Administrative & Business Communication EC, FBE, Management Department

CHAPTER - FOUR
COMMUNICATION IN ORGANIZATIONS
4.1 Introduction
This chapter covers the concept and application of communication in an organization. The function of
communication and the practical application of it together with the objective of formal communication system
and its implication for the performance of the organization are the points to be discussed under this chapter.
Problems of upward and downward communication are also will be highlighted.

4.2 Communication Channels and Functions

As we have seen communication, both oral and written is a predominant form of organizational behavior.
People in today’s organizations spend a great deal of time communicating; the higher they go in the
organizational hierarchy, the more time communication consumes. However, as Peter Drucker points out, all is
not well; “We have more attempts at communications today . . . yet communications has proven as elusive as
the unicorn. The noise level has gone up so fast that no one can really listen anymore to all that babble about
communications. But there is clearly less and less communicating. The communications gap within institutions
and between groups in society has been widening steadily to the point where it threatens to become an
unbridgeable gulf of total misunderstanding.” In short, while people in organizations today spend a lot of time
engaged in communication-related activity, they are not very successful in communicating.
Generally, we have found five basic causes of communication failure.

1. Communication in most organizations is activity-oriented, not results-oriented.

When consulting with hospitals for example, it is our practice to ask the hospital administrator to show us the
hospital’s employee handbook. Then we ask him or her, “Do you feel this is a good employee handbook?
Typically, their answer will be “yes” followed by such reasons as: It has won national awards for design and
layout; it costs us a lot of money to produce; my picture is on the inside cover; consultants helped us to develop
it, and so on. When we then ask, “But does it do what is it supposed to do?” We typically receive a puzzled
look and a long silence in response. Communication is a tool designed to produce some effect upon its receiver.
Too many organizations, however, view communication as something that “ought to be done” losing sight of
the impact their communications should have.
2. Communication often is one-way
Management frequently assumes that, as long as they are sending messages regularly to the rest of the
organization, they are communicating. They therefore engage exclusively in “downward” communication,
receiving little or no feedback from lower levels of the organizations as a result they often do not know if their

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downward messages were received, understood, believed, or approved of by employees, and they cannot adjust
future messages to employees’ needs or characteristics. In order to be effective, communication in
organizations must flow not only downward, but upward and laterally as well.

3. The impact of communication is not measured

This problem is related to the preceding one. In many organizations, management receives information
feedback. However, no systematic attempt is made to measure the impact of communication in terms of the
objectives or results the communication was supposed to achieve. If, for example, the employee handbook is
designed to inform employees about company benefit programs, actual measures should be taken to determine
how much information employees get and retain about benefit plans by reading that handbook. In effect,
management must clearly define the results they want their communication systems to achieve, and then
regularly measure the extent to which those results have been produced.

4. Communications are not responsive to employee needs

When defining the objectives of their communication systems, management should first ask employees what
information they want or need. Then they can tailor downward messages to meet those needs. Rarely, for
example, do companies ask new employees what information they would like to receive in the new employee
orientation meetings; rather, they assume that the information they are providing is exactly what the employees’
need. When we have interviewed incoming employees about their concerns and desires, we find an entire body
of information is needed that company orientation programs do not provide.

5. The people who implement communication systems lack the necessary communication skills
Department meetings cannot be effective if the department heads conducting them lack meeting leadership
skills. Employment interviews do not select the best available candidates if the interviewers are unskilled.
Communication systems and opportunities are not enough; the people who use those systems must have skills
as communicators. As the preceding discussion indicates, communication in organizations has two basic
elements; communication systems (the meetings, publications, conversations and so on in which messages are
transmitted), and communication skills of the people participating in those communication systems.

4.3 Communication Functions

Within each organizational setting, communication performs a variety of functions. One function that occupies
a central role within all organizational systems is information exchange.

