Formal and Informal Communication

Communication channel

In an organization, information flows forward, backwards and sideways. This information flow is referred to as communication. Communication channels refer to the way this information flows within the organization and with other organizations. In this web known as communication, a manager becomes a link. Decisions and directions flow upwards or downwards or sideways depending on the position of the manager in the communication web. For example, reports from lower level manager will flow upwards. A good manager has to inspire, steer and organize his employees efficiently, and for all this, the tools in his possession are spoken and written words. For the flow of information and for a manager to handle his employees, it is important for an effectual communication channel to be in place.

The Working of a Communication Channel

Through a modem of communication be it face to face conversations or an inter-department memo, information is transmitted from a manager to a subordinate or vice versa. An important element of the communication process is the feedback mechanism between the management and employees. In this mechanism, employees inform managers that they have understood the task at hand while managers provide employees with comments and directions on employee's work.

Importance of a Communication Channel

A breakdown in the communication channel leads to an inefficient flow in information. Employees are unaware of what the company expects of them. They are uninformed of what is going on in the company. This will cause them to become suspicious of motives and any changes in the company. Also without effective communication, employees become department minded rather than company minded, and this affects their decision making and productivity in the workplace. Eventually, this harms the overall organizational objectives as well. Hence in order for an organization to be run effectively, a good manager should be able to communicate to his/her employees what is expected of them, make sure they are fully aware of company policies and any upcoming changes. Therefore, an effective communication channel should be implemented by managers to optimize worker productivity to ensure the smooth running of the organization.

Types of Communication Channels

The number of communication channels available to a manager has increased over the last 20 odd years. Video conferencing, mobile technology, electronic bulletin boards and fax machines are some of the new possibilities. As organizations grow in size, managers cannot rely on face to face communication alone to get their message across. A challenge the managers face today is to determine what type of communication channel should they opt for in order to carryout effective communication. In order to make a manager's task easier, the types of communication channels are grouped into three main groups: formal, informal and unofficial.

Formal Communication Channels

1. A formal communication channel transmits information such as the goals, policies, and procedures of an organization. Messages in this type of communication channel follow a chain of command. This means information flows from a manager to his subordinates and they in turn pass on the information to the next level of staff.

2. An example of a formal communication channel is a company's newsletter which gives employees as well as the clients a clear idea of a company's goals and vision. It also includes the transfer of information with regard to memoranda, reports, directions, and scheduled meetings in the chain of command.

3. A business plan, customer satisfaction survey, annual reports, employer's manual, review meetings are all formal communication channels.

Features:1. Uses official channel.2. Mainly used for vertical communication3. Used for task related communication4. Major media for routine communication 5. It may be oral or written.

Advantages of formal business communication are as follows :

Transmission of official messages:Formal communication facilitates the smooth transmission of official messages.

Documentary evidence:It has documentary evidence which can be used as future references.

Enhance coordination: For the achievement of the goal of an organization there must be coordination among different departments and employees. Formal communication enhances the coordination by using the official channels.

Reliable:As it has documentary evidence it is more reliable than other form of communication.

Discipline:As information is transmitted by following organization hierarchy, discipline is strictly maintained.

Accuracy:As discipline is maintained, accuracy of information can be insured. Chance of mistakes can be minimized.

Efficiency:Through formal communication coordination among different division of an organization increases. As a result organizational efficiency also enhanced.

Clarity:Clarity of the message is another considerable advantage of formal communication. As formal channel is used chance of ambiguity decreases.

Disadvantages of formal business communication are as follows:

Lack of flexibility:As strict formalities or chain of command is maintained, it is not flexible.

Time consuming:As information flows through the chain it takes long time to convey information from upper level to lower level.

Not suitable for motivation:Formal communication is not suitable for the motivation of employees.

Creates misunderstanding:In the way of communication messages can be distorted. Thus chance of distortion increases in formal communication.

Creates mental distance:In case of formal communication lower level employees cannot exchange their views freely with the executives by breaking the chain of command. As a result sometimes it creates mental distance.

Costly:More time and more formality increases the overall cost of the communication.

Artificiality:Due to strict formalities and lack of flexibility artificiality developed among the employees of the organization.

