CHAPTER FOUR

TYPES OF COMMUNICATION IN ORGANIZATIONS

4.1 Internal and External Communication
Based on the Environment in which the communication process takes
place, organizations can have internal and external communication.
Internal Communication is the conversation that businesses have with
their staff and those staff has with each other. Good internal
communication involves regular and effective two-way communication
with all members of staff at all levels and is a critical success factor that
should be at the helm of any organization. It is not only leads to
increased morale and staff engagement; it has a knock-on effect on the
performance of employees and, in turn, on the reputation of the
organization. Good internal communication is vital to any organization
and the benefits it brings are:
 Enhanced staff engagement and understanding
 More effective management
 Increased staff moral and motivation, which is also linked to lower
sickness rates
 Staff satisfaction promotes good customer service, which leads to
value for money and residents’ satisfaction
 Ownership – staff feel like they belong and are more likely to feel
that any changes are partly their idea, which makes them less
resistant to change

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  Internal communication complements external communication
systems meaning that everyone has the same information
 All staff are able to communicate the organization’s key priorities
and vision, which helps build a brand
 Improved perceptions of council reputation and image
 Helps towards assessments such as higher Comprehensive
Performance Assessment (CPA) cores and achieving excellence
 Two-way flow of information
 Informed decision making
 Can create departmental communication ambassadors, which
ensures all sections of the organization are represented and involved
External communication is any communicative effort specifically for
people and organizations operating outside of the business. External
communications focus on spreading news and information about the
corporation to the public, customers, and company stakeholders. 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

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potential customer, and in general create goodwill. Reputable
organizations are also seriously concerned about enhancing their public
image through various communications. Among these communications
are public speeches by their executives, tactful replies to comments and
criticisms from 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, both types of communication are important to the overall
success and longevity of any company. Clearly-defined policies should
be written out and all employees should know what their duties and
responsibilities are when it comes to communicating with their
colleagues, superiors or outside parties.
4.2 Formal and Informal communication
Communication in organizations takes two forms: “formal” and
Informal”.
Formal communication is the official patterns of communication that

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are designed, approved, and recognized by the management of the
organization. It is an integral part of the organization structure.
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.
a. Downward Communication
Messages flowing upper from organizational levels to lower
organizational levels constitute downward communication. Downward
communication has three main 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
- Solicit upward communication, and
- Provide entertainment

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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, 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. Newsletters- 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

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superior and his subordinate.
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 and 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 adopt to the new
environment and become effective.
 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. Communication occurs too frequently and 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

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- 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.
 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.
b. Upward Communication
Upward communication constitutes the flow of information from
subordinates to supervisors. It involves information about:-
- Subordinates performance
- Feedback on organization a policies and practices
- Problem solving suggestions opinions, complaints etc.
 Importance of upward communication
i. Providing feedback- Managerial function is incomplete without
feedback.
Managers ascertain whether:

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- 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.
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. Employee opinion surveys- These are written questionnaires asking

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employees to report about their attitudes and feelings toward all elements
of their working lives. Responses are anonymous and employees are free
to express their attitudes without fear of reprisal.
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 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. 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.
vi. Departmental meetings- employees are freer to report discuss and
evaluate all elements of their work lives than using written reports.
vii. Social gatherings- Social gathering creates favorable atmosphere for
informal upward communication through employees throw away their
timidity and fear and feel free to talk to superiors about organizational
and personal problems.
 Limitations of Upward Communication

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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
iii. Many superiors discourage upward communication because of
Negligence, lack of confidence, or because they claim to be busy.
C. 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. Strict adherence to the chain of
command might result in the following problems.
- By the time the communication process in complete through the scalar
chain, the information may be useless.
- The communication must pass through various levels aggravating
screening and distortion.
- The communications will unnecessarily costly in terms of time and
money.

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 D. Diagonal Communication
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.
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. 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

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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
A B C D
a. Single strand
b. Gossip - a person with the information passes it to every other
A
individual in the chain

B C D E F

b. 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.

F G H
I

A C E
B D

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 c. 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
D
B C
F
E

H
M

I J
L
K

 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 of letting their confined
emotions thereby reducing frustration.

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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.

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- 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.
Communication Net Work

A communication net work represents a pattern of information flow

among group members. The importance of communication net works
lies in their potential influences on effectiveness, task efficiency, group
leadership, member satisfaction & other variables that affect
organizational effectiveness.

Five different net works are defined as follows. Three of the 5 network
shown here are centralized networks including the "chain" the "wheel"
and the "y" types. These networks are shown below in which each circle
represents a number of groups and X with in a circle represents the
pivotal person.

The chain is a typical net work formation in classical types of

organization where information flows only up or down in a hierarchical
chain of command. No horizontal communication is provided. The
figure shown can be considered as 5 levels in the organization hierarchy,
from the president down to the supervisor.

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A wheel net work also known as "star" net work represents a supervisor
in the center of with four subordinates. The subordinates don't
communicate with each other. All communication is channeled through
the supervisor.

the "Y" shape net work is a 4 level hierarchy, where two subordinates
through the hierarchical chain report to the manager X who has two
levels above him/her to whom the person reports.

