Formal Communication
Definition: Formal Communication is the exchange of official information that flows along the different levels of the organizational hierarchy and conforms to the prescribed professional rules, policies, standards, processes and regulations of the organization.
Formal communication follows a proper predefined channel of communication and is deliberately controlled. It is governed by the chain of command and complies with all the organizational conventional rules. In the organizational set up formal communication can observe any of the following forms:
Downward Communication: Downward communication is when the information passes from the management to the subordinate level. This is the most common form of formal communication wherein communication flows downwards, i.e. from the people occupying top positions in the organization to the people at lower levels.
It mainly includes orders and instructions and can either be written or oral depending on the importance of the message and also the status of individuals involved in the communication process. Reports, emails, letters, manuals, etc. are the commonly used communication tools.
Upward Communication: Upward communication is when the message passes from the subordinate level to the management level. Here, the communication flows upwards i.e. from the subordinates to the managers in the form of requests, reports, suggestions, complaints, and instructions.
Horizontal or Lateral Communication: Horizontal communication means when Co-workers with different areas of responsibilities, but at the same level in the organization communicate with each other. The communication between the managers of different departments, such as marketing, finance, production, and HR, is the best example of horizontal communication.
Diagonal or Crosswise Communication: When the employees of different departments at different levels communicate with each other irrespective of the chain of command, then the communication is said to be diagonal or crosswise communication. The communication between the floor manager and the sales team is an example of diagonal communication.
How formal communication can be facilitated is called the traditional communication network. There are several forms of Formal Communication networks that individuals use to get their messages transmitted to others.
Informal Communication
Definition: Informal Communication is the casual and unofficial form of communication wherein information is exchanged spontaneously between two or more persons without conforming to the prescribed official rules, processes, systems, formalities and chain of command.
Informal communications are based on personal or informal relations such as friends, peers, family, club members, etc. and thus are free from the organizational conventional rules and other formalities. In the business context, informal communication is called a “grapevine” as it is difficult to define the beginning and end of the communication.
Informal communication is characterized by an indefinite communication channel, meaning there is no definite chain of command through which the information flows. Hence, the information can flow from anywhere. Often such communication arises out of the social relations that an individual creates with other persons based on common interests, likings or dislikings.
There are four types of Informal Communication (Grapevine) networks that show how communication is facilitated. These are:
Single Strand Chain
Gossip Chain
Probability Chain
Cluster Chain
The gossip in the organization is the best example of informal communication, wherein the employees of different departments irrespective of their hierarchical positions come together and communicate with each other. The grapevine satisfies the social needs of people and smoothens formal relations by filling in the gaps and even bringing together different people who do not fall under the common chain of command.
Comparison Chart
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