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Synopsis Dale Carnegie was probably the first popular figure to link communication skills with managerial success. Few employees work according to their full ability. In fact, studies show that in some cases workers can perform at only 20 to 30 per cent of their ability without being fired and that average employees work at only two-thirds of their capacities. An attempt has been made to analyse as to what can managers of human resources do to overcome this waste and inefficiency? As motivational theory is so difficult to implement, more and more companies are realising that the link between motivation and performance improvement is communication. By effective communication, managers try to improve an employee’s sense of self worth by showing recognition, reinforcing of job well done and providing a general sense of support. Communication is the tool that is available to every manager. Not every manager can give an employee a raise or use promotion as an incentive, however, every manager can use effective motivational communication. In this publication it is analysed as to how communication is the central ingredient in the motivational process and presents techniques that every manager can use to improve performance at the workplace.