BUSINESS

COMMUNICATION
Forms of
Organizational
Communication

Organizational
Communication

Organizational communication provides the

basis for understanding virtually every
human
process
that
occurs
in
organizations.

There are TWO types of communication in

organizations- Internal & External
There are two basic forms of internal
communication
in
every
organization,
namely, formal and informal.

Formal Communication
Formal communication is defined as
communication through officially designated
channels
of
message
flow
between
organization positions.

In other words, formal communication is

directed to someone of authority or from
someone with authority about a work-related
topic.

Formal Communication
Such a communication is that, which is
associated with the formal organization
structure and the official status or the
position of the communicator and the
receiver.
It travels through the formal channels,
officially recognized positions in the
organization chart.
Formal communication is mostly in black
and white.

FORMAL COMMUNICATION
Formal communication is a deliberate attempt
to regulate the flow of communication so as to
ensure that information flows smoothly,
accurately and timely.
We frequently come across the phrase
through proper channel. It emphasizes the
essence of formal channel of communication.
For example, when the General Manager
issues instructions (because of his senior
position in the organization), it is formal
communication.

Flow Chart of Formal

Communication

Forms of Formal
Communication
The forms of formal
communication are as under:
Departmental meetings
Conference
Telephone calls
Company news bulletins
Special interviews and special
purpose publications and messages.
And the like.

FORMAL COMMUNICATION
The main advantage of the formal communication is
that the official channels enable the routine and
standardized information to pass without claiming
much of managerial attention.
Essentially, executives and managers may devote
most of their precious time on matters of utmost
significance.
But at the same time, the weakness of formal
communication
should
not
go
unaccounted.
Communication through channel of command greatly
obstructs free and uninterrupted flow of information.

Communication according to Direction

Downward communication

Communication which flows from the superiors to

subordinates
is
referred
to
as
downward
communication. In an organizational structure, the
executives must exercise their powers to achieve the
desired objectives which imply that they may be
engaged in issuing orders, instructions and policy
directives to the persons at the lower levels. This may
be
called
downward
communication.
Under
downward communication, immediate performance
of a job is expected.
It flows from the managerial and executive levels to
the staff through formal channels such as policy
manuals, rules and regulations and organizational
charts.

Live Elements of Downward Communication

Specific task directives; Job instructions.

Information designed to produce understanding of
the task and its relation to other organizational tasks;
job rationale.
Information about organizational procedures and
practices.
Feedback to the subordinate about his performance.
Information of an ideological character to inculcate a
sense of mission, indoctrination of goals.
Communication from superior to subordinate can be
face to face as well as through written memos,
orders, job descriptions etc.

Communication according to Direction

Upward communication
It is initiated by staff and directed at executives.

This sort of communication includes reactions and

suggestions from workers, their grievances etc.
Contents of upward communication are reports,
reaction, suggestion statements and proposals
prepared for the submission to the boss.
It frequently takes the form of a complaint, a
request, suggestions, opinion surveys. This creates
a sense of participation in the employees.

Four Categories of Upward Communication

Upward Communication can be

divided into four categories on
the basis of what employee says:
(i) about himself, his performance and
problems,
(ii) about others and their problems,
(iii) about organizational policies and
practices, and
(iv) about what needs to be done and
how it can be done.

Features of Upward
Communication

The main features of Upward

Communication are:
(1) It is condensed and summarised as it passes
through various levels in the hierarchy. It gives
feedback on the extent of effectiveness of
downward communication. This feedback is used
for improving communication effectiveness.
(2) It provides the management about the
viewpoints, reactions, attitudes, feelings and
morale of employees.
(3) It provides means of control.
(4) Finally, it gives information and date for
decision making.

 Upward communication may get distorted

owing to the nature of superior- subordinate
relationships.
An employee is not likely to give any
information which may affect him adversely.
Moreover, he may transmit wrong information
to impress his superiors.
It flows through many media e.g. chain of
command, suggestion boxes, personal contacts,
attitude and morale surveys, grievance
procedure, private lines, labour unions etc.