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1. Information Exchange
In the broad sense, any organization that does not exchange information with its environment will die.
The organization both effects change in its environment and responds to change in order to survive. Such
changes would not be possible without the possession of considerable information on which to base intelligent
behavior. Thus, the exchange of information serves the basic function of organizational maintenance.
As members of organizations, we must possess adequate information to function productivity on a daily basis.
We must also exchange sufficient information so that our goals are somehow integrated and coordinated with
those of others in the organization. Obviously, the separate rules and tasks of any organization do not exist in a
vacuum. Rather, we must accomplish each task in coordination with other individuals, groups, and departments.
In one of the texts on organizational communication, Haney presents a tragic case involving the
mismanagement of information exchanged in a hospital. In this case a deceased patient who was not
immediately removed from his room was visited by his wife who, upon finding her husband dead, collapsed and
died of a heart attack herself. This tragedy occurred because rotting nurses in charge of the situation did not
exchange clear messages and failed to notify appropriate authorities the minute they knew their patient had
died. Although most instances of information exchange do not result in such tragic outcomes, the smooth,
timely, and undistorted flow of information remains an important goal of all organizations.

2. Idea and attitude imposition

Information exchange and idea imposition are not distinct. When a supervisor tells us how to replace the paper
in the copying machine, how to fill out grant request forms, or how to deal with a disciplinary problem on the
surface he or she is informing us about how to perform our jobs. But such information clearly does more than
inform. It also persuades that the procedure in question is not only acceptable but often preferred or even
required.
From the time we enter an organization, we are bombarded with ideas, information, and attitudes whose
purpose is to effect some change in us. Whenever we join an organization, we immediately encounter some of
the more common forms of idea and attitude imposition. We may be told succinctly and directly how to
function in our daily jobs and how those jobs fit into the overall organizational plan. At a more subtle level, our
initiation may involve a strategic indoctrination aimed at encouraging us to conform to the values, standards,
and needs of the organization. Schein refers to this latter process as “organizational socialization.” Although
some socialization is probably inevitable and in some sense beneficial, Schein maintains that what organizations
really need are creative people who accept crucial organizational values, but who are richly diversified in other
significant respects. Most healthy companies are filled with professionals who are united in their dedication to
the organization’s goals of high-quality products, employee satisfaction, and productivity. Even so their ideas

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about what precisely constitutes quality, how to keep workers happy, and how to achieve maximum
productivity are probably quite different. Although organizations can command a great of conformity, only
through a process of mutual organizational and individual influence is innovation and growth likely to occur in
the long run.

3. Evaluation
A third major communication function is evaluation. When we evaluate, we process, interpret, and judge. Each
of us is evaluated before entering the organization through applications and employment interview, and the
notion of evaluation is really inherent in the organization’s hierarchy. Supervisors evaluate their subordinates
just as higher executive judge lower level supervisors. Worker evaluation sheets, memos, organizational
progress reports, interviews, and personal and small group conferences are a few examples of common
organizational evaluation procedures.

4. Soliciting Feedback
A fourth function of communication is soliciting feedback. Historically, several factors have impeded feedback
in organizations. Generally some employees simply are not interested in communicating to management or
participating in decision making; others are afraid to communicate (fearing reprisals from a management or
ostracism by their peers); still others are unaware that management expects them to communicate; and some
simply believe that management has no interest in their thoughts and concerns or that management will not
respond to them.
Taken together, the communication functions we have outlined influence the effectiveness and efficiency of the
organization. The amount, clarity, and appropriateness of information exchanged, the ability of the organization
to socialize and influence its members, the impact of evaluations, and the success of attempts to solicit feedback
all determine the characteristics, and ultimately the success, of a particular organization. In the next section, we
will review some of the channels that organizations use to achieve these functions.

4.4 Formal flow of Communication

Communication in organizations takes two forms: “formal” and Informal”. Formal communication is that
which follows prescribed channels of communication throughout the organization-typically the chain of
command. It follows the official channels of communication prescribed in the organization structure. Informal
communication generally is considered to be any interaction that does not follow official channels of
communication.

