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Why Is Effective Communication Important in Management?

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When managers effectively communicate with subordinates, it helps ensure accuracy, reduces the potential for errors, improves productivity and increases morale.

Efficiency and Productivity

When managers set specific goals, issue clear directives and define key work parameters, employees understand what’s expected from them. Relaying information in the form of in-person meetings, phone and conference calls, video-conferencing, emailing and written project planning can all be strategic management communication tools. Staffers who are in-the-know about assignments, deadlines and project statuses can manage their time more effectively and be more efficient, all while reducing the potential for error.

Workplace Morale

Chaos can ensue in an environment where no one is sure what’s going on or who is in charge of various work products. This can lead to reduced morale, particularly if staffers feel they aren’t given appropriate direction or constructive feedback. When morale is low, there’s the potential for poor quality work, increased absenteeism and higher turnover, making effective management communication skills a necessity.

Business Building

A high-functioning work team has the potential to increase business, and therefore, improve profits for the company. When managers communicate to staffers the ways in which their contributions are essential to the company, it can encourage creativity and innovation and increase collaborative efforts. Effective communication can also assist employees with setting and achieving goals, therefore improving job satisfaction.

Improved Customer Service

Strong internal communication can result in improved customer service, helping retain clients and encouraging repeat business. Employees will all follow the same directives, implement policies in the same manner and handle customer matters following the same guidelines. This helps present an organized and unified front, creating a consistent customer experience.


A lack of effective communication can result in costly mistakes. For example, missed deadlines, improperly processed orders and botched scheduling all have the potential to cost a company both money and customers. Accurately conveying expectations, relaying timetables and addressing potential problem areas before they become an issue can all contribute to smooth operations.


Lisa McQuerrey has been a business writer since 1987. In 1994, she launched a full-service marketing and communications firm. McQuerrey's work has garnered awards from the U.S. Small Business Administration, the International Association of Business Communicators and the Associated Press. She is also the author of several nonfiction trade publications, and, in 2012, had her first young-adult novel published by Glass Page Books.

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