Communication is vital to organizations—it’s how we coordinate actions and achieve goals. It is defined in Webster’s dictionary as a process by which information is exchanged between individuals through a common system of symbols, signs, or behavior. We know that 50% to 90% of a manager’s time is spent communicating (Schnake et al., 1990), and communication ability is related to a manager’s performance (Penley et al., 1991). In most work environments, a miscommunication is an annoyance—it can interrupt workflow by causing delays and interpersonal strife. But, in some work arenas, like operating rooms and airplane cockpits, communication can be a matter of life and death.

So, just how prevalent is miscommunication in the workplace? You may not be surprised to learn that the relationship between miscommunication and negative outcomes is very strong. Data suggest that deficient interpersonal communication was a causal factor in approximately 70% to 80% of all accidents over the last 20 years.^[1]

Poor communication can also lead to lawsuits. For example, you might think that malpractice suits are filed against doctors based on the outcome of their treatments alone. But a 1997 study of malpractice suits found that a primary influence on whether or not a doctor is sued is the doctor’s communication style. While the combination of a bad outcome and patient unhappiness can quickly lead to litigation, a warm, personal communication style leads to greater patient satisfaction. Simply put, satisfied patients are less likely to sue.^[2]

In business, poor communication costs money and wastes time. One study found that 14% of each workweek is wasted on poor communication (Armour, 1998). In contrast, effective communication is an asset for organizations and individuals alike. Effective communication skills, for example, are an asset for job seekers. A recent study of recruiters at 85 business schools ranked communication and interpersonal skills as the highest skills they were looking for, with 89% of the recruiters saying they were important (Alsop, 2006). On the flip side, good communication can help a company retain its star employees. Surveys find that when employees think their organizations do a good job of keeping them informed about matters that affect them and when they have access to the information they need to do their jobs, they are more satisfied with their employers.^[3] So can good communication increase a company’s market value? The answer seems to be yes. “When you foster ongoing communications internally, you will have more satisfied employees who will be better equipped to effectively communicate with your customers,” says Susan Meisinger, president and CEO of the Society for Human Resource Management. Research finds that organizations that are able to improve their communication integrity also increase their market value by as much as 7% (Meisinger, 2003). We will explore the definition and benefits of effective communication in our next section.

References

Alsop, R. (2006, September 20). The top business schools: Recruiters’ M.B.A. picks. Wall Street Journal Online. Retrieved September 20, 2006, from http://online.wsj.com/article/SB115860376846766495.html?mod=2_1245_1.

Armour, S. (1998, September 30). Failure to communicate costly for companies. USA Today, p. 1A.

Meisinger, S. (2003, February). Enhancing communications—Ours and yours. HR Magazine. Retrieved July 1, 2008, from http://www.shrm.org/hrmagazine/archive/0203toc.asp.

Penley, L. E., Alexander, E. R., Jernigan, I. E., & Henwood, C. I. (1991). Communication abilities of managers: The relationship of performance. Journal of Management, 17, 57–76.

Schnake, M. E., Dumler, M. P., Cochran, D. S., & Barnett, T. R. (1990). Effects of differences in subordinate perceptions of superiors’ communication practices. Journal of Business Communication, 27, 37–50.