ACCA Strategic Business Leader (SBL) Practice Exam

What does effective communication signify in an organization?

1. Limited interaction among employees.

2. Open channels that promote transparency and trust.

3. Strict hierarchies that limit information flow.

4. Confidentiality over collaboration.

The correct answer is: Open channels that promote transparency and trust.

Effective communication in an organization signifies open channels that promote transparency and trust. When communication is effective, it allows for the free exchange of information and ideas among employees at all levels. This openness fosters an environment where team members feel valued and empowered to share their thoughts, leading to enhanced collaboration and innovation. Trust is built when employees are kept informed and engaged, understanding the organization's objectives and how they contribute to them. The option that suggests limited interaction among employees contradicts the essence of effective communication, which thrives on interaction and the sharing of diverse perspectives. Similarly, strict hierarchies that limit information flow hinder effective communication by creating barriers that prevent important information from reaching those who need it. Lastly, prioritizing confidentiality over collaboration can stifle open dialogue and idea-sharing, which are critical components of effective communication. Overall, effective communication is characterized by openness, transparency, and trust, all of which are fundamental to a collaborative and productive organizational culture.