Communication in Organizations

During this lecture, we will describe the various kinds of communication in organizations.

Simply stated, the communication process is how a message is sent from one person to another so it can be understood. From a business standpoint, communicating effectively is a must and is crucial to the successful operation of an organization. All business leaders as well as managers need to understand the fundamentals of communicating effectively.

Let’s now discuss the various kinds of communication in organizations.

Communication is essential for an organization. If communication ever ceases, any type of organized activity will cease as well.

There are two main types of communication in any organization which are formal and informal communication.

We will first look at formal communication, which is communication, either written or verbal, passed through the formal channels of the organization. Formal Communication is considered the most efficient way to communicate because it is usually predefined by the organization’s reporting structure and chain of command. It is also the preferred method of communication when asking for clarification or direction on projects, reporting any issues, and exchanging information. Some basic examples of this can be communication of company goals and/or policies, instructions, complaints, or reviews just to name a few.

Formal communication covers three types:

Upward - communication from employees to management.
Downward - communication from management to employees.
Horizontal - communication from employee to employees or manager to manager.

Informal communication encompasses communication that will usually fall outside the formal channels and is based on personal rather than work relationships. Another term for informal communication is the grapevine. The important thing to understand about informal communication is that it does not follow the lines of formal communication. Informal communication can be conversations during lunch breaks, water cooler interactions or phone calls.

A smart organization can make good use of informal communication to help support the formal channels of communication. It can be a valuable tool for organizations in expressing particular information that could not be passed down via the formal channels. It also satisfies employee’s needs to understand what is happening in the organization and gives them an opportunity to express concerns, or complaints they may have.