Page 1 - Lesson Note 8

SAI INTERNATIONAL SCHOOL

CLASS-12TH

BUSINESS STUDIES
CHAPTER -7 DIRECTING

Topic: Formal and Informal Communication

(LESSON - 26)

Formal and Informal Communication

Communication taking place within an organization may be broadly classified as
formal and informal communication.

Formal Communication

Formal communication flows through official channels designed in the

organization chart. This communication may take place between a superior and

subordinate, a subordinate and superior or among same cadre employees or
managers. The communications may be oral or written but generally recorded

and filed in the office. Formal communication may be further classified as –

Vertical and Horizontal.

Vertical communication flows vertically i.e., upwards or downwards through

normal channels. Upward communications refer to flow of communication from
subordinate to superior whereas downward communication indicates

communication from a superior to subordinate. The examples of upward

communication are – application for grant of leave, submission of progress
report, request for grants etc.

Similarly, the examples of downward communication include – sending notice to
employees to attend a meeting, ordering subordinates to complete an assigned

work, passing on guidelines framed by top management to the subordinates etc.