Communication means exchange of information and ideas. It acts as the nervous system of any business organization, which means transmitting data from one organisation to another, one person to another or a combination of both. It is a two-way process. It doesnt mean sending message to receiver but it is also important to get feedback, so that the sender may assure that the message has been successfully transmitted.

Sender Message Receiver.

This model shows how communication process works. There are different types or ways of communication: formal, informal, internal, external, verbal, written, diagonal, vertical, visual, non-verbal, upward and downward.

In small business, there is less number of employees working in it, which makes possible for the employer to talk directly with them and this type of communication is known as informal communication. When the message is transmitted via official channels, this type of communication is known as formal communication. The different ways through which internal communication becomes possible are statements, newssheets; fax machines, mails, telephone, memorandum, computers etc. Verbal communication means talking directly with each other. It includes face-to-face communication, telephone etc. Non-verbal communication means when we use different signs or body language to express our views. When message is in written form, it is known as written communication for e.g. letters, e-mail etc.

There is need of communication at each and every place whether it is office, home, school, college and any other. The various communication systems, which makes communication possible include: people-to-people communication, people-to-machines communication, machine-to-people communication and machine-to-machine communication.

Communication plays a key role in all types of managerial functions. If there is proper flow of communication, the employer is able to coordinate and control the activities of its employees. Communication helps individuals to know that what is expected of them.

There are certain barriers to communication, which creates problem in proper understanding of message. Some of the barriers include inappropriate selection of words or language, misunderstanding of body language, noise pollution, recipient distortion, perceptual biasness, cultural differences etc.