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Formal and Informal Channels of
Communication
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Organizational Structure:
Directing the Flow of Messages
Organizational structure:
the formally prescribed pattern of
interrelationships existing between the
various units of an organization
dictating who may and may not
communicate with whom abstract construction
depicted in Organizational Charts
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Formal and Informal Channels of Communication
Formal Communication
the process of sharing official information
with others who need to know it,
according to the prescribed patterns
depicted in an organization chart
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Formal and Informal Channels of Communication
Formal CommunicationPresident
Vice
President
Vice
President
Manager Manager Manager Manager
Efforts at coordination
Information
Instruc
tions
anddirec
tives
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Formal and Informal Channels of Communication
Formal Communication
downward communication: instructions, directions, orders
feedback upward communication:
data required to complete projects
status reports
suggestions for improvement, new ideas
horizontal communication: coordination of cooperation
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Flow of InformationWithin an Organization
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Centralized Networks
One central person
Unequal access to information
Central person is at thecrossroads of
the information flow
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Communication Structures
Centralized
Wheel
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Communication Structures
Centralized
Chain
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Decentralized Networks
Information can flow freely
No central person
All members play an equal role in the
transmittal of information
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Communication Structures
Decentralized
Circle
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Communication Structures
Decentralized
Comcon
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Formal and Informal Channels of Communication
Informal CommunicationStructures
Deviation from the plannedcommunication structure
Direction of the flow of information
Leaving out people in the communication line
Integrating people into the communicationline
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Formal and Informal Channels of Communication
Informal Networks
Y
D
C
B
A
Chain
A
JB
D H I
K
F
GE
C
Gossip
A
F B D
J
H
CE
K
G I
X
Probability
A
C
D
F
J
IB
Cluster
McGraw-Hill
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Formal and Informal Channels of Communication
Grapevine
1. a secret means of spreading or
receiving information
2. the informal transmission of(unofficial) information, gossip or
rumor from person-to-person -> "to
hear about s.th. through the
grapevine"
3. a rumor: unfounded report; hearsay
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Formal and Informal Channels of Communication
Grapevine Characteristics
oralmostly undocumented
open to change
fast (hours instead of days)
crossing organizational boundaries
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Formal and Informal Channels of Communication
Grapevine Characteristics
inaccuracy:
levelling
deletion of crucial details
sharpening
exaggeration of the most dramatic details
while the grapevine generally carries the
truth it seldom carries the whole truth
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Formal and Informal Channels of Communication
Grapevine Figures
70% of all organizational communicationoccurs at the grapevine level
estimated accuracy rates: 75-90% the incorrect part might change the
meaning of the whole message though
an estimated 80% of grapevine
information is oriented toward theindividual while 20% concerns thecompany
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Formal and Informal Channels of Communication
Factors influencing Grapevine
Activity IIEmployees rely on the grapevine when:
they feel threatened,
insecure,
under stress
when there is pending change
when communication from managementis limited
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Formal and Informal Channels of Communication
Positive Aspects of the Grapevine
social function
reduction of anxiety
release mechanism for stress identification of pending problems
early warning system for organizational change
vehicle for creating a common organizational
culture
desired information can be circulated quickly toa large group of subordinates (inofficially!)
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Formal and Informal Channels of Communication
Preventing Rumors
provide information through the formal
system of communication on the issues
important to the employees supply employees with a steady flow of
clear, accurate and timely information
present full facts keep formal communication lines open
and the process as short as possible
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Formal and Informal Channels of Communication
Formal Media
Company newsletters
Employee handbooks Company magazines
Formal meetings
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Formal and Informal Channels of Communication
Formal Media
Letters
Flyers and bulletins Memos
Faxes
All-employees mailings
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Formal and Informal Channels of Communication
Informal Media
Face-to-face discussions
Telephone
Voice messaging (voice mail)
Instant messaging (chat)
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