Business Communication and Organizational Structure
Formal and Informal Organization
Organizations can be defined by management or arise spontaneously through relationships. These relationships lead to formal and informal organizational types.
Informal Organization
Informal organization refers to the joint social relations that arise spontaneously within a company. It is more difficult to establish than the formal structure.
Communication in Business
Elements of Communication
Communication involves the transfer of information from a sender to a receiver. The content is a message transmitted through a channel. Both sending and receiving the message require a code, which is called encoding and decoding, respectively.
Types of Communication
There are many types of communication. Here are the most important:
- Depending on location: Internal communication and external communication.
- Based on the type of organization: Formal communication and informal communication.
- Based on the direction of transmission: Vertical communication, horizontal communication, and cross communication.
Communication Channels
The communication channel is the environment in which information is transmitted. Important channels include:
- Work meetings
- Suggestion boxes
- Quality circles
- Regular interviews
- Circulation
- Emails
- Social events
- Internal press and publications
- Bulletin boards
Communication Networks
Communication networks can be centralized or decentralized. In centralized networks, communication revolves around one person. In decentralized networks, participants interact with each other, and there is no single leader. Networks are classified according to their form:
- Chain networks: Ideal for vertical communication.
- “Y” networks: Similar to chain networks, but one of the two levels of hierarchy is unfolded.
- Star networks: One person occupies the central position, with others around them.
- Circle networks: Information flows from one person to another until it reaches the starting position.
- Multi-channel networks: Everyone communicates with everyone else.
Communication Barriers
Here are some of the most significant communication barriers:
- Cultural barriers: Not all staff members have fully adopted the organizational culture (the set of values shared by all members).
- Bureaucratic barriers: Excessive bureaucracy can slow down the flow of information.
- Information overload: An overload of information can lead to a loss of concentration.
Design of the Organizational Structure
Organizational structure refers to the relationships between elements pursuing a goal or plan. It defines how a company divides tasks and coordinates activities. Within the formal structure, we find:
- Line structure: A hierarchical structure.
- Line and staff structure: A set of technical advisors who direct or coordinate activities, supplementing the hierarchical structure.
- Committee structure: Establishes a participatory system of decision-making. It is rare for a company to use this structure exclusively. Its advantage is its richness and inspiration, while its disadvantage is its slow pace.
- Matrix structure: Combines the advantages of grouping by function and by product. It establishes a double line of authority. Its main advantage is flexibility, but the dual authority can pose challenges.
Grouping Models (Criteria)
- Functional grouping: Groups workers of the same function into departments based on job similarity.
- Product grouping: Creates divisions with significant autonomy, often leading to stagnant behavior.
- Market or customer grouping: Organizes around specific markets or customer segments.
- Geographical grouping: Structures the organization based on geographical regions.
- Mixed grouping: Combines multiple criteria rather than relying on a single pure approach.