Effective Communication is significant for directors in the organizations so as to perform the basic functions of management, i.e ., Planning, Organizing, Leading and Controlling. 

Communication helps managers to perform their jobs and responsibilities. Communication serves as a foundation for planning. All the essential datum must be communicated to the managers who in-turn must communicate the plans so as to implement them. Organizing also requires effective communication with others about their chore task. Similarly leaders as directors must communicate effectively with their subordinates so as to achieve the team goals. Controlling is not possible without written and oral communication.

Managers devote a great part of their time in communication. They generally dedicate approximately 6 hours per day in communicating. They spend great time on face to face or telephonic communication with their superiors, subordinates, colleagues, clients or suppliers. Managers also use Written Communication in sort of letters, reports or memorandas wherever oral communication is not feasible.

Thus, we can say that “effective communication is a building block of successful organizations”. In other words, communication acts as organizational blood.

The importance of communication in an organization can be summarized as follows:

1. Communication promotes motivation by informing and clarifying the employees about the task to be done, the manner they are performing the task, and how to improve their performance if it is not up to the mark.
2. Communication is a source of information to the organizational members for decision-making process as it helps identifying and assessingalternative course of actions.
3. Communication also plays a crucial role in altering individual’s attitudes, i.e., a well informed individual will have better attitude than a less-informed individual. Organizational magazines, journals, meetings and various other forms of oral and written communication help in moulding employee’s attitudes.
4. Communication also helps in socializing. In todays life the only presence of another individual fosters communication. It is also said that one cannot survive without communication.
5. As discussed earlier, communication also assists in controlling process. It helps controlling organizational member’s behaviour in various ways. There are various levels of hierarchy and certain principles and guidelines that employees must follow in an organization. They must comply with organizational policies, perform their job role efficiently and communicate any work problem and grievance to their superiors. Thus, communication helps in controlling function of management.

An effective and efficient communication system requires managerial proficiency in delivering and receiving messages. A manager must discover various barriers to communication, analyze the reasons for their occurrence and take preventive steps to avoid those barriers. Thus, the primary responsibility of a manager is to develop and maintain an effective communication system in the organization.