Formal Communication

Formal communication - written or oral - follows the chain of command of the formal
organization; the communication flows from the manager to his immediate
subordinates. Each recipient then re-transmits the message in the selected form to
the next lower level of management or to staff members, as appropriate. The
message progresses down the chain of command, fanning out along the way, until all
who have a need to know are informed. Formal communication also flows upward
through the organization on the same basis.

Formal communication normally encompasses the transmittal of goals, policies,

instructions, memoranda, and reports; scheduled meetings; and supervisory-
subordinate interviews.

Informal Communication
No organization operates in a completely formal or structured environment.
Communication between operations depicted in an organizational chart do not
function as smoothly or as trouble-free as the chart may imply. In most
organizations operating effectively, channels of communication have developed
outside the hierarchical structure.

The informal communication process supplements the formal process by filling the
gaps and/or omissions. Successful managers encourage informal organizational
linkages and, at the same time, recognize that circumvention of established lines of
authority and communication is not a good regular practice. When lines of authority
have been bypassed, the manager must assume responsibility for informing those
normally in the chain of command of the action taken.

There is a fine line between using informal communications to expedite the work of
the organization and the needless bypassing of the chain of command. The
expediting process gets the job done, but bypassing the chain of command causes
irritation and can lead to hard feelings. To be effective, the manager must find a way
to balance formal and informal communication processes.

Unofficial Communication
Astute program and functional managers recognize that a great deal of
communication taking place within their organizations is interpersonal. News of
revised policies and procedures, memoranda, and minutes of meetings are subjects
of conversation throughout the organization. These subjects often share the floor
with discussions of TV shows, sports news, politics, and gossip.

The "grapevine" is a part of the unofficial communication process in any

organization. A grapevine arises because of lack of information employees consider
important: organizational changes, jobs, or associates. This rumor mill transmits
information of highly varying accuracy at a remarkable speed. Rumors tend to fall
into three categories: those reflecting anxiety, those involving things hoped for, and
those causing divisiveness in the organization. Some rumors fade with the passing of
time; others die when certain events occur.
Employees take part in the grapevine process to the extent that they form groups.
Any employee not considered a part of some group is apt to be left out of this
unofficial communication process.

The grapevine is not necessarily good or bad. It serves a useful function when it acts
as a barometer of employees' feelings and attitudes. Unfortunately, the information
traveling along the grapevine tends to become magnified or exaggerated. Employees
then become alarmed unnecessarily by what they hear. It is imperative that a
manager be continually alert to the circulation of false information. When discovered,
positive steps should be taken to provide the correct information immediately.