CHAPTER FOUR

TYPES OF COMMUNICATION IN ORGANIZATIONS

4.1 Internal and External Communication
A. Internal Communication: Internal communication involves transmission of information within

the organization. Among various ways of communicating medias within companies are;
 Memos  Teleconference
 Reports  Video conference
 Meetings  Notices, etc.
 Face-to-face discussions
Internal communication is a vital means of attending to matters of company concern.
B. External Communication: External communication is communication with people outside an
organization. It is the organization’s means of establishing contact with the outside world. External
communication could include
 Business letters  Invitations
 Press releases  Telegrams
 Advertisements  Proposals, etc.
 Leaflets

Messages to persons outside the organization can have a far reaching effect on its reputation and
ultimate success. The right letter, proposal, or personal conversation can win back a disgruntled
customer, crate a desire for a firm’s product or service, help negotiate a profitable sale, encourage
collections, motivate performance, in general create goodwill.
4.2 Types from the point of View of Organization

Generally, from the point of view of the organization, communication can be divided into two-
formal and informal communication.

1. Formal Communication

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Any communication process that takes place following the organizational chart \structure of the
organization is what is called formal communication.

Depending on the direction of flow of information as guided by the structure, formal

communication can further be classified into the following types:

 Vertical communication
 Horizontal communication
 Diagonal communication
1.1. Vertical Communication
It may be downward or upward.
i. Downward Communication
Any communication taking place from upper level of the hierarchy down to the chain is what we
call downward communication. The common purpose of downward communication is to give
instruction and information. Since people at lower levels may not understand easily, downward
communication should be simple and carefully explained to avoid any misunderstanding. It may
be in the form of down a chain of command to all connected in a cluster.

If communication has to pass through many levels of authority on its way down, there is a delay
as well as distortion of the message because of edition and simplifying etc. Communication in a
cluster is faster and more effective than communication down in a chain of command.

Objectives of Downward Communication

a) Information
It can be done orally or in writing. Whatever information is needed for daily work is given
orally. Progressive management believes in keeping employees well informed about the
company’s aims, plans, progress and prospects, etc.
b) Instruction
Subordinates and junior staff are given instructions on the tasks that are to be performed from
time to time. In most cases it is done orally. An order is more formal if it is in written form, and
generally means that the matter mentioned in it is formally and finally accepted.
c) Request

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These are usually made for getting information and a junior may request a senior to do some
additional work.
d) Advice
Advice may be given on matters related to work or on personal matters related to work, or on
personal matters if the relationship permits.
e) Counseling
Counseling is an organized and specialized form of advice.
f) Education and Training
Employees may be trained though organized courses and programs. On-the job communication:
when a new employee takes up his job, he needs some instruction and training, even if he has
had previous experience.
g) Warning and Notice
To give warning to employees who step out of line.
h) Persuasion
This is making efforts to change or influence the attitude and behavior of others. There are three
factors in persuasion: (1) the personal character and reputation of the persuader, i.e., must be
respected and accepted by others. (2) The emotional appeal made by the persuader (either to the
physical needs, social needs or ego needs). (3) The logic of the persuasion, show them how they
will benefit by accepting.
i) Appreciation Motivation of Good Efforts
For inspiring employees, managers and supervisors will either intrinsically or extrinsically
motivate their workers where either needs one way or another communication.
ii) Upward Communication
Any communication taking place from bottom of the hierarchy upward to higher officials is what
is meant by upward communication. Upward messages that go from subordinates to supervisors
and managers are aimed at informing and reporting.

In modern management style where managers are treated as facilitators, upward communication
is encouraged. Managers realize that employees who are listened to are happier and work better.
Anyone at any level of the organization might have some good ideas and suggestions that might
be helpful to the organization.

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Therefore, there are many barriers toward upward communication these are: (1) Subordinates
may be shy and frightened to talk to superior (2) Superiors may not be willing to listen to their
subordinates (3) Subordinates may report only to the good news.

