Downward communication is very important for any organization because it is at the top of the organization that all the strategic decisions take place. It is imperative that this information is disseminated at all levels and downward communication is the way to do it. In case the organization operates by strict rules and regulations like that in the banking sector then downward communication clearly tells the employees how to work and informs them about the dos and don’ts of the business which results in less confusion. Then, the role of top management is very important in motivating employees so that they perform well and for that the downward channel of communication is used to constantly talk to the employees. Downward communication may not be very effective when there are various levels before the information reaches the final receiver and may get distorted, other people may not want the information to reach lower levels. Then downward communication will be more effective if there is upward communication as well because if its just downwards then people might think that their views are not valued.