FORMAL AND INFORMAL COMMUNICATION

Introduction
Communication plays a key role in our life, as people interchange their views and thoughts by
communicating. It is a core tool that plays an important role even in the growth of the organization.
In an organization, there are two channels of communication - formal and informal. The main
difference between the two is that formal communication is backed by predefined channels while there
is no such rule for informal communication.
What is Formal Communication?
Formal communication typically refers to an official interchange of information. Regardless of the
role within an organization, knowing how to formally communicate and recognize formal
communication can help improve the way one communicate with colleagues and the company’s
management. Understanding and using all types of formal communication can be a valuable skill, but
it requires research and practice. The communication in which information flows through proper and
pre-defined solutions is referred to as Formal Communication. It follows a hierarchical chain that is
generally established by the organization itself.
This type of communication is a must in the workplace because employees are expected to follow
formal communication while performing their duties. Some general examples of formal
communication are reports, commands, orders, etc.
Why is formal communication important?

Some of the main reasons which make it important to implement formal workplace communication
include:

1. It clearly defines and establishes authority: Using formal communication within an

organization helps create an efficient flow of information between higher –level
employees. This, in turn, helps subordinates know exactly what their responsibilities
are and who they report to.

2. It improves overall efficiency: Having efficient communication usually means that

overall efficiency, at all levels, is likely to improve. The main reason for that is the fact
that properly implementing formal communication tends to significantly reduce
ambiguities.
 3. It reduces the likelihood of mistakes and errors: Communicating within the
boundaries of formal communication tends to reduce the change of any mistakes and
errors occurring, as the message is usually more clearly understood and comes from a
source of authority.

4. It can create discipline: Clearly defining an organization’s hierarchy and using formal
communication for internal messaging can improve overall discipline, as everyone
knows exactly who they report to and who reports to them.

5. It can improve work coordination: Formal communication across different

departments within an organization can help them better coordinate their work, due to
the unambiguous messaging and clearly defined chain of command.

6. It tends to be more credible when sending important messages: Using formal

communication for high –priority messaging, such as company objective, overall
business directions or direct orders to employees or departments, usually seen as more
reliable and credible by the recipients, which makes it more likely that they would fully
comply.

Types of Formal Communication

1. Vertical

In this type of formal communication, information exchange takes place at different organizational
levels. Either the communication takes place from superior authority to subordinate or vice-versa.
It is also classified into two types:

 Bottom-up: Communication flow is from subordinate to superior authority.

 Top-down: Communication flow is from superior authority to subordinate.

2. Lateral or Horizontal

This type of communication takes place between two employees of the same level but working in
different departments.
For example, communication that takes place between the Sales Manager and Human Resource
Manager.
3. Diagonal or Crosswise

This type of communication takes place between employees of different departments working at
different levels.
For example, communication between Salesman and manufacturing manager.

What is Informal Communication?

Informal communication is multidimensional; it flows freely in the organization without any restraint
of predefined channels or routes. It is comparatively very quick and relational.
In organizations it is often called the ‘grapevine’. It is also important for the growth of a company
because employees can discuss work-related issues more openly which ultimately saves the company’s
time and money.
Some general examples are - chats between team members, a private journal or diary, etc.

Types of Informal Communication

1. Single Strand Chain

The communication in which one person tells something to another who again says something to
another person and the process continues.

2. Cluster Chain

In this type of informal communication, one person tells something to some of his friends then they
circulate that among their close friends and the process goes on.

3. Probability Chain

In this type, one person randomly chooses some persons and transfers information to them and they
also do the same later on.

4. Gossip Chain

This type of communication is very common in an organization, where a person tells something to a
group of people then they also spread it further to another group of people till it gets passed to
everyone.
Key Differences between Formal and Informal Communication

1. A set of commands is followed for formal communication whereas informal communication

can move freely in all directions.
2. Formal communication is time-consuming, whereas it costs less time for informal
communication.
3. Formal communication has its scope restricted within the organization whereas informal
communication has no boundary.
4. A high level of secrecy is maintained for formal communication, whereas it’s not guaranteed
for informal communication.
5. Formal communication is designed at the organizational level whereas informal communication
occurs naturally.
6. Documentary evidence is always available for formal communication whereas there are no
supporting documents available for informal communication.
7. Slang words are never used in formal communication while they can be used in informal
communication.
8. Formal communication is also known as official communication and informal communication
is also known as grapevine communication.
9. Examples of formal communication are - business letters, reports, orders, etc. while examples
of informal communication are face-to-face communication, telephonic conversations, etc.
10. Generally, documentation happens for formal communication whereas no documentation
happens for informal communication.
11. Formal communication has a long chain of command whereas informal communication is very
simple due to its short chain of command.
12. The main motive of formal communication is to fulfill organizational objectives whereas
informal communication is intended to meet personal interests and needs.

Most organizations have their channel of formal communication however, informal communication
will always be there and is mostly used by the employees at the operational level which is essential for
the overall growth of the company.
Characteristics

Following are the chief characteristics of the formal communication:

(1) Written and Oral:

Formal communication can both be written and oral. Daily works are handled through oral
communication, while the policy matters require written communication.

