CHAPTER FOUR

TYPES OF COMMUNICATION IN ORGANIZATIONS

Learning Objectives

After completing this chapter, you will be able to:

- Describe internal and external communication
- Describe formal and informal communication.
- Discuss the advantages and disadvantages of downward, upward, and horizontal communication.
- Outline the external communication process.
- Explain non verbal communication.
Chapter outline

4.1. Internal Communication

4.2. External Communication
4.3 Nonverbal Communication

Introduction

The purpose of this chapter is to offer you comprehensive information about internal and
external communication. It focuses on formal and informal communications
This chapter includes activities and self assessment questions. So you are kindly requested to do
the activities and self assessment questions in order to successfully achieve the learning
objectives of the chapter.

Dear learner, there are internal and external communications. Internal communication is a
communication among members of an organization. External communication is a
communication between the organization and external environment.

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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
 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

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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 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
Identify the types of formal communication. Which types of formal communication does
your organization use?

Communication in organizations takes two forms: “formal” and Informal”.

Formal communication is the official patterns of communication that 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

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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
What are the advantages and disadvantages of 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 reas on 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
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

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 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.
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.
- 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
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
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

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- 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
In which kind of organizational environment do you think effective upward
communication exists? Is there effective upward communication in your organization?
Explain.

Dear learners, effective upward communication is usually found in participative and democratic
organizational environments (Koontz and Weihrich). Effective upward communication requires
environment in which subordinates feel free to communicate.

So what can managers do to facilitate the free flow of information? Since most of the
responsibility for improving upward communication rests with managers, they must create an
informal climate that encourages upward communication. They should announce their
willingness to hear from subordinates, seek open-door policy, and utilize informal contacts such
as chats during breaks, in the elevator, or at social gatherings.

Like downward messages, upward messages may have the disadvantage of filtering and
distortion, generally because employees don’t want superiors to view them unfavorably. The
superior, not wanting to deal with bad news, may dismiss a negative message entirely (Angell).

In addition, middle managers may keep information that would reflect unfavorably on them from
reaching their managers.

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 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.

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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
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
Describe the disadvantage of horizontal communication. Has your organization ever
experienced such problem? If so, what were the reasons?

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.
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

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

B C D E F
a. 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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 b. 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.
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

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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.
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

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

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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. 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…)

Verbal communication

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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.

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.

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-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
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
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

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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
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.

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Other Body Movements and Gestures

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 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

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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.

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 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

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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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