What is informal channel of communication. What is Informal Communication? Meaning, Definition, Characteristics, Types, Roles, Advantages and Disadvantages, Importance and Differences between Formal and Informal Communication 2022-10-05

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The BCG (Boston Consulting Group) matrix is a tool used by companies to evaluate their business units or product lines based on two dimensions: relative market share and market growth. The matrix divides the business units or product lines into four categories: stars, cash cows, dogs, and question marks.

Stars are business units or product lines that have a high market share in a growing market. These units or lines generate a lot of cash and are considered the main growth drivers of the company.

Cash cows are business units or product lines that have a high market share in a mature market. These units or lines generate a lot of cash, but they do not contribute to the growth of the company.

Dogs are business units or product lines that have a low market share in a mature market. These units or lines do not generate much cash and do not contribute to the growth of the company.

Question marks are business units or product lines that have a low market share in a growing market. These units or lines may have potential for growth, but they require a lot of investment to catch up with the competition.

Now, let's apply the BCG matrix to Reliance, a diversified conglomerate company in India.

Reliance has several business units and product lines, including telecommunications, retail, petrochemicals, and energy.

The telecommunications unit, Jio, can be considered a star. Jio has a high market share in the growing telecommunications market in India and has been a major growth driver for Reliance.

The retail unit, Reliance Retail, can be considered a cash cow. Reliance Retail has a high market share in the mature retail market in India and generates a lot of cash, but it does not contribute much to the overall growth of the company.

It is difficult to classify the petrochemicals and energy units as either dogs or question marks because these industries are subject to fluctuations in demand and prices. However, the petrochemicals unit may be considered a cash cow due to its high market share and cash generation, while the energy unit may be considered a question mark due to its low market share and potential for growth.

Overall, the BCG matrix can help Reliance identify its growth drivers and allocate resources accordingly. It can also help the company make strategic decisions about which business units or product lines to invest in and which ones to divest.

Channels of Communication

what is informal channel of communication

It is also known as horizontal communication. One of the most commonly used media of upward communication is periodic performance reports from subordinates. Thus, it has a clear pre-defined path to follow without any confusion or choice. It is free from any chaos and is rigid enough not to allow any deviations or distortions. Such rumours may disturb the smooth functioning of an organisation, may create conflicts and misunderstanding among employees and may lead to a turbulent organisational environment.

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Channels of Communication

what is informal channel of communication

These documents are stored within the organisation and thus are free from any personal intervention. It takes place without following formal lines of communication. But distortion may arise in reports due to fear of displeasing the boss, due to desire to make a favourable impression, etc. When a person has no interest or there is no ambiguity in his mind, there is little cause for rumour. The grapevine is mainly controlled by the employees themselves.

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Informal Communication

what is informal channel of communication

Probability chain In a probability chain, information is shared on a random basis with an individual or group. For horizontal communication managers can appoint committees of representatives from the departments. Making responsibilities clear for subordinates is very efficient in this form of communication. For example, a letter from the CEO desk to all employees is an internal correspondence. Information that passes through informal means is not official but may be merely rumors or gossips.

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What Is Informal Communication?

what is informal channel of communication

Such information has no authentic base to prove its genuineness, may be distorted or may be only a viewpoint rather than a fact. It exists outside the official network but continually interacts with the formal communication. Cluster Chain A cluster Chain is a form of communication where one person may share the news with a specific group of person and these, in turn, will either keep the news to themselves or share it with their selected group. Along the organisational hierarchy, it may flow in the following three directions: 1. One plant manager routinely meets each Monday at 7. Rumour originates due to several reasons. So it creates the opportunity to develop misunderstandings.

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What is Informal Communication in the Workplace?

what is informal channel of communication

Informal letter A person may need to write personal letters to friends or relatives or even colleagues. As a result, the details given at the beginning of a rumour are lost after a few transmissions. Single Strand Chain In a Single Strand Chain type of communication, information passes from one person to another in a single sequence. This kind of communication travels the fastest and has a vast reach. The communications may be oral or written. It is free from all formally delegated lines of authority. The Grapevine: The use of the term grapevine is originated during the Civil War, when telegraph lines were strung loosely between trees and soldiers said the wires resembled a grapevine.

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Channels of Business Communication

what is informal channel of communication

Feedbacks in formal structure are usually manipulated and fabricated, thus non-reliable. What is an example of an informal communication channel? It may be defined as that information which is circulated through grapevine without any authentic evidence of its existence. . Because It is a planned communication. Important rumours have staying power because their information concerns people. The informal system covers the gap in the formal system. Therefore, he should learn to use it for the benefit to the organization.

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What is informal communication or Grapevine?

what is informal channel of communication

It mainly depends upon the nature of channels of communication and the number of persons involved in the communication process. Formal communication may also take place between an enterprise and the external environment. Missed tasks Communicating business matters in an informal setting can result in missed tasks, thus reducing productivity. The path of communication which are institutionally determined by the organisation. Video conferencing Video conferencing is a channel of communication where two or more people can visually connect and communicate with each other. Formal communication methods are like official notes that a teacher sends home to your parents. Such communication enables the management to know what is happening throughout the organization.

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Formal and Informal Communication Channels

what is informal channel of communication

In other words, it refers to information moving from subordinates to superiors. A rumour has three components: i The Target — It is the object of the rumour. It is called a wheel network since all communications pass-through the manager who acts as a central authority like a hub of a wheel. It relieves employees from pressures and frustrations of work situations. As every employee can talk and freely mix at all levels it becomes easy to develop an environment and culture of understanding between employees of every level and position Here is a video by Marketing91 on Informal Communication. Advantages of Informal Communication: i Faster Speed — Communications are transmitted at a faster speed. It does not follow any hierarchical order.

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