Channels of communication

1. CHANNELS OF
COMMUNICATION
Ms Foram Patel
Online Lecture Series

5. The channels of communication are the formal and informal
ways of communicating with other people. Every business
organization has to maintain the internal as well as external
communication.
The internal communication is concerned with the
transmission & reception of information, orders,
suggestions, warnings etc. within the organization whereas
the external communication is concealed with the
transmission & reception of messages with the banks,
Government offices, insurance agencies, customers,
exporters, other business houses etc.
For both internal and external communication, the company
has to build up its communication systems. The
organizational setting and the hierarchy of posts form the
background for all the communication that takes place in all

6. A communication channel runs along with the
hierarchical live of authority in the organizational
pattern which is designed with the new of carrying
on the organizational activities.
In business organizations, usually policy matters are
decided by the Board of Directors and information
regarding it is transmitted to the Managing Director
who is supposed to execute the policy decisions.
The issues directive to the assistant departmental
managers who in turn communicate with the
supervisors. The supervisors in turn pass on the
relevant information to their subordinate clerks or
operatives who re actually concerned with the
operational function. When the information is
communicated through hierarchical lines of

9. Formal communication puts obligation on all those
who communicate internally to follow, the prescribed
channels and not the bypass the authority. For e.g. a
supervisor is not expected to communicate directly
with the Managing Director.
He must impart the message to the departmental
manager who will pass it on to the Managing
Director. The lines of authority are actually the
channels of communication which generally follow
upward, downward and horizontal directions. These
lines must be kept as short as possible so that the
original message does not get distorted.
The structure of business organization in its
broadest outlines can be diagrammatically

11. Level E (Workers)
BOARD OF DIRECTORS
MANAGING DIRECTOR
Purchase Production
Sales Administrative Accounts
Public Relations
Level A
Level B
Level C (Dept. Mgrs.)
Level D (Supervisors) Level D (Supervisors)Level D (Supervisors)

12. The communication channels can be divided under the
following sub-categories:
(A) Downward
(B) Upward
(C) Horizontal
(D) Grapevine
(E) Consensus

13. UPWARD COMMUNICATION:
Business management today is becoming increasingly
concerned about what is going on at several levels
below than. They have therefore employed some fairly
new techniques to get information from the lower levels
/ ranks. It is generally found that superiors are better
communicates because they are better talkers and
writers than their subordinates. The subordinates are
generally more cautious and less confident than their
superiors, when they are to pass some information
through an upward channel.
Upward communication is thus an integral part of an
efficient & effective communication system. It helps the
management to keep in touch with the needs and

16. IMPORTANCE OF UPWARD
COMMUNICATION:
PROVIDES FEEDBACK: Upward communication enables the
management to know whether the directives issued to the
lower staff have been properly understood and followed. It also
gives valuable information about what the employees think
about the organization and its policies.
OUTLET FOR COMPLAINTS AND GRIEVANCES: Upward
communication gives the employees an opportunity to express
their problems and grievances. The genuine and urgent
grievances can be solved; a ground in prepared for redressal
(solution) of other problems; with regard to those problems
which cannot be solved immediately, the employees at least
feel lighter having talked about them.
CONSTRUCTIVE SUGGETIONS: Often employees offer

17. EASIER INTRODUCTION OF NEW SCHEMES: In
upward communication since the employees feel
themselves to be a party in the decision making
process, it helps the organization to introduce
new schemes without antagonizing the
employees. They not only willingly lend their
support to the new schemes introduced by the
management, they also make extra efforts to
make a success of it.
GREATER HARMONY AND UNITY: Upward
communication makes the environment of the
organization congenial and creates unity and
cohesion between the management and the
employees.

