The exchange of information or passing of information, ideas or thought from one person to the other or from one end to the other is communication. Communication is the basic element of human interactions that allows people to establish, maintain and improve contacts with others. It is the transmission and receiving information, feelings and or attitudes with the overall purpose of having understood producing a response. Seven major elements of communication process are sender, ideas, encoding, communication channel, receiver, decoding and feedback. This chapter covers the principles of communication and importance of communication. The communication is an important element of directing because communication act as basis of coordination and cooperation, act as basis for decision making, increase managerial efficiency, establish effective leadership, helps in process of motivation and morale development, and helps in smooth working of an enterprise.