Formal and Informal Communications within an Organization - Literature review Example

Informal Communication and Role of Grapevine in Organisations Interaction between living species and human beings in particular is an inherent practice and thus with organisations being operated with human participation, communication process is a key aspect of the interpersonal relations within networks of people. Organisational communication is the backbone of an organisation’s existence as it is the means by which organisation’s goals, objectives, process methods, information and data are all disseminated and shared by the persons involved within the organisation. When it comes to organisational communication, it can be either formal or informal. Which, ever the form of communication, the process involve the transfer of information from one party to the other. For the communication process to be effective, the information being transferred should be efficient, timely and accurate. While companies pay particular attention in planning and controlling the formal communication process within the organisation and has set policies and procedures pertaining to the formal communications, informal communication takes place fairly unregulated and in juxtaposition with the existing official communication process. Survey reports indicate that informal communication account for over 75% of the total organisational communication taking place and thus, it warrants a closer look at pros and cons of informal communication, and grapevine in particular from a management perspective. Formal communication Formal communication is defined as “communication, which occurs through the official organisational channels or is undertaken by an employee to do their job” (Weiss 2001). These formal communications takes place within different types of networks. These types of formal communication networks include “Chain Networks” which has serial, centralized transmission; “Y Networks” which are also centralized and the “Wheel Network” with central message unit and separate transmission/reception units in all directions and the “Circle Network” which operates on serial transmission but is decentralized (Baskin & Aronoff 1989). Formal communication, which takes place within such formal network includes meetings, memorandums, brainstorming workshops, official media releases and all other forms of written or verbal communications, which are officially recognized. These formal communications usually follow the hierarchical line of the organisational structure. Due to the slow process associated with the formal structures, the communication process, which follows the organisational structure too is affected by such inefficiencies leading to the perceived inadequacy of formal communication within organisational settings (Weiss 2001). Informal Communication While formal communication is the officially recognized means of organisational communication, a large part of communication within an organisation takes place through informal communication process that occurs outside the recognised communication networks. These may include chatting on telephones, talking in the lunchroom, coffee brake interactions as well as communications that take place after office hours between employee groups. These informal communication is facilitated through informal organisational networks the likes of friendship circles, grapevine and rumor mills (Weiss 2001). Although such informal communication networks are rarely identified as a formal chart, organisations are able to plot such informal networks with the use of sociogram technique, which indicate interaction patterns based on level of frequent communication between individuals. As per Kraut et al., these informal communications can be of four types as “Scheduled” where meetings are pre planned by both parties; “Intended” where the communication takes place once one party seeks out the other party but without any pre arranged meeting plans; “opportunistic” in which communication takes place when one party sees the other and remembers of the need to discuss a particular matter or “spontaneous” where the communication occur when two people meet but does not have any pre conceived plan for communicating a particular topic(Kraut et al. 1990). Functions of informal communication can be classified in to “tracking people, taking or leaving messages, making meeting arrangements, delivering documents, giving or getting help, and reporting progress and news” (Isaacs et.al 1994). While informal communication can have its negative aspects, it should also be recognized for its productive contribution towards the overall organisational communication process. Informal communication process supplements the formal communication process of an organisation and facilitates cohesive teams, better interpersonal relations and can act as a driver of organisational change. It also expedite the decision making process across the organisation and where informal networks exists in cross functional scenario, such informal communications are more effective than formal communication modes. Grapevine As a Means of Informal Communication The "grapevine" which is also termed as "rumor" is one of the key forms of informal communication and grapevine network spreads “throughout the organization with branches going in all directions” (Crampton et.al 1998). The hystory of the term grapevine can be traced to the communications during the Civil War where telegraph lines were sometimes strung from tree to tree, resembling grapevines. Due to adhoc manner in which these lines were strung the resulting telegraph communications were often garbled and distorted. Hence, distorted messages were said to “come from the grapevine” (Crampton 1998). Organisational grapevine activities are characterized by the rapid dispersion of information, and the uncontrollable nature. Once a rumor is initiated, it