18. METHODS OF UPWARD
COMMUNICATION:
Following are some of the commonly used methods of upward
communication:
OPEN – DOOR POLICY: The employees are made to feel that
they can approach the manager without any hesitation and talk
to him about their problems.
COMPLAINTS AND SUGGESTION BOXES: At some convenient
places in the factory or office, suggestion boxes are installed
and employees are encouraged to drop in their suggestions
and complaints.
SOCIAL / GROUP GATHERINGS: Social gatherings are frequently
arranged in different departments which offer a very informal
atmosphere to the employees to shed their inhibitions and talk

19. DIRECT CORRESPONDENCE: Sometimes the manager
may directly write to an employee and ask him to
communicate with him or the employees on their own
initiative may write to their managers.
REPORTS: Employees may be required to submit reports
about the progress of their works at regular intervals.
COUNSELING: In some organizations the workers are
encouraged to seek the counsel of their superiors their
personal and professional problems, while counseling
helps the employees to solve their problems, the
information provided by them is asked by the managers
to give better shape to their future polices.

20. ESSENTIALS OF UPWARD
COMMUNICATION:1. In order to enable the workers to overcome the fear of
authority, managers should encourage the workers to
communicate freely. Keith Davis says, “The open door
policy can be most effective for managers to
communicate with the employees.” So, the initiative for
upward communication must be taken by managers.
2. Distortion of information through editing exaggeration
and under communication can be avoided if the
channels of communication are kept as short as
possible.
3. All upward communication should be properly
analyzed. Suggestions for improvement, if found
feasible should be taken up for implementation and the

21. Upward flow of communication is more prove to distortion
than downward communication. Some managers are
displeased when confronted with unpleasant facts. Thus,
unpleasant information is suitably edited: when lines of
communication are long, filtering and distortion may take
place. Each level in hierarchy is reluctant to take the
problems to the higher authority as he is afraid of loosing
favor with his superior. So, at each level efforts are made
to solve the problem which leads to delay, distortion and
filtering.
Sometimes, in the process of upward communication the
workers become too bold and approach the higher
authorities directly, thus, bypassing their immediate
superiors. This creases strained relations between the
employers and the employees.
Poor listening skills of the superiors often discourage the
employees from communicating with the superiors.

23. LIMITATIONS OF UPWARD
COMMUNICATION:Though no one can dispute the utility and importance of
upward communication, it is not easy to maintain an easy
and smooth upward flow of communication. Thus, upward
communication suffers from certain limitations.
Employees / subordinates are usually reluctant to initiate
upward communication. The managers might welcome
interaction but they cannot force the employees to
undertake upward communication. The management must
take positive action to encourage the employees to
communicate upwards and suitably reward feedback and
upward communication from the employees.
Employees often feel that if they communicate their
problems to their superiors it may adversely reflect on
their efficiency. They tend to hide / conceal their
difficulties and problems and specially their ignorance and

25. DOWNWARD COMMUNICATION:
Downward communication is a supervisory communication
which is initiated by the upper management. It flows
downward through the hierarchy of command. Effective
downward communication is crucial to the success of an
organization. It is a very suitable channel for organizations
in which the chain of command is arranged in ranks that
are distinctly one below the other.
But in the complex structures of large-sized modern
organizations where a number of executives (like the
production manager, the sales manager, the purchase
officer, etc.) enjoy equal rank. It is difficult to depend
purely on downward communication. It continues to hold a
prominent place in the communication channels of an
organization but has to be supplemented by other
channels of communication.

27. OBJECTIVES OF DOWNWARD
COMMUNICATION:
The following are the main objectives of downward
communication:
1. To give specific directives about the job / task
being given to a subordinate.
2. To explain policies and organizational procedures.
3. To inform the subordinates about their
performance.
4. To inform / appraise the subordinates about the
significance of their job in relation with the
organizational goals.

