Impact of Communication on Productivity

Business operations range from small firms with fewer than 10 employees to giant corporate multi-national enterprises with thousands of workers. Whatever sector or industry a company belongs to, productivity is a key element of profitability. The efficiency with which an organization conducts its operations is influenced by many factors. Sharp rises in the cost of raw materials, unanticipated natural disasters and equipment failures are all examples of events that may affect productivity. Another prime mover of productivity is communications. In fact, exchanges of information may be the single most influential activity on business output.

Communication in the workplace takes innumerable forms. Intercom systems for business, computerized information transfer and face-to-face verbal exchanges all represent examples of communication. Large enterprises often create departmental level corporate communications elements within their organization. Considerable resource investment in these departments reflects the relative importance of their role in productivity and success. Two major impacts that accurate and timely information transfer has on productivity are efficiency and morale.

Organizational Efficiency

Profitable operations of a company are largely determined by the effective flow of information both internally and externally. Product manufacturers, for instance, process raw material inputs adding value and then delivering them to consumers. Here, mistakes caused by miscommunication require additional resources like capital or more raw inputs to correct. This negatively affects profits which are a direct reflection of efficiency.

Organizational Morale

A happy, contented workforce generally adds more value to a company. Effective communications ensure that employees understand their contribution to the firm’s overall success. They are more apt to increase both the quality and quantity of work performed when they understand this relationship. Conversely, poor communication results in workers who feel their efforts have no relationship to the company’s success. Often, these employees become apathetic or worse still, resentful.

The importance of high-quality communications in company productivity and success cannot be overstated. Negative employee or customer perceptions regarding a company’s reputation can be devastating. Likewise, errors and waste due to failures in information transfer decrease company efficiency. Appropriate emphasis on accurate, timely and positive communications is a hallmark of successful organizations.