Children need to be shown how to do things, so if you want your child to understand what behavior you expect from him, start practicing it with him. First, ask him to tell you something he did that day. Listen to him carefully, keep eye contact and allow him to go on at his own pace. When he pauses, repeat the essential points in his story yourself and wait for him to confirm and continue with details. Tell him that this is the way people listen to each other and ask him to do the same thing for you.
Bed-time stories are great opportunities to spend time with your child, but also to improve his listening skills. Read a story to your child, then the next day, before starting reading again, ask him to retell what happened in the story. This can show he actually listened and understood the important points of the story. When reading a story that he already heard many times, make small changes in the events of the story. If he corrects you, you can be sure that he was really listening.
Teach your child to ask questions. Children are curious by nature, so they need to learn when to ask a question without interrupting and what kind of questions to ask. Make pauses to him to give him the opportunity to ask you to continue or to clarify something for him. Ask him to tell you something about himself, and when he pauses, ask him a question. Thus, he will have the certainty that you really listened and he will learn to do the same in return.
Talking builds your child's listening skills. Talk to him about different topics (of interest to him, if possible). During the conversation, he may ask unrelated questions or try to change the subject. At this point, ask him to tell you about something and listen to him patiently. When he's finished, explain to him that it is important to listen to what a person has to say, as you did, and make him realize that communication involves two people who have the patience to listen to each other.