Types of Communication : Formal, Informal, Interpersonal, Non-verbal Communication

Communication can be characterized as Formal, Informal, Inter-personal and Non-verbal communication: 

1. Formal Communication 

Formal communication means the communication which travels through the formally established channels. In other words, communication which travels through the formal chain of command or lines of hierarchy of authority is called the formal communication. Under it, information is given through the formally designed channel or network. It is designed, controlled and regulated by the management. 
types of communication

Advantages of Formal Communication 
  • It helps in the fixation of responsibility and accountability. 
  • It helps in maintaining the lines of authority in the organization. 
  • It helps in maintaining discipline. 
  • It ensures orderly flow of communication. 

Disadvantages of Formal Communication 
  • It lacks personal contacts and relationship. 
  • It is time consuming. It takes much time to communicate. 
  • It creates a bottleneck in the flow of information because almost all information is channeled through a single executive. 
  • It obstructs free, smooth and accurate circulation of information in an organization. 

Formal communication can be Horizontal, Vertical and Diagonal. 

i. Horizontal Communication 

horizontal communication
When communication takes place between two or more persons of the same level or position of the same department or other departments of the organization, it is known as horizontal communication. When the finance manager communicates with the marketing manager concerning advertising expenditures, the flow of communication is horizontal. The objective of horizontal communication is to coordinate the efforts of different departments or persons.

Advantages of Horizontal Communication 
  • Coordinating in nature. 
  • Frequently informal and therefore simpler than vertical communication. 
  • Reassuring to those in charge of implementing department policy, since it provides them with the opportunity of checking with each other and comparing notes. 
  • Expedient in terms of communication time. 

Disadvantages of Horizontal Communication 
The major disadvantages of horizontal communication are listed as below: 
  • Department chiefs may remain uninformed about what their division heads are thinking. 
  • It can have a disuniting effect by fostering clique i.e. grouping among personal at the same levels of authority.
  • It can distort the purpose of a department policy, and even render it inoperative by allowing too much discussion about it. 
  • It may actually increase misunderstanding among division heads by permitting informal (verbal) alterations of formal communications. 

ii. Vertical Communication 

The communication in which information is either transmitted from top to the bottom or from bottom to the top in structural hierarchy is a vertical communication. In this way, vertical communication may be of two types as: 

a) Downward Communication 

When messages are transmitted from superiors to subordinates along with the chain of command, it is said to be downward communication. It refers to the transmission of information from superior to subordinates. The most common downward communications are job instruction, official memos, policy statements, procedures, manuals and company publications. 

b) Upward Communication 

When messages are transmitted from bottom to top of the organizational hierarchy, it is said to be upward communication. This provides feedback on the extent of effectiveness of downward communication. It is also a means of informing the management about the viewpoints, reactions, feelings and state of employee morale. Widely used upward communication devices include suggestion boxes, group meetings, report to supervisors and appeal or grievance procedures. Usually upward communication is utilized in democratic and participative management. Effective upward communication channels are important because they provide employees with opportunities to have a say.

Advantages of Vertical Communication 
    • It is authoritative and official.
    • It is binding to all parties involved. 
    • It is the most legitimate type of communication. 

Disadvantages of Vertical Communication 

The major disadvantages of vertical communication are listed as below: 
    • It is formal and informal. 
    • It is usually slow-moving, since it must be channeled through several levels of authority. 
    • It may conceal the true motives behind the formal message it carries. 

iii. Diagonal Communication 

Diagonal communication cuts across departmental lines. Such communication is in between people who are neither in the same department nor on the same level of organizational structure. In other words, it refers to interchange of messages between the managers and employees who are neither in the same department nor on the same level of organizational structure. Diagonal communication refers to communication between managers and workers located in different functional divisions. Although both vertical and horizontal communication continue to be important, these terms no longer adequately capture communication needs and flows in most modern organizations. The concept of diagonal communication was introduced to capture the new communication challenges associated with new organizational forms, such as matrix and project based organizations. 

