Describe formal and informal communication networks in the business organization.


Formal Communication: The communication in which the flow of information is already defined is termed as Formal Communication. The communication follows a hierarchical chain of command which is established by the organization itself. In general, this type of communication is used exclusively in the workplace, and the employees are bound to follow it while performing their duties.

Organizational Structure:
Example: Requests, commands, orders, reports etc.
The formal communication is of four types:
· Upward or Bottom-up: The communication in which the flow of information goes from subordinate to superior authority.
· Downward or Top-down: The communication in which the flow of information goes from superior to subordinate.
· Horizontal or Lateral: The communication between two employees of different departments working at the same level.
· Crosswise or Diagonal: The communication between the employees of two different departments working at different levels.
Informal Communication: The communication which does not follow any pre-defined channel for the transmission of information is known as informal communication. This type of communication moves freely in all directions, and thus, it is very quick and rapid. In any organization, this type of communication is very natural as people interact with each other about their professional life, personal life, and other matter.
Example: Sharing of feelings, casual discussion, gossips, etc.
The informal communication is of four types:
·    Single Strand Chain: The communication in which one person tell something to another, who again says something to some other person and the process goes on.

Figure: Single Strand Chain

·    Cluster Chain: The communication in which one person tells something to some of its most trusted people, and then they tell them to their trustworthy friends and the communication continues.

Figure: Cluster Chain

·    Probability Chain: The communication happens when a person randomly chooses some persons to pass on the information which is of little interest but not important.

Figure: Probability Chain
Gossip Chain: The communication starts when a person tells something to a group of people, and then they pass on the information to some more people and in this way the information is passed on to everyone.


Figure: Gossip Chain



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