Question

Aahana has started a designer studio in the basement of her residence after completing her masters in fashion designing. She has appointed ten employees to take care of the various aspects of the work. She interacts regularly with each employee to tell exactly what is expected of him/her and what he/she needs to do to be regarded as a good performer. At the same time, she allows a free work environment where in the employees openly chit chat with each other in order to fulfil their social and emotional needs. Sometimes, these interactions also lead to spreading rumours which are not authentic.

In the context of the above case:

(a) Name and explain the two types of communication being referred to in the above paragraph.

(b) Explain any one advantage and one disadvantage of the types of communication identified above.

Answer 1

(a) The two types of communication being referred to in the above paragraph are formal communication and informal communication.

Formal Communication: This refers to the structured, official communication channels established within an organization. In Aahana's designer studio, formal communication occurs when she interacts regularly with each employee to convey expectations and performance criteria. This communication is intentional, directed, and usually documented. It ensures clarity and consistency in conveying information regarding tasks, roles, and responsibilities.
Informal Communication: Informal communication is the spontaneous, unofficial communication that takes place among employees outside the formal channels. In Aahana's studio, informal communication occurs when employees engage in chit-chatting and socializing with each other. While this type of communication satisfies social and emotional needs, it can also lead to the spread of rumors and unofficial information.

(b) One advantage and disadvantage of formal and informal communication.

Advantage of Informal Communication: One advantage of informal communication is that it fosters camaraderie and builds strong interpersonal relationships among employees. When employees have the freedom to interact socially, it can enhance teamwork, boost morale, and create a more enjoyable work environment.

Disadvantage of Informal Communication: However, a disadvantage of informal communication is that it can lead to the spread of rumors and misinformation. In Aahana's studio, the open environment for chit-chatting may inadvertently propagate inaccurate information, causing confusion or discord among employees.

Advantage of formal Communication: Formal communication ensures clarity and consistency in conveying important information, such as job expectations and performance standards. It provides a structured framework for conveying directives, policies, and procedures, minimizing misunderstandings and promoting organizational efficiency.

Disadvantage of formal Communication: 

Slow Decisions: Participants may face issues and difficulties while trying to make quick decisions through formal communication. This is because formal communication often receives slow responses, taking more time.

Lack of initiative: A lack of initiative makes it difficult for people to accomplish the intended goals and objectives. Instead, they have to keep following the intended operations continuously.

Costly: The norms and guidelines of the organizations must be complied with in a proper manner when using the formal communication system. Sometimes, it results in the emergence of unwanted expenses. Since it is more expensive than other.