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Effective communication is important in any business. The type of organisational structure and the management approach a business chooses each have a significant impact on the type and amount of communication the business uses. As a business grows, maintaining an effective level of communication becomes increasingly difficult. Insufficient communication means not enough or poor-quality communication. Excessive communication means too much, which can be overwhelming.

Communication in a business can be done in a number of ways, both internally and externally. The most common methods are emails, text messages, online shared spaces, communication apps, letters, reports, phone calls, video-conferencing, and face-to-face meetings. Communication must be accurate and include enough detail, be clear, and use the correct method to be received and understood.

Advantages of effective communication include:

• better understanding across the business
• faster and more effective decision making
• a more motivated workforce
• less chance of making mistakes
• improved employee involvement in the decision making process
• effective feedback from and to employees

Disadvantages of ineffective communication include:

• low morale
• reduced employee cooperation
• incomplete actions or activities
• reduced efficiency
• slower decision making