Lack of creativity:Another drawback of formal communication is lack of creativity observed among the employees. Lower level employees become more interested to comply with the instructions of the authority. Creative thinking not encouraged.

Flow of communication

Vertical communication

The official communication that takes place between superiors and subordinates are known as vertical communication. This is the most common form of communication of an organization. It can be downward or upward.

Vertical communication can be depicted by the following diagram:

Advantages of vertical communication:Discipline:In vertical communication official channels are used thus strict discipline can be maintained.

Record:As it follows the formal media it has documentary evidence which can be used in future.

Provide direction:Instructions or directions for proper implementation of official functions can be transmitted through vertical communication.

Feedback:Both downward and upward communications are allowed in vertical communication which ensures proper feedback.

Recognition:

Vertical communication is one of the recognized media of internal communication.

Co-ordination:Both wary communications under vertical system ensures coordination among the employees. Dependable:Information transmitted through vertical communication are authentic and dependable.

Disadvantages of vertical communication:Time consuming:As it follows the official channels it is a time consuming process.

Lack of flexibility:Vertical communication is not flexible, thus failed to cope up with the changed situation.

Lack of creativity:In vertical communication employees become mechanized and want to go by books. As a result they become less creative.

Horizontal communication

When an employee of same level communicates each other than it can be labelled as horizontal communication. It helps employees to perform the task efficiently. In the words of R. Pal and Korlahalli, “Communication between department or people on the same level in the managerial hierarchy of an organization may be termed as horizontal or lateral communication.” Thus it can be stated that exchange of information between same level employees of different departments in horizontal communication.

Advantages of horizontal communication:

Better Understanding:Horizontal communication ensures better understanding, accordingly employees of different division able to perform their job more efficiently.

Coordination:Direct communication by breaking the vertical channel strengthens the bondage between employees of different departments which helps to boost up co-ordination.

Increase Productivity:Horizontal communication minimizes the problems of understanding among various departments as a result, productivity increased.

Better implementation of decision:Decisions are made by top management but they are executed by the lower levelemployees. When lower level employees allowed communicating each other through horizontal communication, it helps to realize the policy and ensures better implementation of decision.

Motivation:Horizontal communication not only increases the level of coordination but also facilitates the task of motivation.

Cordiality:Due to the free flow of information cordiality among the employees increases considerably.

Employee morale:Better understanding and cordial environment also boost-up the morale of the employees.

Teamwork:In any organization for some specific purposes teamwork is essential. Horizontal communication is a prerequisite for successful teamwork.

Job Satisfaction:Another major advantage of horizontal communication is, it increases job satisfaction of the employees. By ensuring cordial atmosphere and lifting the morale of employees horizontal communication plays a vital role in increasing the job satisfaction.

Disadvantages Lack of control:Sometimes too much horizontal communication creates problem for the management and controlling may become difficult as the horizontal communication increases.

Conflict:By passing the vertical channel horizontal communication allows the employees to communicate freely but sometimes it leads to personal conflict.

Time consuming:Communication in addition to vertical instruction may delay the implementation of decision.

Lack of discipline:As strict rules are not followed organizational discipline also can be hampered in horizontal communication.

Informal Communication Channels

1. Within a formal working environment, there always exists an informal communication network. The strict hierarchical web of communication cannot function efficiently on its own and hence there exists a communication channel outside of this web. While this type of communication channel may disrupt the chain of command, a good manager needs to find the fine balance between the formal and informal communication channel.

2. An example of an informal communication channel is lunchtime at the organization's cafeteria/canteen. Here, in a relaxed atmosphere, discussions among employees are encouraged. Also managers walking around, adopting a hands-on approach to handling employee queries is an example of an informal communication channel.

3. Quality circles, team work, different training programs are outside of the chain of command and so, fall under the category of informal communication channels.

Characteristics/Features of informal communication:1. Organizational hierarchy not followed2. Free flow of information3. Rapid communication 4. Information may be distorted5. Lack of evidence.

Advantages of informal communication are as follows: Free flow of information:As no formal channel is maintained information can flow freely among the employees of the organization.

Rapid communication:In case of informal communication messages can be transmitted to the ultimate recipient faster than formal communication.

