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Communication is as vital to the efficient functioning of an organisation as the circulation of blood in the human body. With communication management is impossible. The effectiveness of a manager depends largely upon his ability to understand his subordinates and to make himself understood by them. Communication is the link that unites superior and subordinates and brings about mutual understanding among them.

In recent years, the importance of communication in industry has increased on account of the following factors :

1. Large size of organization : Modern organization are large in size and employ a large number of people to realize their objectives. When the number of persons working together is large, cooperation and coordination between them become more difficult.
A formal and effective communication system is required to ensure mutual co-operation and co-ordination.

2. Technological advancement : Rapid changes in technology is a distinctive feature of modern industry. A large enterprise has to adopt latest technology to survive and grow. New technology is generally resisted by the workers.
A sound system of persuasive and educative communication is required to overcome the resistance to change. With the help of communication, management can remove the misgivings and rumours prevailing among the workers in relation to technological changes.

3. Growth of trade union movement: In almost all the industries, workers have organized themselves into powerful trade unions. In order to ensure industrial peace, management must maintain cordial relations with the trade union leaders.
A two-way communication between management and unions is very helpful in developing mutual understanding and cooperation between the two.

4. Emphasis on human relations : Employer-employees relationship is no longer considered as master-servant relationship. Workers are treated as partners in industry rather than a commodity. Management must understand the needs, aspirations, feelings and value system of employees in order to manage them effectively. Two way communication is a very effective means of understanding and managing human behaviour.

5. Public relations : A modern business enterprise is conscious of its responsibilities to the society. It seeks to create and maintain a favourable image of itself among the various social groups. It can do so by keeping the different segments of society informed about its social obligations.

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 (V.lmp.)