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Directing — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesDirecting6 Marks
Question
“Managerial functions cannot be carried out without an efficient system of communication". Do you agree with this statement? Give any four reasons in support of your answer.
OR
"Effectiveness of a manager depends on his ability to communicate effectively". Explain how?
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Answer

Communication is the process of transmission of messages, information, etc. and creation of understanding between two parties. It involves sending a message to another, who receives the message and responds to it. Effective communication takes place when the received messages are understood in the same sense by the receiver as the sender intends.
Importance of Communication: Managerial functions cannot be carried out without an efficient system of communication. It is vital to the very existence and smooth operation of an enterprise. The importance of communication in management may be explained as follows:
  1. Communication facilitates planning: Participation of executives in planning is a pre-condition for getting the task done. This can be secured only through interaction and communication. To be realistic planning, it should be based on accurate information. Such information can be available only when there is systematic communication in the enterprise.
  2. Communication helps in decision making: If the right type of information is not available at the proper time due to lack of communication, it may not be possible for management to consider all the pros and cons before taking a decision. It is through communication that management comes closer to the subordinates and is able to identify real problems and take appropriate decisions.
  3. It helps in smooth working of an enterprise: Communication makes possible for the smooth and unrestricted working of the enterprise. All organizational interactions depend on communications.
  4. It promotes cooperation and industrial peace: Efficient operation is possible only when there is industrial peace in the factory and mutual cooperation between management and workers. The two communication promotes cooperation and mutual understanding between the management and workers.
  5. Communication facilitates coordination: Communication is an aid to coordination. It is necessary for upward, downward and horizontal interaction between members at all levels of authority. It is necessary for creating unity of purpose and action.
  6. It improves superior-subordinate relation-ship/ Increases managerial efficiency: Communication is the essential 'flux' that binds individuals together in group activities. It works as a lubricant in the process of management. Greater participation, proper exchange of ideas, clear understanding of intentions help in creating better understanding and this ultimately improves superior-subordinate relationships.
  7. It helps in the process of motivation and morale: Sharing of information with employees helps management to secure their willing cooperation Discussion on matters of common concerns between managers and employees is a source of satisfaction for the employees as it signifies recognition of their importance. Information sharing and consultation act as strong motivating factors. A favourable impact on morale is also produced thereby.
  8. It is the basis of effective leadership: A good communication system brings the manager and subordinates in close contact with each other and removes misunderstandings. By developing the skill of communication, a manager can be a real leader of his subordinates. Thus, communication is the basis of leadership.

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