Forms of Organizational Communication:

There are two forms of organizational communication:

i. Formal Communication; and

ii. Informal Communication.

1. Formal communication:
Formal communication refers to official communication taking place
in the organization. Whenever there is exchange of views or message
or information related to official matter such as assignment of task,
fixing of responsibilities, granting authority or setting up of targets,
objectives etc. then it is known as formal communication.

Formal communication generally takes place in the written form such

as issue of notice, letter, memo, document, etc. Verbal or oral channels
are avoided in formal communication as there is no record or proof of
such communication.

According to direction of flow formal communication can be divided

into four types:

i. Downward Communication:
The flow of information from the top level or from the superiors to
lower level or subordinates is known as downward communication. In
this communication the manager passes instructions to his
subordinates and the success of downward communication depends
upon communication skill of the managers. The common ways of
having downward communication are:

ii. Upward Communication:

When the subordinates inform or pass any information to superiors
then it is known as upward communication. This communication
flows from subordinates to superiors. Upward communication
generally consists of work performance, opinion, grievances or
problems of the employees.

In the recent years upward communication is gaining more

importance because the subordinates prefer to involve themselves in
the decision making and they have started demanding a better
working condition. The upward communication may take place in the
following manner:

iii. Horizontal Communication:

Horizontal communication is the communication between the two or
more persons working at the same level of authority. Generally
different departmental heads discuss the policy of their department
with each other. That will be considered as the horizontal
communication. Discussion between two managers of same rank is
also a horizontal communication. For example, the marketing
manager may discuss from time to time the quality and packing of
product with the production manager.

iv. Diagonal Communications:

Diagonal communication is a flow of information between the persons
working in different departments and holding different levels of
authority. For example, the salesman may request the production
manager to modify the product design according to the requirement of
the customer. The diagonal communication prevents delay in flow of
information and helps in taking fast decisions as subordinates of one
department can directly communicate with the managers of other
department.

Advantages of Formal Communication:

1. The formal communication is very systematic and ensures orderly
flow of information.

2. The source of information can easily be located.

3. In formal communication it is easy to fix the responsibilities of

different employees as there is proof for the information.

4. Through formal communication it is easy to exercise control over

the work performance of different employees.

Disadvantages:
1. The information is delayed as generally scalar chain is followed
while passing of information.
2. In formal communication the information is conveyed or passed in
impersonal manner.

3. The information may not be transmitted accurately to avoid the

unfavorable effect of communication.

The common networks of formal communication are:

1. Wheel Pattern:
It is the most centralized way of communication. Under wheel pattern
all the information flows from one person only who is generally leader
of the group. The other members have no communication link with
each other. It is a common pattern of centralized organization.

2. Chain Pattern:
Under the chain pattern each person gets the information from one
person that is their immediate boss and passes the information to one
person who is their immediate subordinate. So, every member is
attached to one person.

3. Circle Pattern:
In the circle pattern each person communicates with two more
persons in a group. The person may receive or give information to two
more persons in the organization. In this type of organization every
member participates equally in flow of information. That is why it is

more decentralized.
4. All Source (Channel) Pattern:
Under all channel pattern there is no fixed pattern of communication.
All the members in the organization are linked to each other and
information can flow from anywhere in the organization. It is most
decentralized organization.

5. Inverted V:
In this network a subordinate is allowed to communicate with his
immediate superior and also with the superior of his superior.
However in latter case only limited communication can take place.
Meaning of Informal Communication:
‘Informal Communication’ is the communication among the people of
an organization not on the basis of formal relationship in the
organizational structure but on the basis of informal relations and
understanding.

It may overlap routes, levels or positions. Informal communication

creates a situation where the different workers communicate with each
other, work side by side, hour after hour and day after day irrespective
of their formal positions and relationships.

It is referred to as the ‘grapevine’ which indicates informal means of

circulating information or gossip. It is direct, spontaneous and
flexible. It is personal, unofficial, and mostly verbal.

The term ‘Grapevine Communication’ originated during the American

Civil War (1861- 1865). During the period the communication of
intelligence information through telegraph was not effective and
reliable because the telegraph system was unorganised. Telegraph
lines were strung in a haphazard way through the trees like a real
grapevine.

The messages received or sent through these lines were often incorrect
and confusing. Rumors were rampant during the civil war. Thus any
rumor, whatever might be the source, was presumed to be originated
from the unarranged telegraph lines or grapevine. Later, in course of
time, grapevine communication has become synonymous with
informal communication.
Examples of Informal or Grapevine Communication:
1. The manager calls an employee to his chamber and talks with
him for sometimes relating to official work. Rumor is spread that
the employee will be promoted to higher position ignoring the
promotion of other employees.

2. The employees of a company have come to know the profit figure

for the year from the accounts department. Somebody among the
employees within the company puts some imagination to it and
tells others that the company is going to offer bonus to the
employees on the basis of profit earned.

3. Due to delay in supply and shortage of raw materials the work in

a factory has been stopped for a few days. The workers made it a
rumor that the management authority is going to retrench a large
number of employees soon.

The informal communication is a part and parcel of the organisational

process. Proper analysis and suitable clarification of informal
communication will be helpful in making its use towards
organizational efficiency.

