In this process, the listener must understand the things told by the speaker and his intentions. In an organization, managers spent their maximum time in communicating with different employees in many forms like discussions, meetings, email, letters, reports etc. For efficient and effective work proper communication of the employees is required. The organizational network is an aspect of communication flow. Sometimes organizational communication becomes very fragmented and diverse. It can be divided into micro, macro, formal and informal levels. An organization has internal and external communication practice. The internal communication includes presentation, newsletter, meetings performance review etc. External communication of an organization includes media, public etc. For its fragment nature, it is experiencing dramatic changes than any other organizational theories and practices. Earlier in small organizations communication was very informal. But with the increase in organizational size, the process of formal communication was the main concerned of the managers. In the present world, the communication process in a firm became very varied and complex. It has become an important organizational function.Organizational communication becomes a smooth process when all the parts of the company communicate properly. It helps to improve the productivity and the workflow of a firm. Open and clear communication creates transparency in the organization. It establishes a feeling of trust among the employees. Improper communication can result in low job security and tensions.Strong communication with different levels of management can create a sense of value in the employees which make the work environment positive. Organizational communication has an important role in building the relationship between the employees and with all the levels of the company. Open communication helps the employees to express their views and ideas which results in forming innovative solutions.