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What are the major 5 advantages of informal trade?

Updated: 8/21/2019
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1. Free flow of information:As no formal channel is maintained information can flow freely among the employees of the organization.2. Rapid communication:In case of informal communication messages can be transmitted to the ultimate recipient faster than formal communication.3. Suitable for motivation:In modern days many communication experts advocated that informal communication is more appropriate for motivating employees.4. Remove mental distances:Through informal communication employees can share their views on any problem. As a result mental distances are reduced.5. Increase enthusiasm:Due to the very nature of informal communication it allows lower level employees to communicate freely with the top management. Accordingly problems of lower level employees can be minimized and their enthusiasm increased.6. Evaluation of employees:Sometimes it is necessary for the management to evaluate the attitudes of the employees. Through informal communication management can come closer to the operational level employees and judge their attitudes clearly.7. Supportive:Informal communication is not just a separate system of exchanging information; it is also supportive to the formal communication. Meaning of formal communication can be clarified by the informal communication.8. Increase co-operation:Co-operation among the employees increased by informal communication.9. Flexibility:One of the major advantages of informal communication is flexibility. Infect it is popular among the employees for its flexibility. It can adopt with the demand of the situation.10. Enhance mutual trust:By removing mental distance informal communication also enhance the mutual trust between the management and employees.


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