Advantages of Diagonal Communication 
  • It is the most direct method of communication. 
  • It is the most selective method of communication.
  • It is one of the fastest methods of communication.
  • In critical situations, it would seem to be the most essential and logical type of communication. 

Disadvantages of Diagonal Communication 
  • It can destroy lines of authority and formal chains of command. 
  • It can leave immediate superiors uninformed of what their subordinates are doing.
  • It can lead to conflicting orders so it may lead to further confusion.
  • It is usually verbal and thus is untraceable if things go wrong.


Related Topic: Concept of Communication


2. Informal Communication

Informal communication refers to the communication which takes place on the basis of informal relations between the members of a group. It is personal communication in nature and not a positional communication. It does not flow along with the formal lines of authority or formal chain of command. Even it is not regulated by the formal rules and procedures. Normally, members of informal group use this form of communication in order to share their ideas, views, opinions and other information. There is lack of official instruction for communication. It is not controlled and designed by formal organizational structure. So, it is not used to communicate formal message.

Advantages of Informal Communication
  • It is more flexible.
  • It helps to improve decision-making.
  • Informal communication is faster in speed than formal communication.
  • It works as a powerful and effective tool of communication.
  • It may provide feedback to managers on their actions and decisions.

Disadvantages of Informal Communication
  • It is difficult to fix responsibility for the information.
  • It may cause misunderstanding.
  • It carries inaccurate, half-truth or distorted information.
  • It is difficult to believe on information.
  • It leads to leakage of secret information.


3. Inter-personal Communication

Inter-personal communication is the sharing of information between two or more people face-to-face through any other direct channel. Since communicating parties get face-to-face, so it is two-way communication. Very simply, manager or supervisors give direction and guidance to their subordinates in their presence is the common example of inter-personal communication. Inter-personal communication can be oral or written.

i) Oral Communication

When message is expressed through the words of mouth or spoken words, it is said to be oral communication. It may take place either through face-to-face conversation or through any electronic mode such as telephone, cellular phone, intercom etc. In oral communication, source of message i.e. sender gives the information through oral means i.e. by speaking. This means of communication is more reliable because sender can get feedback quickly.

Advantages of Oral Communication
  • It is quicker and saves in time.
  • It establishes a personal touch and leads to better understanding.
  • It is economical or less expensive as compared to written communication.
  • It is flexible and the messages can be changed to suit the needs and response of the receiver.

Disadvantages of Oral Communication
  • It has the tendency of being distorted.
  • It is less reliable.
  • It provides no record for future reference.
  • It does not provide sufficient time for thinking before conveying the message.

ii. Written Communication

When message is expressed through written words, it is known as written communication. It may be expressed even through groups, charts, diagrams, pictures with or without words. In this form of communication, information is shared to the receiver by writing or drawing. It is the formal means of communication. Normally, information that should be kept for long time for future reference, are transmitted by means of written communication.

Advantages of Written Communication
  • It tends to be complete, clear, precise and correct.
  • It tends to reduce misunderstanding, conflicts and disputes.
  • It ensures transmission of information in uniform manager, i.e. everyone concerned has the same information.
  • It ensures little risk of unauthorized alternation in the messages.
  • It is taken as a legal evidence by the courts.

Disadvantages of Written Communication
  • It is time consuming.
  • It is expensive.
  • It may be interpreted in a different manner by different people.
  • It tends to ineffective and unimpressive in case of poor drafting.
  • It fails to provide feedback immediately.


4. Non-Verbal Communication

Communication through postures or gestures of body parts is known as the gestural or non-gestural or non-verbal communication. It is a mode of communication in which anything other than words may be used to transmit message from one person to another. In other words, the communication of information by means of facial expression, body movement, physical contact, gestures, etc. is called non-verbal communication. It is the communication in which neither written nor oral means are used. It is often used to encourage the subordinates like shaking hands, blinking eyes, smiling, clapping etc. It is most powerful means of communication. Good managers always use this type of communication frequently whenever necessary.

