Administrative and Business Communication
2011
CHAPTER FOUR
COMMUNICATION IN ORGANIZATIONS
4.1 Internal and external Communication
In today's world of business, an organization's survival depends on employee communication.
When communication is ineffective, the organization suffers.
All communication is complex and multidimensional with plenty of room for conflict and
misunderstandings. Organizational communication is no different with organizational issues
often adding unique complications to the mix during the communication process. For an
organization to be successful, it must have employees capable of sending and receiving
information quickly, clearly, effectively, and error free. Mistakes caused by miscommunication
cost organizations thousands of dollars due to missed deadlines, lost time, and wasted product.
In order to have effective employee communication in the workplace, one must understand
organizational communication structure and how that communication structure facilitates
internal communication. With a basic understanding of organizational communication, one will
be able to improve communication skills and recognize communication problems that arise
during employee communication in the workplace.
Organizational communication encompasses many aspects of communication including internal
communication and external communication. Internal communication refers to the
communication used mostly by employees inside the organization. External communication is
communication through media and with customers or the general public and includes marketing,
public relations, investor relations, and corporate advertising. External communication can be
inward or outward flow of information.
An organization is greatly affected by its external environment. Therefore, in order to exist, any
organization has to adjust its activities in accordance with external influences.
Communications to persons outside the company-customers, inquirers, suppliers and the public-
can have a far-reaching effect on the reputation and ultimate success of the organization. The
right letter, telephone call, or personal conversation can win back a disgruntled customer, create
a desire for a firm’s product or service, can negotiate a profitable sale, help an inquirer who is a
potential customer, and in general create goodwill.
1 Lecture note compiled by: Ashenafi E.& Chalachew A.(MBA),
Wollo University, CBE, Management Department
Administrative and Business Communication
2011
Reputable organizations are also seriously concerned about enhancing their public image through
various communications. Among these communications are public speeches by there executives,
tactful replies to comments and criticisms form consumer groups, free informative pamphlets,
interviews with news media. All these forms of communication are transmitted with a greater
emphasis on truthfulness.
Thus employees who communicate effectively can contribute in a variety of ways to the
lifeblood of their organization. Successful messages;
- eliminate unnecessary additional correspondence.
- Save time and expense
- build favorable impressions.
- enhance goodwill, and
- help increase company profits.
Therefore, in brief, effective internal communication integrates and facilitates the managerial
functions at all levels; and effective external communication relates and integrates an enterprise
successfully to its external environment.
4.2. Formal flow of Communication
Communication in organizations takes two forms: “formal” and Informal”. Formal
communication is that which follows prescribed channels of communication throughout the
organization-typically the chain of command. Formal communication is the official patterns of
communication that are designed, approved, and recognized by the management of the
organization.. It follows the official channels of communication prescribed in the organization
structure. It is an integral part of the organization structure. Informal communication generally is
considered to be any interaction that does not follow official channels of communication.
Organizational chart can be regarded as anatomical drawing of the official channels (paths)
through which official messages travel. Formal communication is thus the official chains that
determine the flow and direction of official messages among individuals or divisions in an
organization. Formal channels of communication provide for the structured flow of primarily
vertical communication (upward and downward) and secondarily crosswise (horizontal and
diagonal) communication.
2 Lecture note compiled by: Ashenafi E.& Chalachew A.(MBA),
Wollo University, CBE, Management Department
Administrative and Business Communication
2011
4.2.1. Downward Communication
Messages flowing from upper organizational levels to lower organizational levels constitute
downward communication. Downward communication has the following objectives:
i) To provide directives to subordinates.
Through downward communication, organizations;
- assign goals and explain the reason for assignment
- direct the activities of employees
- instruct them in proper behaviors and work methods
- persuade them to adopt certain attitudes and ideas
- evaluate their performance on the job
- Warning
-Advice
-delegation
ii) To indoctrinate company objectives, strategies, programs, policies and procedures.
iii) Appraise subordinates’ performance/performance feedback
Performance of subordinates must be evaluated continuously or periodically. The performance
result must also be communicated to the subordinates so as to help them know whether they are
meeting their goals or not. Positive evaluations contribute in raising the morale of workers and
thereby increase their productivity. Carefully communicated low evaluations also help the
subordinates to overcome their shortcomings and take corrective measures.
The most commonly used downward communication methods are the following:
i) Employee hand books- used to provide basic information about the organization, pay
policies, and benefit programs, work rules, and working facilities.
ii) Job descriptions and work procedures-used to inform an individual what is expected of him
and his work unit form the organization.
iii) News letters- are periodical publication about the news of the organization and other related
activities.
iv) Letters and memoranda
v) Employment interview-used to promote good relations with prospective employee.
vi) Performance appraisals- conducted as a private meeting between a superior and his
subordinate.
