When individuals feel honored and respected, they are more likely to take pride in their work and be as productive as possible. Communication benefits leaders and their organizations by cutting costs. Miscommunication is at the root of interpersonal conflict, which can lead to absenteeism or a lack of productivity. Also, miscommunication can mean costly lawsuits or imbroglios with clients. Leaders often mediate problems within an organization and between the organization and third parties. Mediation depends on effective communication. When a team leader evaluates the actual time spent engaged in communication activities, he or she appreciates the need for effective communication. As Blalock (2006) notes, communication is "crucial" in the modern organization because as much as 80% of a manager's time may be spent in some form of verbal or written communication.

The global marketplace introduces complex issues that make communication skills absolutely essential for leaders to have. Gender, culture, and language add nuances to business practices, the workplace environment, and to interpersonal relations. Companies with offices in numerous countries will need to hire leaders with stellar communication skills to navigate through these tricky issues.

For example, leaders can benefit their organizations by learning about gender, culture, and language differences. Applying that knowledge to the workplace means that leaders may need to adopt a different style of dress or use a different method of greeting. Developing a repertoire of effective communications skills means solidifying relationships with coworkers in different countries. Adapting to different cultures is a sign of respect and can improve the reputation of an organization abroad. When doing business in a foreign market, leaders will need to learn about local laws, customs, and business practices too. The best communicators will be the most effective in brokering deals and avoiding misunderstandings.

Effective communication also helps leaders develop strong relationships with parties outside of the organization. Addressing stakeholders, the general public, clients, and suppliers requires effective communication skills. In the global marketplace such issues become even more dependent on communication because leaders must also learn about cross-cultural differences in business practices,...

Effective communication helps leaders avoid making costly legal errors and can boost an organization's market share in any region.
Conclusion

Communications skills have fast become one of the leading topics in business schools. Increased diversity in the marketplace makes communication even more important for leaders, because misunderstandings are difficult to avoid. Knowledge of foreign markets and public policy is not enough to ensure the success of a business. To stay competitive, businesses must hire leaders with solid communications skills or train leaders to develop them.

Within any organization, leaders need to communicate effectively with coworkers. Even in relatively flat organizational structures with few hierarchies, leaders need to ensure the free flow of ideas and information. All coworkers need to know the parameters of a project including deadlines, cost constraints, and legal issues. Coworkers need to be able to express their concerns and not feel silenced, and managers need to express their authority without isolating workers.

An organization benefits tremendously from listening to its members as well as to stakeholders outside the company. Effective communication therefore depends on developing a healthy relationship with the public and the media. An organization can become more profitable by investing in leaders with good communications skills. Leaders who communicate effectively maximize productivity by increasing workplace morale, and minimize costly conflict. Also, leaders who communicate effectively help the organization maintain its reputation among shareholders and consumers. Leaders who are willing to learn new languages and forms of non-verbal communication also become an asset to the multinational corporation.