COMMERCE 1BA3 Chapter Notes - Chapter 10: Organizational Communication, Online Chat, One Down

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Communication is the process by which information is exchanged between a sender and a receiver. Effective communication occurs when the right people receive the right information in a timely manner. When communication flows in accordance with an organization chart, we say that communication follows along the chain of command or lines of authority and formal reporting relationships. In downward communication, information flows from the top of the organization toward the bottom. In upward communication, information flows from the bottom of the organization toward the top. Horizontal communication refers to information that flows between departments or functional units, usually as a means of coordinating effort: deficiencies in the chain of command. Sticking strictly to the chain of command is often ineffective. The formal chain of command fails to consider informal communication between members. This type of communication might not benefit the organization since inaccurate rumours might be spread across the organization.

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