Communication between employees and management is important because it can allow the company to run more effectively.
Managers need to communicate well with their employees. They need to tell the employees what needs doing in a very clear way so no mistakes are made. At the same time, they have to manage the tone of their communications so that the employees understand the importance of the message but are not put off by a bossy or arrogant tone.
Employees need to communicate with management. They need to let management know what is going well and what is not. They need to make management aware of potential problems that might harm the firm's ability to function properly.
Communication between management and employees (both upward and downward) is important so that the company can perform as well as possible.