Communication in Organizations: Channels, Culture & Conflict

Introduction to Organizational Communication

Communication in organizations encompasses all the means — both formal and informal — by which information is passed up, down, and across the network of managers and workers in a business. These various types of communication may be used to distribute official information between workers and management, to trade hearsay and rumors, or anything in between. The challenge for businesses is to manage these countless communications so they serve to advance customer relations, encourage employee satisfaction, build knowledge-sharing throughout the organization, and, most significantly, improve the firm's competitiveness (Communication in Organizations, 2012).

Communication is one of the most pervasive and important activities in organizations. Relationships grow out of communication, and the functioning and survival of organizations depends on effective relationships among individuals and groups. Organizational capabilities are developed and carried out through deeply social and communicative processes. Communication helps people and groups manage activities to attain goals, and it is fundamental in socialization, decision-making, problem-solving, and change-management processes (Communication in Organizations, 2012).

Formal and Informal Communication Channels

A network represents how communication flows in a company. Networks can be formal and informal (Berger, 2008). Formal communication is planned and managed information that is shared with relevant people in order to secure coordinated action throughout the organization. Formal communication channels are based on a person's role in the company and are distributed in an ordered way according to the established chain shown in organizational charts. "Typically, formal communication flows downward from executives to directors to managers to staff regarding company direction and instruction, and upward from staff to managers to directors to executives in the form of data and reports. The communication flowing through these channels is specific to the jobs and departments" (Formal/Informal Communication Channels, 2012).

Such formal communication is well founded and planned. For instance, reports and data from staff are usually submitted using prescribed templates and according to a set timetable. Communication centered on a company's strategy and direction, which comes from company executives, is channeled through the organizational chart and adapted to be relevant to each department and manager. What begins as high-level communication on corporate strategy must be worked through in planning sessions so that the communication provides direction and is actionable for the people who carry out the tasks of the strategy. The better the communication, the better workers and staff will understand what is expected and required of them (Formal/Informal Communication Channels, 2012).

On the other hand, informal communication in the workplace satisfies a variety of needs — predominantly social and emotional — and is not based on the positions people occupy within the company. As a result, this communication is neither managed nor planned in any organized way. "It's more relaxed, casual, and tends to spread by word-of-mouth quickly throughout a department or organization because it's not restricted to approvals and an established path of distribution" (Formal/Informal Communication Channels, 2012).

Possibly the most widespread term used for informal workplace communication is grapevine. Communication sent through the organizational grapevine is frequently considered gossip or rumor. While grapevine communication can spread information rapidly and easily traverse recognized organizational boundaries, the information it carries can be distorted through the removal or exaggeration of crucial details, rendering it inaccurate even when founded on truth. Reliance on the company grapevine as an informal communication channel typically increases when workers feel threatened or vulnerable, when the company is experiencing change, and when communication from management is limited or slow to arrive (Formal/Informal Communication Channels, 2012).

A communication channel is a medium through which messages are transmitted and received. Channels are classified as print, electronic, or face-to-face. "Common print channels include memos, brochures, newsletters, reports, policy manuals, annual reports, and posters. New technologies have spurred the use of electronic channels — for example, email and voice mail, intranets, blogs, podcasts, chat rooms, business TV, video conferencing, instant messaging systems, wikis, and electronic town-hall meetings. Face-to-face channels include speeches, team meetings, focus groups, brown-bag lunches, social events and gatherings, and management by wandering around" (Berger, 2008).

Active Listening as a Communication Skill

The most used communication channel is listening, which accounts for approximately half of a person's communication time. Effective listening is vital to learning, understanding, conflict resolution, and productive teamwork. It helps leaders at all levels boost employee morale, retain workers, and uncover and resolve problems. Yet many studies suggest that most people are not good listeners, and few companies dedicate resources to developing listening skills in managers and leaders (Berger, 2008).

Active listening is a highly effective set of skills and techniques that supports people in communicating more openly and freely. When one uses active listening skills, the person who is speaking ends up feeling heard, seen, and fully understood. As a result, the people in communication have a far greater chance of resolving conflicts and achieving interpersonal harmony. "Active listening has many components, including body language (such as nodding, eye contact, open posture, and body and facial expressions) and verbal techniques" (Boesky, 2011).

There is a real difference between merely hearing the words that people say and genuinely listening for the message. When one listens effectively, one understands what the other person is thinking or feeling from that person's own perspective — as if standing in their shoes, seeing through their eyes, and listening through their ears. One's own viewpoint may differ and one may not necessarily agree, but effective listening means understanding from the other's perspective. In order to listen effectively, one must be actively involved in the communication process rather than listening passively. Everyone acts and responds on the basis of their understanding, and too often there is a misunderstanding that neither party is aware of. With active listening, if a miscommunication has occurred, it will be recognized immediately, and the communication can be clarified before further misunderstanding takes place (Nadig, n.d.).