Communication is generally one of the most important components of organizational performance and the most significant determinants of social relationship. It is very important to achieve successful and stimulating communication in order to have better relationships and to minimize conflicts. Recently, electronic communication has become more and more important, enabling quick and easy communication with different people from different places. The purpose of this work is to show the importance of communication and interpersonal relationships in an organization, to explain forms of communication, ways of communication, types of conflicts and how they are resolved. The paper also wants to clarify what stimulating communication is and how to achieve it. For the purpose of this paper a survey was conducted in order to find out how respondents communicate, how they resolve conflicts, and how often they use electronic communication while communicating. Communication is necessary and it is the most important element in a process of developing relationship but it is also a trigger for most conflicts. Every person and every organization should strive for effective and successful communication for better business performance and the development of better relationships.