We live in the era of the worldwide web. We are
totally networked with communication. With the advent of technology, the world
is now a global village. The information sharing has become very smooth,
effective and efficient. If you need any information about any topic, you can
get it at the click of a small button. One can easily get the information as
per the need and choice. Communication is the most important activity of human

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With strong and efficient channels of
communication, the world economy has become stronger. Communication is an
exchange of ideas, feelings, emotions, reactions, propositions, and facts and
figures. The nature of communication has gone significant changes during last
decade. The scope of communication has increased manifold.

Definition of Communication

Various definitions of communication are given
by scholars. Peter Little defines “Communication as the process by which
information is transmitted between individuals/organizations to get an
understandable response”.

W.H Newman defines communication as
“Communication is an exchange of facts, ideas, and opinions, emotions by
two or more persons.”

If we analyze all the definitions that are
available for communication, we find that,

1. The process of communication involves the
communication of ideas, emotions, and feelings.

2. The idea should be replicated in the
receiver’s mind.

3. Communication is a two-way process including
transmission and feedback.

4. The purpose of all communication is to
motivate action. 








Fig 7.2.1 Two way Process of Communication

Significance of
Communication in Business

significance of business communication can be understood from following points:

1. Organizational Environment:

are social systems. It is formed on the basis of mutual interest. If the
management wants to maintain healthy environment then it must use the
communication channels effectively. In every organization people have their job
roles and accountabilities. While performing those, they may experience
conflicts. Communication must be used to resolve the issues.

Employee Relations:

Employer and employee relationship is of mutual
benefit. Employer needs workforce to achieve his organisational objectives.
Employees need organizations to earn remuneration and meet their career
objectives. Organizations must use effective communication to explain the
organizational objectives to the employees. This maintains the morale of the
employees and keeps them motivated to achieve organizational goals.