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 meetingsConference Telephone callsCompany news bulletinsSpecial 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 communicationCommunication 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 function efficiently without such horizontal communication flows.

•

• 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 CommunicationThis 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 greater dedication.

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 and car pool dialogues.

• 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 wasn’t 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 superior’s 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 don’t 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.

• Some people say that up to 70% of the information employees receive is via the grapevine.

• 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 RumorsWish 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 half- truth 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 as an emotional supportive value.

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 report.

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.