In a circle net work, members of the group interact with adjoining/

adjacent members and no more. The group may have a formal leader or
supervision, but the interaction is primarily of lateral among members,
finally in the all channel or completely connected net work, each of the
members can communicate freely with the other 4. Typically there is no
leader and the communication can be initiated by any one though one
member but with out any dominating privileges.

Chain star (wheel) Circle all channel Y

shape

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Network Network Network Network
Network

Criteria Networks

Chain Y Wheel Circle All-

channel

Speed Moderate Moderate Fast Slow Fast

Accuracy High High High Low Moderate

Distortion Moderate Moderate Low Low High

Evaluating network effectiveness

Is any one network better than the others? The answer to that depends
on the dependent variable you are concerned about.

The above summarizes the effectiveness of the various networks against

four criteria-speeds, accuracy, the probability that a leader will emerge,
and level of satisfaction among members. One observation is
immediately apparent: No single network will be best for all occasions.
If speed is important, the wheel and all-channel networks are preferred.
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The chain, "Y", and wheel score high in accuracy. The structure of the
wheel facilitates the emergence of a leader. Te circle and all-channel
networks are best if you are concerned with having high employee
satisfaction.

Categories of communication.
Verbal and nonverbal communication
Nonverbal communication is any message (information) the sender
communicates without using words. This type of communication,
sometimes referred to as body language, is on 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 non-verbal symbols.
Communication can be verbal or nonverbal if it is to convey message,
which in turn are represented by meaningful symbols. All messages are
made up of the following two kinds of symbols.

(i) Verbal symbols- refers to the words-oral (spoken and written)-

in language.

(ii) Nonverbal symbols-refers to symbols other than words such as

voice, body movement (body language) (eye contact, facial
expression, gesture, and posture clothing, body appearance,
touch, etc…)

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Verbal communication
Verbal communication involves written and oral communication using
words-symbols that stand for the object or concept they represent. In
order to understand each other, the sender and receiver must agree on
what the particular word symbols stand for oral and written
communication are often used together so that the favorable qualities of
each can complement the other.
The question as to which medium of communication to use depends on
the nature of the message to
be transformed, the audience and the situation.

Written communication
A written communication means putting the message in writing and is
generally in the form of instructions, letters, memos, and formal reports,
information about rules and regulations, policy manuals... These areas
have to be covered in writing for efficient functioning of the
organization. It is most effective when it is required to communicate
information that requires action in the future and, also in situations
where communication is that of general informational nature, It also
ensures that everyone has the same information.

Written communication is recommended when evidence of events and

proceedings are required to be kept for future references, when many
persons must be contacted at the same time, when transmitting lengthy
statistical data and when more formal authority is to be exercised.
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The disadvantage is that it is very time consuming specially for lengthy
reports, there is no immediate feedback opportunity to clarity any
ambiguities, and confidential written material may teak out before time,
causing disruption in its effectiveness.

Advantages
- Provides permanent record for future references, which may also be
used as a proof or evidence
- Provides enough time for serious thinking enabling the communicator
to prepare his/her message carefully.
- Useful in transmitting lengthy messages and communicating a receiver
at a distance from the sender.
- Useful to convey uniform messages-policies, procedures, etc...

Disadvantages
- It is costly in time and money.
-It is less flexible-frequent amendments and changes in written
-Communication and prestige leads to loss of trust
- Lack of immediate feedback-The communicator may not be in a
position or may need a long time to know whether or not his message is
received and understood
- Little nonverbal information available.

Oral Communication

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The most prevalent form of organization communication is in the form
of oral. It could be face to face communication which is in the form of
direct talk & conversation between the speaker and the listener when
they are both physically present at the same place. It could be telephone
call or inter com system & it also includes a public address system. Oral
communication is preferable when the message is ambiguous (can be
discussed and clarified) and urgent (providing for immediate feedback).

Furthermore, it convoys a personal warmth & friend lines and it

develops a sense of belongingness b/c of its personalized contacts.

It is not recommended when a formal record of communication is

required, when the communication is lengthy and distant, and when the
information is statistical in nature & requires careful and objective
analysis.

Oral communication takes place via words of mouth or spoken words

(speaking-listening. Examples are conferences, committee meetings;
interviews, telephone conversations, face-to-face talks (meetings). The
human voice can impart the message much more forcefully and
effectively a written words and is an effective way of changing attitudes,
beliefs, and feelings, since faith, trust and sincerity can be much better
measured in a face-to-face conversation rather than in written words.

