BUS603: Managing People

Informal communication occurs outside of an organization's established channels.

LEARNING OBJECTIVES

Explain the role and benefits of informal communication within an organization

KEY TAKEAWAYS

Key Points

• Informal communication occurs outside an organization 's established channels of sending and receiving messages.
• Informal communication frequently crosses boundaries within an organization and is commonly separate from work flows.
• Informal communication has become increasingly important in maintaining the interpersonal relationships and networks that facilitate getting work done.

Key Terms

• informal: Not formal or ceremonious; casual.
• interpersonal: Between two or more people.
• communication channel: The method or medium by which one conveys information; e.g., through the exchange of thoughts, messages, or information via speech, visuals, signals, writing, or behavior.

Informal communication occurs outside an organization's established channels for conveying messages and transmitting information. While formal communication follows practices shaped by hierarchy, technology systems, and official policy, informal communication faces fewer restrictions. Formal communication usually involves documentation, while informal communication usually leaves no recorded trace for others to find or share. Informal communication frequently crosses boundaries within an organization and is commonly separate from work flows. That is, it often occurs between people who do not work together directly but share an affiliation or a common interest in the organization's activities and/or a motivation to perform their jobs well.

In the past, many organizations considered informal communication (generally associated with interpersonal, horizontal communication) a hindrance to effective organizational performance and tried to stamp it out. This is no longer the case. The maintenance of personal networks and social relationships through information communication is understood to be a key factor in how people get work done.

Formal communications in traditional organizations are frequently "one-way": they are initiated by management and received by employees. Their content is perceived as authoritative because it originates from the highest levels of the company. Informal communication, on the other hand, can occur in any direction and take place between individuals of different status and roles.

While informal communication is important to an organization, it also may have disadvantages. When it takes the form of a "rumor mill" spreading misinformation, informal communication is harmful and difficult to shut down because its sources cannot be identified by management. Casual conversations are often spontaneous, and participants may make incorrect statements or promulgate inaccurate information. Less accountability is expected from informal communications, which can cause people to be careless in their choice of words, indiscreet, or disclosing sensitive information.