Distinguish between formal and informal channels of communication in an organisation. Discuss the merits and demerits.
Answers
Formal - this may be through email, memos, company reports, team meetings, letters, strategy documents and so on. These communications are processed through the formal organisation structure and are sanctioned by the organisation itself.
Informal - this may be either verbal or non-verbal. It may be communicated through social / group gatherings, or perhaps, simply through the company 'gossip' or the company 'grapevine'. These channels are regarded as 'unofficial' as they are not est Advantages of Formal Organisation:
1. Systematic Working:
Formal organisation structure results in systematic and smooth functioning of an organisation.
2. Achievement of Organisational Objectives:
Formal organisational structure is established to achieve organisational objectives.
3. No Overlapping of Work:
ADVERTISEMENTS:
In formal organisation structure work is systematically divided among various departments and employees. So there is no chance of duplication or overlapping of work.
4. Co-ordination:
Formal organisational structure results in coordinating the activities of various departments.
5. Creation of Chain of Command:
Formal organisational structure clearly defines superior subordinate relationship, i.e., who reports to whom.
6. More Emphasis on Work:
Formal organisational structure lays more emphasis on work than interpersonal relations.
Disadvantages of Formal Organisation:
1. Delay in Action:
While following scalar chain and chain of command actions get delayed in formal structure.
2. Ignores Social Needs of Employees:
Formal organisational structure does not give importance to psychological and social need of employees which may lead to demotivate of employees.
Advantages of Informal Organisation:
1. Fast Communication:
Informal structure does not follow scalar chain so there can be faster spread of communication.
2. Fulfills Social Needs:
Informal communication gives due importance to psychological and social need of employees which motivate the employees.
3. Correct Feedback:
Through informal structure the top level managers can know the real feedback of employees on various policies and plans.
Strategic Use of Informal Organisation. Informal organisation can be used to get benefits in the formal organisation in the following way:
1. The knowledge of informal group can be used to gather support of employees and improve their performance.
2. Through grapevine important information can be transmitted quickly.
3. By cooperating with the informal groups the managers can skillfully take the advantage of both formal and informal organisations.
Disadvantages of Informal organisation:
1. Spread Rumours:
According to a survey 70% of information spread through informal organisational structure are rumors which may mislead the employees.
2. No Systematic Working:
Informal structure does not form a structure for smooth working of an organisation.
3. May Bring Negative Results:
If informal organisation opposes the policies and changes of management, then it becomes very difficult to implement them in organisation.
4. More Emphasis to Individual Interest:
Informal structure gives more importance to satisfaction of individual interest as compared to organisational interest.
3. Emphasis on Work Only:
Formal organisational structure gives importance to work only; it ignores human relations, creativity, talents, established by the organisation.