3 Lecture note compiled by: Ashenafi E.& Chalachew A.(MBA),
Wollo University, CBE, Management Department
Administrative and Business Communication
2011
vii) Disciplinary interviews- conducted by managers and superiors when employees violate the
rules and regulations of the organization.
viii) Departmental or unit meetings- often called by supervisors used to discuss with
subordinate about:
- Current events in the company
- Future plans of the company
- Progress reports, (evaluation reports)
ix) New employee orientation programs-used to give employees detailed information about
their jobs and the environment at which they will work. This helps employees to feel welcome in
the organization and learn about matters that directly affect them; and adapt to the new
environment and become effective.
iix). Notice Board
Limitations of Downward Communication
i) Communication often is not received
Employees often do not read the announcements, or they ignore the bulletins that are posted and
overlook the posters that announce current events. Supervisors and managers choose not to
conduct departmental meetings, or neglect to conduct the disciplinary or appraisal interviews that
are their responsibility.
ii) If communication occurs too frequently, after a time employees become saturated and simply
stop paying attention.
iii) Distortion or filtering
The sheer number of people involved makes it likely that:
- Facts will be distorted
- Details will be filtered out
- The meaning of the message will be changed
iv) Built in resistance
Downward communication is characterized by some degree of authoritarianism. Subordinators
are expected to receive the message at its face value, i.e without questioning the validity,
reliability and appropriateness of the message.
4 Lecture note compiled by: Ashenafi E.& Chalachew A.(MBA),
Wollo University, CBE, Management Department
Administrative and Business Communication
2011
Ways of Improving Downward Communication
- The message must be clearly understood by the subordinate
- The employee has to believe the order or instruction is consistent with the organization goal.
- The subordinate must be able to comply with the order mentally and physically. Orders and
instructions have to be reasonable enough to reflect the capacity of the subordinate with due
regard to time.
4.2.2. Upward Communication
Upward communication constitutes the flow of information from subordinates to supervisors. It
involves information about
- subordinates performance
- Feedback on organization policies and practices
- Problem solving suggestions, opinions, complaints etc.
Importance
i) Providing feedback
Managerial function is incomplete without feedback.
Managers ascertain whether:
- The policies are being followed
- The rules are being strictly respected
- The directives are properly carried out by means of feedback.
ii) Outlet for pent-up emotions
Upward communication provides employees with the opportunity to channel their problems,
complains, and grievances to superiors. This reduces frustration and enables employees develop
positive attitude.
iii) Providing constructive suggestions
Every member of an organization has a capacity to contribute ideas or suggestions that can
promote the welfare of the organization. Every employee is endowed with some creative
capacity and wise managers utilize the creative capacity of their subordinates. When
subordinates constructive suggestions are accepted and implemented, they feel encouraged and
motivated because they believe are participating in decision making. This also enables them to
identify themselves with the management and the organization.
5 Lecture note compiled by: Ashenafi E.& Chalachew A.(MBA),
Wollo University, CBE, Management Department
Administrative and Business Communication
2011
iv) Easier introduction of new schemes
Effective upward communication minimizes resistance to changes and makes them exert extra
efforts to make the new schemes successful.
v) Greater harmony between superiors and subordinates
Methods of Upward Communication
The most common methods of upward communication are the following:
i). suggestion Box
ii) Letters and reports.
iii) Suggestion and complaints boxes- often effective at the beginning and their novelty quickly
wear off.
iv) Open door policies
This allows employees not to stop by any manager’s office with concern, suggestion, or
complaint whenever they feel the need. Practically, however, many managers may not have
either time or willingness to listen to the ideas of subordinates and other lower level people.
Moreover, entering managers’ offices is often intimidating.
v) Departmental meetings- employees are freer to report discuss and evaluate all elements of
their work lives than using written reports.
v) Open floor policies/management by walking.
This is an upward communication method through which management members walk around
work areas talking informally with employees individually or in-group. This method is more
effective because employees are likely to say what is in their minds when they are at work.
Limitations of Upward Communication
i) Upward communication is subject to substantial distortion
Employees are reluctant to communicate negative information to superiors. Subordinates make
every attempt to send messages that please management and this leads to exaggerated
information.
ii) By passing some organizational levels.
