An organisation provides a number of channels for the flow of information, that is an organisation has a network of communication channels. These channels can be either intentionally designed, or they may develop of their own accord. When a channel is intentionally created/prescribed for the flow of communication in the Organisation, we call it a formal channel. The communication passing through a formal channel is formal communication. On the other hand, channels, outside the formal channels, are referred to as informal channels. The communication through informal channels is informal communication.
Formal Communication
An organisational chart shows the direction of formal communication flow. It identifies the various transmitters and receivers, and the channels through which they must communicate. The authority relationships indicate the direction of communication flow in an organisation. A formal communication takes place between a superior and subordinate in the form of instructions and directions. Such a flow takes place in the downward direction.
Another formal communication takes place from the subordinate to the superior when reporting on performance. Since the subordinate initiates communication to the superior, the flow is upward. We call this upward communication. The upward communication can take the form of progress reports, budget reports, profit and loss statements, requests for grants, etc.
Formal communication can also take place between one division of an organisation and another. This can be lateral or diagonal. For example there can be formal communication between the technical and accounts divisions of your utility. Formal communication may pass across organisational levels and can help in coordination and quality control. For example, communication between maintenance and financial units helps the utility to serve its customers better and earn better image.
Finally, formal communication may also arise between the organisation and outside parties, e.g., suppliers, customers, Government, etc. This may happen when the management is required to provide information on certain aspects of the working of the organisation. Communication of this kind is usually one-way.
Networks in Formal Communication
You have seen how the formal organisational structure prescribes the channels through which communication flows take place. These channels are designed to keep the flow of information in an orderly manner and to protect the higher level managers from an overload of unnecessary information. However, the way in which these channels are designed and work can affect the speed and accuracy of information as well as the task performance and satisfaction of members of the group. As such, managers have to think of how best to design the organisational structure and the communication network which meets the requirements of the situation.Some research in the design of communication networks has been carried out which indicates their relative merits for use in different situations. Although these networks can assume many forms, the most frequently discussed are the wheel, chain, ‘Y’ and circle, shown in Fig.
Formal Communication
An organisational chart shows the direction of formal communication flow. It identifies the various transmitters and receivers, and the channels through which they must communicate. The authority relationships indicate the direction of communication flow in an organisation. A formal communication takes place between a superior and subordinate in the form of instructions and directions. Such a flow takes place in the downward direction.
Another formal communication takes place from the subordinate to the superior when reporting on performance. Since the subordinate initiates communication to the superior, the flow is upward. We call this upward communication. The upward communication can take the form of progress reports, budget reports, profit and loss statements, requests for grants, etc.
Formal communication can also take place between one division of an organisation and another. This can be lateral or diagonal. For example there can be formal communication between the technical and accounts divisions of your utility. Formal communication may pass across organisational levels and can help in coordination and quality control. For example, communication between maintenance and financial units helps the utility to serve its customers better and earn better image.
Finally, formal communication may also arise between the organisation and outside parties, e.g., suppliers, customers, Government, etc. This may happen when the management is required to provide information on certain aspects of the working of the organisation. Communication of this kind is usually one-way.
Networks in Formal Communication
You have seen how the formal organisational structure prescribes the channels through which communication flows take place. These channels are designed to keep the flow of information in an orderly manner and to protect the higher level managers from an overload of unnecessary information. However, the way in which these channels are designed and work can affect the speed and accuracy of information as well as the task performance and satisfaction of members of the group. As such, managers have to think of how best to design the organisational structure and the communication network which meets the requirements of the situation.Some research in the design of communication networks has been carried out which indicates their relative merits for use in different situations. Although these networks can assume many forms, the most frequently discussed are the wheel, chain, ‘Y’ and circle, shown in Fig.
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| Formal Networks |
These forms can well be looked at as an organisational structure made up of five members.The ‘circle’ network represents a three-level hierarchy in which there is communication between superiors and subordinates, with cross communication at the operative level. Communication The ‘chain’ can represent a five-level hierarchy, in which communication can take place only Skills and upward and downward, and across organisational lines.
Motivation
The ‘wheel’ or ‘star’ represents an administrator and four subordinates with whom s/he interacts. There is no interaction amongst the subordinates.In the ‘Y’ network two subordinates report to the superior. It may be regarded as a four-level hierarchy.
The effectiveness of a communication pattern is determined by network centrality. The‘Y’ and ‘wheel’ networks are highly centralized, with the superior occupying the central position. The ‘circle’ and ‘chain’ networks are decentralized with no member being able to influence all other members.
The centralized networks perform faster and more accurately for simple tasks. For complex tasks, the decentralized networks are comparatively quicker and more accurate.
The centrality of networks also influences the emergence of a leader and the satisfaction of group members. In centralized groups, whether the tasks are simple or complex, one person who occupied the central position by virtue of the control of information emerges as the leader. In decentralized networks no one position could emerge as the leadership position.
These factors have certain implications (given below) for the design of organisational structure and the communication network:
• An organisation with mostly routine, simple tasks is likely to work more efficiently with a formal centralized network of communication, while more complicated tasks would require decentralized networks.
• The problem-solving objectives of speed and flexibility cannot be achieved by the same pattern of communication. Rather, speed in problem-solving can be achieved at the expense of flexibility, and vice-versa. As such, the communication pattern should be designed with reference to the objective that is regarded as more important.
• The pattern that leads to the highest average morale and greatest flexibility in adapting to changed conditions is the one in which there are a large number of active participants in decision-making process.
• Access to information is an important source of power in organisations.
So far we have discussed patterns for formal communication in an organisation. We shall now discuss informal communication and its channels.
