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Formal Communication Network - A formal communication network is

one which is created by management and described with the help of an

Set 2 MB0023

Organizational chart. An organizational chart specifies the hierarchy and

the reporting system in the organization. Therefore, in a formal network,

information is passed on only through official channels such as memos,

bulletins and intranet (email within the organization).

The organizational chart implies that information can flow in any of three

directions - vertically, i.e., upward or downward, and horizontally.

a. Upward Communication - This may be defined as information that

flows from subordinates to superiors. Some of the reasons for upward

communication include discussing work related problems, giving

suggestions for improvement and sharing feelings about the job and

co-workers.

This type of communication has both benefits and disadvantages. One

of the biggest benefits is problem-solving. Once a subordinate has

brought a problem to his superior's notice, chances are that the

problem will not recur, since the subordinate learns from his superior

how to tackle it the next time. Thus, his ability to solve new problems

and therefore his managerial ability, improves. Another benefit that

could arise from upward communication is that valuable ideas and

suggestions may sometimes come from lower level employees.

Therefore organizations should encourage this kind of communication.

A third benefit is that employees learn to accept the decisions of

management and thereby work as a team.

The biggest problem associated with this type of communication is that

it may lead to "handing down" of decisions by superiors. When

subordinates frequently seek the superior's guidance, the latter may

adopt an authoritarian approach and merely give instructions,

disregarding the subordinate's opinion completely.

b. Downward Communication - This may be defined as information

that flows from superiors to subordinates. The most common reasons

for downward communication are for giving job instructions, explaining

company rules, policies and procedures and giving feedback regarding

job performance. A number of studies have indicated that regular

downward communication in the form of feedback given to employees

is the most important factor affecting job satisfaction. Therefore

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organization's today are trying to encourage more of this type of

communication.

There are both benefits and disadvantages associated with this type of

communication. Downward communication that provides regular

feedback will be beneficial if the feedback or review of performance is

constructive. A constructive review is one where a manager "counsels"

an employee, or advises him on how to improve his performance. On

the other hand, a destructive review can destroy employee morale and

confidence. Regular downward communication also creates a climate

of transparency or openness, where information is passed on through

official channels, rather than through rumors.

Thirdly, downward communication boosts employee morale, since it

indicates that management is involved in their progress.

The problems with this type of communication are the danger of doing

destructive reviews, as mentioned, and that of "message overload."

This means that superiors many sometimes burden their subordinates

with too many instructions, leading to confusion.

c. Horizontal Communication - This type of communication is also

known as "lateral" communication. It may be defined as

communication that takes place between co-workers in the same

department, or in different departments, with different areas of

responsibility. For example; Sales Managers and Advertising Managers

in the Marketing department, or Marketing Managers and Finance

Managers. The reasons for this type of communication are for

coordination of tasks, sharing of information regarding goals of the

organization, resolving interpersonal or work related problems and

building rapport.

The biggest potential benefit of horizontal communication is the sense

of teamwork that is created. Regular communication of this type

ensures that all co-workers work together towards achieving a

common goal in the overall interest of the organization. The biggest

potential problem is that conflicts such as ego clashes are bound to

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arise, when co-workers at the same level communicate on a regular

basis.

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Q: Lateral or horizontal communication is more important today than vertical communication Do you agree or disagree Justify your answer?
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