Chapter II: Business

communication
 1. Formal communication (Definition)

Formal communication is exchanging official information between

two or more people within the same organization, by following
predefined rules and using official channels of communication.
 1. Formal communication (Examples)

Some examples of formal communication include:

 Meetings: Great for longer discussions about issues concerning the current and
future projects.

 Conferences: Useful for broadening knowledge about any areas of expertise, by

listening and participating in panel discussions.

 Formal One-on-Ones: According to the research, around 70% of the surveyed

managers cited it as a great way to understand and eliminate roadblocks.
 1. Formal communication (Examples)

 Memos: An effective way to describe a way in which organizational changes should be

implemented.

 Letters and emails: Useful for all kinds of correspondence, including organizational
information.

 Presentations: Among other things, a practical way to show your coworkers what you
have been working on.

 Company wiki page: A great way to keep your employees informed about the most
common questions.
 1. Formal communication (Types)

Formal Communication can be classified into 5 types based on the flow of information within the
organization:

 1. Vertical Communication: It is communication among individuals or groups, where the

information flows across hierarchical levels within the organization. It is further classified as:

Downward Communication: It is the information flow from the top-level executives to the
bottom-level employees. It takes the form of instructions, directives, and goals.

Upward Communication: It is the information flow from bottom-level employees to top-

level executives. It takes the form of feedback, suggestions, and daily updates.
 1. Formal communication (Types)

 2. Crosswise Communication: It is communication between individuals or

departments and various functional areas operating within the organization.

 3. Horizontal Communication: It is the information exchange among individuals and

groups across the same hierarchical level in the organization, promoting
collaboration and coordination.
 1. Formal communication (formal
channels of communication)
some of the formal channels of communication include:
 Email — used for all sorts of messages among coworkers.
 Business messaging apps — useful for quick reminders and more pressing matters.
 Printed statements — usually contain information relevant to all the members of the
organization.
 News bulletins — a useful way to announce news and upcoming events.
 Digital forms – organization website, internal forums, intranet, etc, used for sharing
information, easier communication, and collaboration.
 1. Formal communication(importance)

Formal Communication is critical to business communication as it provides the framework

for efficient information exchange, collaboration and organizational productivity. It is
important due to the following reasons:

 Clarity and Accuracy: It reduces the chances of misinterpretation and misunderstanding

by ensuring clarity and accuracy in the flow of information and adhering to standardized
rules.

 Professionalism: It holds the organization’s professional image during client interactions

and conveys the credibility and seriousness of the shared information.

 Hierarchy and Structure: It reduces confusion by defining proper channels for information
flow and increasing trust and accountability among involved stakeholders.
 1. Formal communication
(importance)
 Decision-making: It provides accurate data and information to the organization’s decision-makers,
allowing them to make informed

 Legal Documents: It allows the maintenance of a legal record of the communication, promoting
transparency within the organization. They also satisfy legal and compliance needs.

 Organizational Culture: It acts as a tool to convey the corporate mission, values and goals across all
the employees. In addition, setting a culture of professionalism, mutual respect and trust.

 Crisis Management: During emergencies, it helps with the quick dissemination of information across
the organization and ensures effective decision-making for the well-being of employees.
 1. Formal communication
(advantages and disadvantages)
Advantages

 it ensures the flow of information is accurate and precise and the intended message is clear for the
recipients.

 It helps maintain the professional tone of the sender and conveys credibility among external
stakeholders.

 It establishes a hierarchical structure in the organization, preventing confusion and

misunderstanding.

 It supports the claims with a written record to ensure legal compliance.

 It plays a crucial role in business decision-making by providing accurate data via the right channels.
 1. Formal communication
(advantages and disadvantages)
Disadvantages

 It makes the flow of information complex by involving multiple stakeholders, and it’s time-
consuming as it follows an organizational hierarchy.

 It is unsuitable for informal gatherings requiring spontaneous responses and quick decision-
making.

 They create a barrier to the free flow of information as employees fear challenging the
information gained through formal channels.
 2. Informal communication

Informal communication is casual communication between coworkers in the

workplace. It is unofficial in nature and is based in the informal, social
relationships that are formed in a workplace outside of the normal hierarchy
of business structure.
 2. Informal communication (types)

There are four different types of informal communication:

 Single Strand: One person communicates with one person and then they go and communicate with another
one person. Communication is traveling from one person to another one person.

