Communication is the process of sharing information essential to the modern managment. It is a vital part of all management functions – planning, organizing, human resources, leading and controlling. Lack of communication, excessivenet working, globalization, the development of highly sophisticated technology, Internet and turbulent economical enviroment are factors that decide the quality of management. Communication reflects the quantity and quality of the entire business process. Modern manager uses communication as his most important activity. He directs, coordinates, develops cooperation, teamwork and partnership with employees to achieve the objectives of a particular task. The achievements and theresults show the effectiveness and completeness of management. Every organization has an organizational pyramid consisting of three dominant levels: low level supervisors, middle level management and top level management. Communication, as a flow of information, plays a vital role in the integration of that pyramid internal structure and control functions. Communication relays perceptions, expectations and goal requirements. Communication skills are one of basic skills of manager. Managerial communication can be divided into two aspects: external and internal. External managerial communication are the contacts manager has with employers, busines spartners, customers, suppliers and wider social community. Internal managerial communication is a collection of various communication processes between managers. Successful performance of management functions is the result of successful communication.