Business Communication Today: An Analysis (part 1)

Communication in Organizational Settings
by:
Charles Lamson

In every part of the business organization communication provides the vital link between people and information. Whether you are a top manager or an entry-level employee, you have information that others need in order to perform their jobs, and others have information that is critical to you. When you exchange information with people inside your organization, it is called internal communication. When you exchange information and ideas with others outside your organization, it is called external communication. This information travels over both formal and informal channels (Business Communication Today 8th ed; Courtland L. Bovee and John V. Thill; pg. 8).

Formal and Informal Communication

Every organization has a formal communication network, in which ideas and information flow along the lines of command (the hierarchical levels) in your company's organization structure. Throughout the internal formal network, information flows in three directions:

• Downward flow. Downward communication flows from executives to employees, sharing executive decisions and providing information that helps employees do their jobs.
• Upward flow. Upward communication flows from employees to executives, providing accurate and timely reports on problems, trends, opportunities, grievances and performance - thus allowing executives to solve problems and make intelligent decisions.
• Horizontal flow.  Lateral or diagonal communication flows between departments to help employees share information and coordinate tasks. Such communication is especially useful for solving complex and difficult problems (Bovee, Thill; pg. 8).

Every organization also has an informal communication  network - a grapevine that operates anywhere two or more employees are in contact, from the lunchroom to the golf course to the company's email and instant messaging systems. Some executives are wary of the informal network, but savvy managers tap into it to spread and receive informal messages. Grapevines tend to be most active when employees believe the formal network is not providing the information they want or need (Bovee, Thill; pg. 8).

External communication flows into and out of the organization along formal lines (carefully prepared letters, announcements, email messages, face-to-face meetings and so on). It can also take place by informal means such as discussing work with your friends, meeting potential sales contacts at industry gatherings, networking at social events, talking with customers and so on. Although these interactions are informal, they can still be vital to the company's success so they require the same care and skill as formal communication (Bovee, Thill; pg. 8).

End