For an organization to withstand the competition has to be very alert and effective. A firm must make a potential business planning and should make sure that it is capable of conveying its strategies to its employees, shareholders and ultimately to the customers. It is here, where an effective communication system becomes the backbone of an organization. A proper communication system is of paramount importance for an organization as it manages the internal as well as the external management system of an organization. Communication is a process of transfer of information from a sender to a receiver through a proper channel. Written or oral use of words to communicate communication by means of elements and behaviours that are not coded into words like gestures, symbols etc.

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Managerial communications involves gathering important information from both inside and out side of the organization and distributing appropriate information to others who need it. In the present business world, it is evident that managerial communication is essential for every management function known to business.for instance, while planning managers gather information on the projects and write letters, memos, reports and then meet with other officials executives to discuss the projects. Thus, managerial communication is a fundamental part of every managerial activity.

Sender: initiator of the message encoding: process of translating an intended message into words and gestures message: encoding process outcome medium: method used to convey the message to the intended receiver receiver: person with whom the message is exchanged decoding: process of translating symbols into the interpreted message noise: factors in the process interfering with message exchange and achieving common meaning. Feedback: receiver's response to the message interpreted managerial communication has three key areas:

organizational communication: organizational communication means communication within an organization or the influence of organizational structures in communicating. It is the transfer of information via channels such as: memos, intranet, publication or broadcasts, electronic sources and so on within the organization internally. External communication deals with the communication of information from an organization to the external environment like transferring the product information the customers through tv,s, newspapers, magazines, and so on. In the contemporary corporate world, different levels of management has different levels of communication to communicate its strategies, plans, changes to its employees and the market. Following are the fundamental levels of communication in an organization:

organization wide communication involves all employees. these different levels of communication require effective internal communication techniques to deal the management at each level.

The organization to fight the corporate competition changes its plans and strategies every now and then and to cope up with these changes a firm must have an effective communication system. The most effective way of conveying some important information within an organization is termed as effective internal communication. As it determines that how the employees are going to work in respect of the information conveyed to them.

Internal communication strategy should work in a balanced co ordination with the external communications to convey the appropriate message to both the internal as well as external audiences. David verbaska, corporate communication general manager at pfizer explains: employees play many roles they are stockholders, recruiters, customers and members of the community. Management must understand that the internal audiences could be more important to a company than external for all the right business reasons. So an organization must take a special care of the internal communication system. An organization in order to establish a strong and effective internal communication must follow the following keys of communication:

open and honest exchange of information clear, easy to understand materials. Effective internal communication, lyn smith, 2008 company newsletter is an appropriate means of transferring information to employees on a systematic basis.

intranet enables an organization to create its intranet sites where it can put its valueable information and can update it time to time. Smaller groups help to create closer bonds and put employees at ease to speak their minds. It enables employees to share their views to the top level, middle level and the lower level directly that too in a confidential manner. The new company employees must be provided with proper orientation material so that a new employee can understand the company beforehand. W.bdc.com in the present scenario, the organization relies mostly on the electronic communication.

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Change is an alteration of an organization's environment, structure, technology, or people. Fundamentals of management, stephen.p.robbins,2008 today's managers face a strong challenge in coping up with the changing business management system. Every now and then the business norms changes, the business needs varies and the customers are attracted to innovations. And, therefore, managers have to come up with effective strategies to promote their firms. But the incorporation of change needs a proper understanding between managers and employees. It is very important to understand that what changes are going to take place, what is going to change and in what respect.

It is again important to understand that how the change is going to be implemented. Managing change refers tothe making of changes in a planned and managed or systematic fashion. Managing change in an organization is one of the most important tasks to be dealt by the managers. Robbins,2008 the another reason for the resistance to change is fear of losing what one already possesses. Change management is of vital importance to take advantage of the organizational change. Internal communication, thus, becomes important to convey the change to the employees. Importance of internal communication at each level of change:

Communication helps in transferring the employees the information about the process of change through meetings, newsletters and so on. Communication can inform the employees the reason of change by the use of communication tools. Through the electronic communication or paper communication, employees can be informed about the time and duration of change. The communication techniques are also very useful in conveying the importance of change.

it is clearly understood that internal communication is paramount in today's business world.

Whenever there comes in change in any organization, it is likely to impact many systems. One of the important areas which is affected by the change is communication system. It is important for the organization to adapt its communication system to the changing conditions. Change challenges the internal communication system to manage the functioning of an organization.