CHAPTER 4:

WORKPLACE BUSINESS
COMMUNICATION
SUB-TOPIC
• 4.1 Recognize the business communication within the workplace
• 4.2 Explain the structure in organization
• 4.3 Organize the formal organizational structure
• 4.4 Organize the informal organizational structure
COURSE LEARNING OUTCOMES:

• At the end of learning process, student should be able to:

• Apply effectively communication methods in a business scenario.
 4.1 Purpose of business communication within the workplace

• Control
• Formal and informal communications act to control individuals’ behaviors in
organizations.
• The power to influence people’s behavior through policies,
circulars/announcements, job description, grievances
• Motivation
• Communication clarify for employees what is to done, how well they have done it
and what can be done to improve performance.
• Appreciation through feedback (appraisals), reinforcing the desires set of behaviour
for team work

• Balancing needs and goals

• Difference level of organization, different needs and goals.
 Structure in organization
• Organizational structure
• Organizational structure refers to how individual and team work within an
organization are coordinated.
• To achieve organizational goals and objectives, individual work needs to be
coordinated and managed.
• Structure is a valuable tool in achieving coordination, as it specifies reporting
relationships (who reports to whom), delineates formal communication channels,
and describes how separate actions of individuals are linked together.
• Organizations can function within a number of different structures, each possessing
distinct advantages and disadvantages.
• Although any structure that is not properly managed will be plagued with issues,
some organizational models are better equipped for particular environments and
tasks.
 Types of organizational structure
• Formal Organization Structure:
• The organization structure of jobs and positions, with specified activities and
relationships, is known as formal organization structure.
• It is created by management, to attain the objectives of the company.
• Informal Organization Structure:
• The relationship between the employees, that relies on personal attitudes,
prejudices and interests rather than procedures.
• It is system of personal and social connection, whose creation is not needed by
formal organization.

• The organization structure is a basic idea, which depends on the activity

authority relationship in the company. It is designed in such a way to
realize business objectives.
 Formal organizational structure
• Line Organization:
• Line organization is the oldest and simplest pattern of organization, wherein
the supervisor has outright supervision over the subordinate.
• The flow of authority is from the top level executive to the person at the
lowest level of the organization’s echelon.
• Functional Organization:
• As the name suggests, functional organization structure is one in
which the thorough task of managing and directing the
employees, is grouped as per the functions or type of work
involved.
• Line and Staff Organization:
• This type of organization structure is an improvement over the
traditional line organization.
• In line and staff organization primary and supportive activities are
related to the line of supervision by appointing supervisor and
specialist, who are linked to line authority.
• Project Management Organization:
• Project Organization is not an independent organization, like the organization
structure discussed above.
• Instead it is a set up within an organization, so as to accomplish a project or
firm’s objectives. It is led by project manager, who is responsible for project
objectives.
• Matrix Organization:
• Matrix organization is the emerging structure of the organization, which is a
combination of functional organization and project organization.
• In such an organization, the functional departments such as production,
accounting, marketing, human resource, etc.
• Constitute a vertical chain of command, while project division constitute
horizontal line of authority.
 Formal Organizational Structure

• Characteristics
• Formal communication channel
• Formal communication network
• Problem arising from formal organizational channel
Characteristics of formal organizational structure

