Business communication can be formal or informal as well as internal and external.
What is formal business communication?
Formal business communication involves serious business-related matters. All the channels of communication are officially set up and recognized by a business organization.
It is typically used to convey official information, such as policies, procedures, reports, and proposals. Formal communication follows specific guidelines and protocols to ensure clarity, accuracy and professionalism.
Formal business communication tends to be either written (e.g. letters, reports, memorandums, websites, news releases, etc.) or verbal (e.g. meetings, speeches, forums, debates, etc.).
Formal business communication can be either internal or external:
- Formal internal communication. It moves messages down, up and across horizontally the organization’s hierarchy.
- Formal external communication. It moves messages into and out of the organization.
Different types of formal communication networks
The formal communication structure within a business organization can be organized in a number of different ways known as communication networks. Formal communication networks are the official communication channels and routes used within a firm.
There are two types of formal communication networks – centralized networks and decentralized networks:
A. CENTRALIZED COMMUNICATION NETWORKS. In centralized networks, speed of learning new procedures and speed of solutions of simple problems is fast while speed of solutions of complex problems is slow. Originality of ideas is low, so is employee satisfaction and morale. There are only few messages sent. There are three types of centralized communication networks including:
a.) Chain network. In this network, the person at the top of the hierarchy, control over the communication system, starts off the communication message. Then, this message is passed on to the next person on the lower level, and so on until individuals at the end of the chain. Chain network is typically used in hierarchical structures by an authoritarian leader, e.g. the police, fire fighters or the military.
b.) Vertical network. In this network, the person who is a manager, owner or team leader communicates directly and individually with several subordinates. Vertical network is typically used in a small department or any situation with a narrow span of control, e.g. marketing department of a large firm.
c.) Wheel network. In this network, the person, group or department at the center becomes the leader who communicates with each of the other parts of the wheel. The leader is in control of two-way communication and can limit formal contact between the others. Wheel network is typically used in the situation when a regional manager communicates with each of the branch or site managers based in different locations.
B. DECENTRALIZED COMMUNICATION NETWORKS. In decentralized networks, speed of learning new procedures and speed of solutions of simple problems is slow while speed of solutions of complex problems is fast. Originality of ideas is high, so is employee satisfaction and morale. There are many messages sent. There are two types of decentralized communication networks including:
d.) Circle network. In this network, each person, group or department communicates with only two others close to them. Circle network is typically used in situations without an obvious leader, e.g. a member of the meeting converses with the member on his right or left, or a production manager communicates with the marketing manager or finance manager to agree on official information.
e.) Integrated network. This connected network allows full two-way communication between any group members or with all of them. Integrated network is typically used for solving complex problems in a participative style of decision-making, e.g. team meetings, brainstorming and bouncing ideas around.
In summary, this article introduces five communication networks that are featured in the research work of Alex Bavelas. Alex Bavelas’ research on these communication networks has had a profound impact on various fields, including organizational psychology, sociology and communication studies. His findings have helped us understand how communication structures influence information flow, decision-making and group dynamics.