(2) Formal Relations:

This communication is adopted among those employees where formal relations have been established
by the organization. The sender and the receiver have some sort of organizational relations.

(3) Prescribed Path:

The communication has to pass through a definite channel while moving from one person to another.
For example, to convey the feelings of a worker to the manager, the foreman’s help has to be sought.

(4) Organizational Message:

This channel is concerned with the authorized organizational messages only and the personal messages
are out of its jurisdiction.

(5) Deliberate Effort:

This channel of communication is not established automatically but effort has to be made for its
creation. It is decided keeping in view the objectives of the organisation.

Advantages

The formal communication has the following advantages:

(1) Maintenance of Authority of the Officers:

Formal communication maintains constant relations among the superiors and the subordinates as a
result of whom the dignity of the line superiors is maintained. Consequently, it is convenient to control
the subordinates and fix their responsibility which is absolutely needed for effective and successful
control.

(2) Clear and Effective Communication:

In formal communication, there is a direct contact among the managers and the subordinates. Both
understand the capability, habits, feelings, etc. of one another. Managers know as to when and under
which conditions their subordinates need information. In this way, this communication is capable of
making available timely information. Hence, it is clear and effective.

(3) Orderly Flow of Information:

The information has to pass through a definite route from one person to another. Hence, the flow of
information is systematic.

(4) Easy Knowledge of Source of Information:

In this type of communication, the source of each information can be easily located.

Limitations

Following are the disadvantages or limitations of the formal communication:

(1) Overload of Work:

In a modern business organization much information, many messages and other things have to be
communicated. Under formal communication, they are routed through a definite channel and this
consumes much of the time of the superiors and thus some other important works are left unattended.

(2) Distortion of Information:

This method can be a hindrance in the flow of information. Sometimes the distance between the sender
and the receiver is so big that the information has to pass through many hands and by the time it
reaches the receiver it is distorted. Thus it fails to serve its purpose.

(3) Indifferent Officers:

The officers do not pay much attention to the suggestions and complaints of the subordinates. In such a
case a subordinate may come lose his faith in the effectiveness of communication.

Types of Formal Communication

Formal communication is of two types:

(1) Vertical Communication:

(i) Downward Communication

(ii) Upward Communication

(2) Horizontal Communication. All these types have been clarified in the following diagram:

Downward Communication) (Horizontal Communication) (Upward Communication)

(1) Vertical Communication

Vertical communication is of the following two types:

(i) Downward Communication:

The communication by top hierarchy with their subordinates is called downward communication. This
communication includes orders, rules, information, policies, instructions, etc. The chief advantage of
the downward communication is that the subordinates get useful timely information which helps them
in their work performance,

(ii) Upward Communication:

This is quite the reverse of the downward communication. This flows from the subordinates to the
superiors. The subject-matter of this communication includes suggestions, reactions, reports,
complaints, etc. This sort of communication helps the superiors in taking decisions.

(2) Horizontal Communication

Horizontal communication takes place when two individuals of the same level exchange information.
Horizontal communication is used by the same level officers to solve the problems of similar nature
and profit by the experience of other people. The subject-matter of horizontal communication includes
information, requests, suggestions, mutual problems and coordination-related information.

Formal Communication Network

The way in which formal communication is done, is known as formal communication network. Formal
communication can be done in different ways-it may be vertical communication or horizontal
communication. The different forms of formal communication network have been shown in the
following diagram:

(1) Chain Communication:

Chain communication refers to the communication between a superior and a subordinate. All the
people in an organization from top to bottom are linked with the help of a scalar chain as has been
shown in diagram (1). A is placed at the highest rank, B is a subordinate of A, C is the subordinate of
B, D is the subordinate of C and E is the subordinate of D.

(2) Wheel Communication:

In this form of communication, all the subordinates of a superior talk to one another through his
medium. The superior works as a hub of a wheel. In the diagram (2), A is the superior and B, C, D and
E are the subordinates. All the four subordinates communicate through the medium of A.

(3) Circular Communication:

This communication takes place among the members of a group. Every member of a group can
communicate with the nearest two members. In the diagram (3), A can have communication with B
and E. Similarly, B can have communication with A and C. The same applies to all the members of the
group. In this case the communication moves at a slow speed.

(4) Free Flow Communication:

This form of communication also takes place among the different members of the group. Its special
feature is that every member of the group can talk to all the other people in the group.

This has been clarified in diagram (4). A can talk directly to B, C, D, E. In the same way B can talk
directly to A, C, D, and E. The same applies to all the members of the group. In this case, the
communication moves at a rapid pace.

(5) Inverted ‘V’ Communication:

In this form of communication, a subordinate is permitted to communicate with the boss of his boss. In
this form of communication the messages move at a rapid speed, fn the diagram (5), C and D are the
subordinate of B who, in turn, is a subordinate of A. Here C and D can talk directly to A who happens
to be the boss of B.