Different Channels Of Business Communications: Formal Versus Informal

Formal Communication Channel

In the present business scenario, Business communications is one of the key factors for efficient organizational success. Business communications refer to the flow of communications in the internal and external environment of the organizations. Internal communications refer to the communications among the employees and external environment refers to the promotional activities of the organizations to market their products to the customers (Guffey & Loewy, 2012). This essay will discuss about the different communications channels and their different aspects.

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Communications of the organizations are being divided in to two types of channels (Kaul, 2014). One is formal communication channel and another is informal communication channel. Formal communication channel will be discussed first. The official systems or format of communications in the organizations is being termed as formal communications channel (Comelissen & Comelissen, 2017). Vertical format of the communications flow is normally being followed in this communications channel. Any communications from the superiors to their subordinates and vice versa are the kind of vertical format of formal communications. Issuance of notice and circular are the example of formal business communications. It is the most effective way of communications for the business organizations (Chmielecki, 2015). Formal communications channel is the most effective for the contemporary business organizations, because in the present business state of affairs, contemporary organizations have different aspects to fulfill. Therefore, the risks of communication gap are also more in the contemporary organizations. In this case, formal channel of communication is the most effective to act as the bridge between these probable communications gap. The key aspects of its effectiveness are to reach effectively to the lowest part in the hierarchical structure (Kaul, 2014). A formal channel of communications goes through different managerial levels and thus, it is filtered before reaching to the destination. Therefore, the particular destination will get only the required information rather than getting added noises. This concept is applicable for both the higher and the lower management.

Formal channel of the communication helps the business establishments to implement a professional approach in their internal environment. All the employees communicate in a singular manner. It helps the higher management to monitor the employees and having control over them (Northouse, 2015). Even though, formal communications channel constitutes various advantages but it have some shortcomings also. Free and flexible flow of communication is not possible in the formal channel of communications (Ruck & Welch, 2012). It is also more time consuming than any other channel of communications. It consumes more time due to following all the formal criteria in its way or flow. This affects the decision-making process of the business establishments.

Informal channel of communication is another type of communication which do not follows the criteria of formal channel. It is also known as grapevine communication due to the difficulty in identifying its origin (Singh, 2013). It promotes more free and flexible transmission of information than the formal channel of communication. Informal channel of communication normally follows horizontal format or structure of the flow of communication (Ruck & Welch, 2012). Informal or grapevine communications is not being considered as the official format of communications due to the difficulty in identifying its origin. This type of communications normally flows among the employees or among the same particular departments. Any types of gossips or casual communications among the employees are considered as the informal channel of communications.

Advantages and Disadvantages of Formal Communication Channel

The main advantage of this type of channels is promoting free flow of information among the employees (Singh, 2013). Thus, employees are more intend to express their opinions by this channel of communication. Higher management will be benefited from this communication channel by having the access to the opinions of the employees (Bodie, 2012). It is also faster than the formal channel of communication in transmitting the information as because it does not goes through any filtration process in the middle. Thus, decision-making process gets benefited from this channel of communication (Singh, 2013). Informal channel of communications also holds some shortcomings, such as, lack of reliability. This channel of communication lacks credibility because it does not follows any official structure of format (Guffey & Loewy, 2012). It transmits the information mainly by the word of mouth from the employees. Therefore, sometimes it poses a challenge for the higher management to control the irrelevant information and noises.

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Hence, organizations have the options to implement either the formal or the informal channel of communications within their internal environment. However, they first have to follow all aspects of the effective business communications. Listening is the first aspects of communication (Bodie, 2012). Communication will only be effective if the information be transmitted after listening to the issue properly. Effective business communication should follow the two-way format or structure. Therefore, communications should be transmitted from both sides rather than going to a single way. Both the side should participate in the communication in order to promote an effective way of business communication. It motivates the employees by giving the option of expressing their opinions in the business communication.

Trust is another aspect of business communications. Communication among the participating parties will only be effective if there is mutual trust among them. Trust will help to promote free flow of communications among all the stakeholders.

Focus and control is one of the key aspects of the effective communication. The approach of the higher management should be impartial and neutral towards all the employees on the organizations. Their focus should base on equality on the employees. Leadership should be more focused on the agility and problem solving of the employees. Higher management should have the access and control over all the stakeholders (Northouse, 2015).

