Communication is one of the most important tool in the process of management. It influences every function of management. Managers at various levels use the communication system to plan, organize, direct and control activities and efforts of people. Every organization should build an effective system of communication for facilitating job performance and promoting satisfaction among people. Communication ensures the smooth working of the enterprise. It plays an important role in all types of organizations. It solves a lot of problems in the case of complex organization. The successful completion of tasks on the part of the superiors depends upon the nature and flow of communication they receive from the subordinates. Similarly, the work of the subordinates also to a large extent depends upon the communication they receive from the superiors. The effective implementation of plans and decisions depends upon the nature of communication. It is said that communication acts as a driving force which keeps all the individuals working as per the expectations of the top management. The communication system plays a vital role in coordination of efforts and activities within single work units are between the various subsystems of the organization. Only through communication, coordination between various individuals and activities can be brought out. Each organization consists of several components that are broad and complex. Therefore, the necessary activity is precisely the coordination that will enable the performance of all operations that are necessary in order to achieve a balanced organizational performance. Coordination of activities is crucial for the very existence of the organization and plays a fundamental role in the operational activities of the organization.