MGT3002

Communication in Business

Communication is a workplace factor that can both create and solve problems. In the following

section, you will learn about the functions and purposes of communication in an organization.

Communication has four principal functions in an organization—control, motivation, emotional

expression, and information. Communication performs a control function in matters concerning organizational structure, roles, and guidelines that are necessary for people to function within the

organization. For example, instructions and feedback help to in�uence and direct employee behavior.

In order to communicate, the source or sender transmits a message whose information has to be

translated into a language. This process is known as encoding and the �nal message is the output of the

process. The message is then transmitted through a channel or medium which may be either formal or

informal. Formal channels of communication are used by organizations while informal channels are personal and social. The receiver needs to decode the message in order to comprehend it. Decoding is

the reverse of the encoding process.

Organizations generally use vertical and lateral communications. Vertical communications �ow

between hierarchical levels where downward communications are sent by higher levels to lower levels.

For example, managers send instructions, assign goals, inform about policies, and give feedback about

performance to their subordinates. In response, subordinates send progress reports, report problems,

and give feedback through the same vertical channels. Lateral communications permit employees to share, discuss, and jointly analyze information and data.

Communication is an aid used in everyday life, be it personal or business. In the business world, good

communication is important for the daily operation of the company, but can also affect sales and

pro�tability. Without good business communication, the internal and external structure of a business

can face numerous challenges that can ultimately lead to its demise.

Additional Materials

Communication in Business (media/week3/SUO_MGT3002%20W3%20L3.pdf?

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