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MNC Consulting Group > News > Article > The Power of Effective Communication in a Company
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What is communication?

Communication refers to the exchange of information either in writing or speaking and this is effective in how any business is able to relate with the customers, employees internally and to the general outsiders of the business externally.

Effective communication therefore is a situation where the business is able to clearly and professionally send and receive information in a manner that identifies the business as unique among its competitors. Any business can’t make good sales if there is poor communication.

Is effective communication powerful in a business?

The answer is YES and having a powerful way to communicate internally and externally in a company will greatly trigger the success of a company. Communication is effective in enhancing the relationship between the customers and the business.

It helps to reach out to more consumers as well as giving the customers an opportunity to freely express their opinions, complaints, suggestions and interact with the company with ease.

Communication is able to effectively connect the company to more opportunities which can be invested to give additional profits and income to the business. It also reduces time wastage that would have been incurred if the business was to physically engage all its customers, suppliers and employees.

Consequently, the only way to build solid wealth in a company is enhancing effective communication across everyone as time management is one of the most critical resources to being successful. How rich you become solely depends on how effectively you manage your time and how effectively a company manages its time entirely depends on effective communication.

How to build effective communication in a company?

How a company chooses to build its communication largely depends on its financial capacity and the actual size of the company. A smaller company (small and medium enterprises – SMEs) would prefer to use telephone, emailing, and courier services while a large company would use these and even other more expensive ways of communication such as websites, advertising software to communicate with its customers, outsiders, and employees.

How much you effectively communicate your business idea will always have a great impact on how much profit a company will achieve at the end of every financial year. Therefore, this implies that any business intending to succeed must therefore plan to expand and gradually build its communication from the simple basics to effective communication.

Channels for effective communication in a company?

The formal communication channel transmits organizational information, such as goals or policies and procedures, and this further underlines the impact of effective communication in an organization. The channels can be used in marketing a company to increase sales.

The main channels of effective communication are

 (i) Face to face communication

This is a social facial interaction where there is mutual influence of a person’s direct physical presence with his/her body language. It is highly persuasive since there is physical contact between the company representatives (sales team) and the other parties. Also called interpersonal communication.

It creates a bond of trust between people due to live feedback translated through the body language and facial expressions, making it a great way to communicate directly to the customers who value trust before doing business.

 (ii) Mobile/telephone Communication

This is the most preferred communication due to its reliability, convenience and is relatively fast in communication. Digital technology has made this channel even more effective in that it has been used on broadcast media marketing, through social networks like face-book, twitter, linked-in and emails.

This is a wireless communication that allows transmission of voice and multimedia data via a computer or a mobile device without having connected to any physical or fixed link. Mobile application software such as whatsApp have significantly contributed to this channel of communication making it effective in a great way to a company.

(iii) Electronic communication

It is a computer-mediated communication in which individuals exchange messages with others, either individually or in groups. The internet is a hub of information and has greatly contributed to its success in most companies, and as a result there has been exchange of ideas and information which have eventually been invested in a business at a profit.

(iv) Written communication

This is a type of interaction that makes use of written words. It has a great significance in today’s business world, in that it is essential for preparing worthy promotional materials for business development.

(v) Broadcast media communication

it is mass communication that involves video and audio content usually used by companies for advertisements, where the content is distributed to a dispersed audience with the ability to craft creative and compelling messages to influence people. It combines television and on-air radio performance with opportunities for on-screen acting, motivational speaking and talk show hosting.

What are the levels of effective communication in a company?

a. Horizontal communication is the transmission of information between people, divisions, departments or    units within the same level of organizational hierarchy. It is essential for smooth functioning of organizational  activities and for interdepartmental coordination through:

  •   Reducing possible misunderstanding and conflict through meeting, discussion and face to face conversations.
  • Improves group efforts and teamwork by reducing conflicts, controversies, and differences in opinions to establish consensus among the managers and workers.
  • Performing smooth inter-departmental communication for larger companies.
  • Gaining benefits of informal communication since the senders and the receivers hold the same position, status    and honor.
  • Little or no distortion of message to be communicated because senders and receivers communicate directly  with each other.
  • Create dynamism in the workplace to overcome misunderstandings among the managers, leading to an environment of cooperation, teamwork and team spirit.

    b. Vertical communication which is the transmission of information between different levels of the                                  organizational hierarchy.

  • Strengthens communication where the superior entrusts work to his/her subordinates and watches over them, while acting as a guide and mentor.
  • It is feedback oriented where the top and bottom levels of management discuss and interact with each other on critical matters affecting the company.
  • Establish authority and accountability with a clear chain of command enhancing the set standards and targets in an organization.
  • Addressing grievances and complaints and hence increasing employee morale.

 c. Diagonal communication is a cross functional communication held between different structures business firm, between the higher and lower sectors of a business firm. Organizational communication is the process by which information is shared within various organizations or businesses.

  • It ends communication barriers and increases the efficiency and speed of the labour where positive relations are created.
  • It can be used as a team build up or motivational tool.

How to develop an effective communication plan for your company?

In summary, having a great way of effective communication is key to the success of any company. Basically, the way you relate internally will affect the image of the company externally and therefore effective communication greatly enhances the company image.

Here, are a few leads and tips on how to build and develop an effective communication plan:

  • Develop and define the company. Communicate the objectives, strategy and goals of the company effectively in order to direct and motivate the company team.
  •  Create a forum that allows for the exchange of ideas. Communication is a dialogue and therefore everyone on   the team should know that their contribution is valuable, to encourage interaction and input from all.
  • Clarify communication goals. The goals of good communication should enable the growth of a company, to prevent surprises, avoid duplication and reveal omissions.
  • Delegate responsibilities. Employees of the company should know what their particular responsibilities are and to whom they are responsible.
  • Keep communication up to date and everyone informed using different media and channels; such as email updates, company memos and meetings, face-to-face encounters and regular reports.
  • Set a timeline for reports and reviews but ensure daily exchange of information. Schedule meeting dates and deadlines for reports to keep the team motivated and structured. It also helps to prioritize tasks.
  • Review the communication plan to ensure that it is working effectively. Seek the input from the team and make consultative improvements where possible and need be, to ensure effective flow of information within and beyond the company.


About the Author

Thank you for reading this article. The author, James Ndambiri is an avid Business Advisor and Consultant: A Tax Surgeon, Proficient Accountant, Skilled Auditor, a Guru in Financial and Investment management, Expert in Business Strategy Formulation, Business Transformation Wizard, Family Business Advisor, Lecturer, Business Coach and a Family Man.

James is the Founder, Team Leader, CEO & Managing Partner of MNC Consulting Group. MNC Consulting Group is your most trusted and respected professional business consulting firm recognized by our clients for delivering excellent business advisory and consulting services that create value to their ventures. With our focus set on value addition, we offer our clients the highest quality professional services in Accounting, Audit and assurance, Tax, Business Transformation, Investments and Financial Advisory, Family Business Advisory, Company Secretarial Services and Property Management that address their business needs through attracting, recruiting and retaining knowledgeable and passionate professionals who enable us to deliver superior results while contributing positively to the community in which we live and work.


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