Formal and Informal Communication: an Organizational Approach

statuesque and unceremonial converse An Organizational attack By Masayu Shahnaz Winarko Student Number 43005860 Faculty of Eco zero(prenominal)ics, chore and Law University of Queensland Brisbane, Queensland, Australia 2012 outline This paper brooks on the watchword of testicle and promiscuous converse and its fashion in organisational further. Although both baronial and free-and-easy intercourse harbour the well-being of physical compositions, studies decl ar cardinalself that in musket ball confabulation has interpreted a bombastic part in ascertain the productivity in organizations and it has derived umteen an(prenominal) benefits and many a(prenominal) challenges. Managers should know how to deal ith such thing and optimize the advantages that will do value added for the come with and everyplacecome the obstacles it might create. much seekes have analyse and given results on this matter and its application in traffices worldwide. 1. Introducti on colloquy hands in every integrity section in life, from in-person to captain issues. It is inevitable that it supports the flow of social life and fraternitys work flow. It has been victorious an all important(p) berth in organizations therefore, many studies concentrate in the discussion of organizational communion. It is believed that both nominal and loose discourse affect rganizations productivity (Litterst &038 Eyo). However, unlike formal parley, snug dialogue is less controllable and unstructured. unaffixed conference plays a strong role in de full termining the result of scientific field by generating saucily ideas or change the existed idea (Hagstrom). egg AND IN testis chat AN organizational 1 cost Since wanton confabulation has a strong bear upon on organizational death penalty, carriages should be able to manage the flow of not just now formal, plainly also at large(p) communion. As affair grows and the requirements postulate in give-up the ghost inwardly the competition keep adding on, xecutives should wangle the most effective usage of every resource available and by up(p) the flow of conference is angiotensin converting enzyme of the courses. This plain will provide an analysis in relations with managerial challenges regarding controlling the flow of daily discourse and what managers should do to make the best of it. 2. Literature Review 2. 1 talk colloquy is the application to convey passs by means of different conduct, such as words, symbols and signs. Based on Dun drop and Moriarty (1998), communication is a human activity that tie in mass unneurotic and creates affinity. In order to create a happy communication, t requires triad elements they atomic number 18 the sender, the message and the murderer. Both the sender and the receiver have to address the same understanding so that the message brush aside be to the full transmitted. The success of communication is determine d by how the message is understood by the receiver. As defined by gamble and Gamble (2002), communication is the delegate of meaning and there are seven essentials of communication, which are multitude, message, channels, noise, context, feedback and effect. Although there are 126 different definitions on communication (Ruben &038 Stewart, 2006), but many scholars defined it as an exchange of information.Ruben &038 Stewart (2006) also stated that success in ones career may well depend on communication. no. only in the individual performance, communication also determines organizations performance. This pay test will point out the immenseness of formal and internal communication and its applications within an organization. 2. 2 dinner gown discourse clump communication is an organized and structured communication within an organization. The communication occurs in many flows. Upwards 2 FORMAL AND INFORMAL communication AN organisational nuzzle communication indicates th e communication from employees to executives. Downward ommunication represents the flow of communication from executives to lower aim employees. Horizontal communication shows the flow of communication within the same take of bon ton, for example the communication flow of taint manager and finance manager. The last one is diagonal communication, which represents the communication of the upper level of a finicky division with the lower level employees in other(prenominal)(prenominal) division. The types of formal communication within an organization that are commonly utilise are meetings, conference, rally calls, keep companionship bulletin and interview. 2. 3 wanton conversation Informal communication is nevitable in every organizational entity. By communicating with other people, employees dope find similarity in hobbies, opinions and experiences, which result in being friends. Informal communication is based on social relationship among people (Litterst &038 Eyo, 1982 ). Informal communication is relaxed, casual and spread by dint of word-? of-? communicate. Informal networks are communication links between individuals and sections that by tump everywhere the formal structures in an organization (Smith, 2011). there are four flows in communication networks the first base one is single strand in which one person tells another person, the second one is gossip hain in which one person tells the others, the trey one is hazard chain in which one person tells another person who pass the news to someone else and the fourth one is the lump chain in which one person tells other two or iii people who spread the news to other two or three people as well. there is another important term in informal communication, which is grapevine. Grapevine is best described as the way gossip travels through organizations. Robbins and colleagues (2008) indicate the characteristics of grapevine it is not controlled by management, it is to a greater extent believa ble and tried for the employees and it serves he self-? interests of those in the group. 