For a group of people to be an organization rather than just a random collection of individuals, they need to communicate with each other and coordinate their activities. The more effective the communication, the more efficient and productive the activities will be. A well-organized workplace features transparency through hierarchies so that everyone is clear about his role and purpose at work.
In a hierarchical organization, communication runs up and down chains of command between management and labor. The larger a company is, the more complex the hierarchy is likely to be, with a CEO, CFO, board of directors, vice presidents and regional managers. All of these people need to know who they report to and who they manage. When these roles and channels of communication aren't clear, the result is inefficient operations and lost profits. Good leadership is responsive to the needs of employees but also unambiguous about its own role at the top.
The smooth functioning of a workplace is dependent on cooperation between coworkers. In order to cooperate well, coworkers need to be able to communicate effectively. In a cooperative team that is pursuing a particular project, tasks are delegated to different individuals to get everything done with maximum efficiency. Good communication prevents people from duplicating their efforts, and allows all of the different delegated tasks to be fitted together into a completed project. Good communication must also exist between the team as a whole and the rest of the company.
Experienced managers understand that their jobs are made easier when they have access to a constant stream of information from their employees. Managers who neglect feedback from workers are losing their best source of information about the health and functionality of their company. Both positive and negative feedback should be sought out from the people on the front lines of production to constantly improve efficiency and productivity. Soliciting feedback from workers also improves staff morale by showing that management takes their opinions seriously and wants to include them in the ongoing improvement of the organization.
Waste is the enemy of a profitable company. Waste exists not only in the material realm but in the realm of function and labor as well. Clear communication throughout an organization helps to efficiently organize labor and tasks to eliminate wasted effort and time. This improves the profitability of the company and the returns that can be enjoyed by everyone. Good communication also improves efficiency by providing a channel of information which lets everyone know about initiatives being undertaken by the company.
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