June 19, 2025

Organizational Communication Overview

by Our content team
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Communication is the lifeblood of an organization. Without it, organizations would be unable to function effectively. Communication within organizations can take various forms but they all have the same basic purpose: the transfer of information from one party to another, whether it is a Chief Executive presenting annual performance statistics, or a manager notifying his team of a change to working practices.

The Importance of Organizational Communication

Internal communication is vital to organizational success simply because organizations involve people, and people cannot interact with each other without communication. Without it, nothing would happen. For example, employees would have no knowledge of organizational objectives, they wouldn't know what their roles/responsibilities were, in line with these objectives, they would not be able to perform effectively and they would therefore be unable to contribute to organizational success. Generally speaking though, communication is a basic human skill and people communicate with each other on a daily basis. However, in order to thrive and grow, an organization must strive not merely for communication but for effective internal communication.

A study by Headlines has found that the UK would be £50 billion a year better off if organizations made more effort to communicate with their employees. Good communication ensures 'buy-in' to organizational messages and goals, resulting in employee engagement, which in turn results in increases in (among others) employee retention, productivity and profitability. The Headlines survey revealed that organizations who increase their employee engagement by 10% can add up to £1,500 in gross profit per employee. [1]

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