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Communication is the essence of management. The basic functions of management cannot be performed without effective communication. Organizations these days are very large. There are various levels of hierarchy in an organization. Greater the number of levels, the more difficult is the job of managing the organization. The rules, regulations and policies of a company have to be communicated to people within and outside the organization. Now with the advent of technology, we have cell phones, video conferencing, emails, and satellite communication to support business communication. Effective business communication helps in building goodwill of an organization.