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Process of Communication and System of Communication

Process of Communication

Communication has been defined as a process. Communication process is the sequence of identifiable steps that are necessary to complete exchange of information, ideas and understanding among human being. The basic steps of communication process can be illustrated better in a way with the help of figure.
Process of Communication

1. Sender 

Sender or communicator is the initiator of the process of communication. He is the person who intends to convey or transmit an information or message to some other person. He may be speaker, writer or actor. He formulates the message that he wants to convey and selects media for sending. The sender is the main source of information. The sender may be departments, manager or organization itself. The communicator first of all develops a clear idea in his mind about reality, opinion or fact information to convey that it exists in the mind of sender. 

2. Encoding 

Next step in the communication process relate to encoding of the message. Encoding means transforming or translating the message into some language or code understandable to communicate i.e. receiver of the message. At this step, sender transforms the message into words, data, symbols, figures, pictures, gestures or other code or language so that the intended receiver may understand it properly. So, encoding is done by communicator in which ideas are put in the form of words. 

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3. Message 

Sender then prepares message to be communicated. Message is the subject-matter of communication. It may be some idea, information, thought or emotion. It may be expressed in written, oral or non-verbal form. It is the subject matter of communication. 

4. Channel 

The next step in the process relates to the selection of channel of communication. The sender can choose among a number of media such as face-to-face conversation, telephone calls, letters, e-mail, fax, photographs, meetings, organization manuals, news release, press conferences, advertising on TV, radio and newspapers and magazines. It may be verbal or written. The message is conveyed with the help of channel selected. 

5. Receiver 

The receiver may be listener, reader or viewer. In order to initiate a process of communication, there should be some communicate or receiver of the message. He is the person who is to receive, interpret, understand and respond to the message. The receiver decodes or translates the message in his own language. It enables him to understand message. 

6. Decoding 

Decoding means to receive and catch up the ideas, thoughts or messages given by the sender and translate those messages into own languages. In other words, no message accomplishes its purpose unless it is understood by the receiver. Hence, the next step in the process relates to understanding of the message after receiving it. In this process, the receiver may be reader, listener or viewer. It enables the receiver to understand the messages received by the communicator. Hence, there should be proper communication between the encoder and decoder. 

7. Understanding 

Here, receiver tries to draw meaning of the received message. Once a meaning is drawn and the receiver understands the message, he acts upon the message. 

8. Feedback 

The main objective of communication is to elicit desired response or action from the receiver of the message. Hence, communication process remains incomplete or ineffective unless it elicits desired action or response. In other words, the effectiveness of communication is measured through feedback. Feedback is looking at response of receiver. If the response is positive, the communication is successful. If the response is not appropriate, then the sender has to change the message or the channel so as to get the appropriate response. 

9. Noise 

Noise is the external factor or unwanted element that disturbs or interfere the free flow of information. It consists of sound of radio, loudspeaker, vehicles etc. It is the part of communication to minimize noise while passing information. 


System of Communication 

Communication is an on-going process by which people attempt to share meaning via the transmitted message. Communication activities are completed within its system. Communication system includes different elements, information and its pattern or way of communication. 

1. Downward Communication 

It flows from the people at higher level to those at lower levels in the organizational hierarchy. Different types of commands are used for the purpose of communicating message from top to bottom. Such commands come in the form of direction, instruction and orders and tell subordinates what they have to do from their positions. From the upper level, objectives, policies, strategies and programs are transmitted in order to prescribe roles and responsibility for the subordinate employees. The main purpose of the downward communication includes: 

a) To give subordinates specific task directives and job instructions. 

b) To inform subordinates about organizational procedures and practices. 

c) To transmit information to subordinates about the rational of the job. 