Advantages

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1. It is direct, simple, time saving and least expensive form of
communication
2. It allows for feedback and spontaneous thinking
3. If helps in avoiding delays, red tape and other formalities
4. If conveys personal warmth and friendliness and it develops a sense of
belonging Because of personalized contacts
5. Any misunderstanding can be cleared immediately.
Disadvantages
1. There is no formal record of transaction.
2. If the verbal message is passed on along the hierarchical chain of
command then some distortions can occur during the process.
1. Lengthy and distant communications cannot be effectively conveyed
verbally.
4. The receiver may receive the message in his own perception and thus
misunderstand the intent of the message.
5. Spontaneous responses may not be carefully thought about.
6. The spirit of authority cannot be transmitted effectively in verbal
transactions.
7. More or less or different meaning might be conveyed by manner of
speaking, tone of voice and facial expressions.
Nonverbal communication
Types of Non Verbal Communication

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Under our definition of communication, the types of non verbal
communication are almost limitless. However, in this part of our
discussion, we will cover only those types of non verbal
communication those are most applicable to business communication:
 Facial expressions and eye contact
 Other body movements and gestures
 Clothing and personal appearance
 Distance and personal space
 Physical environment
 Time
Facial expressions and eye contact
The eyes and face are especially helpful means of communicating
nonverbally. They can express hidden emotions – anger, annoyance,
confusion, enthusiasm, fear, hatred, joy, love, interest, sorrow,
surprise, uncertainty and others. They can also contradict verbal
statements.
Direct eye contact (but not staring) is usually desirable when two
people converse face to face. The people whose eyes droop or shift
away from the listener is thought to be shy or perhaps dishonest and
untrustworthy. But we must be careful not to over generalize.
Other Body Movements and Gestures

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Movements and gestures of other parts of the body are more closely
tied to culture than facial expressions and eye contact. Therefore, it is
extremely misleading to isolate single body movements (such as
crossing the legs) and give it a precise meaning. You should keep in
mind, however, that your body movements and gestures may be given
specific meaning by others regardless of your intentions. For example,
poor posture during an interview may be interpreted as disrespect, lack
of enthusiasm, or indicative of poor work habits. The way a person
stands may indicate self confidence, status, friendliness, and mood and
so on. Even weak or overly strong hand shakes will be given some
significance by many people.
Skilled communicators also make sure that their body movements and
gestures do not contradict their verbal messages. Stress may cause us
to send non-verbal indicators that contradict the confident message we
are trying to convey. Such stress indicators include rubbing the eyes,
pulling on the cheeks, rubbing the back of the neck, or rubbing the
forehead. Suppose you were a customer trying to negotiate a price
reduction on a certain item. Any non-verbal stress indicators
employed by the salesperson would probably indicate to you that the
salesperson was weakening, and you would renew your efforts to
reduce the price.
As a business or professional person, you can improve your
communication techniques by monitoring your conscious and

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unconscious body movements and gestures. Ask colleagues and
family for feedback, and review a video tape of yourself (taped during
a meeting, interview, or oral presentation).
Clothing and personal Appearance
Clothing and personal appearance also communicate non verbal
messages. Your appearance and clothing help others determine your
status, credibility and persuasiveness. Clothing, jewellery, hairstyles,
cosmetics, fingernails, neatness, stature are parts of personal
appearance. They can convey impressions regarding occupation, age,
sex, nationality, social and economic level, job status, and good or
poor judgment, depending on circumstances. If your goal is to make a
good impression, adopt the style of the people you want to impress.
Distance and personal Space
The informal distance rules for conversing in various situations differ
from culture to culture, family to family, and person to person. When
others violate an individual’s personal space requirements, that person
becomes uncomfortable and will move to correct the distance. Many
people are completely unaware of their personal distance requirements
because, as we mentioned earlier, such requirements usually fall into
the informal level of culture. For example, in Ethiopia some of us
unknowingly or knowingly hug a person we don’t know with out
worrying about his or her distance requirement.

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Knowledge of distance requirements of individuals is important to
your business or professional success. Although there may be times
when you wish to deliberately ignore the unwritten rules of
appropriate distances (for example, to demonstrate power or status),
generally you will want to improve communication by making sure
every one feels comfortable.
Physical Environment
Your negative reaction, however, may be caused by the room itself.
Physical environments not only reveal to visitors characteristics of the
owner of the territory, but also actually affect how a person
communicates.
Psychologists state that each person reacts emotionally to the
environment with “approach” (positive) or “avoidance” (negative)
behaviors. Various researchers have found that when participants
perform tasks in “ugly” rooms, they experience “monotony, fatigue,
headache, discontent, sleep, irritability, and hostility”. However, when
performing tasks in “attractive” rooms, participants experience
“feelings of pleasure, comfort, enjoyment, energy and desire to
continue the activity.”
You may notice that in some factories and business firms, lower status
employees may work in small, crowded, unattractive areas.
Thoughtful managers can help improve morale and efficiency when

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they perceive employee attitudes, toward surroundings and follow
suggestions for improving appearance.
Time
Time is another non verbal communication factor in the business
world. Your interpretation of time depends on your cultural and
regional background, on the situation and on the other people
involved. Whether it is acceptable to arrive late for an appointment
often depends on whether you are meeting with someone of equal
rank, some one more important, or some one less important. Also, any
one who is consistently late for appointments or in completing work
assignments is often deemed inconsiderable or even undependable.

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