CHAPTER FOUR

TYPES OF COMMUNICATION IN ORGANIZATIONS

4.1 Internal and External Communication
Based on the Environment in which the communication process takes place, organizations can
have internal and external communication.
Internal Communication is the conversation that businesses have with their staff and those staff
has with each other. Good internal communication involves regular and effective two-way
communication with all members of staff at all levels and is a critical success factor that should
be at the help of any organization
Good internal communication is vital to any organization and the benefits it brings are:
 Enhanced staff engagement and understanding
 More effective management
 Increased staff moral and motivation
 Staff satisfaction promotes good customer service
 All staff are able to communicate the organization’s key priorities and vision, which helps
build a brand etc.
External communication: is any communicative effort specifically for people and organizations
operating outside of the business. External communications focus on spreading news and
information about the corporation to the public, customers, and company stakeholders. An
organization is greatly affected by its external environment. Therefore, in order to exist, any
organization has to adjust its activities in accordance with external influences. Thus employees
who communicate effectively can contribute in a variety of ways to the lifeblood of their
organization. Successful messages:
- eliminate unnecessary additional correspondence.
- save time and expense
- build favorable impressions.
- enhance goodwill, and
- help increase company profits.
Therefore, both types of communication are important to the overall success and longevity of any
company. Clearly-defined policies should be written out and all employees should know what
their duties and responsibilities are when it comes to communicating with their colleagues,

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superiors or outside parties.
4.2 Formal and Informal communication
Communication in organizations takes two forms: “formal” and Informal”.
Formal communication is the official patterns of communication that are designed, approved,
and recognized by the management of the organization. It is an integral part of the organization
structure.. Formal communication is thus the official chains that determine the flow and direction
of official messages among individuals or divisions in an organization.
Types(forms) of formal communication
a. Downward Communication
Messages flowing upper from organizational levels to lower organizational levels constitute
downward communication. Main objectives of downward communications are
i. To provide directives to subordinates.
Through downward communication, organizations;
- assign goals and explain the reason for assignment
- direct the activities of employees
- instruct them in proper behaviors and work methods
- persuade them to adopt certain attitudes and ideas
- evaluate their performance on the job
-
ii. To instruct company objectives, strategies, programs, policies and procedures.
iii. Appraise subordinates’ performance/performance feedback- Performance of subordinates
must be evaluated continuously or periodically. The performance result must also be
communicated to the subordinates so as to help them know whether they are meeting their goals
or not..
 The most commonly used downward communication methods are the following:
i. Employee hand books- used to provide basic information about the organization, pay policies,
benefit programs, work rules and working facilities.
ii. Job descriptions and work procedures-used to inform an individual what is expected of him
and his work unit form the organization.
iii. Newsletters- are periodical publication about the news of the organization and other related
activities.

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vi. Performance appraisals- conducted as a private meeting between a superior and his
subordinate.
Vii, Disciplinary interviews- conducted by managers and superiors when employees violate the
rules and regulations of the organization.
Viii. Departmental or unit meetings- often called by supervisors used to discuss with
subordinate about Current events in the company, Future plans of the company and Progress
reports, (evaluation reports)
ix. New employee orientation programs-used to give employees detailed information about
their jobs and the environment at which they will work.
b. Upward Communication
Upward communication constitutes the flow of information from subordinates to supervisors. It
involves information about
- subordinates performance
- Feedback on organization a policies and practices
- Problem solving suggestions opinions, complaints etc.
 Importance of upward communication
i. Providing feedback- Managerial function is incomplete without feedback.
Managers ascertain whether:
- The policies are being followed
- The rules are being strictly respected
- The directives are properly carried out by means of feedback.
ii.Outlet for enclosed emotions- Upward communication provides employees with the
opportunity to channel their problems, complains, and grievances to superiors. This reduces
frustration and enables employees develop positive attitude.
iii. Providing constructive suggestions- Every member of an organization has a capacity to
contribute ideas or suggestions that can promote the welfare of the organization. Every employee
is endowed with some creative capacity and wise managers utilize the creative capacity of their
subordinates. .

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  Methods of Upward Communication
The most common methods of upward communication are the following:
i. Employee opinion surveys- These are written questionnaires asking employees to report about
their attitudes and feelings toward all elements of their working lives. Responses are anonymous
and employees are free to express their attitudes without fear of reprisal.
iv. Open door policies- This allows employees to stop by any manager’s office with concern,
suggestion, or complaint whenever they feel the need.
v. Open floor policies/management by walking- This is an upward communication method
through which management members walk around work areas talking informally with employees
individually or in-group. This method is more effective because employees are likely to say what
is in their minds when they are at work.
C. Horizontal Communication
Horizontal or lateral communication is communication between people or work units at the same
level of organizational hierarchy. It is designed to save time and facilitate control.
D. Diagonal Communication
Diagonal communication takes place between work units or people at different levels of
organizational hierarchy but without having direct reporting relationship. It is designed to support
the vertical and horizontal communication systems.
Informal Communication – The Grapevine
People talk about job related or unrelated information. They talk about promotions, salary
increment, demotions, administrative policies and decisions. They also talk about local and
international affairs.
They talk such situations in the form of rumors, gossips, daily friendly chat etc. This all travel
through informal networks that often develop through incidents of spatial arrangement, similarity
of personalities or compatibilities of personal skills. Informal communication is thus, ones,
aspect of organizational communication that is not designed and recognized by management.
Since every communication cannot be programmed, grapevine is created and exists out of the
will of management.

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  Four Informal Communication configurations
a. Single strand A B C D
b. Gossip - a person with the information passes it to every other individual in the chain
A

B C D E F

c. Random - Probability chain - each person passes on information at random, without

particular regard for who the receiver is. And the receivers use the same approach in their
communication efforts.

F G H
I

A C E
B D

d. Cluster chain - information is passed on selectively: the individual deliberately tells

some people and does not tell others. Some of those getting the information pass it on to
others while the remainder does not. The result is that handful of people often account for
all of the information that is passed along this information chain.

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 A
D
B C
F
E

H
M
I J
L
K

 Importance of the grapevine

i. It is used by employees as a safety value
Employees use the grapevine as a way of expressing their confined emotions use releasing their
anxieties. When people feel powerless to direct their destinies, the grapevine is a way of letting
their confined emotions thereby reducing frustration.
ii. The grapevine promotes organizational solidarity and cohesion.
People have inborn interest to interact and they satisfy their needs for friendliness. Love and
acceptance by their peers.
iii. Provides feedback to management-
It enables managers to know the real responses of employees towards a policy or other parts of
the organization from the grapevine leaders informally than formal reports from supervisors.
The most negative attribute of the grapevine, however, is that it serves as a network for rumors
that cannot be supported by facts. Rumors can travel like wild fire across the boundary of an
organization thereby spoiling the public image of the organization. Besides often transmits
incomplete information resulting in possible misunderstanding, confusion and wrong action.
 Ways of effectively utilizing the grapevine
Grapevine is a natural and enviable result of people working together in groups. It cannot be
avoided because the more one tries to block the more force it will have. Therefore the following
are some of the ways through which the grapevine can be utilized effectively for organizational
purposes.
- Managers should admit its existence and try to feed the leaders or the grapevine accurate

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information for fast dissemination and minimize rumors that adversely affect the organizations
productivity and public image.
- The grapevine should be used to diagnose the feelings and attitudes of employees so that
management policies, styles and other practices would be adjusted profitably according to the
common interest.
- Encouraging informal organizations to build team work wand mutual understanding so that
false rumors can be prevented before they prove to be harmful and disastrous.