is quite impossible to be curtailed or terminated during its passage through the informal grapevine network. “Types of organisational grapevine includes aanxiety based rumors; fulfillment rumors; wedge-driving rumors (us vs. them); and social rumors” (Kalvar 2003). As per studies, its identified that approximately 70 percent of all organizational communication occurs at the grapevine level and that employees use grapevine as the main source of communicating within an organisation (De Mare 1989). These figures may come as a surprise to some organisational managers who, while acknowledgding the existance of grapevine, does not at most times realize the scale of grapevine activities within an organisation. Due to its uncontrollable nature, many organisations are of the opinion that it should be left to its own device and this is reflected in how poorly most organisations manage the informal communication process. Hoever with the significant role which informal communication plays within the organisational context, “organisations must learn to accomadate and institutionalise the effective aspects of informal communications while coping with and managing the dysfunctional elements” (Weiss 2001). In order to manage grapevine effectively, its necessary that managers become aware of factors which facilitates the prevelance of grapevine. Conditions Facilitating or Controlling Grapevine Conditions which controls or facilitate the prevelance of grapevine includes the importance of the communication subject to the two partoes involved in the communication and the ambiguousness of the situation associated with the communication topic (Crampton et. al. 1998). When employees experience anxiety about change and feel threteaned, the reliance on grapevine increases.This inclination is further heighetened when employees percieve the formal communications from management is limited or lacking. Transmission of Grapevine Similar to formal communications, there are distinct and varied patterns associated with transmission of information through the grapevine network. These include “Single-strand” transmission where information passes on from “A” to “B” and then to “C” in linier form. Grapevine may also rely on “Gossip chain” where the spread of information is to everybody within the network. “The concept of “Probability chain” refers to information being randomly passed to two people who repeat the same process, while in turn following probability rules” (Kalvar 2003). The most commonly utilized form of grapevine transmission includes the “Cluster transmission” where one party initiates communicates and pass on information to two other employees, who do so in turn, duplicating throughout organization. (Kalvar 2003). Distortion in Grapevine Messages The most commom problem associated with grapevine is that messages get distorted during the communication process where by some of the members of the network will receive inaccurate information (Hall et.al 2004). This distortion can be high when “cluster transmission” or “single strand” transmission patterns are in use. For managers to be able to manage these negative aspects of grapevine, the knowledge of factors which contributes to such distortions is useful. Condensation or the reduction of details as the message passes across the network; Information salience/sharpening where the key elements of the message is highlighted or subdued; Closure or adding where the gaps are filled in by various parties so that information looks more credible and authentic as well as the Selective perception of receivers (Kalvar 2003). While in some cases the distortion may occur due to a single factor, in certain grapevine communications, these factors can combinedly contribute to a high level of distortion. Advantages of Grapevine While grapevine can in certain situations act detrimentally and affect employee moral, productivity and industrial relations, there are many aspects, which makes grapevine an important and beneficial mode of communication in organisational settings. Grapevine has the advantage of being much faster in dispersing the message compared to the formal communication modes and also offers a trial avenue for management for assessing employee reactions to certain intended decisions, which are to be announced through the formal communication modes. Some companies practice what is known as a “leak” of decisions to be announced such as organisational restructuring plans or remuneration system changes to assess the reactions, while the message can provoke. Through the assessment of such reactions, the management is able to make adjustments and changes to intended proposals prior to making the formal announcements (Hall 2003). Grapevine is also and essential source of information to supplement the limited information available from formal communication channels, so that employees do not have to make their own conclusions and fill in gaps left from official communications. Another advantage is that it provides a sense of ownership of information and facilitates the humanization of the organisational environment. Grapevine is an essential outlet for venting out employee frustrations, offers a forum for discussions off the record and create a sense of belonging. Information received through grapevine often aid in reducing employee anxiety and also provides a means of unearthing pending problems related employee unrest and low moral. Another advantage of grapevine is that it is a communication mode whih the employees feel ownership of and as suh a more effetive mode to be used in creating a common organisation culture (Brody 1989). Grapevine with its potential to build teams, facilitate improvement of working relationships and aid the process of creativity and innovation through generation of ideas when employees are in a relaxed environment. Finally, it should also be recognized that grapevine like other