1. FORMAL AND INFORMAL COMMUNICATION IN AN ORGANIZATION

2. COMMUNICATION
Communication is transfer of information from one person to another, whether or not it elicits confidence. But the information transferred must be understandable to the receiver – G.G. Brown.

3. TYPES OF COMMUNICATION
INFORMAL COMMUNICATION
FORMAL COMMUNICATION
Formal communication it deals with the sharing of official information with others who need it.
Informal communication it is sharing of information with friends, peers which has no skeleton like formal communication.

4. Formal Communication Downward communication: Upward communication:
instructions, directions, orders
feedback
Upward communication:
data required to complete projects
status reports
suggestions for improvement, new ideas
Horizontal communication:
coordination of cooperation
Diagonal communication:
--free flow of communication

5. Formal Communication Instructions and directives Information
President
Vice
President
Vice
President
Instructions and directives
Information
Manager
Manager
Manager
Manager
Efforts at coordination

6. Formal Network Model Y Structures within the organization charts
e.g. „the y“ in the organization chart
some of the possible configurations of connections between people
- the way communication networks are actually planned
- circles represent individuals
- lines represent two-way lines of communication
- example of formal communication within a hierarchy such as in the police force or civil force Y

7. Formal Network Model Wheel
- one group, person or department occupies a central position
- e.g. head office communicating with salespeople in different regions
Wheel

8. Formal Network Model Chain
- one person passes information to the others, who then pass it on
- e.g. Civil Service
- advantage: leader at the top of the hierarchy who can oversee communications
- disadvantage: isolation felt by those at the bottom of the network, less motivation
Chain

9. Formal Network Model Circle
- sections or departments can communicate with only two others
- e.g. between middle managers from different departments at the same level of the organisation
- problem: decision-making can be slow or poor because of a lock of coordination
Circle

10. Formal Network Model All Channel
- may be used for small working groups
- open communication system
- good for brainstorming
- disadvantage: slow
All Channel

11. Informal Communication
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.
eg. “grapevine“
An organization’s informal channels of communication, based mainly on friendship or acquaintance
origin: American Civil War [grapevine telegraphs]

12. “Grapevine“ a secret means of spreading or receiving information
the informal transmission of (unofficial) information, gossip or rumor from person-to-person -> "to hear about s.th. through the grapevine"
a rumor: unfounded report; hearsay

13. 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

14. Informal Network ModelsB D J H C E K G I X
Probability Y D C B A
Single strand A C D F J I B
Cluster A J B D H I K F G E C
Gossip
- Informal Networks:
- consist of interaction patterns that are not designed by management
can be based on physical proximity, shared career interests or personal friendships
article about the exchange of in an organization ( reveals real leaders)
used exchanges to build a map of the structure of an organization
The map shows the teams in which people actually work, as opposed to those they are assigned to
unofficial de facto leaders can also emerge
big institutions tend to divide organically into informal collaborative networks, called communities of practice
-> companies‘ informal structure
the communities often crossed the formal departmental boundaries defined by the company
- chain:
every member passes on information, but to just one person
- gossip
one person passes on information to all the others that he encounters
- probability chain
no structure
A is very talkative and outgoing type, passes on information to random contacts
- cluster
information is passed on to selected persons
most common pattern
selectivity: pass on information to people with whom you are in close contact
Informal Network Models

15. Advantage Disadvantage
Not expensive reveal some degree of error
Rapid, multidirectional harmful in case of imaginary
Outlet for anxieties , worries not reliable ,nobody takes responsibilities
Promotes unity may cause damage to organization