The importance of communication in management can be judged from the following points: 

(i) Acts as basis of coordination: It provides coordination among departments, activities and persons in the organization. Such coordination is provided by explaining about organizational goals, the mode of their achievement and interrelationships between different individuals etc. 

(ii) Acts as basis of decision making: Communication provides needed information for decision making. In its absence, it may not be possible for the managers to take any meaningful decision. 

(iv) Increases managerial efficiency: Communication is essential for quick and effective performance of managerial functions. 

(v) Promotes cooperation and industrial peace: The two way communication promotes cooperation and mutual understanding between the management and workers. 

(vi) Establishes effective leadership: Communication is the basis of leadership. Effective communication helps to influence subordinates. 

(vii) Boosts morale and provides motivation: An efficient system of communication enables management to motivate, influence and satisfy the subordinates. Communication helps to boost morale of employees and managers.