Formal and Informal Communication Networks: Unit 3 Section

LABOUR LAWS AND FORMAL AND INFORMAL COMMUNICATION NETWORKS
UNIT 3 SECTION
INDUSTRIAL 3
RELATIONS Unit 3, section 3: Formal and informal communication networks
This section seeks to discuss the formal and informal communication

networks in the organization. The section will cover topics such as meaning
of formal and informal communication, the four formal communication
networks, the grapevine and the main features of the grapevine.
By successfully following a learning programme of this section, the student

will able to identify and explain the various communication networks in the
organisation. The student will also be able to differentiate between formal
and informal communication networks and suggest appropriate networks for
specific situations.
Formal communication networks

Formal communication channels may be linked in a variety of ways to form
unique patterns. These patterns connect senders and receivers of information
into a functional social organization called communication networks.
Communication networks are the pathways along which information is

exchanged between individuals, groups, and teams throughout the entire
organization. While some networks are rigidly designed, others are loosely
done. In a rigidly designed communication network, employees could
hardly talk with their immediate supervisors. Five commonly used networks
have been identified: - the wheel, the chain, the ‘Y’, the circle and the star.
 The wheel network

In the wheel communication network, information flow through a clearly
identifiable central individual or a pivotal person to others in a work group
or team. The central person serves as the hub through whom all
communication passes to and from the group. The wheel communication
network is the most centralized network system because all messages must
flow through the individual at the centre of the wheel. Other group members
do not need to communicate directly with each other. The group can
accomplish its goals by directing all communication to and from this central
individual. The wheel networks are not found in teams because they do not
allow the intense interaction that characterizes team work. From the
illustration of a wheel network below, A is the central individual through
whom information must flow. ‘B’ for instance, do not need to communicate
with ‘C’ or ‘D’ but can direct all communications to and from ‘A’ who is
the central individual.
 The Chain Network

The chain network typifies a classical organization with a strong vertical
hierarchy, where information can only travel upwards and downwards in a
hierarchical chain of command. No lateral communication channels are
provided. Individuals can only communicate with people whose work
directly proceeds or follow their own. The chain network links members in a
predetermined sequence. It is the most preferable network system in a
predetermined order of sequential interdependence tasks. Like the wheel,
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Unit 3, section 3: Formal and informal communication networks INDUSTRIAL RELATIONS
the chain network does work well in teams. From the illustration of chain
network below, ‘A’ communicates with ‘B’, ‘B’ communicates with ‘A’
and with ‘C’. ‘C’ communicates with ‘B’ and ‘D’ and so on.
 The ‘Y’ network

The ‘Y’ network modifies the chain network to enable one group member to
communicate with more than two persons. This individual is found at the
fork of the ‘Y’ network. In the diagram, this person is labeled ‘A’. He can
talk to ‘B’, to ‘C’ and to ‘D’ as illustrated below.
WHEEL CHAIN
A
THE ‘Y’ NETWORK Kate
E
Joe C D B
John
B A C
Tony Kate John A C
Phil
B
D
Phil Joe
E
D
E
Tony
In summary, the wheel, chain and ‘Y’ networks are relatively centralized.
Centralized networks tend to permit rapid decision making but average
member satisfaction is very low. Centralized networks may be efficient for
simple problems, but as complexity increases, more decentralization is
required. While the wheel, chain and ‘Y’ networks are relatively centralized,
the circle and star networks are highly decentralized.
 The Circle Network

The Circle Network permits each member to communicate with others on
either side of the communication network. From the illustration of the circle
network below, ‘A’ can exchange information with ‘B’ and ‘E’, ‘B’ can
exchange information with ‘A’ and ‘C’, ‘C’ can communicate with ‘B’ and
‘D’, ‘D’ can communicate with ‘C’ and ‘E’ and ‘E’ can communicate with
‘D’ and ‘A’,. This completes a circle communication network. Usually the
circle network occurs in groups where members are similar in experience,
position, status, office location, beliefs and so on.
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LABOUR LAWS AND
INDUSTRIAL RELATIONS Unit 3, section 3: Formal and informal communication networks
 The Star Network (All-channel Network)

