BUSINESS COMMUNICATION

LECTURE TWO
Communication Networks in Organization and
Information Management
 Communication Networks in Organization and Information Management

Management has emerged as one of the

dynamic field in modern business. Harold
argues, “The world of management is a
world of action.” Services are designed,
made and sold. All these can not be
achieved without communication.
 Communication Networks in Organization and Information
Management

Objective of Business Communication

• The basic objective of all human communication
is to obtain an understanding response.
• Every large and small business house if successful
or unsuccessful, depending on how well it can
communicate internally and externally.
• Businesspeople thrive on information relevant to
their business activities.
• They must know how their competitors are doing
in business, how to deal with government rules
and regulations etc.
 Sources of information in the Organization

• Before accepting any information, the successful

business house will ensure that the information is
reliable, complete and recent.
• Businessmen have no difficulty in obtaining information
from old files, magazines, internet, library research,
chamber of commerce, trade fairs and exhibitions etc.
the problem is not lack of information but of immense
quantity of information.
• To help the businessmen out of this problem a number
of organizations have taken the role of infomediaries.
• Informediaries are like intermediaries or middlemen
only they do not deal with goods but with information.
Information Flow Within the Organization:
Networks

Downward
Horizontal
Upward

Manager

360° Feedback
Peers Customers

Direct Reports
 Information flow within an organisation: Formal Network

a. Downward flow: passing information from

superior to subordinates to;
• Give job instructions
• Bring about understanding of the job
• Provide information about procedures
• Provide feedback about performances of
subordinates
 Information flow within an organisation: Formal
Network
b. Upward flow: provides subordinates to convey
information to their superiors to;
• Gain feedback and learn about problems that
affect efficiency
• Evaluate employee attitudes and perceptions
 Information flow within an organisation: Formal
Networks

c. Lateral flow: conveying information between

individuals and units on the same hierarchical
level for;
• The coordination of tasks
• Sharing of information,
• Problem solving
• Conflict resolution
This type of communication is persuasive and
suggestive rather than directive or authoritative
Information flow within an organisation: Formal
Networks
d. Diagonal flow:
Between two individuals at different levels belonging to different
departments. E.g. sales manager talking to the production supervisor.
Advantages .
• Total elimination of delay
• Instantaneous feedback and clarification
• Decreased incidence of distortion or dilution
• Better coordination
• Faster problem solving
Disadvantages
• Disruption of normal flow of information
• Non cooperation by the bypassed supervisor-it may cause delay
• Chaos and anarchy –managers authority get weakened, the situation
arises in which everybody is talking and nobody is listening.
Transmission of information along the grapevine:
Informal Networks
Informal Network: The grapevine
It is natural for a group of people working
together to be interested in one another and
talk about appointments, promotions and
domestic affairs etc.
How a grapevine operates
Professor Keith Davis classifies grapevine into
four basic types: single strand, gossip,
probability, and cluster.
 Transmission of information along the grapevine:
How it operates
Y Network (SINGLE STRAND) All Connected Network
(PROBABILITY)
Centralized
Networks

Wheel Network (GOSSIP)

Circle Network
(CLUSTER) Decentralized
Networks

Adapted from Exhibit 9-2: Communication Networks

 Transmission of information along the
grapevine
How a grapevine operates
Single-strand: Each person recieves information from one person
and passes it on to one more.
Gossip: one individual passes the news to all others.
Probability: Information is passed on randomly.
Cluster: Channel members selectively choose their informal
communication links.
Centralized Networks: Centralized networks – all communications
pass through a central point or points so that each member of the
network communicates with only a small number of others – the Y
and the Wheel.
Decentralized networks – many people or units can communicate
with many others – the Circle and the All-Connected
 Transmission of information along the grapevine

Importance of the grapevine in the health of organization

• A safety valve- it serves as emotional relief.
• Organizational solidarity and cohesion-Harmon and
cohesiveness in the organization.
• Supplement to other channels-all information can not be
transmitted to the employees through official channels.
• A fast channel –it is a quick transmission, its speed is
unbelievable. Rumors, they say, spread like a wildfire.
• Provides feedback –it provides feedback to the
management. It enables them to know what the
subordinates think about the organization.
 Transmission of information along the grapevine
Demerits of the grapevine in the health of organization
• Distortion of information-the grapevine respects
nobody and it may ascribe the worst possible motives
to the noblest of people. It spreads baseless or
distorted news.
• May transmit incomplete information-usually, the
grapevine information is incomplete, it may be
misunderstood or misinterpreted.
• Damaging swiftness- grapevine travels with
destructive swiftness. A rumor may have spread and
caused serious damage before the management
becomes aware of it.
Transmission of information along the grapevine
How to use grapevine effectively
• Managers are highly suspicious of grapevine and
want to stop it completely. They do not realize
that grapevine can neither wither nor die.
• Instead of trying to curb its growth, it is much
better to feed, water and cultivate it so that it
can be used for the benefit of the organization.
 Transmission of information along the grapevine
How to use grapevine effectively
To use it effectively, the manager should:
• Keep an eye on rumor-mongers-to find out the people who are
more active on grapevine and keep them well informed so that
harmful rumors do not spread/reach the employees.
• Use it primarily for feedback –grapevine should be used to feel
the pulse of the employees.
• Contradict rumors promptly –if there is any false rumor, the
management should immediately use the official channels to
contradict it.
• Involve the workers in the decision making process-if workers are
associated in decision making, the rumor mongers will be
automatically frustrated. This will be neutralizing the harmful
effects of it.
 Transmission of information along the grapevine

Discussion questions:
a) What do you understand by the grapevine?
What is its importance?
b) How does the grapevine operate in an
organization? How can its harmful effects be
controlled?