When subordinates by pass their immediate superiors, the possible result can be:
– Hostility between a subordinate and his/her immediate superior
– Information overload to top management resulting in distrust for lack of response
– Violation of the chain of command
6 Lecture note compiled by: Ashenafi E.& Chalachew A.(MBA),
Wollo University, CBE, Management Department
Administrative and Business Communication
2011
iii) Many superiors discourage upward communication because of Negligence, lack of
confidence, or because they claim to be busy.
4.2.3. Horizontal Communication
Horizontal or lateral communication is communication between people or work units at the same
level of organizational hierarchy. It is designed to save time and facilitate control. It is used for
cooperation, exchange of information
4.2.4. Diagonal Communication
Diagonal communication refers to communication between managers and workers located in
different functional divisions (Wilson 1992). Diagonal communication takes place between work
units or people at different levels of organizational hierarchy but without having direct reporting
relationship. It is designed to support the vertical and horizontal communication systems.
It breaks down bureaucratic procedures. The concept of diagonal communication was introduced
to capture the new communication challenges associated with new organizational forms, such as
matrix and project-based organizations.
Conclusion
The vertical, horizontal, and diagonal communication constitutes the internal communication.
Effective internal communication helps in decreasing absenteeism, grievance, turnover; and
increasing job satisfaction, belongingness, productivity, and profit.
In general effective internal communication integrates and puts into action the management
functions.
It is needed to:
- Establish and disseminate goals and develop plans for their accomplishment.
- Organize human and non-human resources in most efficient and effective way.
- Select, develop, and appraise organizational members.
- Lead, motivate, and create a conducive climate at which employees are made to contribute to
organizational goals.
- Evaluate performance and take proper measures to remedy deviations from plans.
7 Lecture note compiled by: Ashenafi E.& Chalachew A.(MBA),
Wollo University, CBE, Management Department
Administrative and Business Communication
2011
4.3. Informal Communication – The Grapevine
People talk about job related or unrelated information. They talk about promotions, salary
increment, demotions, administrative policies and decisions. They also talk about local and
international affairs.
They talk such situations in the form of rumors, gossips, daily friendly chat etc. This all travel
through informal networks that often develop through incidents of spatial arrangement, similarity
of personalities or compatibilities of personal skills. Informal communication is thus, ones,
aspect of organizational communication that is not designed and recognized by management.
Since every communication cannot be programmed, grapevine is created and exists out of the
will of management. It arises out of the need for social interaction between people in the
organization. Of course what they share at an informal level will affect their ability to
communicate about their jobs and their attitude towards their work and the organization.
Most employees are involved in several networks at the same time; some grow from political
ties, other from technical interests and still others from social preferences. Grapevine is thus
made up of several information networks that overlap and interest at a number of points-that is
some well informed individuals are likely to belong to more than one informal networks. It
shows admirable disregard for rank and authority. The situations that employees may informally
discuss in the form of rumors and gossips may distort the accuracy of the information and may
even go against the interest of the organization, but managers cannot avoid it because it is not
created by management.
Four Informal Communication configurations
Single strand A B C D
Gossip - a person with the information passes it to every other individual in the chain
B E
C D
F
8 Lecture note compiled by: Ashenafi E.& Chalachew A.(MBA),
Wollo University, CBE, Management Department
Administrative and Business Communication
2011
Random - Probability chain - each person passes on information at random, without
particular regard for who the receiver is. And the receivers use the same approach in their
communication efforts.
C D
E
A
I
H
Cluster chain - information is passed on selectively: the individual deliberately tells
some people and does not tell others. Some of those getting the information pass it on to
others while the remainder does not. The result is that handful of people often account for
all of the information that is passed along this information chain.
A A
R A
B A
C A
G A
E A
M A
L A
I A
J A
K A
9 Lecture note compiled by: Ashenafi E.& Chalachew A.(MBA),
Wollo University, CBE, Management Department
Administrative and Business Communication
2011
Importance of the grapevine
i) It is used by employees as a safety value
Employees use the grapevine as a way of expressing their confined emotions use releasing their
anxieties. When people feel powerless to direct their destinies, the grapevine is a way o letting
our confined emotions thereby reducing frustration.
ii) The grapevine promotes organizational solidarity and cohesion.
People have inborn interest to interact and they satisfy their needs for friendliness. Love and
acceptance by their peers
iii) Provides feedback to management
It enables managers to know the real responses of employees towards a policy or other parts of
the organization from the grapevine leaders informally than formal reports from supervisors.
The most negative attribute of the grapevine, however, is that it serves as a network for rumors
that cannot be supported by facts. Rumors can travel like wild fire across the boundary of an
organization thereby spoiling the public image of the organization. Besides often transmits
incomplete information resulting in possible misunderstanding, confusion and wrong action.
