Formal and Informal Channels of Communication
Every business organization adopts some formal channels of communication which may be upward, downward, or horizontal or all the three. They are usually in the form of notices, announcements, reports, official or demit-official letters, advertisements, etc. Formal channels are officially recognized and organized. They make the working of the organization transparent. They motivate the employees. They provide the necessary feedback. But formal channels operate with some limitations. A continuous maintenance of a formal channel is time and resource consuming. At ordinary times, they exist for their own sake without any objective, as a formality and routine. Sometimes, free flow of information gets affected by personal factors. In an organization, there are basically two ways of COMMUNICATION namely: Formal and Informal communication.
Formal and Informal Communication Networks
- Networks -- structural means (patterns of interaction) that allow messages to flow within organizations. May include two people, small groups of people, or large numbers that flow outside the organization. We typically find ourselves involved with multiple organizational networks.
- Message Flow Directions -- Upward--subordinates to managers. Watch out for the tendency of “positive distortion” from employees. No one wants to make a bad impression on their supervisory and it is very human to put a positive spin in issues even when there is little to offer in that light. Downward--managers to subordinates. Try to provide “rationale for decisions” when possible. Studies show over and over that employees feel better about the organization when they know “why” they are doing things or “why” change is occurring. Horizontal—communication between employees or departments of the same status. This may become overly competitive for organizational resources like budgets, awards, recognition, etc. May not be a problem but it is top managements’ job to ensure the competition does not become counter-productive.
- Formal Networks -- Officially sanctioned; the organizational flow chart; company newsletters; memos; managers’ meetings; etc.
- Informal Networks -- arise due to the situation employees are in; emerge out of a need; no permanent structure; may be faster than formal networks; a spontaneous flow of information that may or may not be correct.
Formal communications
- Formal communication is that which devices support from the organisation structure. It is associated with the particular positions of the communicator and the recipient in the structure.
- Formal communications are mostly of the written type such as company manuals, handbooks magazines, bulletins annual reports and are designed to meet the specific need s of the organisation.
- Communication takes place through the formal channels of the organization structure along the lines of authority established by the management.
- Such communications are generally in writing and may take any of the forms; policy; manuals: procedures and rule books; memoranda; official meetings; reports, etc.
Informal communications
- Communication arising out of all those channels of communication that fall outside the formal channels is known as informal communication.
- Built around the social relationships of members of the organization.
- Informal communication does not flow lines of authority as is the case of formal communication.
- It arises due to the personal needs of the members of n organization.
- At times, in informal communication, it is difficult to fix responsibility about accuracy of information. Such communication is usually oral and may be covered even by simple glance, gesture or smile or silence.
Methods of Analyzing formal and informal communications Networks
- Residential analysis -- goes to the organization and observes activity over an extended period of time. What’s good and bad about this?
- Distribute questionnaires to employees -- (how honest do you think employees will be here?)
- Communication Diary -- (same comment as above...do you speak the truth or tell the researchers what they want to hear?)
- ECCO -- requires employee assistance in looking for patterns of transmitted messages (how they learned and from whom)

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