Suitable for motivation:In modern days many communication experts advocated that informal communication is more appropriate for motivating employees.

Remove mental distances:Through informal communication employees can share their views on any problem. As a result mental distances are reduced.

Increase enthusiasm:Due to the very nature of informal communication it allows lower level employees to communicate freely with the top management. Accordingly problems of lower employees can be minimized and their enthusiasm increased.

Evaluation of employees:Sometimes it is necessary for the management to evaluate the attitudes of the employees. Through informal communication management can come closer to the operational level employees and judge their attitudes clearly.

Supportive:Informal communication is not just a separate system of exchanging information; it is also supportive to the formal communication. Meaning of formal communication can be clarified by the informal communication.

Increase co-operation:Co-operation among the employees increased by informal communication.

Flexibility:One of the major advantages of informal communication is flexibility. Infect it is popular among the employees for its flexibility. It can adopt with the demand of the situation.

Enhance mutual trust:By removing mental distance informal communication also enhance the mutual trust between the management and employees.

Disadvantages of the informal communication:

Lack of control:Sometimes informal communication damages the official decorum which lead to lack of control.

Distortion:Another major limitation of informal communication is, there is a chance of distortion of messages as it passes from top to bottom.

Rumour can take place:By taking the opportunity of informal communication rumour can take place. If rumour is not properly controlled it can be detrimental to the organization.

Not reliable:Informal communication is not reliable and can not be used safely.

No documentary evidence:Another demerit of informal communication is it has no documentary evidence.

Secrecy not maintained:A major loophole of the informal communication is secrecy of the information is not maintained. Thus sometimes interest of the organization may be hampered.

Conflict:Due to lack of control information may be distorted, which may lead to internal conflict among the employees.

Chance of error:

As official chain and procedures are not followed, chance of error increase. Fraudulent activities also can take place.

Grapevine informal communication

The grapevine is an informal communication system. It consists of gossip and rumour. More information can be transmitted through grapevine. There is a negative idea about grapevine but the reality is it coexists with the formal communication system. In the words of Prof. Keith Davis, “Grapevine arises from social interaction; it is as fickle, dynamic and varied as people are. It is the exercise of their freedom of speech and is a natural, normal activity.”

Features:The most common informal communication network in an organization is grapevine. According to Prof. J. W. Newstrom and Others, “Grapevine has three main characteristics:

1. It is not controlled by management. 2. It is perceived by the most employees as being more believable and reliable. 3. It is largely used to serve the self interest of those people within it.

Now features of grapevine can be discussed in the following manner:Flexibility:As there is no formal control on grapevine it is more flexible than any other forms of communication.

Lack of control:Infect management has no control over the grapevine.

Rapid communication:It is faster than other formal or informal channels.

No record:There is no documentary evidence of grapevine that can be produced as future reference.

Used for self-interests:Grapevine is basically used for the self-interest of the employees.

Popular among employees:Grapevine is very much popular media among the employees. It is more believable and reliable than formal communication.

Distortion:One of the major characteristics of grapevine is message are distorted as it passes from man to man.

Spontaneous:Grapevine is spontaneous, it passes automatically from top to bottom of the organization, no one needs to be urged to deliver.

The factors that encourage grapevine activityGrapevine is the product of the situation, it is not created by a person; rather any even or attractive

phenomenon can lead a man to initiate grapevine.

The major factors that encourage grapevine are as follows o Excitement and insecurityo Involvement of friends and associateso Recent informationo Procedure that brings people into contacto Work that allows conversationo Job that provides information desired by otherso Personality of communicator

Advantages of Grapevine Communication. 1. 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.

2. 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.

3. 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.

4. The grapevine serves as an emotional supportive value.5. The grapevine is a supplement in those cases where formal communication does not

work.

Disadvantages of Grapevine Communication

1. 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.

2. The grapevine is not trustworthy always as it does not follows official path of communication and is spread more by gossips and unconfirmed report.

3. The productivity of employees may be hampered as they spend more time talking rather than working.4. The grapevine leads to making hostility against the executives.5. The grapevine may hamper the goodwill of the organization as it may carry false negative information

about the high level people of the organization.