Importance of communication

1) Motivates employees – helps them feel part of the business (see below)
2) Easier to control and coordinate business activity – prevents different parts of the business going in opposite directions
3) Makes successful decision making easier for managers– decisions are based on more complete and accurate information
4) Better communication with customers will increase sales
5) Improve relationships with suppliers and possibly lead to more reliable delivery
6) Improves chances of obtaining finance – e.g. keeping the bank up-to-date about how business is doing