THE INSTITUTE OF FINANCE MANAGEMENT

MODULE NAME:

BUSINESS COMMUNICATION
MODULE CODE: GSU 07204/ACU 07209

Module Facilitator: Dr. Mtani, E

Office No. 504, 5th Floor, Block A
 TOPIC 1

APPLY KNOWLEDGE, SKILLS AND VALUES OF

COMMUNICATION IN BUSINESS CONTEXTS
 PART II
ORGANISATIONAL COMMUNICATION
What is Organisation?
Evans (1990) describes the term ‘organisation to cover a
multitude of industrial, commercial, service industry and public
service activities. As such, organisation can be defined as;

A social unit of people, systematically structured and managed

to meet a need or to pursue collective goals on permanent basis
(Burton & Obel, 2018).
 What is Organisational Communication?

Organisational communication is a phrase that covers all types of

communication employed by a company. This includes
communication between staff within a company; communication
between a company and government agencies; communication
between a company and its stakeholders; communication
between a company and its clients or customers (Bovee & Thill,
2008).

Accordingly, the nature of organisational communication is

complex and dynamic.
 Dimensions for Classifying Organisational
Communication

1. Formal and Informal Communication 2. Directional Communication

This considers the levels of formality This considers the hierarchy of
reflected in various messages interaction among staff. It seeks to
communicated within and outside the define power relation according to the
organisation; intimacy, informal, casual, structure of the organisation;
formal or frozen tones. downward/upward/horizontal or
diagonal relations
3. Verbal and Non-Verbal Communication 4. Internal and External Communication
This considers a variety of textual This considers the manners through
(spoken and written) information and which internal customers (staff) and
visual or graphic information in external stakeholders (partners,
different styles and formats. government agencies, clients and
customers) are informed or exchange
various messages with an organisation.
Functions of Directional Communication
 The Vertical Direction/Downward/Upward Flow
Downward Direction Upward Direction

-This is a more prevalent direction in -It is more effective if immediate

organisations. supervisors engage workers to
propose or suggest improvements on
-It is more effective if top managers organisation operations to top
communicate directly with immediate managers.
supervisors and immediate
supervisors communicate with their -It is useful in reporting and
supervisees (Larkin & Larkin, 1994). monitoring daily operations of the
organisation.
 Advantages of the Vertical Direction of Communication
It manifests line of authority in an organisation.
It is useful in communicating policies and
procedures.
It is useful in communicating directives and
instructions.
It ensures that a message is channeled to intended
persons.
It cuts out waste of time and resources.
It ensures accuracy of information.
It enhances greater trust of employees to their
immediate supervisors.
 Disadvantages of the Vertical Direction of Communication
Information is always filtered as it moves
downward or upward.
Delayed feedback if the line of commands are too
many and complex in nature.
May lead to inefficiency if it is not properly
handled.
It limits the informal interactions which are critical
in strengthening up relationships.
 Nature of Messages-Downward/Upward Communication
Downward Messages include but Upward Messages include but
not limited to; not limited to;
 Oral and written instructions  Oral and written reports of
(prescriptions and various kinds
proscriptions)  Memoranda
 Policy manuals  Proposals
 Memoranda, reports,  Spoken and written
notices suggestions for decisions to
 In-house magazines or management
newsletters  Grievances procedures
 Appraisal interviews  Polls and ballots
 Disciplinary interviews
 Lateral/Horizontal Communication

This occurs between people of the same status in an organisation-

departmental heads, supervisors, directors and others whose work is
similar but takes place within different sections of the organisation
(Sillars, 1988).
 Advantages/Disadvantages of Lateral Communication

Advantages Disadvantages
 It converges individuals of  It may be affected by
separate departments or attitudes of rivalry or
sections to discuss new jealousy.
development.  Feedback may be delayed
 It increases frankness or due to ‘no one is
openness among employees. accountable to anyone
 It is less affected or inhibited syndrome’.
by the chain-of-command.  Individual responsibilities
 It reduces tension of may be diluted because of
hierarchy among members the informal relationships.
of an organisation.
 It enhances informal
communication among staff.
 Nature of Messages-Horizontal Communication

The nature of messages to be communicated horizontally

include but not limited to;

 Request for assistance in specific tasks

 Consultations
 Advice seeking
 Project design and implementation
 Diagonal Communication

Like the horizontal route, diagonal communication does not

observe line of authority, but rather it relies heavily on
reservoirs of cooperation and good-will of employees of
different departments or sections or of different status within
an Organisation (Evans, 1986).

Accordingly, it shares the advantages and disadvantages of the

lateral route of communication.
Grapevine Communication
 What is Grapevine Communication?
Allen (1958) defined grapevine communication as “an informal,
unofficial, and spontaneous communication system that arises
within an organization, characterized by the transmission of
information through personal interactions rather than formal
channels.”
Grapevine communication includes the exchange of information,
through gossip, speculations, and rumors among individuals using
informal channels instead of official formal channels.

The term grapevine in communication originates from the way

grapevines twist and intertwine, symbolizing how information
can spread quickly and unpredictably.
 What Causes Grapevine Communication?
 Absence of Formal Communication: When official communication
channels fail to provide timely or sufficient information, people often
rely on the grapevine to fill the gap.

 The desire for Social Interaction: Grapevine communication can be

driven by the human need for social interaction and sharing
information with others.

 Need for Confirmation or Validation: Employees might turn to the

grapevine to seek confirmation or validation of rumors or news.
 Features of Grapevine Communication
 Informal Nature: Grapevine communication operates outside formal
hierarchies, allowing any individual to participate, irrespective of their
position or authority.
 Speed: Information travels quickly through the grapevine network,
often outpacing formal channels, reaching a large audience in a short
time.
 Unreliable Source: Due to its lack of verification, grapevine
communication may spread inaccurate or false information, leading
to confusion and misunderstandings.
 Satisfies Social Needs: Grapevine communication serves as a platform
for informal bonding, opinion-sharing, and developing a sense of
connection among individuals.
 Spontaneity: This form of communication emerges spontaneously
from casual conversations, spreading naturally throughout the
organization.
 Importance of Grapevine Communication in
Organisation
Importance or Functions of Grapevine Communication
1. Informal Innovation Hub: The 4. Informal Mentoring and
grapevine can be an incubator of Knowledge Sharing: The grapevine
innovative ideas and suggestions. facilitates informal mentoring and
knowledge sharing among employees.
2. Identifying Emerging Issues: 5. Nurturing Leadership Skills:
Grapevine communication can act as an Grapevine communication can provide
early warning system for emerging issues opportunities for emerging leaders to
within the organization. demonstrate their communication and
management skills.
3. Adapting to Organizational
Culture: Understanding the grapevine
allows managers to adapt their
communication style to fit the
organizational culture better.
Visit: https://clearinfo.in/blog/what-is-grapevine-communication/