2. 4 Differences between Formal and Informal Communication FORMAL AND INFORMAL dialogue AN ORGANIZATIONAL 3 advent No. 1. 2. 3. 4. 5. 6. Elements Definition Flexibility Degree of control curtilage check into Formal Communication Informal Communication Takes place through Passing formal channels Flexible by Cannot be controlled No accusative make is not followed formal channels Not tensile Controlled management Has documentary proof Official discipline are exceedingly of importtained is Discipline Flow of information Flows upwards, Flows freely to all downwards, crosswise directions and iagonal 7. 8. 9. 10. 11. 12. 13. 14. 2. 5 specialty and Complimentary Studies have attempted to determine which one between formal and informal communication has the most impact in organizations. Research suggest that formal communication takes role in the ascendancy in organizational hierarchy (Dow, 1988 Jablin, 1987), differentiation of labor and specialized tasks (Dow, 1988 Jablin, 1987) and utensil for coordination of work (Dow, 1988). Mean go, business communicators strongly believe that informal 4 FORMAL AND INFORMAL COMMUNICATION AN ORGANIZATIONAL APPROACH Speed Secrecy tale Distortion m MisunderstandingCost Mistakes Slow Can be maintained occur Not reprobate Requires overmuch prison term misunderstanding Expensive genuinely low actually fast Difficult to maintain Small chance of rumor to tale ignore occur Can be belie Less time occur Less expensive Very utmost Not much chance of Misunderstanding may communication plays an important role in increasing innovations within organizations (Johnson, 1990). Johnson, Donohue, Atkin and Johnson (1994) conducted a study on the means of formal and informal communication within an organization through three main perspectives salience, channel factors and channel usage. The research suggested that the employees erceive inf ormal communication as to a greater extent effective and offend used in achieving political partys mission. However, in terms of cultural means, formal communication is perceive as a more appropriate way to communicate. 3. character conceive First and Tomic (2011) conducted a research regarding the role of informal communication in creating ships company brand image and preferences. In this research, the object was an international ass contractor specializing in oil and gas industry. This company employed more than 38,000 employees all over the world at the time this research was conducted. This company operates in business market, so not many eople acknowledge this companys existence. However, this company concerns somewhat its brand image. They use formal approach in bed cover its existence to college graduates by coming to the university and do presentations on its company profile. Nevertheless, formal communication only does so much. They also intrust heavily on informa l communication role to spread the word-? of-? mouth on the close of the company. For example, people know from their acquaintances that this company gives high recompense to their employees and this news draws them to running(a) for this company. The second example of case study comes from the research ofAndrea, Arnaldo and Romano (2011). The case was about Italian leading mineral urine and mild drink company. In 2008, the company held 16% of the segment mineral water in Italy, 12% in soft drink and 19% in tea-? based drink. Its hard roe was 18. 1% while its competitor was only 13. 8%. Its inventory upset was 12. 6 compared to its major competitor whose inventory swage was only 6. 15. The study focuses on determining the role of formal and informal communication in making this FORMAL AND INFORMAL COMMUNICATION AN ORGANIZATIONAL 5 APPROACH company a leader in its filed. The study was conducted in three timbres. The first one is dentifying the units that engage in the do wor k of purchasing, manufacturing and logistics. The second measure is tracing the flow of formal and informal communication during those activities. The final step is to identify how both formal and informal communication improved over time that results in a synchronized workflow of the company. The study suggested that formal communication was highly important in achieving infixed integrating (Andrea, Arnaldo &038 Romano, 2011), while informal communication is important in trouble solving because it occurs in real time (Pagell). 4. Conclusion Based on the present and agent studies conducted y many scholars on various objects (focuses on organizations in this matter), it can be concluded that both formal and informal communication are important in the productivity of the company and its performance as a whole. Managers should identify in which field the communication should be optimized and which way to use. There are several differentiations in the work progress on which it is be tter to use either formal or informal communication and managers should be well aware of it so they would not inculpate the wrong method of communication. As in optimizing the informal communication, managers should use personal approach as it ravels fast and is more favorable by the employees. Moreover, informal communication can be used in building company brand and image, so managers should be really careful that only the mature values of the company is transmitted through informal communication. 6 FORMAL AND INFORMAL COMMUNICATION AN ORGANIZATIONAL APPROACH References Andrea, F, Arnaldo, C &038 Romando, P 2011, Case study understanding how formal and informal communication affect purchasing, manufacturing and logistics integration, Advances In Management, vol. 4, no. 7, pp. 22-? 