Communication according to
Direction
Horizontal communication
This is also known as lateral
communication. It occurs when
colleagues ( between equals at any
level) in an organization meet to
discuss issues of common interest,
resolve problems & conflicts, share
information and develops team spirit.

 The communication between functional

managers or among subordinates working
under one boss, the communication
between managers of various factories is
the examples of such communication.
Horizontal communication may be oral as
well as written.
Horizontal
Communication
satisfies
peoples needs to know from their own
peers without taking into account other
levels in the organization.
It is really difficult for an organization to

 Although the formal organization design

does not provide for such communication
flows, it is needed for the coordination and
integration of diverse organizational
functions.
Since
organizational
horizontal
communication ordinarily do not exist, its
facilitation is left to individual managers.
Peer to peer communication necessary for
co-ordination and can also provide social
need satisfaction.

Communication according to Direction

Vertical Communication
This combines both downward and upward
communications. The top management sends
information to the employees and also devises
ways of eliciting information from their
employees. There is a free flow of
information.
Thus, the lines of communication are kept open.
This keep the organization in a healthy state.
Enlightened management have realized that
communication is essentially interactive in
nature, demanding the interchange of roles of
the sender & the receiver.

CONSENSUS
This is a method of coming to a
decision or to a solution of a
problem after a free and frank
discussion between members of an
organization.
This
gives
the
employees a sense of participation
& involvement in the affairs of the
organization.
They
commit
themselves to the policy arrived at
by consensus and work with

INFORMAL
COMMUNICATION

Informal communication, on the other hand,

is defined as episodes of interaction that don't
reflect officially designated channels of
communication, which includes talking to a
friend at work.
Informal Communication is popularly termed
as Grapevine communication.
It is free from all sorts of formalities because it
is used on informal relationships between the
parties, such as friendship, membership in the
same club or association.

 It is called Grapevine
because it stretches
throughout the organization in all directions
irrespective of the authority levels.

It is free from all sorts of formalities because it is

used on informal relationships between the
parties, such as friendship, membership in the
same club or association.
Man as we know is a social animal.
Despite existence of formal channels in an
organization, the informal channels tend to develop
when he interacts with other people in
organization. It exists more at lower levels of
organization.

 Internal business communications

play a vital role in the functioning of
a workplace.
Grapevine
communication,
or
informal
organizational
communication, helps to support
formal
methods
of
business
communication.
Examples
of
grapevine
communication include lunch break
conversations between co-workers

 The 'grapevine' is the informal

communication network found in
every organization.
The term can be traced back to the
United States Civil War in the 1860s.
Since battlefronts moved frequently,
army telegraph wires were strung
loosely from tree to tree across
battlefields, somewhat like wires
used to support grapevines

 The wires were used to carry telegraph

messages created in Morse code (the
electronic alphabet, invented in 1844)
because the telephone wasnt invented
until 1876.
Since the lines often were strung hastily
during battle, and messages were
composed in a hurry, the resulting
communication tended to be garbled
and confusing. Soon, any rumor was
said to have been heard 'on the
grapevine'.

 Grapevine generally develops due to

various reasons. One of them is that
when
an
organization
is
facing
recession,
the
employees
sense
uncertainty.
Also, at times employees do not have
self-confidence due to which they form
unions. Sometimes the managers show
preferential treatment and favor some
employees giving a segregated feeling
to other employees.

 Thus, when employees sense a need to

exchange their views, they go for grapevine
network as they cannot use the formal
channel of communication in that case.

Generally during breaks in cafeteria, the

subordinates talk about their superiors
attitude and behavior and exchange views
with their peers.

They discuss rumors about promotion and

transfer of other employees. Grapevine
spreads like fire and it is not easy to trace
the cause of such communication.

HOW TO DEAL WITH

GRAPEVINE

If managers and supervisors

dont
attend
to
the
communication needs of their
staff, there is no vacuum of
information.
Instead, the informal avenue of
rumors grows, frequently putting
a
destructive
slant
on
organizational happenings when
employees are uncertain.

