1. Communicating in Organizations

2. Important Exam type
questions:
1. Define organization. Differentiate between
formal and informal organization. What are
the characteristics of formal and informal
organizations?
2. An organization does not exist in a vacuum.
It takes its influence from the environment
and in turn influences the environment.
Discuss organization as an open system.

3. 3. What are different directions of information
flow in an organization? Describe each
direction and the type of information type
used in this direction.
4. What types of information would have
downward flow in an organization? What are
potential problems of downwards
communication? How downwards
communication can be improved?

4. 5. What types of information would have
upward flow in an organization? What are
potential problems of upwards
communication? How upwards
communication can be improved?
6. What types of information would have
horizontal flow in an organization? What are
potential problems of horizontal
communication? How horizontal
communication can be improved?

5. 7. What do you understand by informal
communication? Discuss some aspects of
informal communication that may exist in an
organization.

6. Answer to Q 1:
 A group of people working together to
achieve a certain set of objectives viz profit,
growth, CSR, sales, customer satisfaction
etc.
 Formal organization
 Social unit deliberately constructed to seek
specific goals
 Informal organization
 A social unit arising spontaneously as a
result of shared interest and/or circumstances

7. Characteristics:
Formal Organization:
1. Planned division of responsibility
2. Explicit and well defined structure
3. Rules and procedures guiding conduct
Informal Organization:
1. Membership gained consciously or
unconsciously
2. Loosely structured
3. Flexible and spontaneous

8. Answer to Q 2:
Systems approach (Open vs Closed)
1. Organization as an open system
2. Inputs, processes, outputs
3. Opportunities & threats
4. INPUTS: Customers needs, competitors’
action, new legislation, public opinion, labor
market, stakeholders’ expectations, suppliers,
distributers
5. OUTPUTS: Goods and services, information,
satisfied customer, trained workforce, financial
benefits, brand image

9. Answer to Q 3:
 Formal flow of information in three directions:
Downwards, Upwards, Horizontal
 Downwards:
 Delegation of work: objectives, job instructions
 Induction: procedures & practices
 Job rationale: linking job with organizational
objectives
 Appraisal: informing about work performance
 Indoctrination: culture

10.  Upwards:
 Employee: performance, problems
 Employee: others and their problems
 Progress: what has been done
 Suggestion: what should be done
 Feedback: workplace improvements (3 M
example)

11.  Horizontal:
 Same level of hierarchy
 Coordinate functions
 Managers to Managers
 Supervisors to supervisors
 Operatives to operatives

12. Answer to Q 4:
 Problems:
 Management attitude: employees not interested
in larger issues, may not understand
 Information not available
 Manager’s or individual skills in communicating
may be poor
 Undermining authority by sharing information
 Fear of redundancy, equal relationship
 Information may fall into wrong hands

13.  Improvement:
 Establishing systems: meetings, interviews,
procedures, newsletters, intra net
 Management by example
 Good communication skills for employee selection
 Encouraging communication culture
 Espousing team spirit
 Training
 Rewarding effective communicators
 Policies and procedures on communication

14. Answer to Q 18:
 Problems:
 Subordinates feeling about management:
problems not understood, little interest
 Managers too busy
 Managers may not understand their concerns
 Shoot the messenger fear
 Fear of rejection
 Fear of disappointing the superior
 Peer pressure

15. Improving upward
communication
1. Organizing meetings between managers
and subordinates frequently.
2. Organizing brainstorming sessions for
employees and teams.
3. Setting up quality circles.
4. Encouraging input and suggestions from
employees.
5. Open door policy by managers.

16. Answer to Q 5:
Problems:
1. Encroaching functional boundaries
2. Resisting authority of non experts
3. Efforts for larger share of resources
4. Interpersonal or personality differences

17. Improving horizontal
communication
1. Regular meetings between managers to
discuss issues related to their departments
and organization.
2. Inter-departmental meetings and teams.
3. Job rotation.
4. Sharing information with other departments
through newsletters/circulars.

18. Answer to Q 6:
 Informal communication
 Social needs: organization is above all social
 Cafeteria, gym, on the way to work/home, telephone
 Dangers: malicious, inaccurate rumors, wild speculations,
gossip
 Mistrust, bad feeling, conflict
 Grapevine or bush telegraph
 Word gets around through informal channels, especially by
those interested
 Rumor and gossip travel through grapevine, further
distortion in retelling
 Much of information negative, co-exists with formal channel
 Management need to accept it, use it for betterment of the
organization, counter rumor

19. Organization as open system
 Organizations do not exist in vacuum but
operate in a particular environment which exerts
its social, legal, technical, economic and political
influence on them. According to open system
theory an organization’s boundaries are
permeable and external environment serves as
a source of input. For example money,
materials, information and workforce serve as
input for an organization and after organizational
processes can result into profit or loss, products
or service sales, new products and behavioral
learning.

20. Organization as open system
 The open system can be viewed as:
Input – transformation process - output

21. Informal Communication
 Informal channels of communication include
grapevine, rumour and gossip. These are
referred to as informal and are likely to
flourish when down ward communication is
not proper or when there are communication
gaps. Uncertain situation, animosity and new
information give rise to this channel of
communication.

22. Identify five general purposes of
superior-subordinate communication.
 to give specific task directives about job
instructions
 to give information about organizational
procedures and practices
 to provide information about the rationale of
the job
 to tell subordinates about their performance
 to indoctrinate ideology; achievement of
objectives

23. Describe the four most important
reasons for lateral communication
 Functional managers or groups working at the same
level in the organization have to communicate with
one another in order to run affairs of the
organization efficiently and effectively. This is
achieved by lateral or horizontal communication.
Four of the most important reasons for lateral
communication are discussed below:
 task co-ordination – functional managers or section
heads may meet to discuss how they are collectively
contributing to the organization’s overall objective.
 Problem-solving – members may meet to sort out
problems. A budget cut in one department may be
sorted out by holding meeting with the other which is
having a larger share.

24. Describe the four most important
reasons for lateral communication
 Information sharing – members of one wing
can share information with the other in order
to make tasks easy and attainable.
 Conflict resolution – members of two or more
departments may meet to discuss
overlapping of activities.

25. What are the consequences of a
lack of upward communication?
 Undoubtedly communication is the lifeblood of an
organization. Without effective and efficient
communication channels organizations can hardly
survive. If information is not sent upward the
organization may have to bear the brunt of it. Few of
the consequences that may ensue lack of upward
communication include:
 Management remains unaware about activities of
the workforce
 Proper feed back is not given
 Trouble areas are not brought into the notice of the
management

26. What are the consequences of a
lack of upward communication?
 Employees do not actively participate
 There is an ever widening gap between the
management and the workforce
 Control is difficult as well as change