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Formal communication is the official patterns of communication that are designed, approved, and recognized by
the management of the organization. It is an integral part of the organization structure. Organizational chart
can be regarded as anatomical drawing of the official channels (paths) through which official messages travel.
Formal communication is thus the official chains that determine the flow and direction of official messages
among individuals or divisions in an organization.
Formal channels of communication provide for the structured flow of primarily vertical communication
(upward and downward) and secondarily crosswise (horizontal and diagonal) communication.

4.4.1 Downward Communication

Messages flowing upper from organizational levels to lower organizational levels constitute downward
communication. Downward communication has three main objectives.
A. To provide directives to subordinates: Through downward communication, organizations;
 assign goals and explain the reason for assignment
 direct the activities of employees
 instruct them in proper behaviors and work methods
 persuade them to adopt certain attitudes and ideas
 evaluate their performance on the job
 solicit upward communication, and
 provide entertainment
B. To indoctrinate company objectives, strategies, programs, policies and procedures.
C. Appraise subordinates’ performance/performance feedback
Performance of subordinates must be evaluated continuously or periodically. The performance result must also
be communicated to the subordinates so as to help them know whether they are meeting their goals or not.
Positive evaluations contribute in raising the morale of workers and thereby increase their productivity.
Carefully communicated low evaluations also help the subordinates to overcome their shortcomings and take
corrective measures.

The most commonly used downward communication methods are the following:
a. Employee hand books- used to provide basic information about the organization, pay policies, and benefit
programs, work rules, and working facilities.
b. Job descriptions and work procedures-used to inform an individual what is expected of him and his work
unit from the organization.
c. Newsletters- are periodical publication about the news of the organization and other related activities.

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d. Letters and memoranda

e. Employment interview-used to promote good relations with prospective employee.
f. Performance appraisals- conducted as a private meeting between a superior and his subordinate.
g. Disciplinary interviews- conducted by managers and superiors when employees violate the rules and
regulations of the organization.
h. Departmental or unit meetings- often called by supervisors used to discuss with subordinate about:
 Current events in the company
 Future plans of the company
 Progress reports, (evaluation reports)
i. New employee orientation programs-used to give employees detailed information about their jobs and the
environment at which they will work. This helps employees to feel welcome in the organization and learn
about matters that directly affect them; and adapt to the new environment and become effective.

Limitations of Downward Communication

A. Communication often is not received: Employees often do not read the announcements, or they ignore
the bulletins that are posted and overlook the posters that announce current events. Supervisors and
managers choose not to conduct departmental meetings, or neglect to conduct the disciplinary or
appraisal interviews that are their responsibility.
B. Communication occurs too frequently: and after a time employees become saturated and simply stop
paying attention.
C. Distortion or filtering: The sheer number of people involved makes it likely that:
- facts will be distorted
- details will be filtered out
- the meaning of the message will be changed
D. Built in resistance:
Downward communication is characterized by some degree of authoritarianism. Subordinators are expected
to receive the message at its face value, i.e. without questioning the validity, reliability and appropriateness
of the message.
Ways of Improving Downward Communication
 The message must be clearly understood by the subordinate
 The employee has to believe the order or instruction is consistent with the organization goal.

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 The subordinate must be able to comply with the order mentally and physically. Orders and
instructions have to be reasonable enough to reflect the capacity of the subordinate with due regard to
time.
4.4.2 Upward Communication
Upward communication constitutes the flow of information from subordinates to supervisors. It involves
information about
 Subordinates performance
 Feedback on organization a policies and practices
 Problem solving suggestions opinions, complaints etc
Importance
A. Providing feedback
Managerial function is incomplete without feedback.
Managers ascertain whether:
 The policies are being followed
 The rules are being strictly respected
 The directives are properly carried out by means of feedback.
B. Outlet for pent-up emotions
Upward communication provides employees with the opportunity to channel their problems, complains, and
grievances to superiors. This reduces frustration and enables employees develop positive attitude.
C. Providing constructive suggestions
Every member of an organization has a capacity to contribute ideas or suggestions that can promote the welfare
of the organization. Every employee is endowed with some creative capacity and wise managers utilize the
creative capacity of their subordinates. When subordinates constructive suggestions are accepted and
implemented, they feel encouraged and motivated because they believe are participating in decision making.
This also enables them to identify themselves with the management and the organization.
D. Easier introduction of new schemes
Effective upward communication minimizes resistance to changes and makes them exert extra efforts to make
the new schemes successful.
E. Greater harmony between superiors and subordinates

