In people's everyday life and in organizational business many things depend on effective communication. Communication is a process of exchanging thoughts, feelings and information where the shape of messages affects interpersonal relationships and achievement of business objectives. Managers in an organization with core management functions such as planning, organizing, staffing, leading and controlling have the responsibility to manage human resources, which is key to organizational success. An employee's perception of a manager's efficiency is created through the effectiveness of his competencies but mostly by the impression that he or she gets from their interpersonal communication and the manager's communication skills. This work has researched the perception of employees regarding the effectiveness of managerial communication, but also it has provided results regarding employees' opinions and perception concerning the manager's leadership style and competencies. The research was conducted from January 2nd till January 15th 2018 on the sample of 101 examinees with an online questionnaire consisting of 20 questions. The work has proved that communication is a key factor to employees' decision to leave or stay in the organization and their overall satisfaction with their job and leadership. It can be concluded that the best organizational recommendation is to invest in the improvement of managerial communication skills because with the help of those skills managers can share and transfer organizational plans, objectives, strategies to their employees and also create solid interpersonal relationships and an effective working environment. This decreases dissatisfaction and information overload and increases the strength of management focus on organizational priorities: people and achievement of business objectives.