28. DOWNWARD
COMMUNICATION:
THE FOLLOWING ARE THE MAJOR VEHICLES OF
DOWNWARD COMMUNICATION:
1. Notice Board and Posters
2. Circulars, Letters,
Reports, Memos
3. Oral and Telephonic Talk
4. Public Address Systems
5. Film Shows and Group
Gatherings
6. Employee Meetings and
Counseling
7. Trade Unions and Other
Official Workers’
Representatives
8. Internal Chain of
Command
9. Employee News Papers,
Bulletins and Annual
Reports
10.Annual Meetings of Share
holders

29. Downward communication may be oral or written and its
main purpose is to give instructions and information. Since,
persons at the lower levels may not understand easily,
downward communication should be kept simple and
carefully explained long circulars written in difficult language
after fail in their purpose because they are not easy to follow.
Downward communication may be sent down in the chain of
command or it may be sent to all the concerned together i.e.
in a cluster.
Chain
Cluster

30. ESSENTIALS OF DOWNWARD
COMMUNICATION:
1. Managers should keep themselves well informed
about the objectives activities and achievements
of their organization. Only if they are themselves
in possession of adequate information will they
be able to communicate with their subordinates
in an effective manner.
2. Managers must work according to a
communication plan. They must decide
beforehand how much information is to be
communicated and at what time. This will
ensure that there is neither any communication

31. 3. There should not be over-concentration of
authority. If an organization is so structured that
orders and instructions originate at various levels;
the lines of communication will become
shortened. Downward flow will gain momentum,
delays will be eliminated and loss and distortion
of information will be minimized.
4. The information must be passed on to the
correct person in the hierarchy and the channels
of communication must not be by passed.

32. LIMITATIONS OF DOWNWARD
COMMUNICATION:
1. UNDER COMMUNICATION AND OVER COMMUNICATION:
Downward communication is spoiled or marred by
either under communication or over communication, i.e.
a superior may either talk too little or too much about
the job / task. Sometimes, the superiors communicate
the decision but hold back relevant information
regarding how and why these decisions were arrived at.
Under communication may also lead to incomplete
instruction. Over communication or talking too much
may lead to leakage of confidential information.
2. DELAY: The lines of downward communication being
very long, transmitting information to the lower levels is
a time-consuming process. by the time the information
reaches the lower levels of workers, it may have lost

33. 3. LOSS OF INFORMATION: Unless communication is fully
written down, a part of it will certainly be lost. In fact, it has
been experimentally proved that after going through five
levels of management, only 20% of the information actually
reaches the workers.
4. DISTORTION: In long lines of communication information
gets distorted through exaggeration, understatement,
unconscious twits to facts, etc. whenever a piece of
information passes on from individual to another, it loses
part of its authenticity and by the time it reaches its
destination, it might not contain ever an iota of truth.
5. BUILT-IN RESISTANCE: Downward communication
involves too much authority. Subordinates do not get any
opportunity to participate in the decision making process
but are expected to receive / obey decision and directives

35. HORIZONTAL
COMMUNICATION:
Communication between departments or people all the same
level of hierarchy in an organization may be termed as
“Horizontal / Lateral Communication”.
The complexity of today’s business organizations has made
horizontal communication a vital subject of study. It takes
place between and among people who belong to the same
level of hierarchy. It is now realized that the survival of any
modern business organization depends on the degree of
specialization achieved by it. Because of this specialization
existing in the business organization today each unit of the
same organization is differentiated from others. Horizontal
channel of communication is the primary method of
coordinating interdependent units and departments. To keep
the organization running efficiently, it is essential to
coordinate or integrate all its diverse units. Horizontal /
Lateral communication, if effectively used socializes people

36. IMPORTANCE OF HORIZONTAL
COMMUNICATION:Although many business organizations generally consider
horizontal communication to be unproductive, it is in-fact
the most productive form of communication.
Horizontal communication is extremely important for
promoting understating and coordination among various
departments. Not much imagination is needed to visualize
the embarrassing situations that the lack of coordination
might create for an organization.
For e.g. the purchase department might keep on
purchasing material which is neither immediately needed
nor can be adequately stored or the stores department may
report shortage of material when production is in full gear.
Free flow of horizontal communication among various

