Communication explains organisational goals, the mode of their achievement and the inter-relationships between different individuals. Which importance of communication does this describe?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Acts as basis of coordination
Option (1) Acts as basis of decision making — Incorrect. As a basis of decision making, communication supplies the information that managers need before they can take a decision. The question is about explaining goals and how people’s work is linked.
Option (2) Acts as basis of coordination — Correct. Communication acts as the basis of coordination. It links departments, activities and persons by explaining the organisation’s goals, how they will be achieved and how individuals relate to each other.
Option (3) Helps in smooth working of an enterprise — Incorrect. Smooth working means that all organisational interactions depend on communication. When communication stops, organised activity ceases. That is about the whole enterprise running without a stop.
Option (4) Establishes effective leadership — Incorrect. Communication is the basis of leadership. Effective communication helps a leader influence subordinates, so a leader needs good communication skills. The question describes no leader influencing anyone.
NCERT (2026-27 Edition): “(i) Acts as basis of coordination: Communication acts as basis of coordination. It provides coordination among departments, activities and persons in the organisation. Such coordination is provided by explaining about organisational goals, the mode of their achievement and inter relationships between different individuals, etc. |