 Information via the grapevine

invariably moves much faster than
through formal communication
channels. This is its greatest
attribute. Emails have now joined the
grapevine communication channels,
making it even faster.

Four Types of Grapevine

Rumors

Wish fulfillment- identifying the

wishes and hopes of employees.
'Bogey rumors'- exaggerating
employees' fears and concerns.
'Wedge-drivers'- aggressive,
unfriendly and damaging. They split
groups and dissolve allegiances.
'Home-stretchers'- anticipating
final decisions or announcements.
They tend to fill the gap during times
of ambiguity

 Research shows that grapevine information

tends to be about 80% accurate.
Since many rumors start from someone's
account of an actual event, there are
strong elements of truth in many rumors.
However, grapevine information often
contains big errors as people put their own
interpretation onto an event or information
they have seen, and then pass it on in a
process of partial or selective recall.

Why do People spread

Rumors?
Humans are social animals we need
to talk to others. Chat about others
helps
to
strengthen
existing
relationships.
Besides entertainment value, gossiping
can raise people's self esteem we feel
more important by getting information
first, and by the interest it creates.

 It is rare to find people at different

levels discussing rumors or gossiping
with each other.
When two people share a rumor or
gossip it has the effect of putting
them on a relatively equal footing.
The grapevine can play an important
part in the management by walking
around approach.

Management by Walking
Around Approach
Persons at the executive levels also
use informal communication when
they find it difficult to collect
information from the workers.
Such
communication
includes
comments, suggestions etc. It may
be conveyed by a simple glance,
gesture, smile or mere silence.

 Managers and executives also favour the

growth and development of informal
network of communication off and on.
This process, in fact, serves a very useful
purpose
in
disseminating
certain
information which, in the general interest
of
the
organization,
cannot
be
transmitted through the official channels.
Apart from that, it also offers the high
and higher ups a clearer insight into what
the subordinates think and feel.

 When managers move around the office

without a particular objective, they can pick
up relevant rumors. This information would
not have become available if the manager
had stayed in their office all day.
Managers can sometimes purposely send
messages through the grapevine to test the
likely reaction to a possible management
decision.
This can allow feedback to take place and
adjustments made before final decisions are
made.

 Thus the grapevine can contribute to

a more inclusive workplace.
The appropriate manager should
confirm true rumors or true parts of
rumors to staff as soon as possible.
Management should avoid playing
word games with the truth or parts of
the truth in order to minimize bad
news. Their credibility will suffer
massively if they try this.

 But at the same time, the weaknesses of

the informal communication are also
worth noting.
It may be mentioned that this process
very often tends to pass distorted,
misinterpreted, and inaccurate and halftruth information and facts, depending on
the circumstances and the message.
But still, executives and managers cannot
do away with informal communication.

Advantages of Grapevine Communication

Grapevine channels carry information

rapidly. As soon as an employee gets to
know some confidential information, he
becomes inquisitive and passes the details
then to his closest friend who in turn
passes it to other. Thus, it spreads hastily.
The managers get to know the reactions of
their subordinates on their policies. Thus,
the feedback obtained is quick compared
to formal channel of communication.

The grapevine creates a sense of

unity among the employees who
share and discuss their views with
each other. Thus, grapevine helps in
developing group cohesiveness.
The grapevine serves
emotional supportive value.

as

an

The grapevine is a supplement in

those
cases
where
formal
communication does not work.

Disadvantages of Grapevine
Communication

The grapevine carries partial

information at times as it is more
based on rumours. Thus, it does not
clearly depicts the complete state of
affairs.
The grapevine is not trustworthy
always as it does not follows official
path of communication and is spread
more by gossips and unconfirmed

 The productivity of employees may

be hampered as they spend more
time talking rather than working.
The grapevine leads to making
hostility against the executives.
The grapevine may hamper the
goodwill of the organization as it may
carry false negative information
about the high level people of the
organization.