In organisations, communication does not happen randomly. It follows certain forms and channels depending on:
Understanding forms/channels helps reduce delays, misunderstandings and conflicts.
Formal communication flows through official lines of authority and follows rules/policies. Examples: circulars, official emails, reports, notices, meeting minutes.
Features:
Informal communication is not based on official channels. It arises naturally from social relationships. Examples: casual talks, unofficial messages, peer discussions.
Features:
Flow: superiors → subordinates Purpose: orders, instructions, policies, feedback on performance. Examples: job instructions, targets, appraisal feedback.
Flow: subordinates → superiors Purpose: reports, suggestions, grievances, feedback. Examples: progress reports, employee complaints, suggestions.
Flow: same level (department-to-department) Purpose: coordination and problem solving. Examples: marketing and production coordination.
Flow: across departments and levels. Example: sales executive communicating with finance manager.
Exam note: Balanced upward and downward communication improves employee participation and reduces conflicts.
Access the complete note and unlock all topic-wise content
It's free and takes just 5 seconds
Business communication is the process of sharing information between people within and outside a company. Effective business communication is how employees and management interact to reach organizational goals. Its purpose is to improve organizational practices and reduce errors.
Get instant access to notes, practice questions, and more benefits with our mobile app.
Download this note as PDF at no cost
If any AD appears on download click please wait for 30sec till it gets completed and then close it, you will be redirected to pdf/ppt notes page.
In organisations, communication does not happen randomly. It follows certain forms and channels depending on:
Understanding forms/channels helps reduce delays, misunderstandings and conflicts.
Formal communication flows through official lines of authority and follows rules/policies. Examples: circulars, official emails, reports, notices, meeting minutes.
Features:
Informal communication is not based on official channels. It arises naturally from social relationships. Examples: casual talks, unofficial messages, peer discussions.
Features:
Flow: superiors → subordinates Purpose: orders, instructions, policies, feedback on performance. Examples: job instructions, targets, appraisal feedback.
Flow: subordinates → superiors Purpose: reports, suggestions, grievances, feedback. Examples: progress reports, employee complaints, suggestions.
Flow: same level (department-to-department) Purpose: coordination and problem solving. Examples: marketing and production coordination.
Flow: across departments and levels. Example: sales executive communicating with finance manager.
Exam note: Balanced upward and downward communication improves employee participation and reduces conflicts.
Examples: meetings, telephone, face-to-face discussion. Merits: quick feedback, personal touch. Limitations: no permanent record, risk of distortion.
Examples: letters, emails, reports, circulars. Merits: permanent record, clarity for complex information. Limitations: time-consuming, delayed feedback.
Examples: charts, graphs, dashboards, signs. Merits: quick understanding of data. Limitations: may need explanation.
Examples: email, chats, video calls, collaboration tools. Merits: fast and scalable. Limitations: information overload, misinterpretation in text.
Grapevine is informal communication that spreads quickly through the organisation.
Management approach: do not ignore grapevine; control rumours by giving accurate information quickly.
Selection depends on:
Downward communication carries instructions, policies and feedback from higher levels to lower levels. It helps control and direction but may distort if too many levels exist.
Horizontal communication supports coordination between departments at the same level and reduces delays.
Sending a policy update to all employees: use written email/circular for record and uniform message.
From this topic
Formal communication uses official channels, is more reliable and usually has record. Informal communication uses social channels, is faster and has no official record. Formal is easier to control; informal is difficult to control.
Downward communication flows from superiors to subordinates. It is used to give instructions, explain policies and assign duties. It also provides feedback on performance and helps control activities.
Formal communication is official communication that follows the organisation’s structure and rules. It flows through approved channels like circulars, reports, official emails and meeting minutes. It provides accountability and record, but may be slower due to hierarchy.
Informal communication is unofficial communication that arises from social relations among employees. It is fast and flexible, builds relationships and helps quick sharing, but can spread rumours and may not be reliable.
Differences (key points):
Both forms exist in organisations; good management uses formal channels and keeps grapevine under check by timely information.