Informal Communication
Communication that takes place without following the formal lines of communication is said to be informal communication. This channel is not created by management and is usually not under the control of management.An informal system of communication is generally referred to as the ‘grapevine’ because it spreads throughout the organisation with its branchesgoing out in all directions in utter disregard of the levels of authority and linking member of the organisation in any direction.
The informal communication normally works where there is communication gap between employees and the management. It has been observed that problems relating to work and unfavourable reactions to various organisational practices are transmitted through informal communication. Since the channels are flexible and establish contacts at personal levels among members of organisation at different hierarchical levels, the grapevine spreads information faster than the formal system of communication. About 10 to 40 percent of employees receive information (or misinformation) about the organisation through informal channels of communication.The grapevine transmits information from one person to a group of persons more rapidly in a cluster chain arrangement. The cluster chain is made up of individuals who act as information sources. Each individual passes the information to several others, some of whom repeat the message to others. Some of those who receive the message may not pass on the information to others but the information may lead to a change in their thinking on the subject and may sometimes affect their behaviour as well. Fig illustrates the cluster chain network of informal communication.
Motivation
The ‘wheel’ or ‘star’ represents an administrator and four subordinates with whom s/he interacts. There is no interaction amongst the subordinates.In the ‘Y’ network two subordinates report to the superior. It may be regarded as a four-level hierarchy.
The effectiveness of a communication pattern is determined by network centrality. The‘Y’ and ‘wheel’ networks are highly centralized, with the superior occupying the central position. The ‘circle’ and ‘chain’ networks are decentralized with no member being able to influence all other members.
The centralized networks perform faster and more accurately for simple tasks. For complex tasks, the decentralized networks are comparatively quicker and more accurate.
The centrality of networks also influences the emergence of a leader and the satisfaction of group members. In centralized groups, whether the tasks are simple or complex, one person who occupied the central position by virtue of the control of information emerges as the leader. In decentralized networks no one position could emerge as the leadership position.
These factors have certain implications (given below) for the design of organisational structure and the communication network:
• An organisation with mostly routine, simple tasks is likely to work more efficiently with a formal centralized network of communication, while more complicated tasks would require decentralized networks.
• The problem-solving objectives of speed and flexibility cannot be achieved by the same pattern of communication. Rather, speed in problem-solving can be achieved at the expense of flexibility, and vice-versa. As such, the communication pattern should be designed with reference to the objective that is regarded as more important.
• The pattern that leads to the highest average morale and greatest flexibility in adapting to changed conditions is the one in which there are a large number of active participants in decision-making process.
• Access to information is an important source of power in organisations.
So far we have discussed patterns for formal communication in an organisation. We shall now discuss informal communication and its channels.
Informal Communication
Communication that takes place without following the formal lines of communication is said to be informal communication. This channel is not created by management and is usually not under the control of management.An informal system of communication is generally referred to as the ‘grapevine’ because it spreads throughout the organisation with its branchesgoing out in all directions in utter disregard of the levels of authority and linking member of the organisation in any direction.
The informal communication normally works where there is communication gap between employees and the management. It has been observed that problems relating to work and unfavourable reactions to various organisational practices are transmitted through informal communication. Since the channels are flexible and establish contacts at personal levels among members of organisation at different hierarchical levels, the grapevine spreads information faster than the formal system of communication. About 10 to 40 percent of employees receive information (or misinformation) about the organisation through informal channels of communication.The grapevine transmits information from one person to a group of persons more rapidly in a cluster chain arrangement. The cluster chain is made up of individuals who act as information sources. Each individual passes the information to several others, some of whom repeat the message to others. Some of those who receive the message may not pass on the information to others but the information may lead to a change in their thinking on the subject and may sometimes affect their behaviour as well. Fig illustrates the cluster chain network of informal communication.
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| Cluster Chain Network of Informal Communication |
Though it has been found that informal communication carries accurate information about three-fourths of the time, there are strong possibilities of its communications being highly distorted. This happens because of the process of ‘filtering’ whereby each member of the chain passes on only that part of communication which s/he regards important. The receiver is left to fill in the gaps and complete the story according to his/her own imagination. This may at times cause serious problems in the organisation.Since the grapevine is a fast channel of communication with tremendous capacity to carry information both helpful and harmful, as a manager, you are expected utilize the positive aspects and minimize the negative aspects. In order to do this, you can identify the members of the organisation who usually seek and spread information. It is possible that different individuals are active at different times but usually it will be found that some individuals tend to be more active carriers of information than others. After identifying such individuals, you can use them as sounding boards. If it is discovered that misleading rumours are circulating, it may be desirable to release the official information to clarify the situation. At times, management may even find the informal communication channel more useful in transmitting information than the formal channel. A common method of using informal communication is by ‘planned leaks’, or strategically planned ‘just between you and me’ remarks, which would obviously reach all parts of the organisation far quicker than any kind of communication through formal channels.
Problems in Communication
Communication may not always be effective. The main criterion to find out whether a communication is effective or not is the fulfillment of its purpose. In Fig, the various purposes of communication in the four directions have been stated. If the purpose is not fulfilled properly, the problem should be looked into. There may be several sources of problems in communication.
Problems in Communication
Communication may not always be effective. The main criterion to find out whether a communication is effective or not is the fulfillment of its purpose. In Fig, the various purposes of communication in the four directions have been stated. If the purpose is not fulfilled properly, the problem should be looked into. There may be several sources of problems in communication.
Rumours: A rumour is usually a belief which is passed as an item of information from one person to the other without verification of evidence. Remours spread like wildfire in periods of stress or unrest. Two conditions for the spread of rumours are: importance of the topic to people, and lack of availability of correct information about it. The third factor is the critical sense of people. We know that if people have the capacity for decision-making after reflection and on the basis of some information, rumours don’t spread.
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