Another aspect is confidence, influence between higher, and lower managerial levels in the organizations. Lower levels employees should have the confidence on their superiors and vice versa. Higher managerial levels should also have the influencing power among the employees to motivate them in case of any challenges (Griffin, 2013). This should be a cyclical process among all the stakeholders in the organization.

Another aspect of the effective communication is the clarity of the message to be transmitted. The information should be concise and clear which will be understandable to all the recipients. It should be arranged according to the requirement of the target audience.

As discussed earlier, the information in the communication channel should be clear to understand. The use of language is also important in the process of effective communication. Organizations should follow a common language for their internal communication because different language will convey different meanings, which may be unacceptable to others. Proper and suitable language should be used in the business communications (Blume & Board, 2013). Tone of language is also important because a slight deviated tone can convey wrong information, which will pose a serious challenge for the organizations (Jenifer & Raman, 2015). Contemporary organizations constitutes diversified workforce and thus difference in communicating language may have a negative impact on the organizations. Precautions should be initiated in using jargons because jargons will make difficult to understand the message.

Informal Communication Channel

There are several barriers of effective communication, which needs to be overcome by the organizations (Chmielecki, 2015).

One of the key barriers of effective communication is organizational barrier. Organizations have certain rules and policies regarding their internal communication. Lack of proper implementation or inadequate policies will lead to organizational barrier (Griffin, 2013). Effective communication requires free and flexible channel of communication for effective transmission of information. Inadequate channel of communication may also lead to organizational barrier.

On the other hand, third party comes in to the pictures in creating barrier for the effective communication. Noise in the way of the communication flow and distance between the sender and recipient may create obstacles for the effective communication (Chmielecki, 2015). Alteration of the information can also happen during passing through various hierarchical structures. These all along with the issue of overloading in the channel of communication may cause mechanical barrier.

Language barrier is another key barrier for the effective communications. Difference in language in the diversified workforce will create barrier in communications among the employees (Blume & Board, 2013). Willingness of the higher management and the employees in participating in the communication process will also determine the effectiveness of the communication process.

Organizations should follow some recommendations to overcome the communication barriers. Simple and concise approach should be there to communicate within the organizations (Beattie & Ellis, 2017). Strategies should be implemented in preventing the noise in the process of the communication. Communication approach should be from the both way and last but not the least is the selection of proper channel of communication.

Therefore, this essay concludes that though there are certain barriers for effective communication but recommended steps will help to overcome that. Contemporary organizations are competing in the global market with the help of proper and effective communication. Thus, it is of utmost need to overcome the barriers and implement more effective communication process. The main motive or objective of the organization should be to implement free and flexible approach to the internal communication. It will help to increase the competitiveness of the organizations along with the productivity of the employees, which will ultimately lead the organizations to stay ahead in the competition.

Reference

Beattie, G., & Ellis, A. W. (2017). The psychology of language and communication. Routledge.

Blume, A. & Board, O., (2013). Language barriers. Econometrica, 81(2), pp.781-812.

Bodie, G.D., (2012). Listening as positive communication. The positive side of interpersonal communication, pp.109-125.

Chmielecki, M., (2015). Factors Influencing Effectiveness of Internal Communication. Management and Business Administration, 23(2), pp.24-38.

Cornelissen, J., & Cornelissen, J. P. (2017). Corporate communication: A guide to theory and practice. Sage.

Griffin, R. W. (2013). Fundamentals of management. Cengage Learning.

Guffey, M.E. & Loewy, D., (2012). Essentials of business communication. Cengage Learning.

Jenifer, R.D. & Raman, G.P., (2015). Cross-cultural communication barriers in the workplace. Internafional Journal of Management, 6(1), pp.348-351.

Kaul, A., (2014). Effective business communication. PHI Learning Pvt. Ltd..

Northouse, P.G., (2015). Leadership: Theory and practice. Sage publications.

Ruck, K. & Welch, M., (2012). Valuing internal communication; management and employee perspectives. Public Relations Review, 38(2), pp.294-302.

Singh, M.N., (2013). Does the use of grapevine communication result into improved employee relations and increased business performance: Evidence from education and corporate sector’. International Journal of Social Science and Management, 1(11), pp.39-42.