
Paper F1: Accountant in business
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In this example, the informal communication system has operated more quickly
than the formal communication. If it is accurate, it is therefore more efficient.
Unfortunately, informal communication may be inaccurate.
Comparison of formal and informal communication
All organisations rely on a mixture of formal and informal communication to operate
effectively.
Formal information is often slow in coming. Organisations therefore often rely on
informal communication for the transmission of information, when the formal system is
slow and bureaucratic, or where senior managers are autocratic and do not believe in
sharing information with subordinates.
Informal information usually passes between individuals very quickly. A problem
with informal information is that management have no control over it. They control
formal communication channels, but not informal communication. With informal
information, it is sometimes a matter of chance who gets the information and who
does not: some individuals might be totally ignorant of what most of their
colleagues already know.
In an effective organisation, there should usually be an efficient formal
communication system, so that accurate information is passed in good time to
everyone who needs it. When formal communication is reliable, relevant and
timely, employees will trust it.
However, even with the most efficient formal communication system, informal
communication systems always exist. People talk to each other unofficially and
socially: they exchange stories, rumours, gossip and so on, and they don’t always
communicate with each other in their ‘official capacity’. Even in their work,
individuals often prefer to communicate informally, in face-to-face conversations, or
by telephone or e-mail, rather than by more formal methods such as memos and
reports.
5.2 The need for effective communication
Effective communication at work is the exchange of information that individuals
need to do their work properly. It needs to be clear (understandable), relevant,
reliable and timely. Effective communication is essential so that:
Instructions and guidelines are properly understood.
Individuals know what they are expected to do.
There is better co-ordination between people and groups in the organisation.
Managers are able to plan and control operations more effectively.
Individuals are more willing to work together in teams or groups, because they
are being told what is happening and where their contribution fits in.
Secrecy, misunderstanding and mistrust are eliminated. Open communication
increases trust.
Arguments and conflicts in the work place are reduced.