Internal Communication: Meaning, Functions, Features

What is Informal communication?

Informal communication is ad hoc and spontaneous. Therefore, informal communication in the internal system is typically not planned or documented.

It is of a face-to-face, interpersonal nature. People communicate with one another directly because the nature of their own psychology, situational circumstances, and their relationships with others cause them to “want to communicate,” not because the organization “tells them to communicate.”

Pace (1883:56-57) defines informal communication as “Informal communication, better known as the grapevine, communication that takes place without regard to hierarchical or task requirements.

Organizations operate through a network of communication. Managers are responsible for designing, implementing, and maintaining an internal communication network to facilitate communication within the organization and gather timely feedback.

This network empowers managers to make informed decisions and effectively integrate the activities of various departments.

It connects organizational members in a synchronized manner. As Chester Bernard once wrote, “The first executive function is to develop and maintain a system of communication” (1938:82). There is a “definite relationship” between communication and employee productivity.

Therefore, internal communication serves as the backbone of the information network that enables managers to effectively manage the organization.

Internal communication encompasses both formal and informal networks that facilitate the flow of information among individuals within the organization. It ensures the coordinated efforts of people across various functional departments and guides them toward common goals.

Functions of Communication in Organizations

Conrad (1985) identifies three key functions that communication serves in organizations:

The Command Function

Communication enables members of the organization to issue, receive, interpret, and act on commands. This function encompasses directions and feedback, with the goal of successfully influencing other members of the organization. The outcome of the command function is the coordination of interdependent members within the organization.

The Relational Function

Communication allows members of the organization to create and maintain productive business and personal relationships with their colleagues.

Relationships within the workplace impact job performance, including factors such as job satisfaction, the flow of communication within the organizational hierarchy, and the extent to which commands are followed.

Given that many workplace relationships are not chosen but rather imposed by organizational circumstances, good interpersonal skills become crucial.

The Ambiguity-Management Function

Organizational choices are often made in ambiguous circumstances, with multiple motivations and unclear objectives. Communication serves as a means to cope with and reduce ambiguity within the organization. Members communicate to structure the environment and make sense of new situations by gaining and sharing information.

By fulfilling these functions, communication plays a vital role in facilitating effective organizational management.

10 Features of Grapevine or Informal Communication

Informal communication is known for its unique features, which are discussed below:

Oral Communication

Informal communication tends to be oral, although very occasionally it may be written.

Dynamism

Informal communication is fickle, dynamic, and varied, reflecting the diverse nature of people in society. It is the expression of people’s natural motivation to communicate and the exercise of their freedom of speech, making it a natural and normal activity.

Perpetuity

Informal communication is perpetual and resilient. Attempts to suppress it or control it often fail, as it cannot be abolished, hidden, or stopped.

Tremendous Capacity

Grapevine has a tremendous capacity to carry a significant amount of information, both helpful and harmful to the organization.

Fast

Informal communication is very fast-paced. Due to its flexibility and personal nature, it spreads information faster than most management communication channels.

Penetrating

Grapevine has the unique ability to penetrate even the tightest organizational security screens. It can cut across organizational lines and directly reach individuals who possess vital information.

Multidirectional

Informal communication is multidirectional, crossing boundaries between functional or hierarchical units. It is not restricted to any particular direction and can span boundaries between units.

Active

Grapevine is one of the most active forms of communication. People frequently use this communication channel to exchange messages.

Spontaneous

Informal communication is spontaneously developed, arising naturally within the organization.

Accuracy

Grapevine is generally fairly accurate. Research indicates that the data produced through informal communication channels can be 50 to 90 percent accurate (Goldhaber, 1986:176-77; Zeremba, 1988:38-42).

5 Functional and Managerial Implications of Informal Communication

Informal groups inevitably exist within a formal organization, and management cannot escape their presence. Consequently, informal communication is also pervasive within every organization.

It is important to recognize that informal communication is not detrimental to formal communication; instead, it complements and enhances the quality and strength of formal communication.

The functions of informal communication are outlined below:

Early Warning Signal for Organizational Changes

Informal communication channels convey the attitudes and opinions of individuals regarding the organization’s current operational systems, practices, and policies. These opinions are often candid and sincere, alerting management to potential issues.

Thus, informal communication serves as an early warning signal for necessary changes to maintain a favorable and beneficial organizational environment.

