Then the message is communicated to the receiver.

3. Encoding

The sender needs the encoding skill. It will make the receiver understand the message clearly. When the sender translates the message into words, symbols or some other form, he is using encoding skills. The effectiveness of encoding depends on different factors such as skills, attitudes, knowledge of both receiver and the sender.

4. Channel of communication

Communication is the act of transmitting the message to the receiver. Channels of communication include speaking, writing, meeting, memos, letters, reports, emails, text messages and faxes and even nonverbal communication, such as body language.

5. Receiver

The receiver is the person who receives the message by listening, reading or viewing. He is the person who actually receives the message, understands the same and uses for necessary action. The sender gives messages and receiver receive the message given by the sender.

6. Decoding

After receiving the message by the receiver ,the receiver must be able to decode the message, which means mentally processing the message into understanding. For example, sending a message in a foreign language that is not understood by the receiver will result in decoding failure.

7. Feedback

After understanding the message, receiver gives a response to the sender regarding the message, which is known as feedback. The effectiveness of the message is measured through the feedback. A receiver will give the sender feedback, which is sent by the receiver back to the sender. If responses are positive, then the communication is successful and complete.

Importance of Communication


Communication is an important part of management. No organization can survive and grow without effective communication. All managerial functions are performed successfully with the help of proper communication. It can be considered as the backbone of business management. The importance of communication are listed below:

1. Promotes motivation
Motivation is the influence that causes someone to do something. Communication promotes motivation by informing the employees about the task to be done. It clarifies the manner how they are performing the task and how to improve their performance if it is not up to the mark.

2. Basis of planning
Planning is thinking before doing the particular job. Information is essential for planning which can be achieved from internal and external sources. Communication facilitates to prepare targets, standards, and instruction for future plan. Therefore, communication can be used as the basis for better planning.

3. Alter individual's attitude
Communication also plays a crucial role in altering individual’s attitudes. A well-informed individual will have a better attitude than a less-informed individual. Organizational magazines, journals, meetings and various other forms of oral and written communication help in molding employee’s attitudes.

4. Prompt decision
Communication provides feedback and progress report or internal information that helps to take the decision quickly. In order to take the prompt decision, facts collecting process has to be established. Communication always helps the organization in the pursuit of establishing a process for collecting facts.

5. Controlling process
Control is the comparison of actual work with standard work and correcting the deviations. Communication helps to set the standards and targets. Hence, control is facilitated by effective communication.

6. Maximum production at minimum cost
Effective communication system coordinates the various factors of production, which makes maximum output with the minimum cost. It establishes good human relations, operating efficiency and removes misunderstanding among personnel.

7. Sound industrial relations
Effective communication alone can establish mutual trust and confidence between management and labor. It enables management to come into close contact with workers. It serves as a bridge between them and creates a team spirit in the organization.

8. Public relations
In the modern business world, every organization must create and maintain a good corporate image in the society. It is through communication that management can keep cordial relations with the government, trade unions, customers and the community. Hence, it is an indispensable means of developing a favorable public relations.

9. Improves relationship
Exchange of facts, opinions, feelings and sentiments and interchange of information concerning work would enable employees to understand each other. Communication helps superior to know the subordinates. Such information helps to cross the misunderstanding that separates people. It binds people in a common purpose. Thus, it improves the relationship.

10. Means of coordination
Communication is the foundation of group activity. The works are done at various levels and processed by different departments. People can attain a common understanding and co-operate to achieve organizational objectives. Thus, communication helps to maintain coordination.


Management study guide. 2016. Electronic. 2008. - - 2016. Electronic. - - 2003.

  • The term communication is derived from Latin word ' communis', which means to inform, to tell, to show to spread information.
  • Communication is the process by which one person or group conveys the message.
  • Communication  is the linking process that enables the out basic managerial functions. 
  • Communication exchanges are actually directly linked with every single ball of a human being lifetime.
  • No Organization can survive and grow without  an effective communication. 
  • Communication is necessary  for smooth functioning of the organization.

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