This document discusses formal and informal channels of communication within organizations. It defines formal communication as controlled, top-down communication through official reports and records. Informal communication refers to unofficial grapevine networks that spread information between employees. While formal channels ensure effective information flow, they can be slow and expensive. Informal channels are faster but information may be inaccurate. The document also examines downward, upward, horizontal, and diagonal types of internal communication within an organizational structure.

1. Formal Formal channel channel (network) (network)
of
of communication
communication
BY Prof. Kamlesh Joshi

2. Formal channel (network) of
communication
Information flow in modern business
is like network of arteries in the
body
Is controlled by managers or other
similar persons in the organization
Movements of information by
reports, e-mail, records, sales
presentation, advertising & publicity

3. Organizational
Communications Network
Formal
Communicatio
Infonrmal
Communicati
on

4. Formal channel (network) of
communication

5. Advantages of formal channel of
communication
Effective communication
of an organization depends
heavily on the formal
channels of communication
Enables an organization to
pass on information to its
various branches smoothly
Consolidate the organization and
satisfy the people in managerial
position

6. Disadvantages of formal channel of
communication
Often it is seen that
formal channel hinders
free flow of information.
Is time consuming as
compared to informal channel.
Is expensive.

7. Informal channel (network) of
communication
Parallel to formal network
Consists primarily of personal
communication
Informal channel is like network of
veins in the body
Infinitely complex, links all the
members of the organization.
For an example: Grapevine

8. Informal channel (network) of
communication

9. Factors for grapevine formation
When an organization is passing through
crises, there prevails a feeling of an un
certainty and lack of sense of direction.
If the manager discriminates between his
favorites and non-favorites.
If employees are not having adequate self-confidence
.

10. Types / forms of grapevine
communication
 Keith Davis has stated four types of
grapevine
1. Single strand chain
2. Gossip chain
3. Probability chain
4. Cluster chain

11. (1) Single strand chain
 The information flows from one person to
the other person in a sequential order.
 Example:
A passes information to B who further
passes it to C.
A B C D

12. (2) Gossip chain
 The information which is of interest to all
but not related to official work
 Information is passed on by one person
alone to the rest of organizational
members
C
D E
B
F
A

13. (3) Probability chain
Information is not too important
Is likely to be shared with others
Is randomly passed on by one
person to whoever comes in contact
with him. A
B C
D E F G
J H

14. (4) Cluster chain
 One person passes on the information to
selected group of people who further pass
it on other selected group of people
A
B C
E
D
F
G
H

15. Advantages of grapevine
Speedy transmission
Supplements to other
channels for some useful
information which is
unsuitable by official
channel.
Psychological satisfaction.
(draws workers together)
Feedback to the managements.

16. Advantages of grapevine
Without grapevine employees may
not feel ownership of information
Management can know employees’
thoughts
Creates a sense of belongings in
employees
Most employees rely on it than
formal comm.

17. Disadvantages of grapevine
 Information is less credible
than formal channel.
Does not carry complete
information always.
People twist the matter
& spoil the image of
organization.
Is rarely the whole truth,
can harm interest of organization.

18. Disadvantages of grapevine
Increase the duration of lunch, tea
breaks, waste of time.
Information may get leak at wrong
time.
Information may be accurate or
inaccurate.

19. How to control grapevine
Be sensitive to employee
anxiety.
Provide important information
to employee openly, honestly, quickly.
Generate rumors designed to
make employees get the information
they need.

20. Types of communication
Communication is lifeline of
any business.
Enables human beings to
work together.
Communication is divided
into two types.
1. External communication
2. Internal communication

21. Types of communication

22. (1) External Communication
External communication covers how
a person interacts with those out-side
their own organization. This
may be with the public, employers,
community organizations, local
authorities, job centers, careers
offices, funding bodies, specialist
agencies and other training
providers.

23. (2) Internal Communication
Internal communication involves
the communication that exists
within a company and can take
many forms.
Key to the success of an
organization is communication
from within. In order to effectively
engage in two way relations,
communication is essential internally.

24. Internal communication
The communication that occurs in
conducting work within a business is
known as internal communication.
Includes orders & instruction given by
supervisor to workers, oral conversations
among workers, reports prepared by
workers for sales, production, finance etc.
Has to move up and down the chain of
authority as well as side ways between
persons at the same level of authority

25. Internal communication
Any organization has cone shaped
structure. Highest authority at apex
may be one person or small group.
Number of persons down the cone
increases until at base.
(they have no authority)
There are three kinds of internal com.
(A) Vertical (B) Horizontal (C) Diagonal

26. Internal communication

27. Com. structure of an organization
(APEX) Chief executive
Section managers
Middle managers
Department managers
Department heads
Superintendents
(BOTTOM) Workers

28. (A) Vertical communication
Is made up of upward & downward flow of
messages.
Information is transmitted from the top
management to employees in organization
Is divided into
(1) Downward communication
(2) Upward communication

29. (1) Downward communication
 Information flows downwards
 People at higher level have
authority to communicate to
people at lower level.
 Purpose of this is to give
instruction & information.
 Downward com. should be
simple & carefully explained.
 May be sent down in chain of command
(in cluster).

30. Downward structure
M.D.
Chief executive
Section manager
Middle manager (Chain structure)
Chief executive
Mark. Mana. Product. Mana.
Superint.
(Cluster)

31. Downward structure

32. Limitations of downward
communication
Distortion / Dilution
( on the way to lower )
Delay
(many levels, time consuming)
Filtering
(important part of message is not
passed to employees by superiors,
affect relationship)

33. (2) Upward communication
 The function of upward com. is to
send information, suggestion,
complaints and grievances of lower
level workers to managers above
Success of any organization depends
on the amount of flow of upward
communication

34. Importance of upward com.
Providing feedback
Outlet for pent-up emotions
Constructive suggestions
Greater harmony & cohesion (unity)

35. Methods of upwards com.
Open- door policy
Regular reporting system
Committees
Informal gathering
Counseling

36. Limitation of upward com.
Employees are usually reluctant to
initiate upward com., may not have
courage to talk
Many managers don’t like to be “told”
by juniors
Some times workers directly
approach top managements without
telling to superiors
Workers are encouraged to talk freely
but is interpreted as incompetence

37. (B) Horizontal / lateral com.
Between two persons operating at the
same level
To maintain co-ordination among
various departments
Face to face exchange of views,
conversation over phone, letters,
memo, reports, are convenient

38. (C) Diagonal communication
 Apart from vertical and horizontal forms of com.,
there is another form which takes unpredictable
path.
 Information could at certain stage take on
upward path then a horizontal direction and
finally move downward or could even stop at
certain stages.
 Allows communication to flow irrespective of
position or status, without any bonding or rules
 Could give rise to gossip , grapevine and
rumors.