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Importance of Effective Communication in an Organization

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With the competitive global climate today, businesses are constantly honing their strategies to try to gain an edge in the marketplace. However, if you talk to the most successful organizations, you'll find that their ability to compete does not necessarily stem from their products or services, but the way they communicate about their offers, both internally and externally.

Communication Between Coworkers

In order for an organization to be successful, they must have effective communication between coworkers within the organization. Whether this communication takes place face to face or via computer mediated techniques such as email or chat, it is incredibly important that all coworkers are aware of what tasks are being worked on, what progress is being made and what the ultimate goal is. Effective communication on these subjects between coworkers in an organization leads to the most efficient allocation of human resources, and in turn, higher productivity.

Communication Between Management and Employees

In order for an organization to ensure that goals are being accomplished to the best of the group's ability, there must be solid communication between the management and employees involved. This occurs on three levels. Initially, management should always make their expectations incredibly clear. The more specific management is in their communication with employees, the more likely the work turned out will be what is needed for the organization to continue to progress. Second, it is critical that management be as transparent as possible with their employees. By keeping employees in the loop about what is happening to the company as a whole, management has the ability to keep rumors at bay, which can help keep employees confident about their employment and loyal to the organization as a whole. Finally, communication between management and employees can help the management better address concerns the employees may have, once again reassuring the staff and helping management to remedy potential problems facing the organization.

Communication Between the Organization and the Community

It is of the utmost importance that the organization in question maintain open lines of communication with the community it serves. This accomplishes a couple of things. First, it keeps the community abreast of the activities the organization is partaking in, which helps to cut off misunderstandings and rally support for the organization in general. Second, it allows the organization to better predict the needs of the community, which gives them a larger capacity to serve those needs.

Communication with Investors

Regardless of what kind of organization is being considered, it is critical that they practice effective communication with the individuals providing financial backing to their operations, be they via charitable donations, traditional investing or shareholders. It sets an precedent of transparency, which encourages investor confidence. This has two impacts. First, it attracts new investment because it establishes the organization as a worthwhile investment. Second, it encourages current investors to continue investing in the organization because they know that the organization can be trusted.

Communication with Consumers

Every organization offers a service or good. Those organizations need to be able communicate about what they are offering with the consumer base they are targeting. Effective communication with consumers provides two benefits. First, it lets consumers know about what is being offered and why the organization's offers should be preferred over the competition's. It also allows the organization to gain feedback from consumers so they can alter either their communication tactics or their offers to make sure they are appealing to the largest amount of consumers possible.


Lauren Nelson was a nationally recognized public speaker and debater for eight years and has three years of contracted technical writing under her belt. Nelson is a graduate of Western Kentucky University with a Bachelor of Arts in corporate and organizational communication and is currently serving as Director of Communications for Attain Capital Management.