Objectives of Upward Communication

1. Reports
All employees with any degree of responsibility and independent duties are required to report,
periodically, on their work.
2. Information
It is necessary to keep information channels open in all directions so that managers may know
not only about the progress that is being made, but also about the climate of opinion and feeling
among the staff.
3. Requests
The staff makes requests for various kinds of permission or favor. There may be a request for
leave, for permission to report late or leave early.
4. Appeals
Appeals are special requests for favor that do not fall within the privilege of the employees.
5. Complaints: Complaints are made when there are faults or defects in the goods spilled so that
they may be corrected. It could be oral or written.
7. Suggestions
Form employees at all levels are greatly welcomed by modern management.
Suggestion schemes: a channel to encourage upward communication. It should have:
a) Committee for working the scheme
b) A set of rules indicating who’s eligible, what is the procedure for examination and
assessing suggestions, what is the basis for rewards.
c) A provision or suggestion forms and suggestion boxes.
d) A system of awards.
iii. Horizontal/ Lateral Communication
Horizontal communication involves exchange of information among individuals on the same
organizational level, such as across or within departments. Thus, it generally involves colleagues
and peers. Horizontal information informs, supports, and coordinates activities both

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 interdepartmentally and interdepartmentally. Considerable horizontal communication in
organizations stems from staff specialists, in areas such as engineering, accounting, and human
resources management, who provide advice to managers in various departments. Horizontal
communication is especially important in an organization for the following purposes:

1. To coordinate task when several employees or departments are each working on part of an
important project.
2. To solve problems such as how to reduce waste or how to increase the number of items assembled
each hour.
3. To share information such as an easier way to perform a task or the results of a new survey.
4. To solve conflicts such as jealousy or disagreements between coworkers.
5. To build rapport: peer support.

Three major factors tend to impede necessary, work-related horizontal communication.

 First, rivalry among individuals or work units can influence individuals to hide information
that is potentially damaging to them or that may aid others.
 Second, specialization may cause individuals to be concerned mainly about the work of
their own unit and to have little appreciation for the work and communication needs of
others. For example, scientists in R and D unit that is focused on long-term projects may
find it difficult to interrupt their work to help with current customer problems identified by
the sales department.
 Third, motivation may be lacking when subordinate horizontal communication is not
encouraged or rewarded.

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 Figure 4.1 Horizontal/ lateral communication
Objectives of horizontal communication
Communication between persons of the same status is mainly for an exchange of information.
There may be requests for purposes of co-operation and co-ordination; suggestions may be made
either informally or at conferences or meetings. Organized horizontal communication is in the
form of conferences and meetings. Discussion of the various problems is the main objective of
meetings. Persuasion plays a large part in horizontal communication, as matters are discussed,
agreed upon, and co-coordinated. Discussions also have an educative value and are used in
training programs.
iv. Diagonal Communication
Some organizational structures employ teams comprised of members from different functional areas, even
different levels of the hierarchy. When these individuals from different units and organizational level
communicate, it is diagonal communication. With more and more firms reducing the number of management
layers and increasing the use of self managed work teams, many workers are being required to communicate
with others in different departments and on different levels to solve problems and coordinate work. For
instance, a team might be formed from all functional areas (accounting, marketing, operations, and human
resources) to work on a specific product/project to ensure that all points of view are considered.

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 4.3 Informal Communication
Informal Communication Network
A middle manager of a medium-size manufacturing company was surprised when a fellow employee
congratulated her on her promotion. She has received no formal announcement. The formal system is

not the only communication system in a group or between groups.

The grapevine has three main characteristics. First, it is not controlled by management. Second, it is
perceived by most employees as being more believable and reliable than formal communiqués issued

by the management. Third, it is largely used to serve the self-interests of those people within it.
The grapevine is an important information communication channel that exists in all organizations. It
basically serves as a bypassing mechanism, and in many cases it is faster than the formal system it by
passes. The grapevine has been aptly described in the following manner. “With the rapidity of a
burning train, it filters out of the wood work, past the manager’s office, through the locker room, and
along the corridors”. Because it is flexible and usually involves face-to-face communication, the
grapevine transmits information rapidly. The resignation of an executive may be common knowledge
long before it is officially announced.
For management, the grapevine frequently may be an effective means of communication. It is likely to

