Formal Communication

Formal Communication encompasses the transmission of information, messages, or orders inside an organization using existing channels, protocols, and standards. It often employs a structured format which incorporates established processes and authorities. Formal communication might take place through written documents such as memos, reports, policies, and procedures or through verbal interactions such as meetings, presentations, and official announcements. Formal communication is necessary for conveying the official policies, distributing significant information, coordination of activities, and making decisions within the organization. It makes sure that communication is clear, consistent, and transparent inside the organization.

Example of Formal Communication

Let's imagine PQR Bank, one of the biggest financial institutions, which uses formal communication to inform its employees, customers, and stakeholders about the essential matters. The management team of PQR Bank disseminates the strategic initiatives, financial performance, and corporate policies to the workforce through informal channels such as quarterly memos, town hall meetings, and annual reports. Department leaders use formal communication to allocate tasks, conduct employee performance appraisals, and pass on process updates via email, team meetings, and written manuals. Compliance officers disperse regulatory notices and legal requirements in order to ensure compliance with industry standards and best practices. PQR Bank uses formal communication channels to establish transparency, consistency, and compliance across all its operations, ensures effective decision-making and organizational alignment.