Managers typically spend between 60 % and 80% of their time communicating. Inability to communicate effectively and efficiently can jeopardize the business interests. The present study investigated the effectiveness of downward communication as perceived by managers and how it impacted the effectiveness of organization which was evaluated on five parameters namely: planning, organizational structure, organizational culture, communication, and outcome. Results showed that there was a positive correlation between effectiveness of downward communication and the organizational effectiveness. The organizational culture or the leaders at various hierarchical levels who provided accurate, timely and clear information and correct feedback to the subordinates improved the performance in terms of planning, structure, and communication. Such firms enjoyed good reputation in the market and the morale of the employees has been high.