• Complexity
• Organizational complexity is how multiple entities of an organization
differentiate among themselves.
• It refers to the number of resources that are involved in a division, project, or
team.
• If the size of the organizational structure or system is huge that organization is
said to be complex.
• Formalization
• Formalization is the extent to which an organization’s policies, procedures, job
descriptions, and rules are written and explicitly articulated.
• Formalized structures are those in which there are many written rules and
regulations.
• These structures control employee behavior using written rules, so that employees
have little autonomy to decide on a case-by-case basis.
• An advantage of formalization is that it makes employee behavior more predictable.
Whenever a problem at work arises, employees know to turn to a handbook or a
procedure guideline.
• Therefore, employees respond to problems in a similar way across the organization;
this leads to consistency of behavior.
• Centralization
• Centralization is the degree to which decision-making authority is concentrated at
higher levels in an organization.
• In centralized companies, many important decisions are made at higher levels of the
hierarchy, whereas in decentralized companies, decisions are made and problems are
solved at lower levels by employees who are closer to the problem in question.
Formal communication channel
• Downward channels
• Upward channels
• Lateral channels
• Diagonal channels
Downward Flow of Communication
Communication that flows from a higher level in an organization to a
lower level is a downward communication.
• In other words, communication from superiors to subordinates in a
chain of command is a downward communication.
• This communication flow is used by the managers to transmit work-
related information to the employees at lower levels.
• Employees require this information for performing their jobs and for
meeting the expectations of their managers.
• Downward communication is used by the managers for the following
purposes:
• Providing feedback on employees performance
• Giving job instructions
• Providing a complete understanding of the employees job as well as to
communicate them how their job is related to other jobs in the organization.
• Communicating the organizations mission and vision to the employees.
• Highlighting the areas of attention.
• Organizational publications, circulars, letter to employees, group meetings etc
are all examples of downward communication. In order to have effective and
error-free downward communication, managers must:
• Specify communication objective
• Ensure that the message is accurate, specific and unambiguous.
• Utilize the best communication technique to convey the message to the
receiver in right form
Lateral / Horizontal Communication
• Communication that takes place at same levels of hierarchy in an
organization is called lateral communication, i.e., communication between
peers, between managers at same levels or between any horizontally
equivalent organizational member.
• The advantages of horizontal communication are as follows:
• It is time saving.
• It facilitates co-ordination of the task.
• It facilitates co-operation among team members.
• It provides emotional and social assistance to the organizational members.
• It helps in solving various organizational problems.
• It is a means of information sharing
• It can also be used for resolving conflicts of a department with other department or
conflicts within a department.
Diagonal Communication
• Communication that takes place between a manager and employees
of other workgroups is called diagonal communication.
• It generally does not appear on organizational chart.
• For instance - To design a training module a training manager
interacts with an Operations personnel to enquire about the way they
perform their task.
 Upward Flow of Communication
• Communication that flows to a higher level in an organization is called upward communication. It
provides feedback on how well the organization is functioning.
• The subordinates use upward communication to convey their problems and performances to their
superiors.
• The subordinates also use upward communication to tell how well they have understood the
downward communication.
• It can also be used by the employees to share their views and ideas and to participate in the
decision-making process.
• Upward communication leads to a more committed and loyal workforce in an organization because
the employees are given a chance to raise and speak dissatisfaction issues to the higher levels.
• The managers get to know about the employees feelings towards their jobs, peers, supervisor and
organization in general. Managers can thus accordingly take actions for improving things.
• Grievance Redressal System, Complaint and Suggestion Box, Job Satisfaction surveys etc all help in
improving upward communication.
• Other examples of Upward Communication are -performance reports made by low level
management for reviewing by higher level management, employee attitude surveys, letters from
employees, employee-manager discussions etc.
 Formal communication network
• The Formal Communication Network shows the pattern of the
communication, i.e. the way in which the formal communication is
facilitated.
• There are several types of formal communication networks classified
on the basis of the degree to which they are centralized and
decentralized. These are:
• Chain network
• Y network
• Wheel network
• Circle network
• All channel network
 Wheel Network
• This is the most centralized forms of a
communication network wherein all the
information flows from one central
person, typically the leader.
• The other members have little or no
communication link with each other.
• Here, the leader deliberately controls
the line of communication and make
sure that the information reaches all in
the group.
 Chain Network
• Under the chain pattern, the information flows either up or down the line.
• Here each person gets the information from his immediate superior and
then passes it to their immediate subordinates.
• Likewise, the chain gets created, and all members get connected to a single
person, typically the leader.
• This network is suitable when the information to be passed is legally
correct.
Y Network

• In the Y network, the flow of communication resembles an upside

down Y; information flows upward and downward through the
hierarchy, widening to encompass the number of employees
reporting to a supervisor.
 Circle Network
• The circle network is one of the decentralized
forms of a communication network wherein
the information is shared equally among all
the members.
• Here each person gives and receives
information from two or more persons in the
network.
• Under this pattern, each member has the
equal chance to participate.
The All-Channel Network or the Star Network
• In an all-channel network, communications flow upward, downward
and laterally among all members of the group.
• This pattern of communication supports an egalitarian, (equal,
unrestricted) participative culture and fosters (promote, cultivate)
cross-functional efforts.
• The all-channel network is best if you are concerned with having high
member satisfaction.
 Problem arising from Formal organization structure
• Decision making is slow in a formal organization.
• It is important to realize that any organizational need has to flow through the
respective chain of commands before being addressed.
• Formal organization is very rigid in nature.
• This means that there prevails perfect discipline coupled with no deviations
from the procedures. Hence, this can lead to low recognition of talent.
• Formal organization does not take into account the social nature of
humans as it talks about only structure and work.
• Interestingly, we cannot eliminate this integral part of our nature. Hence, it
does not entirely display the functioning of the organization.
 Informal organizational structure
• Advantages of informal organizational structure
• Disadvantages of informal organizational structure
• Informal communication networks
Informal organizational structure
• Informal organizational structure includes personal relations, relations
and interactions of people in the organization, created naturally,
informally and unofficially.
• They take place in an informal way outside the framework of formal
organizational structure, respectively, the informal organizational
structure crosses it horizontally, vertically and diagonally.
 Advantages of informal organizational structure

• Job Satisfaction:
• It has a powerful influence on the productivity and job satisfaction.
• It also gives stability to workgroups. It is the means by which workers feel a
sense of security and belonging.
• This sense of feeling retains them in the formal organization and thus
turnovers reduced and productivity increases.
• Meet the personal need:
• It is a social structure formed to meet personal needs of the members of the
group.
• Such needs cannot be met by the formal structure.
• The formal organization cannot take account of the sentiments and values
residing in the social organization by means of which, individuals or groups of
individuals are informally differentiated, ordered and intergraded.
 Advantages of Informal organizational structure
• Effective work system:
• Informal organizations are complementary to formal organization.
• They blend with formal systems to make an effective system for getting the
work done.
• Formal systems to make an effective system for getting the work down.
• Formal plans and policies cannot meet every problem in a dynamic situation
because they are pre-established and inflexible.
• An informal relation can better meet certain requirements of the formal
organizations because they are spontaneous and flexible.
• Lighten management workload:
• Informal organizations are to lighten the workload on the management.
• When management is sure that informal organizations are with them, they
feel less compelled to have a check on the workers frequently.
• Managers unhesitatingly delegate and flexible.
 Advantages of Informal organizational structure