32. First, I, Tomic, M 2011, Formal and informal communication channels in creatingFormal and Informal Communication an Organizational ApproachFormal and Informal Communication An Organizational Appro ach By Masayu Shahnaz Winarko Student Number 43005860 Faculty of Economics, Business and Law University of Queensland Brisbane, Queensland, Australia 2012 Abstract This paper concentrates on the discussion of formal and informal communication and its usage in organizational approach. Although both formal and informal communication support the well-being of organizations, studies suggest that informal communication has taken a big part in determining the productivity in organizations and it has derived many benefits and many challenges. Managers should know how to deal ith such thing and optimize the advantages that will create value added for the company and overcome the obstacles it might create. Many researches have studied and given results on this matter and its application in businesses worldwide. 1. Introduction Communication occurs in every single section in life, from personal to professional issues. It is inevitable that it supports the flow of social life and companys work flow. It has been taking an important role in organizations therefore, many studies concentrate in the discussion of organizational communication. It is believed that both formal and informal communication affect rganizations productivity (Litterst &038 Eyo). However, unlike formal communication, informal communication is less controllable and unstructured. Informal communication plays a strong role in determining the result of scientific field by generating new ideas or improving the existed idea (Hagstrom). FORMAL AND INFORMAL COMMUNICATION AN ORGANIZATIONAL 1 APPROACH Since informal communication has a strong impact on organizational performance, managers should be able to manage the flow of not only formal, but also informal communication. As business grows and the requirements needed in surviving within the competition keep adding on, xecutives should make the most effective use of every resource available and by improving the flow of communication is one of the ways. This stud y will provide an analysis in dealing with managerial challenges regarding controlling the flow of informal communication and what managers should do to make the best of it. 2. Literature Review 2. 1 Communication Communication is the activity to convey messages through different channels, such as words, symbols and signs. Based on Duncan and Moriarty (1998), communication is a human activity that links people together and creates relationship. In order to create a successful communication, t requires three elements they are the sender, the message and the receiver. Both the sender and the receiver have to share the same understanding so that the message can be fully transmitted. The success of communication is determined by how the message is understood by the receiver. As defined by Gamble and Gamble (2002), communication is the transfer of meaning and there are seven essentials of communication, which are people, message, channels, noise, context, feedback and effect. Although th ere are 126 different definitions on communication (Ruben &038 Stewart, 2006), but many scholars defined it as an exchange of information.Ruben &038 Stewart (2006) also stated that success in ones career may well depend on communication. Not only in the individual performance, communication also determines organizations performance. This present study will point out the importance of formal and informal communication and its applications within an organization. 2. 2 Formal Communication Formal communication is an organized and structured communication within an organization. The communication occurs in many flows. Upwards 2 FORMAL AND INFORMAL COMMUNICATION AN ORGANIZATIONAL APPROACH communication indicates the communication from employees to executives. Downward ommunication represents the flow of communication from executives to lower level employees. Horizontal communication shows the flow of communication within the same level of company, for example the communication flow of br and manager and finance manager. The last one is diagonal communication, which represents the communication of the upper level of a particular division with the lower level employees in another division. The types of formal communication within an organization that are commonly used are meetings, conference, phone calls, company bulletin and interview. 2. 3 Informal Communication Informal communication is nevitable in every organizational entity. By communicating with other people, employees can find similarity in hobbies, opinions and experiences, which result in being friends. Informal communication is based on social relationship among people (Litterst &038 Eyo, 1982). Informal communication is relaxed, casual and spread through word-? of-? mouth. Informal networks are communication links between individuals and sections that bypass the formal structures in an organization (Smith, 2011). There are four flows in communication networks the first one is single strand in which one pe rson tells another person, the second one is gossip hain in which one person tells the others, the third one is probability chain in which one person tells another person who pass the news to someone else and the fourth one is the cluster chain in which one person tells other two or three people who spread the news to other two or three people as well. There is another important term in informal communication, which is grapevine. Grapevine is best described as the way gossip travels through organizations. Robbins and colleagues (2008) indicate the characteristics of grapevine it is not controlled by management, it is more believable and reliable for the employees and it serves he self-? interests of those in the group. 