2. Upward Communication 

Upward communications are just reverse of downward communications. It flows from subordinates to their superiors or managers. In other words, this direction of information flow is important for transmitting data and information from lower levels to support decision-making by upper level managers. Such communication include reaction and suggestions from workers, their grievances etc. contents of the upward communication are reports, reactions, suggestions, statements and proposals prepared for the submission to the boss etc. There was very little appreciation of this form of communication in past as it does not fit into the traditional theory of organizations. But in modern times, upward communication is considered to be a main source of motivation in employees. 

3. Lateral Communication 

Lateral communication also known as horizontal communication. It refers to the process of horizontal flow of information in order to co-ordinate work activities at the same level of management. In other words, when communication takes place between two or more persons who are subordinates of the same person or those who are working on the same level of organization, this communication is known as horizontal or lateral or cross wise communication. The communication between functional managers, among superintendents of department working under one boss, the meeting of general managers of various factories are examples of such communications. Horizontal communications may be oral as well as written also. The main purpose of internal communication includes: 

a) To co-ordinate tasks at the same level of hierarchy 

b) To solve organizational problems by all managers sitting together 

c) To share inter and intra departmental information 

d) To solve department or divisional level conflicts with the joint efforts of managers working at the same level.

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Communication: Concept | Functions | Need and Importance of Communication

Communication originates from the Latin word 'communico' or 'communicare', which means 'to share'. Obviously however, communication is considered effective only when it gets the desired action or response. In other words, communication is one of the most important basic function and service of any office. The function is said to be connected with handling of information which includes the function of receiving and transmitting of the information, ideas, facts, opinion, emotions etc. which is called communication system. 

Various researchers and analysts define the term 'communication' in their own way. Despite their different versions, it can be briefly summed up that 'communication essentially means the transfer to ideas, feelings, plans, message or information from one person to another.' Some of the definitions given by different experts are as follows: 

"Communication means the imparting, conveying or exchanging of ideas, views, knowledge etc. whether by speech, writing or signs." – Oxford English Dictionary 

"The sum of the entire things one person does when he wants to create understanding in the mind of another. It is a bridge of meaning. It involves a systematic and continuous process of telling, listening and understanding." – Louis A. Allen 

"Communication is imparting or exchange thought of information." – Shurter 

"Communication is the process of passing information and understanding from one person to another. It is essentially a bridge of meaning between people." – Keith Davis 

"Communication is the transfer of information from a sender to a receiver with the information being understood by the receiver." – Koontz and Weihrich 

"Communication is the process of passing information and understanding from one person to another. It is the process of imparting ideas and making oneself understood by others." – Theo Haimann 

From the above definitions, communication is the process of transferring of information and understanding from one person to another. It is the systematic and ongoing process of seeing, listening and understanding. Similarly, it is the process of exchange of information, ideas, feelings and understanding among human beings. It is the process of conveying meanings. It is a systematic process of conveying, listening and understanding something between two or more persons through words, figures, symbols, pictures, body languages etc. 

Characteristics of Communication 

The following characteristics of communication explain the nature of communication: 
  • It is a social process.
  • It is a dynamic process which is adapted in accordance with the prevailing situation.
  • Communication is a process of interaction between persons. In other words, it is an interactive process.
  • It is all pervasive function of management. In other words, it is performed by all the mangers and employees across the organization.
  • It may be oral, written or gestural.
  • It involves exchange of information, opinion, idea, meaning and understanding among human beings.
  • It is a two-way process. It essentially involves dialogue for its success.
  • It may be formal or informal. 

Functions of Communication 

The communication plays important role in the field of management for the purpose of managing different factors effectively and efficiently. The role of communication in the field of management can be identified by identifying the various functions that are performed by effective communication. Such functions are basically information function, command and instructive function, influence or persuasive function and integrative function. These all functions of communications can be briefly explained as follows: 
Functions of communication
Functions of Communication

1. Information Function 

Information is taken as very important factor of the communication system. It is used as the basis for orientation to the external environment and for determining their behavior. For example, the technology of communication has greatly enhanced man's information-generating capacities. It is our ability to affect each other communicatively which has greatly increased the importance of the information giving and receiving aspect of our existence. No organization can fulfill its purpose except to the extent that its communication process furthers its movement towards its specific goals in some way. 