37. In small organizations most functions are often
concentrated in one individual or a few individuals who
function in close proximity to one another and thus do not
face any problems related to exchange of information. But
in larger organizations which complex structures a
deliberate effort has to be made to maintain free flow of
horizontal communication.
Some managers believe that horizontal communication
should be discouraged because workers may get friendly
and create problems for the management. They believe in
issuing orders and insist all unqualified acceptance. But
such a procedure creates unnecessary delays and causes
bitterness and anger amongst the workers. Thus, in order
to facilitate the process of problem solving and to promote
a friendly and co-operative spirit among the employees of

39. METHODS OF HORIZONTAL
COMMUNICATION:
(1) TELEPHONE AND FACE-TO-FACE CONVERSATION: Telephone
conversations and face-to-face conversations are the primary
means of horizontal communication which facilitate the
coordination activities of a business organization. Huge amounts
are spent by modern business today to equip themselves with
state-of-the-art communication technologies. Telephone
conversations however, cannot be as effective as face-to-face
conversation. Such methods carry with them an air of informality
and therefore are quite successful.
(2) MEETINGS: The meeting of employees belonging to different
departments is a means of achieving horizontal communication.
Such meetings help to improve team spirit and assure necessary
information flow by encouraging two-way communication. As the
employees are associated with the decision-making process, the
employer–employee relationship improves; if the committee
consists of departmental heads it promotes coordination, co-
operation and understanding.

40. ADVANTAGES OF HORIZONTAL
COMMUNICATION:
(1) AFFECTS EFFICIENCY: Horizontal communication promotes
better understating and co-operation among individuals, units
and departments of an organization. According to Mary Follett,
ultimate achievement is usually the result of direct interpersonal
horizontal communication. Efficient managements must always
be alert for failures in horizontal channels of communication
and act speedily to repair any damage which could affect the
efficiency and productivity of the organization.
(2) MINIMIZING MISUNDERSTANDINGS: Horizontal
communication provides opportunities for face-to-face oral
communication. When persons of equal rank deal with one
another formally, they tend to be status-conscious and
therefore chances of misunderstandings are minimized. In face-
to-face communication, facial expressions, body language etc.
provide immediate feedback.

41. (3) SAVES TIME: Since horizontal communication is mostly
a routine affair, it saves time though the use of memos,
notice etc. In most large organizations, standard forms
are made available to the departments. These form
provide space for essential information like the subject of
communication, who is communicating, with whom and
so on.
(4) POSSIBILITY OF COMPARISON: Through horizontal
communication it is possible to compare and judge the
performance of employees.
(5) MINIMIZES INTER AND INTRA DEPARTMENTAL
CONFLICTS: Horizontal communication contributes
towards minimizing inter and intra departmental conflicts
and misunderstandings which may arise due to

42. DISADVANTAGES OF HORIZONTAL
COMMUNICATION:
Horizontal communication may lead to employees
over-stepping their mark and thus create
confusion and misunderstanding. People may
become too friendly and this may also adversely
affect the efficiency and productivity of the
organization.MISCONCEPTIONS OF HORIZONTAL
COMMUNICATION:
It is proper to mention two wrong ideas about
horizontal communication that re common in
India.

43. (A) MANAGEMENT SHOULD NOT INTERVENE: It is believed that
when there is effective horizontal communication, the
management should not intervene. This leads to too many
problems as the executives do not know what is going on in
the organization. This difficulty can be solved by the
subordinates being asked to report on all horizontal
communication that takes place in the organization.
(B) ORGANIZATIONS AFRAID OF EMPLOYEES GETTING TOO
FRIENDLY: The second wrong notion is related to the attitude of
some managers and executives towards this type of
communication. Some autocratic organizations discourage
horizontal communication because they are afraid that the
employees may get too friendly and unite against the
management. They are afraid that employee unions may pose
problems and believe in communicating through orders,
warnings and directives while the policy of “DIVIDE & RULE”
may provide short term gains, in the long-rung it is horizontal

45. T H A N K Y O U . . . !