Formal Communication

Formal communication is the mode of communication in an organization for flow of the information through a line of command. Two main types of communication in an organization are:

1) Downward Communication- This is the flow of information from the top management to the lower management. Circulars, notices, job instructions etc. are examples of it.

2) Upward communication- Under this type of communication, the information flows from the lower levels to the upper level management. Complains, suggestions and grievances of workers addressed to the upper management are a few examples.

The information has to pass through a definite route from one person to another. Hence, the flow of information is systematic. Moreover, this type of communication is reliable and traceable  because source of every information can be easily located.

Informal communication

Informal communication is based on the informal relationships between people at different levels in an organisation. It is commonly referred to as "the grapevine". It may be conveyed by a nod, a glance, a gesture, a smile, and even silence. It is when you communicate with your peers, team mates, managers and superiors outside the formal channels. People working in an organization tend to form personal groups and discuss things among themselves. Informal communication network in present almost in all the companies because it is based on the fact that man is a social animal.

Formal Versus Informal

The main difference between formal and informal communication is the structure of each. The formal communication follows a specific chain of command where information passes from superiors to subordinates whereas there is no chain of command in informal communication. It is casual and spontaneous. Formal communication is scheduled in advance whereas informal is unscheduled. For example you are on your coffee break in office and you see one of your colleague there and started discussing about the new contract that your organization recently got. 

Grapevine

Informal channel of communication is also called as grapevine because it stretches throughout the organization in all the directions irrespective of the authorities level. There are many advantages of this form of communication because it leads to faster flow of information and helps in developing strong professional relationships in an organization. Despite of  these advantages, it has many disadvantages as well because the grapevine carries partial information at times as it is more based on rumours and unauthentic sources. The productivity of employees may be hindered as they spend more time talking rather than working. It may hamper the goodwill of the organization as it may carry false and negative information.

  

Effectively using Informal Communication

Effective use of informal communication can help in building authentic relationships and  finding alternative methods to create meaning in the organization. It can be very useful in expressing certain information that cannot be channeled via the official channels. .It satisfies the people's desire to identify what is happening in the organization and offers an opportunity to share dreads, worries and complaints. If in an organization informal communication is used effectively and in a positive way it can lead to success of an organization.