2. Command and Instructive Function 

Communication performs command and instructive functions. These functions of communication are more observable in formal organizations than that of informal organizations. Individuals' who are hierarchically superior within an organization structure are both privileged and obligated to command and control certain task-related behaviors of their subordinates. Orders, directives, requests, procedures and even performance appraisals are taken as command and instructive functions. 

3. Influence and Persuasive Function 

Influence and persuasive functions are taken together represent one of the several functions which is equally important in the communication. Managers can influence others either through coercively or communicatively. Since influence through coercion has its limitations in organizational setting, managers can do well to influence others through effective communication. In fact, leadership is more effective than exercise of authority in getting the maximum from the employees. 

4. Integrative Function 

Communication performs the integrative function by relating various components of the organization and maintains equilibrium among them. The communication that occurs has the consequence of energizing, organizing and channelizing the behavior of living systems. However, if the messages we create in order to comprehend our environment are not cumulative and self-organizing in some way, it would be impossible to gain or to maintain the necessary degree of equilibrium or stable state relations with various aspects of environment. For example, at the larger than face-to-face human groups, some formalization takes place and integrative functions are provided in part by bureaucratization, proceduralization, institutionalization etc. 


Need and Importance of Communication 

The success of all managerial functions depends on successful communication. In other words, good communication is the foundation for sound management. No organization can exist without sound communication system. The need and importance of communication can be highlighted with the help of following points. 
Importance of communication

1. Facilitates Planning 

Planning requires extensive communication among the executives and the other personnel, who translate the plans into action. Organizational objectives, policies, programmes, practices, procedures and strategies are conveyed to the concerned people in the organization so that they may strictly follow them. Communication is also essential in executing a planned programme. 

2. Effective Organizing 

Organizing function cannot be performed without effective communication system. It involves many activities including delegation and decentralization of authority, assigning responsibility and establishing relationships among the members of the organization. For all these activities, manager needs to have communication system in place. 

3. Essential for Leading 

No doubt effective leadership requires an efficient system of communication in the organization. A good leader may direct or lead his subordinates only when an efficient system of communication is present. It brings both the leader and the subordinates in close contact to each other. A leader can make his orders and directives more useful by inviting opinions, suggestions etc. from his subordinates and it requires communication. 

4. Effective Control 

No manager can exercise effective control of organizational activities without proper communication system. In the controlling process, there should be exchange of information between the manager and his subordinates. 

5. Efficient Functioning of Enterprise 

Communication is essential for smooth and successful functioning of an enterprise. It serves as the lubricant fostering smooth operation of the management process. In other words, it is clear that communication is an indispensable tool for successful operation of an enterprise. 

6. Enhances Motivation and Morale 

As we know, 'happy workers are the productive workers', effective communication system plays crucial role in enhancing the level of motivation and morale of employees through effective communication instructions, directions, orders, praise, solutions to the problems etc. Effective communication system plays crucial role in enhancing the level of motivation and morale of employees. Through effective communication instructions, directions, orders, praise, solutions to the problems etc. can be effectively conveyed. 

7. Building Image/ Goodwill 

Communication plays a vital role in building goodwill and image of the organization in the business world and in the society as a whole. Business houses disseminate plethora of information for building their goodwill and image. Information relating to financial performance, sales and export performance, launch of new products, foreign collaboration, awards won, social welfare activities etc. Similarly, public relations executives and managers constantly send press releases in order to build image of the organization. 

8. Facilitates Change 

Change is a way of life. Organizations are no exception. Hence, people in organization discuss the need and scope of change and introduce change. Managers prepare members of the organization to accept change. These all cannot be possible without effective communication.
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Emerging Approaches of Leadership | Charismatic Leadership | Transformable Leadership | Leader Member Exchange (LMX) Theory



Emerging approaches of leadership are: 

1. Charismatic Leadership 

Charismatic leadership theory is also called as 'Great Man Theory'. Charismatic leaders are dynamic risk-takers who show their expertise and self-confidence; express high performance expectation and use symbols and language to inspire others. They can also be mentors who treat employees individually and guide them to take action. 