Purpose of Informal or Grapevine Communication:

The purpose of informal communication includes sharing of
information, establishing personal contacts, making friendship,
influencing and motivating others, resolving conflicts, supplementing
official channels, getting relaxation, searching escape from monotony
of work, etc.
Channels Used in Informal or Grapevine Communication:
Informal Communication is conveyed through verbal and
gestural means in all directions with the help of the
following media:
i. Personal conversation and gossip;

ii. Unofficial discussion;

iii. Spontaneous advice and suggestion;

iv. Facial expression;

v. Body movement;

vi. Silence, etc.

Types of Grapevine Communication:

Since grapevine works through informal channels, it does not follow
any scheduled path or operate by specific rules. Like a grapevine it
spreads fast in any direction.

Specialists in the field have classified grapevine

communication into four types:
1. Single Strand Chain.

2. Gossip Chain,

3. Probability Chain,

4. Cluster Chain.
1. Single Strand Chain:
In this type of grapevine communication the information passes
through a number of persons like a chain. A tells something to B, who
tells it to C, who tells it to D and so on.

It is generally a long chain. The longer the chain the greater is the
possibility of distortion of the information.

2. Gossip Chain:
In Gossip Chain one person actively conveys information to other
persons around him. A circle or wheel-like figure is formed in this
communication.

Here, in this picture. A is at the centre and transmits messages to ‘B’,

‘C\ ‘D\ ‘E\ ‘F, ‘G’, and ‘H’ around him/her.

Gossip Chain is generally used when information to be communicated

is non-job oriented in nature.
3. Probability Chain: It is a random process in which information
may move from one person to any other person or persons according
to law of probability. Naturally, in this type of communication, some
people of the organization will be informed and some others will
remain outside the arena of the communication.

Here, in the illustration, E, F, G and K are outside the communication

chain. This chain is used when information is interesting but less
important.

4. Cluster Chain:
Cluster chain is mostly used and the dominant pattern of grapevine
communication. In this type one person tells something to some
selected trust worthy persons. Some of these persons may inform a
few selected other individuals. Here in the picture, A tells some
selected and trustworthy persons, B, C and D. C again relays it to his
selected persons, G, H and I. D tells J, a person of his choice. E and F
remain outside the cluster.
Importance of Informal or Grapevine Communication:
Informal or Grapevine communication is an indispensable part of
entire communication system. Formal communication is compared to
arteries of a living being, whereas, grapevine or informal
communication are like veins. The later is a supplement to the former.
Where formal communication fails to operate, grapevine or informal
communication is used.

Sometimes, grapevine communication is more effective than the

formal communication. In fact, it carries more information than
formal communication. Not only is a large volume of information,
important and vital information also conveyed through it.

In an organization small groups of people work together. It is quite

natural that they will become interested about each other and want to
know various information regarding each other’s service condition,
salary, facilities available, appointment, retirement, transfer,
punishment, etc.

They will also be interested to know any private, secret and

confidential information which includes any romantic affair, family
disputes, marriage, birth of a child, examination results of their
children, special treatment or favor by boss to any member and so on.

The employees generally exchange their views with their peers openly
during lunch break or at an interval and get emotional relief from
monotony and stress. Thus, the informal or grapevine communication
promotes social relationship among the participants. It helps to build
up unity, integrity and solidarity among them and boosts up their
morale.

Grapevine or informal communication is faster than the formal

communication. Being oral in nature, it has little or no cost and can
reach maximum number of people irrespective of their positions
within a very short time.

Since there is no official procedure and formalities it is not binding

and compelling, rather it is flexible and spontaneous. The managers
can get feedback from their subordinates quickly on the plan and
policies through grapevine. New ideas, suggestions, opinions may
come out as people can express their feelings without fear.

Characteristics of Informal Communication:

The informal communication has the following
characteristics:
i. It is based on informal relationship;

ii. It grows spontaneously;

iii. It takes the form of gossip;

iv. It is conveyed through conversation, facial expression, body
movement, silence, etc.;

v. It does not follow any structured route or channel;

vi. Small groups are formed with like-minded people in such

communication:

vii. It is direct and fast;

viii. It is flexible and dynamic in nature.

Advantages of Informal or Grapevine Communication

The advantages of informal communication are pointed out
below:
i. Informal communication, being unofficial and personal, promotes a
social relationship among the participants;

ii. Flow of information is fast and is suitable for emergencies;

iii. New ideas, suggestions, opinions may come out through such
communication as people can express their feelings without fear;

iv. It can create an atmosphere congenial for work as the relationship

between the managers and the employees improves;

v. The managers can collect information regarding reaction of the

workers, attitude of the employees of other departments, intention of
peer officers through such communication. It is not possible in the
case of formal communication. Thus, informal communication
supplements the formal communication to fulfill the objective of the
organization;
vi. Sharing of information in a free atmosphere makes the picture
clear, bringing out the hidden dimension of the management, if any. It
puts an end to misunderstanding and suspicion;

vii. It is an outlet of expression of complaints, dis-likings, grievances,

etc.

Disadvantages/Limitations of Informal or Grapevine

Communication:
Informal Communication has the following disadvantages or
limitations:
i. Inaccurate, incomplete and half true information’s are spread
through informal communication as everybody interprets it in his/her
own way;

ii. In most cases it is emotional and full of sentiments which can

change its meaning;

iii. No one can be held responsible as it is not possible to find out the
supplier of wrong information in the case on an enquiry;

iv. It is not reliable. The managers cannot depend upon such

information as it does not follow any norm and is too loose a system.
No decision can be taken depending upon such communication;

v. It spreads rumors and endangers consolidation and unity of the

organization;

vi. It creates conflicts between groups by spreading rumors against

them and reducing their mental strength.