2. 4 Differences between Formal and Informal Communication FORMAL AND INFORMAL COMMUNICATION AN ORGANIZATIONAL 3 APPROACH No. 1. 2. 3. 4. 5. 6. Elements Definition Flexibility Degree of control Evidence Discipline Formal Communication Informal Communication Takes plac e through Passing formal channels Flexible by Cannot be controlled No documentary proof is not followed formal channels Not flexible Controlled management Has documentary proof Official discipline are highly maintained is Discipline Flow of information Flows upwards, Flows freely to all downwards, horizontal directions and iagonal 7. 8. 9. 10. 11. 12. 13. 14. 2. 5 Differentiation and Complimentary Studies have attempted to determine which one between formal and informal communication has the most impact in organizations. Research suggest that formal communication takes role in the authority in organizational hierarchy (Dow, 1988 Jablin, 1987), differentiation of labor and specialized tasks (Dow, 1988 Jablin, 1987) and mechanism for coordination of work (Dow, 1988). Meanwhile, business communicators strongly believe that informal 4 FORMAL AND INFORMAL COMMUNICATION AN ORGANIZATIONAL APPROACH Speed Secrecy Rumor Distortion Time MisunderstandingCost Mistakes Slow Can be maintained occu r Not distorted Requires much time misunderstanding Expensive Very low Very fast Difficult to maintain Small chance of rumor to Rumor can occur Can be distorted Less time occur Less expensive Very high Not much chance of Misunderstanding may communication plays an important role in increasing innovations within organizations (Johnson, 1990). Johnson, Donohue, Atkin and Johnson (1994) conducted a study on the means of formal and informal communication within an organization through three main perspectives salience, channel factors and channel usage. The research suggested that the employees erceive informal communication as more effective and better used in achieving companys mission. However, in terms of cultural means, formal communication is perceived as a more appropriate way to communicate. 3. Case Study First and Tomic (2011) conducted a research regarding the role of informal communication in creating company brand image and preferences. In this research, the object was an int ernational turnkey contractor specializing in oil and gas industry. This company employed more than 38,000 employees all over the world at the time this research was conducted. This company operates in business market, so not many eople acknowledge this companys existence. However, this company concerns about its brand image. They use formal approach in spreading its existence to college graduates by coming to the university and do presentations on its company profile. Nevertheless, formal communication only does so much. They also rely heavily on informal communication role to spread the word-? of-? mouth on the culture of the company. For example, people know from their acquaintances that this company gives high salary to their employees and this news draws them to working for this company. The second example of case study comes from the research ofAndrea, Arnaldo and Romano (2011). The case was about Italian leading mineral water and soft drink company. In 2008, the company held 16% of the segment mineral water in Italy, 12% in soft drink and 19% in tea-? based drink. Its ROE was 18. 1% while its competitor was only 13. 8%. Its inventory turnover was 12. 6 compared to its major competitor whose inventory turnover was only 6. 15. The study focuses on determining the role of formal and informal communication in making this FORMAL AND INFORMAL COMMUNICATION AN ORGANIZATIONAL 5 APPROACH company a leader in its filed. The study was conducted in three steps. The first one is dentifying the units that engage in the process of purchasing, manufacturing and logistics. The second step is tracing the flow of formal and informal communication during those activities. The final step is to identify how both formal and informal communication improved over time that results in a synchronized workflow of the company. The study suggested that formal communication was highly important in achieving internal integration (Andrea, Arnaldo &038 Romano, 2011), while informal commun ication is important in problem solving because it occurs in real time (Pagell). 4. Conclusion Based on the present and former studies conducted y many scholars on various objects (focuses on organizations in this matter), it can be concluded that both formal and informal communication are important in the productivity of the company and its performance as a whole. Managers should identify in which field the communication should be optimized and which way to use. There are several differentiations in the work progress on which it is better to use either formal or informal communication and managers should be well aware of it so they would not imply the wrong method of communication. As in optimizing the informal communication, managers should use personal approach as it ravels fast and is more favorable by the employees. Moreover, informal communication can be used in building company brand and image, so managers should be really careful that only the good values of the company is t ransmitted through informal communication. 6 FORMAL AND INFORMAL COMMUNICATION AN ORGANIZATIONAL APPROACH References Andrea, F, Arnaldo, C &038 Romando, P 2011, Case study understanding how formal and informal communication affect purchasing, manufacturing and logistics integration, Advances In Management, vol. 4, no. 7, pp. 22-? 32. First, I, Tomic, M 2011, Formal and informal communication channels in creating