Communication is the process of transmitting information from one person to another. Effective communication is the process of sending a message in such a way that the message received is as close in meaning as possible to the message intended.

Communication is a pervasive and important part of the manager's world. The communication process consists of a sender encoding meaning and transmitting it to one or more receivers, who receive the message and decode it into meaning. In two-way communication the process continues with the roles reversed. Noise can disrupt any part of the overall process.

Several forms of organizational communication exist. Interpersonal communication focuses on communication among a small number of people. Two important forms of interpersonal communication, oral and written, both offer unique advantages and disadvantages. Thus, the manager should weigh the pros and cons of each when choosing a medium for communication. Communication networks are recurring patterns of communication among members of a group or work team. Vertical communication between superiors and subordinates may flow upward or downward. Horizontal communication involves peers and colleagues at the same level in the organization.

Electronic communications is having a profound effect on managerial and organizational communication. The kinds of information systems are transaction-processing systems, basic management information systems, decision support systems, executive information systems, intranets, and expert systems. Each provides certain types of information and is most valuable for specific types of managers.

There is also a great deal of informal communication in organizations. The grapevine is the informal communication network among people in an organization. Management by wandering around is also a popular informal method of communication. Nonverbal communication includes facial expressions, body movement, physical contact, gestures, and inflection and tone.

Managing the communication process necessitates recognizing the barriers to effective communication and understanding how to overcome them. Barriers can be identified at both the individual and organizational level. Likewise, both individual and organizational skills can be used to overcome these barriers.