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Organizational Communication

Imagine a world in which we didn't talk to each other. It would be strange, right? Now imagine if we didn't communicate with one another at all. No text messages, phone calls, discussions, letters, social media, or chitchat. It's quite challenging to imagine an organization functioning effectively (or at all) without any means of communication. As humans, we generally have a natural tendency to communicate our thoughts. As a result, we also communicate in our workplace. Unfortunately, effective organizational communication can be challenging, so managers and leaders must pay close attention to specific processes and communication types. Curious to find out which ones? Read along. 

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Organizational Communication

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Imagine a world in which we didn't talk to each other. It would be strange, right? Now imagine if we didn't communicate with one another at all. No text messages, phone calls, discussions, letters, social media, or chitchat. It's quite challenging to imagine an organization functioning effectively (or at all) without any means of communication. As humans, we generally have a natural tendency to communicate our thoughts. As a result, we also communicate in our workplace. Unfortunately, effective organizational communication can be challenging, so managers and leaders must pay close attention to specific processes and communication types. Curious to find out which ones? Read along.

Organizational Communication Theory

Communication is an essential aspect of every organization. Effective inter-organizational communication can increase the general efficiency of teams and the organization. On the other hand, ineffective communication can decrease people's motivation and performance. Thus, organizational communication can impact behavior. Organizational communication theory suggests that there are five main functions of communication. They are as follows:

  1. Management - Communication manages employee behavior regarding roles, compliance, etc.

  2. Feedback - Communication initiates feedback for employees in terms of performance.

  3. Information - Communication creates information exchange within the organization.

  4. Persuasion - Communication can result in persuasion; for example, leaders encourage employees to commit to the organization's mission.

  5. Emotional sharing - Communication leads to emotional sharing in organizational groups. It allows members to express their satisfaction or dissatisfaction.

An important aspect of organizational communication theory is the communication process. Figure 1 below outlines the communication process. Let's examine this model in further detail.

The sender and the receiver are the two main actors in this model. The sender initiates the process by encoding a thought they have, for example, through speech or writing. The sender can either use formal (e.g., inter-organizational communications channels) or informal channels (e.g., personal channels) to send their message. The sender then decodes or interprets the message to process it. However, there might be noise in the process, which can interfere with the communication and prevent the receiver from understanding the message clearly. As a result, feedback serves as a mechanism to assess whether the message has been conveyed to the receiver successfully.

The communication process represents the method through which a sender conveys a message to a receiver.

Organizational Communication Types

Organizational communication can move in various directions. We discuss the five main organizational communication types below.

Organizational Communication: Downward Communication

Organizations frequently function based on hierarchical models. Even though these hierarchies vary based on formality, information often flows downward from executives, managers, etc., to employees.

For example, managers use downward communication to manage projects and assign tasks to their teams.

When using downward communication, managers need to explain the reasoning behind their decisions to increase employee understanding and commitment. Due to the nature of the communication process (i.e., noise) and the one-way nature of downward communication, managers might have to communicate their message multiple times to reach the intended audience clearly. Therefore, the channel and mode of communication are crucial when using downward organizational communication.

Organizational Communication: Upward Communication

On the other hand, upward communication is the opposite of downward communication.

Upward communication flows from the bottom up. It starts at the lower levels of the organization, and its goal is to provide feedback to those higher up in the organization.

Upward communication allows employees to reach out to their managers and communicate how they feel about their tasks, jobs, teams, etc. Managers can use this information to improve organizational conditions for employees. Upward communication is also effective for communicating ideas and providing general feedback for the organization.

Organizational Communication: Lateral Communication

Another form of communication that can take place in organizations is lateral communication.

Lateral communication takes place between employees at the same level in an organization. It is a form of horizontal communication.

Lateral communication happens horizontally between team members or employees working on projects collectively, for example, as opposed to upward and downward communication, which flows vertically. Lateral communication is effective as it encourages coordination.

Organizational Communication: Small Group Network

We can categorize small group networks based on three characteristics (see Figure 2 below). They are as follows:

  • Chain - Using this setup, the group adheres to formal hierarchies. The group is made up of three levels of hierarchy. The leader is at the top of the chain, and subordinates report to and communicate with their respective direct leader.

  • Wheel - The wheel also follows a somewhat hierarchical structure with one designated leader. However, the difference is that each member communicates directly with the group leader.

  • All-channel - Using this structure, all members communicate freely with one another. The group functions without a formal or informal leader

Organizational Communication: Grapevine

Finally, the grapevine is the fifth organizational communication type.

The grapevine, also known as word-of-mouth communication, is an informal method of communication.

The grapevine is a crucial communication network, as it allows employees to satisfy their social needs and fosters friendship between members of the organization. However, it is essential to note that grapevine communication can also lead to rumors and gossip and create out-groups with people not involved in the communication network.

Check out our explanation of Types of Communication to learn more.

Organizational Communication Strategies

Let's now briefly examine organizational communication strategies. Organizations use a variety of communication tools to ensure that communication runs smoothly:

  • Meetings - these can be in-person meetings in the office or online meetings using platforms like Zoom or Teams.

  • Phone calls/conference calls ensure that internal and external communication flows effectively. Phone calls allow employees to gather information quickly as the response to their questions is immediate (as opposed to e-mails and other written forms of communication).

  • E-mails are effective for coordinating and planning projects. Organizations use e-mails to communicate with employees, reach out to candidates during the selection process, or reach out to external parties.

