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Communication is the lifeblood of an organization. It is the vehicle that ensures proper performance of organizational
functions and achievement of organizational goals. As a separate field of study, business communication has the following

To exchange information: The main objective of business communication is to exchange information with the
internal and external parties. Internal communication occurs within the organization through orders, instructions,
suggestions, opinions etc.


To develop plans: Plan is the blueprint of future courses of actions. The plan must be formulated for attaining
organizational goals. In order to develop a plan, management requires information. In this regard, the objective of
communication is to supply required information to the concerned managers.


To implement the plan: Once a plan is prepared, it is to be implemented. Implementation of a plan requires timely
communication with the concerned parties. Thus, communication aims at transmitting a plan throughout the
organization for its successful implementation.


To facilitate policy formulation: Policies are guidelines for performing organizational activities. Policies are also
termed as standing decisions to recurring problems. Every organization needs to develop a set of policies to guide its
operation. Preparing policies also require information from various sources. Therefore, the objective of communication










To achieve organizational goal: Collective efforts of both managers and workers are essential for achieving
organizational goals. Communication coordinates and synchronizes the efforts of employees at various levels to
achieve the stated goals of the organization.


To organize resources: Various kinds of resources are available in organization such as human resources,
material resources, financial resources and so on. In organizing these resources in an effective and efficient way is a
key challenge to the managers. Communication is the vehicle to overcome this challenge.


To coordinate: Coordination is a basic management function. It involves linking the various functional departments
of large organizations. Without proper and timely coordination, achievement of organizational goals is impossible.
Therefore, the objective of communication is to coordinate the functions of various departments for the easy attainment
of organizational goals.


To direct the subordinates: The job of a manager is to get the things done by others. In order to get the things
done, management needs to lead, direct and control the employees. The performance of these managerial functions
depends on effective communication with subordinates.


To motivate employees: A pre-requisite of employee motivation is the satisfaction of their financial and nonfinancial needs. Financial needs are fulfilled thorough monetary returns. However, in order to satisfy non-financial
needs, management must communicate with employees on a regular basis both formally and informally.


To create consciousness: Employees of an organization must be conscious regarding their duties and
responsibilities. Communication supplies necessary information and makes them conscious about their duties and


To increase efficiency: In order to increase employee efficiency, they should be provided with necessary
information and guidelines. Communication supplies such information and guidelines for them.


To bring dynamism: Organizations should be dynamic to cope with the internal and external changes. Bringing
dynamism requires finding new and better ways of doing things. For this purpose, communication helps to seek new
ideas and suggestions from the internal and external parties.


To improve labor-management is relationships: Harmonious relationship between workers and management is

a prerequisite for organizational success. In this regard, the objective of communication is to ensure the free and fair
flow of information and to create good understanding between them.


To increase job satisfactions: Communication enhances job satisfaction level of employees. It creates a friendly
environment where employees can express themselves. As a result, they become more satisfied with their job.


To convey employee reaction: Communication conveys employees reactions, opinions, suggestions and
complaints to their superiors about the plans, policies, programs and strategies of the company.


To orient employee: Communication orients the new employees with the companys policies, rules, regulations,
procedures etc.

What is Grapevine Communication? Types of Grapevine

By bizcom_coach | October 10, 2015

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What is Grapevine Communication or Informal communication. If communication is done without maintaining the formalities prescribed by the
organization, it is called informal communication. The basis of informal communication is personal or informal relationship between the
members of a group. It is also known as grapevine that takes place when the people of an organization or group, especially of same level or
rank gather or meet tighter and discuss informally. It has no definite pattern or direction though it is largely horizontal in nature. It is a complex
web of oral information flow linking all the members of the organization. Definition of Grapevine Communication, Meaning of Grapevine
Communication, Types of Grapevine discussed below here-

What is Grapevine Communication

According to Bovee and Others, Grapevine is an informal interpersonal channel of information not officially sanctioned by the organization.
In the opinion of R.W. Griffin, The grapevine is an informal communication network that can permeate an organization.
Newstrom and K. Davis said, Grapevine is an informal system that arises spontaneously from the social interaction of the
organization. Business Communication
So, grapevine is an informal, unofficial and personal communication channel or system that takes place within the organization as a result of
rumor and gossip. It is a complex web of oral information flow linking all the members of the organization.

Patterns or Types of Grapevine

The grapevine does not have any definite pattern or direction, though it is largely horizontal in nature. It can be effective horizontally, vertically
and even diagonally. Prof. Keith Davis, who has done some research work on the nature of grapevine, has classified it into four basic types

Single Strand Chain: The single strand chain involves the passing of information through a line of persons to the ultimate
recipient. In the figure, the person A tells B, who tells C, who tells D, and so on, till the information has reached most of the persons

involved or concerned.
Gossip Chain: In the gossip chain, one person seeks and tells the information to everyone. This chain is just like the wheel where
one person stays at the centre and the information passes along the spokes of the wheel to others stationed on the rim. In the following
figure, A is at the center and passes the information to others staying on the rim of the wheel.

Probability Chain: The probability chain is a random process in which someone transmits the information to others in accordance
with the laws of probability and then these others tell still others in a similar way. This chain may also be called random process. The

probability chain is shown belowCluster Chain: In the cluster chain, a person tells the information to the selected persons who may in turn relay (pass) the
information to other selected persons. Most of the information communication follows this chain. Cluster chain is shown in the following

figureSo we find four major patterns of grapevine available

in different organizations. They are not mutually exclusive rather than inclusive. There is more information about What is Horizontal
Communication in Business? Importance.