PGDM: 1004

BusinessCommunication
FORMS OF ORGANIZATIONAL COMMUNICATION
Whether an organization is large, small or virtual, sharing information among its parts and with the outside world is the glue that binds the organization together. When you join a company, you become a link in its information chain. Whether youre a top manager or an entrylevel employee, you have information that others need in order to perform their jobs, and others have information that is crucial to you. To succeed organization must share information with people both inside and outside the company. It includes the internal and external structure through which messages pass and the way information is presented, as well as the actual content of the messages themselves. As you exchange information with people inside and outside the organization you use a variety of formal and informal forms of communication. COMMUNICATION FORMAL INTERNAL EXTERNAL

Planned communication among with Planned communication with outsiders insiders (letters, reports, memos, e (letters, reports, memos, speeches, mail) that follows the companys chain of websites and news release) command INFORMAL Casual communication among employees (email, facetoface conversations and phone calls that do not follow the companys chain of command ) Casual communication with suppliers, customers, investors and other outsiders ( Face toface conversations, email and phone calls )

INTERNAL COMMUNICATION:
It refers to the exchange of information and ideas within an organization. As employee, you are in a position to observe things that your supervisors and coworkers cannot see: a customers first reaction to a product display, a suppliers brief hesitation before agreeing to a delivery date or a slowdown in the flow of customers. Managers and coworkers need these little gems of information in order to do their jobs. Internal communication helps employees do their jobs, develop a clear sense of the organizations mission and identify and react quickly to potential problems. To maintain a healthy flow of information within the organization, effective communicators use both formal and informal channels.

1004/BusinessCommunication/Prof. NeetikaShrivastava

PGDM: 1004

BusinessCommunication
Formal internal communication network : The formal flow of information follows the official chain of command. There are organizational charts in many companys which commands good communication flow. In organization information flows down, hierarchy. Downward flow : Organizational decisions are usually made at the top and then flow down to the people who will carry them out. Most of what filters downward is geared towards helping employees do their jobs. From top to bottom, each person must understand each message, apply it, and pass it along. Upward Flow : To solve problems and make intelligent decisions, managers must learn whats going on in the organization. Because they cant be everywhere at once, executives depend on lowerlevel employees to furnish them with accurate, timely reports on problems, emerging trends, opportunities for improvement, grievances, and performance. Horizontal flow : Communication also flows from one department to another, either laterally or diagonally. This horizontal communication helps employees share information and coordinate tasks, and it is especially useful for solving complex and difficult problems. Formal organization charts illustrate how information is supposed to flow. In actual practice, however, lines and boxes on a piece of paper cannot prevent people from talking with one another. Informal internal communication : Every organization has an informal communication network known as grapevine that supplements official channels. As people go about their work, they have casual conversations with their friends in the office. Although many of these conversations deal with personal matters, about 80 percent of the information that travels along the grapevine pertains to business. The informal communication network carries information along the organizations unofficial lines of activity and power. The grapevine is an important source of information in most organizations. up, and across the formal

EXTERNAL COMMUNICATION:
The external communication network links the organization with the outside world of customers, suppliers, competitors, and investors, journalists, and community representatives. Sometimes this external communication is carefully orchestrated especially during a crisis. At other times it

1004/BusinessCommunication/Prof. NeetikaShrivastava

PGDM: 1004

BusinessCommunication
occurs informally as part of routine business operations. Formal external communication : Companies use external communication to create a favorable impression. Whether by letter, website, phone, fax, internet, or videotape, good communication is the first step in creating a favorable impression. Carefully constructed letters, reports, memos, oral presentation, and websites convey an important message to outsiders about the quality of your organization. Messages such as statements to the press, letters to investors, advertisements, price increase announcements and litigation updates require special care because of their delicate nature. Therefore, such documents are often drafted by a marketing or public relations team a group of individuals whose sole job is creating and managing the flow of formal messages to outsiders. The public relations team is also responsible for helping management plan for and respond to crises which can range from environmental accidents or sabotage situations to strikes, massive product failure, major litigation, or even an abrupt change in management. To minimize the impact of any crisis, expert communicators advise managers to communicate honestly, openly, and often. If handled improperly, a crises can destroy a companys reputation. Informal external communication: Although companies usually communicate with outsiders in a formal manner, informal contacts with outsiders are important for learning about customer needs. As a member of an organization, you are an important informal conduit for communicating with the outside world. Every employee informally accumulates facts and impressions that contribute to the organizations collective understanding of the outside world. In the course of your daily activity you unconsciously absorb bits and pieces of information that add to the collective knowledge of your company. Top managers rely heavily on informal contacts with outsiders to gather information that might be useful to their companies. Much of their networking involves interaction with fellow executives. Many top level employees recognize the fact that keeping constant touch with the external real world , front line employees, customers by making a opportunity to talk to them and getting feedback helps in organizational improvement. communication. Receiving feedback is considered to be the most important aspect of

1004/BusinessCommunication/Prof. NeetikaShrivastava