Ways of effectively utilizing the grapevine
Grapevine is a natural and enviable result of people working together in groups. It cannot be
avoided because the more one tries to block the more force it will have. Therefore the following
are some of the ways through which the grapevine can be utilized effectively for organizational
purposes.
- Managers should admit its existence and try to feed the leaders or the grapevine accurate
information for fast dissemination and minimize rumors that adversely affect the organizations
productivity and public image.
- The grapevine should be used to diagnose the feelings and attitudes of employees so that
management policies, styles and other practices would be adjusted profitably according to the
common interest.
- Encouraging informal organizations to build team work wand mutual understanding so that
false rumors can be prevented before they prove to be harmful and disastrous.
10 Lecture note compiled by: Ashenafi E.& Chalachew A.(MBA),
Wollo University, CBE, Management Department
Administrative and Business Communication
2011
Summary
According to professor Keith Davis who has studies the grapevine for more than twenty years,
management should accept the grapevine as inevitable fact organizational life. He points out that:
“If properly guided it can help build teamwork, company loyalty, and the kind of motivation that
makes people want to do their best. It may weld the group together more effectively than
company policy and other formal tools of the organization.” It is, therefore, vital that managers
be in touch with informal networks, participate in them, learn form the, and use them tactfully to
disseminate information.
4.4 Non- verbal communication
We communicate in many different ways. What we say can be reinforced or contradicted by
nonverbal communication, such as facial expressions and body gestures. Nonverbal symbols are
expected to support the verbal. But it is not always so. Clearly, nonverbal communication may
support or contradict verbal communication, giving rise to the saying that actions often speak
louder than words.
Nonverbal communication is any message (information) the sender communicates without using
words. This type of communication, sometimes referred to as body language, is an important part
of the communication process. It takes place through body language (body movement) such as
gesture, eye contact, facial expression, and voice intonations as well as physical appearance. A
meaning is attached to these nonverbal symbols. The meaning of nonverbal communication is in
the observer, who both reads specific signals and interprets them in the context of the particular
situation.
Channels of nonverbal communication
1. Facial expressions and eye contact
The face is the primary site for the expression of emotion, revealing both the type and the
intensity of a person’s feelings. A person’s eyes are especially effective as a tool of
communication. They can be used to indicate attention and interest, to influence others, to
regulate interaction and to establish dominance. Although the eyes and the face are usually
reliable sources of meaning, people sometimes manipulate their expressions to simulate an
emotion they do not feel or to mask their true feelings.
11 Lecture note compiled by: Ashenafi E.& Chalachew A.(MBA),
Wollo University, CBE, Management Department
Administrative and Business Communication
2011
2. Gestures and Postures
By moving their bodies people can express both specific and general messages. Many gestures, a
wave of the hand, for example, have a specific and intentional meaning such as “hello” or
goodbye.” The other types of body movement are unintentional and express general messages.
These unconscious signals reveal whether a person feels confident or nervous, friendly or hostile,
assertive or passive, powerful or powerless.
3. Personal/physical/ appearance
The physical appearance and personal style contribute to our identity. People respond to use on
the basis of our physical attractiveness. Because we see ourselves as others see us. When people
think we are capable and attractive, we feel good about ourselves and this affects our behavior,
which in turn affects other people’s perceptions of us. Our grooming, clothing and our style
modify our appearance.
4. Use of time and space
This involves showing respect by being on time. Space also serves as a symbol of status and
determines how comfortable people feel talking each other. Nonverbal communication serves
important functions with respect to the verbal message; it can complement it, regulate it,
substitute for it, or accent it.
It is important for the receiver to understand the real message conveyed by the nonverbal
communication. Although verbal and nonverbal communications work together best when they
are complementary, nonverbal communication may take the place of or even contradict formal
communication or is misleading. One should look for nonverbal symbols as well as listen to the
literal meaning of a sender’s words; he should particularly be aware of contradictions of the
messages. For instance, a boss may say that he/she is free to talk to him about a grievance but he
may see nonverbal signals that suggest that this is not the time to discuss the subject. Regardless
of what is being said, an individual who frequently glances at his/her wristwatch is giving the
message that he/she would prefer to terminate the conversation. These contradictions suggest one
saying that “actions speak louder-and more accurately-than words.
5. Sign, Visual aids,(Traffic light, picture, graph)
12 Lecture note compiled by: Ashenafi E.& Chalachew A.(MBA),
Wollo University, CBE, Management Department