With the star network, every individual member can communicate directly
with every other member in the group. The star network is found in top-
management teams such as the cross functional and self-managed teams.
Teams expect information to flow in all directions as they are characterized
by reciprocal task interdependence. The star network is the most
decentralized of all the networks. It prevails in informal groups with no
assigned leader. From the illustration of star network below, ‘A’ can
communicate with ‘B’, ‘C’, ‘D’ and ‘E’ just as the others can communicate
with all other members including ‘A’.
CIRCLE STAR
B B
Joe
Tony
A C
A C
John Kate
Phil Joe
E D
E D Phil Tony
Kate John
Informal communication networks

In addition to the formal communication system, there is also the informal
communication that exists to fulfill the personal, emotional and social
interest of employees. An informal communication refers to the exchange of
information that is not officially sanctioned and therefore does not follow
the officially established channels of communication within the
organization’s chain of command. In an informal communication,
employees usually complain about their boss, whisper secrets about their co-
workers, tell new comers about how they operate among others. The
informal communication is often used whenever employees meet at social
gatherings, at lunch, in corridors or during break periods. Usually, the
informal communication is made through the grapevine.
The grapevine
The grapevine is the social network of informal communication that enables
employees to interpret the organization, translate the formal messages of
management into “employee language”, or convey information that the
formal system leaves unsaid. According to Jerry Kinard (1988), the
grapevine is a natural phenomenon that can provide power, prestige and
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Unit 3, section 3: Formal and informal communication networks INDUSTRIAL RELATIONS
social satisfaction to workers. Message carried by the grapevine may be

factual, erroneous, gossip or rumor proliferates. The grapevine begins with
individuals who are present at a ‘spot’ where they can see or hear things, but
are not necessarily in high organizational positions. Or it may be started by
people who claim to know about everything and about everyone. For
instance, secretaries are at a ‘spot’ where they can overhear conversations
between top executives or see a discarded message. After seeking and
obtaining the information, it is proliferated in a variety of directions based
on the pattern of the grapevine chain that exist in the system.
Basic features of the grapevine

One of the first studies to assess the workings of the grapevine was
conducted by Keith Davis in 1969. Based on his interview with factory
workers at a medium-sized manufacturing plant, Davis identified four major
characteristics of the grapevine.
 The grapevine transmits information very rapidly (more than the formal
communication) in all directions throughout the organization.
 Grapevine news is relatively accurate (about 75%) possibly because the
parties tend to use media rich communication channels (e.g. the face-to-
face) and also because they are motivated by social satisfaction to
communicate effectively.
 The grapevine is selective in terms of what is transmitted. Thus,
information received is distorted by deleting some details and
exaggerating key points of interest in the story. Furthermore, senders
transmit grapevine information only to people they know and believe are
interested.
 The grapevine relies on social relations, so it is more active where
employees have similar backgrounds and are able to communicate easily
with each other. It is also more active when employees are anxious to
know, but formal channel does not satisfy this itching anxiety.
Communication at the work site may be formal or informal depending on

the circumstance or the type of people involved. The formal communication
is the required type of communication by management. However, for the
purpose of fulfilling their personal, emotional and social interest, employees
often exchange information that is not officially sanctioned and therefore
does not follow the officially established channels of communication within
the organization’s chain of command.
Self-assessment questions
(1) Explain the grapevine and discuss any five features of the concept
(2) Distinguish between formal and informal communication networks
(3) Identify and explain any four formal communication networks at the
level of the enterprise.
UEW/IEDE 91

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LABOUR LAWS AND FORMAL AND INFORMAL COMMUNICATION NETWORKS

This section seeks to discuss the formal and informal communication

By successfully following a learning programme of this section, the student

Formal communication networks

Communication networks are the pathways along which information is

 The wheel network

 The Chain Network

 The ‘Y’ network

 The Circle Network

 The Star Network (All-channel Network)

Informal communication networks

social satisfaction to workers. Message carried by the grapevine may be

Basic features of the grapevine

Communication at the work site may be formal or informal depending on

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