Medium for Creating Organizational Culture

Organizational culture comprises shared values and beliefs that define an organization’s identity. Achieving acceptance of the intended organizational culture among employees requires concerted efforts. Informal communication rapidly disseminates managerial ideas about the new cultural norms and helps reduce resistance to change.

It shapes employees’ mentality in favor of the proposed organizational norms. Informal discussions aid in understanding people’s motivations and modifying the proposed culture to make it more acceptable before its formal implementation.

Mechanism for Fostering Group Cohesiveness

Group cohesiveness refers to the “we-feeling” that binds group members together. Informal communication fosters a strong sense of camaraderie, creating social bonds among individuals within informal groups.

These group members become interdependent and strongly adhere to group norms. Therefore, the grapevine, as a form of informal communication, becomes an effective mechanism for enhancing group cohesiveness under management’s guidance.

Way of Bouncing Ideas Off Others

Informal communication allows the extraction of hidden ideas from individuals, which can be harnessed for the organization’s benefit.

People tend to be less guarded and more casual in informal settings. Consequently, the grapevine provides an ideal platform for easily exchanging creative ideas, a practice often challenging in formal communication.

Supportive to Formal Communication

Informal communication invariably coexists with formal communication within every organization. Management utilizes informal communication networks to garner support from employees for its plans and their execution.

Formal planning processes also incorporate information from various informal channels to enhance practicality and implementation efficiency.

Effective managers stay attuned to workgroups’ sentiments by regularly engaging with liaison individuals or those who disseminate grapevine information to others. These liaisons play a crucial role in maintaining communication between management and employees.

15 Differences Between Formal and Informal Communication

The grapevine communication is different from formal communication on many counts. It is shown in the following bifurcated table :

Field of Difference	Formal Communication	Grapevine or Informal Communication
1. Initiation	Deliberate formation by management	Spontaneous formation by people in the organization.
2. Recognition	It is recognized as a legitimate communication.	It does not have any legal sanction.
3. Flexibility	It is inflexible.	It is highly flexible.
4. Tradition	It follows formal rules and regulations strictly.	It does not follow any rules.
5. Permanent Record	It keeps a record for every action.	It has no records for any communication.
6. Errors	Least mistakes.	Maximum mistakes and errors.
7. Behavior	It creates controlling behavior.	It creates congenial behavior.
8. Essentiality	It is essential for every organization.	It is not as essential as formal communication.
9. Obligation	It is obligatory for every employee to follow.	It is not obligatory to follow.
10. Reference	It keeps records of the communication and therefore can be used as a reference in the future.	It is not possible to keep records of the communication and therefore cannot be used as a reference in the future.
11. Rumor	It has a definite source and fact. Thus, there is no possibility of spreading rumors.	It has multiple sources and thus spreads rumors.
12. Misunderstanding	It follows a well-built system of communication networks and therefore has the least possibility of causing misunderstandings.	It follows a self-styled system of communication networks and thus causes misunderstandings.
13. Accuracy	It has higher accuracy of information and reliability.	It has less accuracy of information and reliability.
14. Cost	It takes time and requires expenditure of money to follow the official network.	It is fast and spontaneous. Therefore, less costly.
15. Behavior	It exhibits a controlling formal behavior.	It exhibits a social-friendly behavior.

5 Disadvantages of Informal Communication

Informal communication is often characterized as a destructive communication network. The reasons for this negative perception are outlined below:

Distortion of Meaning

Informal communication carries a higher risk of distorting the meaning of messages transmitted through these channels. People tend to add or modify information to suit their own advantage, leading to message distortion.

Spread of Rumors

Rumors, a form of grapevine information, are communicated through informal channels without secure standards of evidence (Davis, 1979:283).

Rumors are unverified and often untrue information spread through informal communication networks at a rapid pace to align with individual interests and worldviews.

Affects Secrecy

In informal organizations, people tend to be open and candid during informal communication, often disclosing sensitive information without considering its confidentiality. Consequently, this openness seriously compromises the secrecy of information.

Uncontrollable

Informal communication networks are inherently uncontrollable. Management cannot effectively halt, direct, or manage them. They operate according to their own dynamics, often causing significant harm to the organization.

Creates Misunderstandings

Informal communication does not adhere to a formal chain of command. It takes messages of any kind and reshapes them in various forms. As a result, informal communication frequently leads to misunderstandings among individuals within the organization.