Business Communication is very crucial for any business operation. Effective communication helps in conducting business in an effective manner. Kushal, defines communication as a process in which two or more element of a system interact in order to achieve a desired outcome or goal (p. 2). If communication is effective, it means that, the send is received by the right recipients without being interfered with in any way. Business communication can be categorized into two functions; internal and external functions.

According to Kushal, all communication, that is done while conducting work within a business is called internal function (p.3). Internal communication is very essential to business growth because it helps in boosting job satisfaction, enhancing safety, increasing productivity and profitability, while lowering vices like absenteeism, grievances and turnovers. Kushal describes internal function of business communication under the following; information to management, information to employees, improvement in morale.

In information to management, business communication enables management staff to get relevant information, which is essential to them in making decisions. In order, for the management team to make a sound and reliable decision they need to be informed. It is through effective communication between all the departments in an organization, that mangers can gather sufficient and reliable information to draw their decisions.

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Communication within the organization also facilitates information to employees. Management team communicates to their junior, giving directives and instruction of carrying out duties. As Kushal argues, some of the important information which is communicated to the employees includes; how a particular task is to be performed, what is needed to accomplish it, how employees will be compensated upon completion of the task etc. Therefore, communicating to employees efficiently and effectively plays important role in business growth and progress.

Kushal continues to argue that business communication improves morale. According to him, by providing detailed information regarding all tasks and individual concerns to employees, business communication helps to boost their morale (p. 3). Effective communication within the organization makes employees to feel part of the business. Generally, kushal say, internal communication helps increase job-satisfaction, safety, productivity and profits and at the same time, it minimizes absenteeism, grievances and inefficiency (p. 3).

The second category of business communication is external function. External function involves all the work business does related to communication with people or groups outside the business. Business relies on outside people or groups, thus effective communication is important for its success. Customers are very important to any business and determine business success, and therefore they should be satisfied. Effective communication between the business and its customers therefore is very crucial.

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