informal communication, “makes benefical contribution to the social as well as the production function of the group through social functions such as member support and group maintenance” (McGrath 1991). “Such communications and socialization can help make work groups develop more cohesion and provide desired opportunities for human contact” (Baron & Greenberg 1990) Disadvantages of grapevine Grapevine being mostly an uncontrolled and unmanaged source of information has its inherent negativities as well. The biggest disadvantage of grapevine lies in the potential for circulating “unsubstantiated rumors, which can create organisational dysfunction” and affect the employee moral and even lead to industrial relation issues. For example, rumors pertaining to pay cuts, wage freezes or layoffs can provoke reactions, which are uncalled for towards a false alarm through unsubstantiated rumors (Weiss 2001). Incomplete rumors can leave gaps for employees to make their own assumptions, which can also be disadvantageous. Information leakage is one of the biggest disadvantages of grapevine communications within an organisation. With “gatekeepers” such as secretaries being highly active members of the grapevine network, it is a disadvantage if confidential and privileged information becomes privy to grapevine networks which will make it not only internally public but may also take it out of the organisation so that there is a potential for competitors to receive the information. . Information such as a new product launch, a breakthrough technology development, a planned merger or acquisition or a planned termination of employees may need to be kept confidential until fit to be announced formally. While grapevine network members do not usually disseminate information outside the organisation intentionally, it may happen by accident as they are also members of wider external communication networks. Another disadvantage is that there is no check on the information accuracy as it passes through the grapevine. In contrast to where accuracy can be clarified and checked at each level of the formal communication channels, the grapevine information can be distorted or wrong information can be circulated at the very outset, without having any means of correcting the information. Its recommended that “organizations adopt a proactive policy toward managing the grapevine in order to decrease many problems, which may result from inaccurate information” (Zaremba 1988). Its also the case that once a news is released to the grapevine, the controlling or recalling of it is almost an impossible task. Grapevine is also associated with unproductivity and creation and sustenance of “dysfunctional group norms which can begin to conflict with the larger official organisation and coalition building can occur, which resist planned organisational change” (Weiss 2001). Conclusion In conclusion it can be noted how important a role is played by informal communication networks such as grapevine and that they carry many advantages which is beneficial for the organisation and the employees. While some disadvantages and negativities are associated with the informal communication process, it should be managed proactively by being sensitive to the employee anxieties; providing employees with important information in open and honest manner and offering timely information so that informal networks does not have a time lag advantage over official communication modes. Management can also use the technique of designing and feeding rumors to be transmitted via the grapevine so that employees receive accurate and official information, which reaches them via the informal network, which adds ownership to the information. Finally it should be recognized that grapevine is an essential aspect of organisational behavior and a facilitator of healthy work environment. Thus, if managed effectively without attempting to curtail or eliminate these social networks they can be used to the advantage of the overall organisation. List of Reference Baskin , O. & Aranoff A. (1989) Interpersonal communications in Organisations. California: Goodyear Publishing. Baron, R. & Greenberg, J. (1990) Behavior in Organizations. Boston, MA: Allyn and Bacon. Brody, R. (1985) “I heard it through the grapevine,” Executive Female, September-October, p. 22. Crampton, S. M., Hodge, J.W. & Jitendra, M.M. (1998) [online] “Informal communication network: Factors influencing grapevine activity” ThePublic Personnel Management,  Winter. Retrieved from 21/07/2006 http://www.findarticles.com/p/articles/mi_qa3779/is_199801/ai_n8779274 De Mare, G.(1989) “Communicating: The key to establishing good working relationships,” Price Waterhouse Review, Vol. 33, pp. 30-37. Hall, D., Jones, R. & Raffo, C. (2004) Business Studies. 3rd ed. London: Causeway Press Limited. Isaacs,E., Whittaker, S, Frohlich, D. & O’Conaill, B. (1994) [online] “Informal communication re-examined: New functions for video in supporting opportunistic encounters.” Retrieved from 20.07.2006 http://www.izix.com/pro/lightweight/video.php Kalvar, S. T. (2003) [online] “Harness the power of the informal communications network.” Retrieved from 22/07/2006. Kraut, R., Fish, R., Root, B., & Chalfonte, B. (1990). Informal communication in organizations: Form, function and technology. In S. Oskamp & S. Spacapan, (Eds.), Peoples reactions to technology in factories, offices and aerospace, The Claremont Symposium on Applied Social Psychology, Sage Publications, 145-199. McGrath (1991). “Time matters in groups.” In Galegher J. & Kraut R. (Eds.), Intellectual teamwork: The social and technological bases of cooperative work, Hillsdale, NJ: Erlbaum. 23-61. Weiss, J.W. (2001) Organisational Behavior & Change, 2nd ed. Ohio: South-Western Collage Publishing. Zaremba, A. (1988) “Communication: Working with the organizational grapevine,” Personnel Journal, July Vol 67, pp. 38-42. Read More