Objectives Of Business Communication

Objectives Of Business Communication

For any business to function successfully, all the rules, company values, and polices have to be communicated to everyone within the organisation and outside the organisation. This is called business communication, and there are several objectives of business communication. This article will outline the objectives of business communication.

Table Of Contents

What is Business Communication

Business communication can be defined as the process of transmitting messages and information within and outside a business. This information can be passed within an organisation, between organisations and to another stakeholder in the external environment.

Objectives of Internal Business Communication

There are 3 types of internal business communication;

  1. Upward Communication (from a subordinate to a manager)
  2. Downward Communication (from a manager to a subordinate)
  3. Lateral Communication (cross-departmental communication amongst co-workers)

All the activities in an organisation rely on communication, once communication becomes unclear the operations fall apart. Effective communication is critical in the modern business environment and the objectives of business communication are described as follows;

To Achieve the Goals of an Organisation

The primary objective of business communication is to exchange information so that ideas, facts and any relevant information can be shared in order to attain the goals of the organisation. Company policies, strategic documents can all be used as means to communicate with employees. A profit-making firm’s objective is to make profit and  a non-profit organisation or government institution needs a steady flow of income to cover expenditures. An organisation cannot operate and achieve its financial goals without effective internal communication. Clear and effective communication is important for employees, managers and executives to perform their tasks and achieve the goals of an organisation. This is the major objective of business communication.

Increase Efficiency

The other objective of business communication is to increase efficiency. The daily operations of a business include obtaining and giving instructions upward and downward. If there is no effective delegation, problems within an organisation arise. Employees are given the right resources and information in order to perform optimally. Code of ethics, company policy documents and relevant information such as job descriptions and general operating procedures are distributed for this purpose. The free flow of information is essential in any organisation in order to increase efficiency. Business communication also allows employees to express their opinions and suggestions regarding company programs. Such feedback is important in an organisation.

To Organise Resources

Business communication is required to organise financial, material and human resources in addition to motivating and addressing internal stakeholders. Organising finances, raw materials and labour can be a challenging task. Communicating efficiently eases this burden by coordinating the relevant departments in an organisation. That way tasks can be distributed to the right people. When business communication fails, tasks will either be improperly done if they are completed at all. So this is an essential objective of business communication.

To Direct Subordinates

Business communication is the means through which the management give instructions and directions to subordinates. Employees know what they should do from business communication. This is an essential objective of business communication.

Exchanging Information

The other objective of business communication is to exchange information between employees in an organisation. This can be exchange of information, ideas, instructions, facts and data.

Improve Employees Job Satisfaction

Good business communication leads to satisfied employees. Business employees who free to express their views are more satisfied. Management also needs to communicate with the business employees regularly and hear their concerns. So increasing employee job satisfaction is a business communication objective.


Objectives of External Business Communication

External business communication is any message that leaves the organisation and affects external stakeholders. The objectives of business communication are explained below.

To Facilitate Cooperation

Business communication is necessary to facilitate cooperation with external stakeholders. Potential investors need to know how profitable an organisation is.  Orders and product specifications need to be sent to suppliers and manufactures. External stakeholders such as government institutions who may be interested in the business also need to be given relevant information. An business’ actions cannot be hidden from the public; therefore, it must communicate.  The public should continuously be informed about a company’s products and services.  Environmentalists and social activists require information about the impact an organisation has on the environment. Facilitation of cooperation with external stakeholders is an important objective of business communication.

To maintain a positive image to customers and external stakeholders

The other objective of business communication is to maintain a positive image. Presenting a positive image to customers, investors, shareholders is critical for any business. Information needs to be released to relevant stakeholders in a timely manner. A business needs to react or counter-react to negative publicity relating to the organisation. In order to establish goodwill with relevant stakeholders, press conferences or publications are used to release information in times of crisis.

Objectives of Business Communication Summary

In summary, the objectives of business communication are

  • To Achieve the Goals of an Organisation
  • Increase efficiency
  • To organise resources
  • To facilitate cooperation
  • To maintain a positive image to customers and external stakeholders
  • To direct subordinates
  • Exchanging Information
  • Improve Employees Job Satisfaction

Stakeholders and the information they require

An organisation should aim to promote a sustainable interaction with internal and external stakeholders. Below is a summary of selected stakeholders and the information they may require.

Stakeholders Economic Environmental/Ethical Legal Social
Internal (Employees, Directors, Shareholders).

External (Potential employees, potential investors



Profit potential,

Growth prospects,

Return on Investments,

Liquidity, Solvency

Taxes, Employment

Working conditions


Dismissal Rules,

Observing laws and regulations,





Positive public image

Customers Competitive products,

Aftersales service,

Quality of products

Observing laws and regulations Social responsibility
Competitors Fair marketing and pricing practices, Cooperation in industry related concerns
Labour Unions,

Pressure groups



Environmental Regulations,

Equal opportunity employment practices,


Observing Environmental regulations,

Labour laws,

Compliance with code of conduct,

Work Safety


Pro-active management
Community Taxes,


Observing local laws and regulations Supporting local activities, Charities, Donations


Ways of Business Communication

Messages are conveyed in many forms which can be oral, written and nonverbal.

Oral Communication Written Communication Nonverbal Communication
·         Face to face interactions

·         Phone conversations

·         Meetings

·         Presentations

·         Voice mail messages

·         Memos

·         Posters

·         Email

·         Reports

·         Newsletters


·         Body Language

–          facial expressions

–          Posture

–          Vocal quality

–          tone

·         Physical surroundings

·         Posters/pictures




Communication Barriers


A negative outlook or misinterpretation of a person or a message can make communication difficult.

Communication skills

Poor business communication skills can be a challenge for an organisation and the people a company interacts with. Some people find it difficult to express themselves and to some people, certain topics are taboo or difficult to discuss.


This is a random input which distorts a message which can be internal or external. Traffic noise during a conversation can make a conversation difficult. A headache, exhaustion or irritation can make a person loose concentration during a conversation.

Information overload

Too much information in a short space of time makes it difficult to retain important messages.

Poor listening

When a person doesn’t pay attention communication will not be effective. This can be due to distractions, lack of interest or complete disregard.

Stereotypes and prejudices

A generalisation about a group of people regardless of the actual differences among members of that group makes communication difficult. Bias towards certain groups of people or organisations makes communication a challenge. Prejudice causes people to deduct false conclusions about certain groups or companies which may cause frustrations and hinder effective communication.

Language barrier

It is generally difficult to communicate with a person who doesn’t understand the language being used. Sometimes accents or pronunciation of certain words can make communication difficult. In some instances, using unfamiliar words or technical terms makes communication a challenge.

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