Bus Comm Lecture (Week 3)

BUSINESS COMMUNICATION
Business
communication
Lecture Week 3
Group – (Accounting & Finance)
Mrs. Anastasia Nana Ama Kumi-Korsah

Department of Management
School of Business
University of Cape Coast
Presentation outline
• Channels /Lines of communication
-Formal communication
Vertical
Horizontal
Diagonal
-Informal communication
Grapevine
Objectives
By the end of this session, students should be able to;
• Distinguish between the channels of communication
• Explain the advantages of the formal lines of
communication
• Explain the disadvantages of the formal line s of
communication
• Explain the advantages of the grapevine
• Explain the disadvantages of the grapevine
Channels/ lines of communication
There are two main channels of communication
• Formal communication
• Informal communication
Formal communication
• Formally established communication connections between
people, departments and branches within an organization
• The organizational structure often dictates the lines of
communication within the organization
• Communication within an organization is often determined by the
nature of its organizational chart (tall or flat)
• Tall organizational charts often have a higher tendency to
distortions
• The lines of communication may be horizontal, vertical or
diagonal
Vertical communication
• Communication that flows across different levels of hierarchy

and work areas.
• It flows across different levels of authority in an organization or

work area.
• Two way communication flow from top to bottom and bottom up.
• Types; downward and upward

Downward communication
• Flow of information from a superior to a subordinate.
• Flows from a higher hierarchical level to a lower level. (voice of the

organization/superior)
• Usually in the form of instructions, orders, directives, policy statements,

procedures etc.
• Suitable in organizations where authority runs distinctly downward with ranks

clearly below each other and directly related.
• Eg. Directives from a manager to an assistant manager/secretary.

Advantages
• Facilitates sharing of information necessary for achieving
goals of the organization.
• Provides a sense of belonging.
• Well defined lines of communication that is useful to both

management and employees.
Disadvantages
• Time consuming
• Tall organizations are susceptible to distortions (especially

for oral directives)
• Assumes a more authoritarian approach
• Susceptible to over and under communication

Upward communication
• Represents the flow of information from lower hierarchical
levels to higher levels.
• The voice of the employees expressing their ideas, feelings and

thoughts.
• E.g. Progress reports and suggestions

Advantages
• Provides valuable feedback
• Motivates employees through participative management
• Promotes understanding among hierarchical levels
• Encourages innovation and creativity

Disadvantages
• Fear of being ignored
• Fear of incompetence
• Posture of superior may become threatening

Horizontal communication
• Interactions between people, divisions, branches and
departments on same hierarchical level.
• Cross communication between people of equal status.
• Occurs at both higher and lower hierarchical levels.
• Eg. Production and marketing manager interactions on

customer complaints.
Horizontal communication cont.
Advantages
• Saves time
• Encourages co-operation and co-ordination
• Promotes efficiency
• Increases overall productivity
• Reduces conflicts
Horizontal communication cont.
Disadvantages
• Inter rank conflicts
• Can be disruptive when overused
• Source of interdepartmental conflicts/rivalry
• Waste time when overindulged

Diagonal communication
• Communication across organizational hierarchy without direct
reporting relationships
• Often employs both vertical and horizontal communication lines.
• Mostly suitable for project purposes where technocrats may be

required to communicate across levels.
• Diagonal communication encourages a combination of vertical
communication and horizontal communication.
Diagonal communication cont.
• May also be useful for an organisation with a culture that
believes the opinion of all employees is relevant in arriving at a
decision.
• Also known as consensus or participative management

Advantages
• Speeds up the flow of information by cutting through
departmental barriers
• Softens the rigidity of established hierarchical lines and

command structures in an organization.
• Higher efficiency and productivity

Disadvantages
• Violates the principle of scalar chain and creates confusion
• This channel may allow some members to dominate leaving

some relevant people out
Formal communication networks
Formal communication networks are depictions of the patterns of the
formal communication. It is a representation of the manner in which
formal communication is facilitated. Formal communication networks
are classified on the basis of the degree to which an organization is
centralized or decentralized. Some common networks include;
• The wheel network
• The chain network
• The circle network
• The star network
• The inverted “V” network
The wheel Network
This is the most centralized form of communication network
within which all the information flows from one central person,
typically the leader. Other members of the organization often
have little or no communication link with each other. Often,
leaders deliberately control the line of communication to ensure
that information will reach all in the group and in a manner that
will be determined by him/her.
The chain network
This pattern of information flow either goes up or down a line in
a chain movement. In this network all persons receive
information from their immediate superior which is then passed
on to their immediate subordinates. A chain is thus created
where all members are connected to a single person, typically
the leader. This network is particularly suitable for when
information that needs to be passed on is accurate and requires
attention.
The circle network
This network is one of the decentralized forms of a
communication network where information is shared equally
among all the members of the organization. Each person gives
and receives information from two or more persons in the
network. Under this pattern, each member has the equal chance
to participate.
The star network
• Under this network, all persons are connected to one other, and
information can flow freely from (to) anywhere in the
organization. It is the most decentralized form of formal
communication. The distinct feature of this communication
pattern is that all the persons in the group are linked to each
other and can freely communicate as they want. Also known as
the free-flow network
The “y” network
• The Y network is similar to the chain except that two
members fall outside the chain. Two distinct person are
recognized as the leaders or source of information. They pass
information on in a sequence from one person who also passes
it on to the next person. For example, two assistant principals,
(A and B) report to the principal (C). The principal, in turn,
reports to the assistant superintendent (D), who reports to the
superintendent (E).
The inverted “V” network
This is a formal network which allows subordinates to
communicate with their immediate superior as well as with the
superior’s superior, i.e. the boss of the immediate boss.
Communication between the subordinate and the superior’s
superior is however minimal.
Informal communication
• Communication which emerges spontaneously to co-exist with
the formal communication.
• Unofficial communication lines between employees as social

