Formal and Informal

Communication
prepared by

Anush Kuchipudi
Monika Goswami
 Contents
1. Communication 5
2. The Role of Communication in Organizations 6

3. Organizational Structure 7
4. Organizational Charts 8
5. Formal Communication 9
6. Informal Communication 12
7. Grapevine 13
8. Grapevine Characteristics 14
9. Managing the Grapevine 15

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 Contents
10. Positive Aspects of the Grapevine 16

11. Grapevine Figures 17

12. Formal Media 18

13. Informal Media 19

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 Communication

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 Communication

 The social glue that continues to keep the organization tied

together.
 The essence of organization.
 A key process underlying all aspects of organizational
operations.

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 The Role of Communication in an
Organizations
Key Purposes:
 Direct action: to get others to behave in desired fashion.
 Achieve coordinated action.

 Systematic sharing of information

+ Interpersonal side with the focus on interpersonal
relations between people.

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 Organizational Structure
 The formally prescribed pattern of interrelationships existing
between the various units of an organization.
 Dictating who may and may not communicate with whom.
 Abstract construction.
 Depicted in organizational charts.

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 Organizational Charts

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 Formal Communication

 The process of sharing official information with others who

need to know it.
 According to the prescribed patterns depicted in an
organization chart.

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 Formal Communication

President

Instructions and directives

Information

Vice Vice
President President

Manager Manager Manager Manager

Efforts at coordination

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 Formal Communication


Downward Communication:
 instructions, directions, orders
 feedback

 Upward Communication:
 data required to complete projects

 status reports

 suggestions for improvement, new ideas

 Lateral Communication:
 co-ordination of co-operation

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 Informal Communication
Defn-: Information shared without any formally imposed
obligations or restrictions.

If an organization’s formal communication represents its

skeleton, its informal communication constitutes its central
nervous system.

 An organization’s informal channels of communication, based

mainly on friendship or acquaintance.
 Origin: American Civil War [Grapevine Telegraphs].

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 Grapevine
 A secret means of spreading or receiving information.
 The informal transmission (un-official) of information ,
gossip or rumor from person-to-person.
 A rumor.

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 Grapevine Characteristics

 Crossing organizational boundaries.

 Inaccuracy.
 Levelling.
 Deletion of crucial details.
 Sharpening.
 Exaggeration of most dramatic details.

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 Managing the Grapevine

“the grapevine cannot be abolished, rubbed out, hidden under a

basket, chopped down, tied up or stopped“

 Don‘t try to control or restrict it.

 Use it to supplement formal channels.

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 Positive Aspects of the Grapevine

 Social function.
 Identification of pending problems.
 Early warning system for organizational change.
 Vehicle for creating a common organizational culture.
 Desired information can be circulated quickly to a large
group of subordinates (inofficially!).

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 Grapevine Figures

 70% of all organizational communication occurs at the

grapevine level.
 Estimated accuracy rates: 75-90%.
 The incorrect part might change the meaning of the whole
message though.
 An estimated 80% of grapevine information is oriented toward
the individual while 20% concerns the company.

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 Formal Media
 Company newsletters.
 Employee handbooks.
 Company magazines.
 Formal meetings.
 Letters.
 Flyers and bulletins.
 Memos.
 Faxes.
 All-employees mailings.

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 Informal Media

 Face-to-face discussions.
 Telephone.
 Voice messaging (voice mail).
 E-mail.
 Instant messaging (chat).

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