Formal v/s Informal Communication

Formal Communication

• Formal communication generally follows a well-defined structured hierarchical pattern and periodicity.
• Formal communication channels are set up in all the kinds of organisations to ensure communication on an ongoing basis.
• Staff meetings, union-management meetings, memos, circulars, instructions, notices etc. are few of the way through which formal communication is facilitated.
• It is very easy to identify the source of communication as the channel is predefined and well structured.
• It is more authentic and expensive as compared to informal communication.
• It is more time consuming and impersonal that is why lack personal touch.
• Since,the communicator can be traced that is why he is answerable and needs to give justification, if, asked.

Informal Communication : Grapevine

Grapevine is the informal way of communication. In this type of communication the official news is transmitted through informal interactions. It includes tea time gossip, casual gathering, lunch time meetings, and personal parties etc. It has its own benefits and limitations. Top managers rely heavily on informal contact with outsiders to exchange information that might be useful to their company. Channels like grapevine are more active in organisations better that are not transparent. However they not very reliable as they may be just rumor or time pass. But it is not always negative rather can be helpful in team building and proving to be very useful in relieving the pent up emotion of the grapevine holders.

Following are the few benefits which a company can achieve through grapevine.

• Less expensive than formal channels.
• May give some information that one may find otherwise difficult to collect through formal channels.
• An outlet for employees to share their anxieties, worries, and frustrations.
• Used voluntarily by many employees.
• Fastest means of spreading information.

Limitations

• Fast spreading nature can cause damage to the organisation.
• If unverified, may cause troubles.
• May lead to misunderstanding if incomplete.
• May not be reliable as it is oral only and also nobody owns the responsibility for the information. 

Guidelines

• To be used as a supplementary.
• Information to be verified for facts and also the source. Should not be ignored.
• Employees using this channel should not be threatened or encouraged too  much.