Importance of Effective Communication in an Organization

In order to attain the goal that it strives to achieve, an organization must have committed employees who are working towards a common goal. An effective internal communication makes employees understand a company’s vision, value, goals and objective. (Procter-Rogers, 2006).

The understanding of what the company is trying to achieve and what is its role in that goal will align the employees with the company goal’s and business strategy. Internal communication is an essential component in enhancing employees’ moral, reducing employee attrition rate, and encouraging all parts of the business to work towards a common goal. According to the research conducted by the SHRM in 2008, communication between employees and higher level of management was among the top five aspects of employee’s job satisfaction. (HR Magazine, 2009)

Communication is defined by Evans (2008) as an exchange of information; good internal communication requires a two-way process and is a vital means of addressing staff.

As Procter-Rogers (2006) notes that internal communication engages employees in the business strategies and empower them to take responsibility of the organization’s overall success and create a synergy within an organization.

During this time of economic uncertainty, many organizations are cutting cost by reducing the work force or making some changes in their direction, thus an effective internal communication is a powerful tool to help employees to understand the need for such action, but also it creates an environment of trust between employees and the organization (Exxon, 2002).