Communication is the number one tool in organizations. It is the most powerful tool and significant characteristic of man-kind. Nothing will happen without communication. Success of any management depends more on their ability to communicate with labour. Communication is the process of expressing the ideas and points between persons placed in different positions. Effective communication only will lead the team work satisfactorily in the organization. For ensuring good coordination, communication is must. Most of the problems for human occur due to lack of communication. Communication is the process of initiating, transmitting and receiving information. Among these three stages, if any one lacks, definitely it will lead misunderstanding of concept. Psychologists and sociologists have concentrated on the study of communication network in solving problems. Communication is necessary to integrate the managerial functions internally. For effective communication, the information should be clear and it could be understand by the receiver. Effective communication causes concrete result to the management.