Download Lecture 8- Communication Systems

Lecture 9
Classification of communication in business
( communication systems
There are two types of communication systems:
 Formal communication
 Informal communication
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Formal and Informal Communication
• Internal communication involves communicating
back and forth within the organisation through
written and oral channels such as memos,reports,
proposal, meetings.
• External communication refers to communication
within an organization’s major audiences i.e. the
general public, customer, vendors and other
businesses plus the government.
•
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Formal communication
 Communications which are embedded through what
have been known as “official channels,
 For example, a written memorandum from a managing
director to his/her departmental heads, calling for a
meeting.
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Formal communication
 Communication flow: This is the direction that is
taken by communication within a formal channel.
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Formal communication
 Under this type of communication we have: Downward communication
 Upward communication
 Horizontal communication
 Diagonal communication
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Communication flowing Through formal
channels
MD
Finance manager
Production manager
Downward
horizontal
Upward management
Task coordination
employee
directives
information sharing
feed back
job plans
problem solving
progress reports company goals
conflict
resolutions reports of customers
mission statements
suggestions for improvement
improvements
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Forms of communication flowing through
formal channels
Written
Employee handbooks
Oral
Employee interviews
Job descriptions
evaluations
News letters
Bulletin notice boards
Performance
Electronic
Email
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Voice mail
Disciplinary interviews
Team meetings
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Formal communication cont’d-----• Diagonal communication
A/c
MD
F/nce
IT mger
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Prdtn
Plant mger
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Diagonal comm. Cont’d..
• It involves more than one department.
• Refers to communication between managers and
workers located in different functional divisions
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Informal communication: (the grape vine)
 The unofficial and informal communication in an
organization.
 Information is passed on by word of mouth
among interested parties who have received it
from various sources.
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The grape vine
 It also functions through social relationships in which
individuals talk about work when they having lunch,
meeting at the water cooler, golfing etc.
 Employees usually cite the grapevine as their most
frequent source of information.
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The grape vine cont’d…….
Managerial attitudes toward the grape vine:• Managers have predominantly negative feelings about
the grape vine.
• It is more prevalent at low levels of the managerial
hierarchy
• The grape vine is more influential in large organizations
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Advantages of grapevine
 Carrying important information quickly
 Major source of information
 It carries organizationally relevant gossip
 It is influential in large organizations
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Advantages of grapevine
 Its likely to satisfy social needs as to facilitate task
accomplishments
 It can also ease stress/ solutions: talking about /
sharing the small and big problems at work among
colleagues.
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Disadvantages of Informal Communication
 Grape vine can be destructive .
 Leads to misinformation and can create
interpersonal problems
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Coping with the grape vine
 Grape vine can be managed by:
 Having openness in handling problems
 Disproving rumors
 Being timely with information
 Having an effective formal communication
system which can stop the grapevine from being
destructive.
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Coping with the grape vine
 Step 1: Be alert
 Step 2: Evaluate the rumor
 Step 3: Plan a counterattack
 Step 4: Launch the counterattack
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