• Good communication:
• The Informal organization is a useful channel of communication because it is
developed y the members of the group.
• They remain in close contact to each other and know what is going to open
before the formal communication reaches them and they can chalk,
decentralize their authority because they are aware of the cooperation, of the
workers.
• Fill the gaps of Management ability:
• Following the same line of thought informal organization may fill in the gaps
in a manger’s ability, if suppose, a manager is weak in planning ability,
members of informal group help in correcting the defective plans by making
their valuable suggestions and improve them in implementation also.
 Advantages of Informal organizational structure

• Encourage improved management practice:

• Perhaps a subtle benefit of informal groups is that they encourage managers
to prepare, plan, organize, and control in a more professional fashion.
• Managers who comprehend the power of the informal organization recognize
that it is a “check and balance” on their use of authority.
• Makes a more effective total system:
• More important benefit is making a more effective work system.
• Formal plan and policies cannot meet every problem in a dynamic situation
because they are reestablished and partly inflexible.
• Some requirements can be met better by informal relations, which can be
flexible and spontaneous.
 Advantages of Informal organizational structure

• Gives satisfaction and stability to work groups: The significant benefit of

the informal organization is that it gives satisfaction and stability to
workgroups. It is the means by which workers feel a sense of belonging.
• Improves communications: An additional benefit is that the informal
organization is a safety value of employee frustrations and other emotional
problems. One’s associates in the informal group provide this type of
environment.
• Plan and act more carefully: A benefit of an informal organization that is
seldom recognized it’s that its presence encourages managers to plan and
acts more carefully than they would otherwise. Managers who understand
its power know that the informal organization provides a check on their
unlimited use of authority. They introduced changes into their groups only
after careful planning because they know that information group can
undermine even a worthwhile project.
Disadvantages of informal organizational structure

• Spread rumors - According to a survey 70% of informal spread

through informal organizational structure are rumors which may
mislead the employees.
• No systematic working - Informal structure does not form a structure
for smooth working of an organization.
• May bring negative results - If informal organizational opposes the
policies and changes of management, then it becomes very difficult to
implement them in organization
• More emphasis to individual interest - Informal structure gives more
important to satisfaction of individual interest as compared to
organizational interest.
 Types of informal organization network
• Single Strand Network:
• Under this communication pattern, the information
flows from one person to the next person in the
network.
• Such as, one person will give information to another
person who will communicate it to the next person
and similarly the third person will also communicate
the same message to the next person in the network
and so on.
• This type of chain is less reliable and accurate to pass
on the message. Here, the communication process is
linear.
• Gossip Chain Network:
• In the gossip chain network, there is an
individual who tells the message to all
other members in the network directly.
• He is generally the central person who
seeks out and transmit information to all
that he has obtained.
• Here, every person in the network
communicates with each other informally.
This network is often used when the
subject matter is unrelated to the nature of
the job.
• Probability Chain Network:
• Under this communication pattern the
information passes randomly from persons to
persons.
• Such as, there is an individual who acts as a
source of message selects any person randomly
in his network to communicate the message.
• That second person will again, select another
person randomly and passes on the message to
him, likewise the communication flows to
different people chosen randomly.
• Here, the source of information for each
member of the network is different. This
communication pattern is used when the
information is interesting, but not significant.
• Cluster Chain Network:
• In the cluster chain network, there is an individual
who, acts as a source of a message, transmits
information to the pre-selected group of individuals
out of whom few individuals again tell the same
message to other selected group of individuals.
Likewise, the chain continues, and the message
reaches to all in the network.
• This pattern is similar to the telephone tree, wherein
one person calls other two persons, then these two
persons call other three persons and again these
three persons are expected to call other three
persons. Likewise, the information gets transmitted
to all persons connected to the telephone network.
This is the most common form of informal
communication network.
• Grapevine communication is the informal communication
network within an organization. The grapevine is used to
spread information bypassing the formal communication
structure. Just like the grapevine plant: it spreads in
random ways and it goes where it can.
• The grapevine is formed by individuals and groups in an
organization. The people in the groups have something in
common that links them together.
• A person can belong to one or more groups. As an
example, a manager can belong to a group of women that
go to lunch together every Friday. She can also belong to a
group of managers in her department that talk about work
in informal ways. She could have a third group of people
scattered throughout the organization with which she
shares other common interests outside of work.
• The manager in this example is likely to pass information
across her three main, informal networks. In some ways,
she is verifying the accuracy of the rumors she hears.
When more than one of her networks is in agreement
about a given rumor, she is bound to believe it’s true.