1

Group 7


Challenges faced by MBA Students in formal and informal
Communication in Organization.

Introduction

Communication is the social glue that keeps the organization tied together. It is a
key process underlying all aspects of organizational operations. Effective
communication results in effective marketing campaigns, productive
interpersonal relationships among co-workers, and successful customer service
resolutions.
Formal communication:
Communication takes place through the formal channels of the organization
structure along the lines of authority established by the management. Such
communications are generally in writing and may take any of the forms: policy,
manuals, procedures and rule books, memoranda, official meetings, reports etc.
The formal communication network is formed out of formal channels, created by
setting a formal system of responsibilities according to the hierarchical structure
of the organization. Formal communication may be in the upward, downward or
horizontal direction.
Informal communication:
Informal communication arises out of all those channels that fall outside the
formal channels and it is also known as grapevine. It is established around the
societal affiliation of members of the organization. Informal communication does
not follow authority lines as in the case of formal communication. Normally, such
communication is oral and may be expressed even by simple glance, sign or
silence.

A study based on skill development in Warwick Business School, Warwick
University shows the following findings:

Skill area Communication-
written
Communication-
oral
Interpersonal
Starting skill level 7.00 6.92 7.10
Ending skill level 7.73 7.46 7.41
Actual Emphasis 7.69 6.92 6.73
Students Desired
Emphasis
7.28 8.12 8.15
Employers
desired emphasis
7.43 7.76 7.91
Employers
perception
7.25 7.22 7.72
Students
perceptiojn
7.73 7.46 7.41


Problem Statement :
A comparative Study of Formal and Informal Channels of Communications in
Manufacturing and services sector firms and their implications on Work
Environment.

2
Group 7


Segments targeted for the survey :

Manufacturing

In our survey we will be covering manufacturing sector which mainly means
industrial production of transforming raw material into finished goods or such
goods which may be used for manufacturing other complex goods . Thereby try
to understand role of formal and informal communication in supply chain
operations, working environment and overall productivity of firms. In this
segment itself we will survey not only well known and managed firm like Mother
Dairy but also sole proprietors and partnership firms in order to relate factors
like size, technique of production followed and other factors with flow of
communication and its impact.

Services :

The service sector in India forms a huge part of the Indian economy not only in
terms of employment but also in terms of its contribution to the national income.
The service industry includes not only sophisticated fields like
telecommunication, satellite mapping and computer software but also simple
services like that of a barber, a carpenter or a plumber. It includes highly capital
intensive activities like civil aviation and shipping to labour intensive activities
like tourism, real estate and housing and also infrastructure related activities
like railway, roadways and ports to social sector related activities like health and
education.
It is estimated that in the near future close to a million new jobs will be created
in the service sector. At present a major proportion of the companies coming to
hire students from colleges are from the service sector. In this project we will
conduct a survey to understand the channels of communication, formal or
informal, used by mba students in the corporate world and analyse as to how
well equipped are they in making use of the same.

Approach used :
Questionnaire method and Interview method, both are going to be used in order
to give both quantitative and qualitative approach to our stud.
Our study would be based on the methods of communication used in the sector,
both formal and informal channels of communication, with emphasis on the
communication techniques and abilities of freshly recruited MBA graduates. This
would help us understand where the future managers fall short in their
communication skills and also highlight their strengths.

We would be primarily targeting IT,Consulting and banking companies for the
Services sector since MBA graduates mostly join these companies.So a survey in
these companies would give a nice representation of the larger group.
On the same lines,we would be targeting FMCG sector in the Manufacturing
Segment.We would be talking to the managers and getting their feedback on the
skills lacking by the MBA graduates in both formal and informal means of
3
Group 7


communication.
(The Companies targeted are Tentative and may change depending on the
Availability of the Managers).

Sample interview questions :

New joinees :
1. Do you find lack of understanding among your seniors and peers about
the points being made by you?
2. Were you were provided any communication training on joining the
organization?
3. Does lack of technical knowledge act as a hurdle in means of
communication?
4. To what extent the personal issues between employees act as a barrier?
5. Does diversity (Gender, Region, Language, Age etc.) also act as a barrier in
effective communication?
6. Do you find any difference between the kind of oral communication
training imparted in college and the one used in corporate world?
7. Describe a situation where you found it difficult to convey your ideas in a
meaningful way.
8. Do you face any issues in communicating with clients who are situated
overseas?

Managers whom new joinees report to :

9. Through which communication medium (email, phone, face to face) do
employees communicate the best?
10. If an employee does not communicate well, is he/her given
communication training by the organization?
11. Do you believe in more of formal communication or informal
communication with your employees?
12. Is there any need of additional communication training which can be
given to the trainees during college which you feel is missing?
13. Do you feel the employees lack of communication skills required in a
manufacturing sector?