  • Social media/instant messaging platforms - some organizations might use platforms like Slack or Google Chat for internal communication. These tools allow employees to message others and receive almost immediate responses directly.

Beyond the tools mentioned above, feedback mechanisms allow for open and honest communication about an employee's performance. Managers need to communicate directly with employees about their performance, as it provides employees with a chance for open discussion and improvement.

Take a look at our explanations of Types of Communication and Performance Evaluation to find out more about organizational communication strategies.

Another critical organization communication strategy involves examining channel richness.

Channel richness is the extent to which a channel can effectively convey high volumes of information.

A rich channel can:

  • oversee numerous signals at once,

  • encourage instant feedback,

  • allow for personal communication.

On the other hand, a lean channel is less effective at doing all three. Rich channels include in-person conversations, video conferences, or phone calls. On the other hand, lean channels include notes, e-mails, or letters. To encourage an optimal communication strategy, senders must look for rich channels to convey their messages. However, for non-urgent or routine messages, lean channels might also be effective.

Learn more about organizational communication strategies in our explanation of Communication Channels.

Organizational Communication Examples

Now that we understand the theory behind organizational communication, let's examine some specific examples. We can divide organizational communication into two broad types: oral and written.

Oral communication involves delivering a message through speech. Verbal communication is effective as it is quick and allows immediate feedback between the sender and the receiver. The main limitation of oral communication is that the message might become less clear if it has to pass through multiple people. We outline some examples of oral communication below.

Meetings are essential means of oral communication. Organizational meetings can be formal, for example, a board meeting, or informal, like a short meeting between two coworkers discussing a project. Meetings are effective as participants can reach conclusions and make decisions based on the input of all attendees at once. However, it is important to note that meetings can also become a source of distraction for employees. Therefore, good interpersonal skills are essential for staying on track and reaching conclusions.

Nowadays, video conferencing, or e-meetings, are becoming increasingly popular due to more people working from home. Platforms like Zoom and Google Meet allow people worldwide to connect.

Another example of oral communication includes phone calls. In a way, telephone calls can also be viewed as meetings as they provide the same functionality despite not being able to see the person face-to-face. Phone communication has similar advantages to meetings; they are fast and allow for immediate feedback between the two parties.

On the other hand, organizations frequently also use written communication. If you have worked for an organization, you have likely received e-mails, made presentations, or chatted with coworkers on online platforms. Letters, e-mails, texts, social media messages, etc., are all examples of written communication.

Organizational Communication Barriers

Although organizational communication has a variety of advantages, it unfortunately also comes with its set of limitations. One of the main hindrances to effective communication is organizational communication barriers. Let's take a closer look at what they are.

Communication barriers slow down and impede effective organizational communication.

Some of the most prominent communication barriers are:

  • Selective perception - The receiver might not register everything the sender is communicating. Personal characteristics like needs, experience, or motivation might impact how the receiver registers the message.

  • Filtering - The sender might twist the message to make it received more favorably by the receiver. For example, employees might communicate what their manager wants to hear rather than what they actually think.

  • Overload - An information overload may prevent someone from communicating or receiving a message effectively. If the receiver has too much information to process, they might forget or dismiss parts of the message.

  • Language - Language barriers can make it more difficult to convey messages clearly. Language barriers can be present when the sender and receiver do not share the same native language, but they can also be present in terms of slang, acronyms, etc.

  • Emotions - People might convey or interpret messages differently based on their emotional state. For example, if you are angry, you might not respond positively when someone asks you to complete a new task quickly.

  • Apprehension - Employees might feel anxious when having to use a specific method of communication, which can hinder the effectiveness of their message or prevent a message from being communicated at all.

  • Misinterpretation - For example, certain people might lie or deceive others when making an error at work. The lie might lead to others misinterpreting the situation, ultimately decreasing communication efficiency and increasing communication time.

Dive deep into this topic with our Communication Barriers explanation.

Organizational Communication - Key takeaways

  • The five main functions of communication are feedback, management, information, persuasion, and emotional sharing.
  • The communication process represents the method through which a sender conveys a message to a receiver.
  • Downward, upward, lateral, small group, and grapevine are the types of communication.
  • We can also group communication based on its medium: verbal and written communication.
  • Communication barriers slow down and impede effective organizational communication.
  • Channel richness is the extent to which a channel can effectively convey high volumes of information.

Frequently Asked Questions about Organizational Communication

Organizational communication refers to how people communicate formally and informally within an organization. The communication process represents the method through which a sender conveys a message to a receiver.   

We can divide organizational communication into two broad types: oral and written. Examples of oral communication include meetings, phone calls, or video conferences. Examples of written communication include e-mails, letters, text messages, or social media posts.  

Communication is an essential aspect of every organization. Effective inter-organizational communication can increase the general efficiency of teams and the organization in general. On the other hand, ineffective communication can decrease people's motivation and performance. Thus, organizational communication can impact behavior 

Organizational communication can be improved by minimizing the number of communication barriers. Communication barriers slow down and impede effective organizational communication. Some examples of communication barriers include filtering, selective perception, information overload, or lying.  

The five methods of communication are downward, upward, lateral, small group, and grapevine communication.  

Test your knowledge with multiple choice flashcards

Organizational communication theory suggests that there are _____ main functions of communication.

During the communication process, the sender initiates the process by _________ a thought they have.

A sender can either use formal or informal channels to send their message. 

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