have stronger impact on receivers because it involves face-to-face exchange and allows for feedback.
Because it satisfies many psychological needs, the grapevine will always exist. More than 75 percent of

the information in the grapevine may be accurate. Of course, the porting that is distorted can be
devastating. The point, however, is the grapevine may be accurate. Of course, the porting that is
distorted can be devastating. The point, however, is that if the grapevine is inevitable, managers should

seek to utilize it or at least attempt to increase its accuracy. One way to minimize the understandable
aspects of the grapevine is to improve other forms of communication. If information exists on issues
relevant to subordinates, then damaging rumors are less likely to develop.
It is frequently assumed that rumors start because they make titillating gossip. Such is rarely the
case. Rumors have at least four purposes:

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 To structure and reduce anxiety
To make sense of limited or fragmented information
To serve as a vehicle to organize group members, and possibly outsiders, into
coalitions, and
To signal a sender’s status
Can management entirely eliminate rumors? No! What management should do, however, is
minimize the negative consequences of rumors by limiting their range and impact.
Suggestions for reducing the negative consequences of rumors:
Announce timetable for making important decisions
Explain decisions and behaviors that may appear inconsistent or secretive
Emphasize the downside, as well as the upside, of current decisions and future plans
Openly discuss worst-case possibilities
One classical study investigated four possible configurations for grapevine chains.
1. Single chain: In this type of chain ‘A’ tells something to ‘B’ who tells it to ‘C’ and so on it
goes down the line. This type of communication flows from one person to another person
through single chain or communication flows one by one. When ‘A’ tells something to ‘B’ who
tells it to ‘C’ and so on. One interesting fact comes out from this type of communication that
when one person passes certain information to other and they treat the message as confidential or
secret which further communicated by another with same feeling of confidentiality and secrecy.

2. Star chain: In this type of chain one person speaks out and tells everyone the information
he/she has obtained. This chain is often used when information or a message regarding an
interesting but non job related nature is being conveyed. Sometimes it also called gossip chain.

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3. Cluster chain: In this type of chain ‘A’ tells something to a few selected individuals who
again inform a few selected individuals. And the information flows in similar manner to other
individuals.

4. Probability chain: The probability chain is a random process in which a transmission of the
information to other in accordance with the laws of probability and then these tell still others in a
similar manner. The chain may also be called random.

4.4 Verbal communication

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Verbal communication is when we communicate our message verbally to whoever is receiving
the message. It is of two types oral and written which had their own advantages and
disadvantages.
Oral communication: Oral communication is the communication where the message or
information exchanges by spoken words. It can be done by both face to face and also through
mechanical devices.
Written communication: Written communication is the communication where the message or
information exchanges by written words. Letter, telegraph, fax, e-mail are examples of written
communication. Written communication guarantees that everyone concerned has the same
information. It provides a long lasting record of communication for future. Written instructions
are essential when the action called for is crucial and complex. To be effectual, written
communication should be understandable, brief, truthful and comprehensive.

4.5 Nonverbal Communication

Non-verbal communication is usually understood as the process of communication through

sending and receiving wordless messages. Such messages can be communicated through gesture;
body language or posture; facial expression and eye contact; object communication such as
clothing, hair styles or even architecture; symbols and info-graphics. Speech may also contain
non-verbal elements known as paralanguage, including voice quality, emotion and speaking
style, as well as prosodic features such asrhythm, intonation and stress. Likewise, written texts
have non-verbal elements such as handwriting style, spatial arrangement of words, or the use of
emotions.

Experts claim that only 35% of the communication people do is verbal; that is using words. The
other 65% is called nonverbal communication and it includes all of the other methods of
communication .Nonverbal communication utilizes details such as facial expression, gestures,
eye contact, touching and space to give meaning to message. Sometimes nonverbal
communication is done consciously. Very often it is subconscious; people are unaware they are
doing it.

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Understanding nonverbal communication is essential, yet its importance is often overlooked
because of the emphasis on verbal communication. In many cases; it takes both verbal and
nonverbal communication to get the job done. People can not accurately express themselves or
interpret the expressions of others without being aware of the nonverbal aspects of human
behavior.

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