Effective leadership is where one efficiently relates to the people he/she is leading. Dealing with people calls for good communication skills. Relaying of information is therefore vital in ensuring sound management especially in a business setting.An organization can be more efficient depending on the systems it uses to inform its members of what is expected of them. Communication will assist reinforce cohesiveness and create a momentum towards business goal attainment.From the managerial perspective, communication is important because it’s a means by which managers in an organization collect and disseminates information. It is also a way of achieving co-ordination and co-operation.Relaying of information is the foundation of ensuring a successful business organization. It is vital for the working of an organization just as the way blood is in the human body. The success of any managerial function depends on effective modes of relaying or transmitting information. Communication aids in unifying and managing activities. This way behavior is modified, change is effected and goals are accomplished. Therefore, proper transmission of information, ideas and decisions is a basic necessity for management.It is advisable to have cost effectiveness when it comes to communication. Any management seeking to succeed should also have different approaches to relaying information. Installing of systems like the intranet will greatly assist in relaying information within an organization.In order for a manager to perform the functions of planning, organizing, staffing, directing and controlling, he will require perfect communication systems to be put in place. Even when it comes to handling suppliers and customers an excellent manager must find ways to guarantee effective communication.