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In other words, charismatic leaders are those who inspire followers and have a major impact on their organizations through personal vision and energy. Charismatic leaders may become a liability to an organization once the crisis and need for dramatic change subsides. This is so because, in the times of peace, charismatic leader's over-whelming self-confidence becomes ability. The basic assumptions and implications of charismatic leadership theory are as follows: 

  • These leadership qualities make a leader effective and situational factors do not have any influence.
  • Leaders, in general, and great leaders in particular, have some exceptional inborn leadership qualities which are bestowed upon them by the divine power.
  • Since these qualities are inborn, these cannot be enhanced through education and training. Further, since these qualities are of personal nature, these cannot be shared by others. 


2. Transformable Leadership 

Under transformable leadership, the leader pays attention towards the developmental needs of individual subordinates. The transformational leadership excites, arouses and inspires the subordinates to put an additional effort to achieve the goals of the organization. It is build on top of the transactional leadership. It means that this leadership develops people for achieving the organizational goals. The subordinates are made high performers and developed employees. Subordinates are motivated to transcend their self interest for the betterment of organization. It leads to higher productivity and higher employee satisfaction. Transformational leadership has four important features: 

  • Individualized consideration
  • Intellectual simulation
  • Inspiration 
  • Charisma 


3. Transactional Leadership 

This theory emphasizes on effort and performance. Under the transactional leadership, the leader directs his subordinates toward the achievement of goals. The leader clarifies the roles to be played by the subordinates while performing their respective tasks. The leader guides and motivated his followers to achieve the organizational goals. 

Leaders under this theory have following features: 

a) Passive Management by Exception: They intervene only if standards are not meet. 

b) Contingent Reward: They provide various kinds of rewards in exchange for usually agreed-upon goal accomplishment. 

c) Laissez-faire: They abdicate responsibilities and avoid decisions. 

d) Active Management by Exception: Leaders keep watching for deviations from rules and standards and taking corrective action. 


4. Leader Member Exchange (LMX) Theory 

This theory indicates that a leader establishes a special relationship with his subordinates. Under this theory, some of the subordinates get special privileges while others are paid less attention and may considered as out of group members. The leader categorizes some members of the group as inner members and other members as outer members. This 'in' and 'out' group are relative ordinates and have formal authority interaction. These 'in' and 'out' groups are relatively stable during the course of organization behavior and leaders seek to higher employee satisfaction. The leader member exchange theory motivates the employees personally. The leader takes personal care of the employees. The members who are not highly regarded by the leader feel dissatisfied. They try to know the likings and disliking of the leader and behave accordingly. This theory motivates only a few members of the group while other members are frustrated and many create some problems to the leader. 


5. Attribution Theory 

The attribution theory implicitly explains that a leader should have an effective influence on the followers. Employees perceive good leaders as those who are high structure and have high relations (people-oriented). People perceive such leaders best in all situations. In an adverse situation, they do not blame the leader because they have perceived him as the best leader because of this high orientation, i.e., high structured and high initiated. If such leaders fail, employees attribute the failure to the situation and adverse conditions. 


In other words, the attribution theory of leadership is related to perception i.e. how people view the leader. People establish and develop perception with cause and effect. How a leader behaves has a long lasting impact on the followers. The vent happening is attributed to some causes. The attribution or assigning of a cause to an event gives birth to the attribution theory. The followers attribute many happenings to leadership. If a country faces an acute inflation, it is attributed to the ruling party. It is known here that this attribution may be real or unreal. Just the attribution of inflation to a government is not always correct because there may be other causes of inflation. Similarly, attribution theory makes the low oriented leaders always responsible although he is not responsible for failure, because of adverse conditions.

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