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Methods of Upward Communication

The most common methods of upward communication are the following:
i. Employee opinion surveys
These are written questionnaires asking employees to report about their attitudes and feelings toward all
elements of their working lives. Responses are anonymous and employees are free to express their attitudes
without fear of reprisal.
ii. Letters and reports
iii. Suggestion and complaints boxes- often effective at the beginning and their novelty quickly wear off.
iv. Open door policies
This allows employees to stop by any manager’s office with concern, suggestion, or complaint whenever they
feel the need. Practically, however, many managers may not have either time or willingness to listen to the ideas
of subordinates and other lower level people. Moreover, entering managers’ offices is often intimidating.
v. Open floor policies/management by walking.
This is an upward communication method through which management members’ walk around work areas
talking informally with employees individually or in-group. This method is more effective because employees
are likely to say what is in their minds when they are at work.
vi. Departmental meetings- employees are freer to report discuss and evaluate all elements of their work
lives than using written reports.
vii. Social gatherings
Social gathering creates favorable atmosphere for informal upward communication through employees throw
away their timidity and fear and feel free to talk to superiors about organizational and personal problems.

Limitations of Upward Communication

i. Upward communication is subject to substantial distortion -Employees are reluctant to communicate
negative information to superiors. Subordinates make every attempt to send messages that please
management and this leads to exaggerated information.
ii. By passing some organizational levels-When subordinates by pass their immediate superiors, the
possible result can be:
 Hostility between a subordinate and his/her immediate superior.
 Information overload to top management resulting in distrust for lack of response
 Violation of the chain of command.

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Many superiors discourage upward communication because of Negligence, lack of confidence, or because they
claim to be busy.

4.2.3 Horizontal Communication

Horizontal or lateral communication is communication between people or work units at the same level of
organizational hierarchy. It is designed to save time and facilitate control. Strict adherence to the chain of
command might result in the following problems.
By the time the communication process in complete through the scalar chain, the information may be useless.
The communication must pass through various levels aggravating screening and distortion. The
communications will unnecessarily costly in terms of time and money.

4.2.4 Diagonal Communication

Diagonal communication takes place between work units or people at different levels of organizational
hierarchy but without having direct reporting relationship. It is designed to support the vertical and horizontal
communication systems.
Conclusion
The vertical, horizontal, and diagonal communication constitutes the internal communication. Effective internal
communication helps in decreasing absenteeism, grievance, turnover; and increasing job satisfaction,
belongingness, productivity, and profit.
In general effective internal communication integrates and puts into action the management functions. It is
needed to:
 Establish and disseminate goals and develop plans for their accomplishment.
 Organize human and non-human resources in most efficient and effective way.
 Select, develop, and appraise organizational members.
 Lead, motivate, and create conducive climate at which employees are made to contribute to
organizational goals.
 Evaluate performance and take proper measures to remedy deviations from plans.