beings.
• Informal individual and groups interactions at the workplace

stemming from work and social relationship.
• No formal organisational hierarchy (line) exists (no superiors,

no subordinates).
Informal communication
• Communication does not take place on the basis of positions
and lines of authority.
• There is absence of official backing, formalities, rules and

procedure with no control.
• Useful for effective and speedy communication
• Most common type is the grapevine

Grapevine
Derives its name from the grapevine, a kind of vine (grape)
which is very weak and spreads in any direction.
As its name suggests, it is the kind of communication which

flows/spreads often discretely without the knowledge of
authority.
Information flow is non directional and spreads quickly.

Types of Grapevine
Chain grapevine
This type of grapevine has information flowing/passing on from
one person to another person and then to another person often
in a sequential manner or in chain link . For example, Mr. Adu
passes information to Mrs. Koku, who then informs Mrs Appiah,
who also informs Mr Kwakye.
Types of grapevine cont.
Cluster/ Probability grapevine
In this type of grapevine, information moves from one person to
a few selected persons who in turn may pass on the information
to other selected persons.
Types of Grapevine cont.
The Wheel grapevine
This type of grapevine has one person (usually known as
grapevine leader) who occupies a central position and becomes
the source of the information. All information flow from the
source to other persons within the organization or within a group.
For example, Mr. Asmah passes information on to Mrs. Adu,
Akosua, Mr. Pearina etc.
Grapevine cont.
Advantages
• Fast flow of information
• Provides meaningful feedback to management
• Supplements the formal lines of communication
• Promotes interpersonal relation

Grapevine cont.
Disadvantages
• Lacks credibility, cannot be relied upon as source cannot be authenticated
• Often characterized by incomplete Information leaving room for every

misunderstandings and or misinterpretations
• It is difficult to hold anyone responsible for the information.
• Not suitable for upward communication
• May affect corporate image

Conclusion
Sin is not ended by multiplying words, but the prudent

hold their tongue
Proverbs 10:19

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BUSINESS COMMUNICATION

Mrs. Anastasia Nana Ama Kumi-Korsah

• Communication that flows across different levels of hierarchy

• It flows across different levels of authority in an organization or

• Types; downward and upward

• Flows from a higher hierarchical level to a lower level. (voice of the

• Usually in the form of instructions, orders, directives, policy statements,

• Suitable in organizations where authority runs distinctly downward with ranks

• Eg. Directives from a manager to an assistant manager/secretary.

• Provides a sense of belonging.

• Well deﬁned lines of communication that is useful to both

• Tall organizations are susceptible to distortions (especially

• Assumes a more authoritarian approach

• Susceptible to over and under communication

• The voice of the employees expressing their ideas, feelings and

• E.g. Progress reports and suggestions

• Motivates employees through participative management

• Promotes understanding among hierarchical levels

• Encourages innovation and creativity

• Fear of being ignored

• Posture of superior may become threatening

• Cross communication between people of equal status.

• Occurs at both higher and lower hierarchical levels.

• Eg. Production and marketing manager interactions on

• Encourages co-operation and co-ordination

• Increases overall productivity

• Can be disruptive when overused

• Source of interdepartmental conflicts/rivalry

• Waste time when overindulged

• Often employs both vertical and horizontal communication lines.

• Mostly suitable for project purposes where technocrats may be

• Also known as consensus or participative management

• Softens the rigidity of established hierarchical lines and

• Higher efﬁciency and productivity

• This channel may allow some members to dominate leaving

• Unofﬁcial communication lines between employees as social

• Informal individual and groups interactions at the workplace

• No formal organisational hierarchy (line) exists (no superiors,

• There is absence of ofﬁcial backing, formalities, rules and

• Useful for effective and speedy communication

• Most common type is the grapevine

As its name suggests, it is the kind of communication which

Information flow is non directional and spreads quickly.

• Provides meaningful feedback to management

• Supplements the formal lines of communication

• Promotes interpersonal relation

• Often characterized by incomplete Information leaving room for every

• It is difﬁcult to hold anyone responsible for the information.

• Not suitable for upward communication

• May affect corporate image

Sin is not ended by multiplying words, but the prudent

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