 Gossip Chain: Group conversation where everyone is talking to each other informally.

 Probability Chain: Each individual randomly tells another individual the same message.

 Cluster Chain: One person shares information with a group of selected individuals and in turn each of those
individuals shares that information with others.

All of these different types of informal communication are all about how information flows between employees
outside of a professional and formal meeting scenario.
 2. Informal communication
(advantages)

 Interpersonal Relationships: informal communication creates good interpersonal relationships. This type
of communication system between workers helps to coordinate tasks easily. Superiors and subordinates
can develop healthier working relationships by communicating through conversations about non-work
related topics.

 Speed: the absence of channel barriers prevalent in formal communication channels, messages can travel
very fast in informal communication.With social media systems and instant messaging technology available,
it is possible to deliver information to the receiver in any geographical location at a fast speed.
 2. Informal communication
(advantages)

 Flexible form of communication: Informal communication networks do not require employees to

follow formalities. This eliminates communication from being rigid. An employee can directly
communicate with a subordinate or superior using different channels.
 Increased job satisfaction:An organization with a solid informal communication increases
motivation, and enthusiasm and boosts job satisfaction by creating a work environment that is
inclusive, friendly, and non-robotic.
 Satisfies social needs:Human interactions rely heavily on informal communication. A work
environment that encourages employees to freely express their ideas and viewpoints leads to higher
levels of coordination, teamwork, and efficiency in work output
 2. Informal communication
(disadvantages)

The limitations of informal communication are as follows:

 Misinterpretation: Due to a lack of official processes and rules, the message in informal communication can
be distorted. The original message can be misinterpreted and this can give rise to misunderstandings and
arguments between or among employees and managers.
 Lack of accountability: There are no records maintained in informal communication. This makes it difficult to
trace the original source of information. Individuals can also deny conveying harmful and false information and
deny accountability.
 Informational leaks: Confidential information can be leaked through informal channels of communication.
This causes instability in the organization. The integrity of any business relies on having trust in its employees.
Information leaks can even cause the business great monetary losses.
 2. Informal communication
(disadvantages)

 Spread of rumors: It is difficult to trace the source of rumors and false information due to a lack of control over
communication channels and it is harmful to the organization.
 Unreliable: A lot of times information received from informal channels can be unreliable. It has to be verified and
confirmed first before taking it into consideration. This process can be time-consuming.
 Errors in carrying out tasks: Employees are more likely to commit errors at work if they rely too heavily on
informal communication. It is possible for employees to misinterpret job duties and tasks.
 3. Computer mediated
communication

Computer mediated communication(CMC) is any

form of communication between two or more
individuals who interact and or influence each
other via separate computer through the
internet, or a network connection using software.

CMC does not include the methods by which

two computers communicate, but rather how
people communicate via computer.
4. Types of Business communication
 5. Business correspondence

A Business correspondence is the exchange of information in written format for the process of
business activities. We can use them within the organisation or outside the organization that
between customers and the organization. There are many types of business correspondences:
reports. Memos, letters of sponsorship, press release, proposals…

 A memo: use to inform a group of people about a specific problem, solution or events.

 A press release: is an official statement (written or recorded) that an organization issues to the
media and beyond

 A proposal: a document that helps you earn clients and partners by describing your business’
service and product offerings.
 MEMORANDUM
DATE: 13.03.2024.
TO: All staff
FROM: MISSE NGON ANGE , CEO
SUBJECT: office closed next week for renovations
From Monday to Friday next week, our office will be closed due to renovations taking place.
Due to your feedback, we have decided it’s time to update our office space. We will be updating
Security system by adding CCTV and adding a secure door with a passcode. Also the ventilation system will be
replaced to helps with the summer heat. Additionally, new, comfortable office chairs have been ordered for all
staff and are expected to arrive early next week.
Please clear your desks and other parts of the office of all personal belongings by the end of this week to make
sure the process easier for everyone.
Next week we are going to full-remote, so plan accordingly. You are expected to be available from
9am to 5pm , but organised your time differently if you see fit.
If you have any questions or concerns, feel free to contact me.
Thank you.
MISSE NGON ANGE