1. Promotion of managerial efficiency. As management is a task of getting the week accomplished through efforts of other personnel, it is communication that can deep personnel working in accordance with desires of managers. Management members deal work personnel in giving orders and instructions, in allocating jobs and duties, in approving work and recognizing performance, in explaining objectives and policies, and in seeking their effective co-operation. In all positive it and negative actions, managers have to move with the help of communication in their dealing with human beings. Accordingly, the efficiency of a manager lies in his ability to communicate with other personnel.

2. Co-operation through understanding. Good communication induces human beings to put efforts in their work performance. The importance of the work is required to be mentally accepted before the doing of such work. That is, the will-to-do must precede the actual doing. To provide this will-to-do, communication creates understanding and acceptance on the part of employees. As there can be no faith in an activity without understanding it clearly, communication results in satisfactory performance through creating this faith. In short, effective communication increases understanding of employees, gains their willing acceptance and leads them to greater efforts

3. Basic for leadership action. Leadership action is impossible without communication between the leader and his followers. The leader can exert his influence only through conveying ideas, feelings, suggestions and decisions to his followers. The followers too can convey their responses, feelings, attitudes and problems to the leader through the medium of communication. The two-way personal communication is essential for maintaining man-to-man relationship in leadership Accordingly, effectiveness of leadership is greatly determined by the adequacy and clarity of communication.

4. Means of co-ordination. Communication helps in securing desired co-ordination of enterprise operations by communication network throughout the organization. As teamwork is essential for the accomplishment of jobs in many cases, co-ordination, appears to be of paramount importance. For the purpose of co-ordination, managers keep the group fully informed of all facts and situations relating to the work. Secrecy creates suspicion and separates people; common understanding of common problems units them for showing a better record of their performance.

5. Provision of job satisfaction. Mutual trust and confidence between management and operatives can be increased by the communication of what the manager wants and what the employees perform. A clear-cut understanding provides job satisfaction to employees, creates their confidence in the ability of managers and promotes their loyalty towards the enterprise. That is to say, effective communication satisfies personal and social needs of human beings and stimulates their job interest and enthusiasm.