4.5 Informal Communication – The Grapevine

People talk about job related or unrelated information. They talk about promotions, salary increment,
demotions, administrative policies and decisions. They also talk about local and international affairs. They talk
such situations in the form of rumors, gossips, daily friendly chat etc. This all travel through informal networks
that often develop through incidents of spatial arrangement, similarity of personalities or compatibilities of

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personal skills. Informal communication is thus, ones, aspect of organizational communication that is not
designed and recognized by management.
Since every communication cannot be programmed, grapevine is created and exists out of the will of
management. It arises out of the need for social interaction between people in the organization. Of course,
what they share at an informal level will affect their ability to communicate about their jobs and their attitude
towards their work and the organization.
Most employees are involved in several networks at the same time; some grow from political ties, other from
technical interests and still others from social preferences. Grapevine is thus made up of several information
networks that overlap and interest at a number of points-that is some well-informed individuals are likely to
belong to more than one informal networks. It shows admirable disregard for rank and authority. The situations
that employees may informally discuss in the form of rumors and gossips may distort the accuracy of the
information and may even go against the interest of the organization, but managers cannot avoid it because it is
not created by management.

Four Informal Communication configurations

1. Single strand A B C D

2. Gossip - a person with the information passes it to every other individual in the chain
A
E
B
F C D

3. Random - Probability Chain - each person passes on information at random, without particular regard
for which the receiver is and the receivers use the same approach in their communication efforts.

D
C EE

F
B

A G
H
I

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4. Cluster chain - information is passed on selectively: the individual deliberately tells some people and
does not tell others. Some of those getting the information pass it on to others while the remainder does
not. The result is that handful of people often account for all of the information that is passed along this
information chain.
A

D
B
F
E
C
M
G J
I

Importance of the grapevine

i. It is used by employees as a safety value
Employees use the grapevine as a way of expressing their confined emotions use releasing their anxieties.
When people feel powerless to direct their destinies, the grapevine is a way to letting our confined emotions
thereby reducing frustration.
ii. The grapevine promotes organizational solidarity and cohesion.
People have inborn interest to interact and they satisfy their needs for friendliness. Love and acceptance by their
peers.
iii. Provides feedback to management
It enables managers to know the real responses of employees towards a policy or other parts of the organization
from the grapevine leaders informally than formal reports from supervisors.
The most negative attribute of the grapevine, however, is that it serves as a network for rumors that cannot be
supported by facts. Rumors can travel like wild fire across the boundary of an organization thereby spoiling the
public image of the organization. Besides often transmits incomplete information resulting in possible
misunderstanding, confusion and wrong action.

Ways of effectively utilizing the grapevine

Grapevine is a natural and enviable result of people working together in groups. It cannot be avoided because
the more one tries to block the more force it will have. Therefore the following are some of the ways through
which the grapevine can be utilized effectively for organizational purposes.

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 Managers should admit its existence and try to feed the leaders or the grapevine accurate information for
fast dissemination and minimize rumors that adversely affect the organizations productivity and public
image.
 The grapevine should be used to diagnose the feelings and attitudes of employees so that management
policies, styles and other practices would be adjusted profitably according to the common interest.
 Encouraging informal organizations to build team work wand mutual understanding so that false rumors
can be prevented before they prove to be harmful and disastrous.

External Communication
An organization is greatly affected by its external environment. Therefore, in order to exist, any
organization has to adjust its activities in accordance with external influences. Communications to persons
outside the company-customers, inquirers, suppliers and the public- can have a far-reaching effect on the
reputation and ultimate success of the organization. The right letter, telephone call, or personal conversation
can win back a disgruntled customer, create a desire for a firm’s product or service, can negotiate a profitable
sale, help an inquirer who is a potential customer, and in general create goodwill.
Reputable organizations are also seriously concerned about enhancing their public image through various
communications. Among these communications are public speeches by their executives, tactful replies to
comments and criticisms from consumer groups, free informative pamphlets, interviews with news media. All
these forms of communication are transmitted with a greater emphasis on truthfulness.
Thus, employees who communicate effectively can contribute in a variety of ways to the lifeblood of their
organization. Successful messages eliminate unnecessary additional correspondence save time and expense,
build favorable impressions enhance goodwill, and help increase company profits.
Therefore, in brief, effective internal communication integrates and facilitates the managerial functions at all
levels; and effective external communication relates and integrates an enterprise successfully to its external
environment.

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