1. Acts as basis of coordination: It provides coordination among departments, activities and persons in the organisation.
2. Helps in smooth working of an enterprise: communication is basic to an organisation existence right from its birth through its continuing life.
3. Act as basis of decision making: Communication provides needed information for decision making.
4. Increases managerial efficiency: Communication is essential for quick and effective performance of managerial functions.
5. Promotes cooperation and Industrial Peace: The two-way communication promotes cooperation and mutual understanding between the management and workers and brings peace in the organisation.
6. Establishes effective leadership: Effective communication helps to influence subordinates. While influencing, a leader should possess good communication skills.
