This document discusses formal and informal communication within organizations. Formal communication follows prescribed channels of authority and ensures a structured flow of information, but can be slow and rigid. Informal communication spreads faster but is less systematic and messages may get distorted. Both types of communication have merits and demerits, so effective organizations utilize multiple channels of formal and informal communication as appropriate for different situations.

3. Two or more persons
Two-way process
Continuous process
Pervasive function
Mutual understanding
Multiple channels
Several media

10. Merits Demerits
Systematic and ensures structured flow of information Tends to be slow as it has to pass through the prescribed levels
of authority
It provides support to the authority and status of superiors It is rigid and rule bound
Helps in fixing responsibility for actions taken Lacks personal touch and sense of involvement
Source of formal communication can be easily located Lead to overload of work for higher authorities
Helps in coordination of various activities and efforts Accurate information may not be transmitted due to fear of
criticism
Facilitates managerial control by providing information on
performance and attitudes of subordinates
Useful for explaining plans and policies to employees

12. Merits Demerits
Travels faster Unsystematic, irregular and untimely
Fill gaps, if any, in formal communication Not easy to fix responsibility for actions taken
Used to communicate matters for which cannot be transmitted
through formal communication
Msg may get distorted because different persons pass on the
same msg with different outlook
Can ascertain the attitudes and reactions to plans and policies
through informal contacts with the employees
Often contains rumours and distorted facts
Enables employees to develop friendly relations and get social
satisfaction.
Should use informal communication with due precautions
because confidential information often leaks out through
grapevine
Useful means of communication between persons who may
not be linked through the official chain of command

19. Problems and issues to be discussed in groups
Time available for communication is very short
Reactions and replies required quickly
Instruction and counselling
Workers want to express their problems and
grievances personally before managers

24. Lengthy message
Record of communication is required
Large number of people at the same time
Information is to be retrieved for repeat use in
future
Needed to fix responsibility