The term of management and its basic functions are defined in this thesis named, ''The Communication in Firms''. Management is used in every type of organization as a vital factor for achieving the firm's mission. The success of management entirely depends upon manager's skills and knowledge. The ability to communicate is one of the most important managerial skills. In order to have efficient and high-quality communication, it is needed to pay attention to types and means of communication. It is significant to meticulously choose the communication channel in order to obtain accurate message on behalf of the recipient. Different authors define types and means of communication differently. The thesis deals with classification of communication in firms, considering the channel, the direction, the register and the structure. The means of communication are: spoken, written, verbal and non- verbal. Considering the direction of communication, communication can be vertical, horizontal, diagonal and the blend of aforementioned. When talking about the register, there are formal and informal communication. When the structure of communication is taken into account, there are five basic communication nets. The nets described in the thesis are the wheel, the Y, the chain, the circle, the star. There are certain problems that can interfere with communication; they can occur on an individual or organizational level. Those problems can be solved by a couple of activities, e.g. by active listening on an individual level or by stimulating two-way communication on an organizational level. The thesis has taken a practical example from the ''Healthcare Institution and Rehabilitation House Borka Treščec'' („Ustanova za zdravstvenu njegu i rehabilitaciju u kući - Borka Treščec“).