5. Organizational Structure & Lines of Communication

5. Organizational Structure & Lines of Communication

Business organizations consist of people who work together to achieve common goals (at
least in theory! :). Organizations are the system by which individuals cooperate, so that
there can be specialization of functions and skills for greater efficiency. This
specialization of functions forms the basis of organizational structure. All organizations,
as we know, have formal and informal structure.
The formal structure is deliberately developed to regulate and direct the flow of
information and to control other aspects of organizational hierarchy and set-up. In order
to select, restrict, direct, and control the flow of communication within the formal
organization structure, the traditional organizations employ the sequential model of
communication that emphasizes up and down hierarchal communication. Most frequently
we designate communication to superiors as upward/vertical communication, messages
to subordinates as downward/vertical communication, and communication to those on
our level as lateral/horizontal communication. Diagonal communication occurs when
there is communication between lower and higher levels of hierarchy, but both in
different lines of authority (for example, between senior members of academic staff and
junior Bursary officers, etc.). Most traditional organizations also have a policy of
communication (protocol) dictating the etiquette (formal standards/rules of correct and
polite behavior within the organization) designed to ensure effective communication
within the organization.
Informal structures/networks, based on personal relationships, will not appear on any
organization chart, but can have as much or more impact on the functioning of the
organization as the formal communication system.

For example, here are some of the positive aspects of the informal network:
 It may speed up the communication process: when an employee in one department needs help to
complete a task or solve a problem, members of the informal network in other sections can use
their authority or power to assist. This avoids the delay of „going through the right channels.‟
 It may create a conducive working atmosphere, again leading to higher productivity: If the needs
and goals of formal management coincide with those of the informal organization, in other words,

if staff are well motivated, then the atmosphere of trust between the management and employees
will lead to higher productivity.
 It helps to diffuse tensions: Job satisfaction is also related to social environment. The informal
network allows employees to „let off steam‟ with other colleagues, thus diffusing potentially
destructive conflicts.
 It provides feedback to the management: If management are sensitive to the „grapevine,‟ they can
obtain information on how employees feel about the organization, the management, and the work.
Some of the possible negative effects of the informal organization:
 It may cause conflict within the formal structure: when the goals of the informal organization
differ from those of the formal structure, conflict occurs. If the formal channels of communication
are ineffective, rumor and gossip („grapevine‟) spread like wild fire and may disrupt the work
process. Individual perceptions distort information. Rumor is the unsupported or untrue part of the
informal communication and is therefore of great disadvantage to the organization.
 The informal organization will tend to resist change: organizational restructuring (downsizing,
etc.) that are perceived to threaten the existing structure, will be opposed effectively by a wellformed
informal organization.
Every organization has a constantly changing informal communication network that
involves the link between individuals and groups outside the formal lines of authority and
communication. To deal with it effectively, management should recognize its existence
and try to influence its direction. It will do so by being aware of the rumors, replacing
rumors with fact, and creating conditions that support the goals of both groups.