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CA Foundation Exam June 2023 » CA Foundation Study Material » Business Correspondence » Network of Communication
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Network of Communication

It is a collection of different methods used by employers for disseminating information that is regarded as ‘valuable’. Know more from below-

Table of Content
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A Comprehensive Guide to the Networks of Communication

In the contemporary era, businesses have acquired huge stature and developed more complexities with regard to the performance of diverse functions and undertaking an assortment of responsibilities. In this regard, efficient communication amongst the employees serves as an important factor for the smooth functioning of any organisation. There are different types of communication networks such as the wheel, chain, circle, and all-channel network. The definition of communication networks or networks of communication refers to the methods by which valuable information is passed on by one employee to another within an organisation. This comprehensive guide will help in getting a grasp on the various networks of communication that occupy a significant position in any organisation. This comprehensive guide will help you get a grasp on the various networks of communication, and at the end of the guide, you will acquire a clear understanding of the same. 

What are the different networks of communication?

There are two forms of communication networks formal and informal communication networks. Unlike the informal networks that mostly occur in any direction and between different individuals of different status and roles, formal communication is shaped by hierarchy, technology systems, and official policies. Following are the various networks of communication (formal) that are employed by a majority of the organisations-

  • Wheel Network – In this network of communication, the leader of the organisation or the supervisor possesses the key function to pass on the information to the employees in the organisation. In other words, the leader acts as the mediator between the employees. The position or role of the leader may vary depending on the scenario. The Wheel Network compares the leader to the bright light in the middle of the Ferris wheel. Abiding by the concept of wheel network and the leaders’ role in communicating messages being integral to the functioning of the company, it is imperative that the individual is fully aware of his primary roles and responsibilities. In the organisation, this individual is the centralised figure and is entrusted with the major responsibilities of handling and making complex business operations and decisions. However, wheel networks can be applied to only small-scale organisations and not to the vast multinational corporations containing a large number of employees. 

  • Chain Network – Unlike in Wheel Network, employees in a chain network communicate in a set sequence. The communication, in this case, begins from the top of the CEO and gets percolated down to the employees holding different positions. This communication network has been compared to a chain where the information has to go down the hierarchy before hitting bottom (clerk). The rigid hierarchical nature of this form of communication network is evident in the non-existence of any form of direct communication between the higher authorities (for example, CEO) and the employees holding a perceived lower position (such as the clerk). 

  • Circle Network – In a circle communication network, the information does not flow vertically like that of the Chain Networks. These kinds of communication generally take place in business meetings where the managers communicate with the employees on both sides in a physical space. The information is equally shared amongst all the employees in a circular form. Here, the information to the employees sitting furthest away from the manager is passed on by the employee sitting next to him/ her and not by the authority (in this case, the manager). In other words, contribution in communication, in this case, is determined by the physical proximities of the employees. 

All Channel Networks – This is considered as the most egalitarian communication network where communication flows upward, downward, and laterally amongst all members of the groups. Unlike the Wheel and Chain Network, all the employees in this network of communication interact freely with the other members. There are no specific rules concerning the dissemination of information and also regarding the figures on whom this responsibility would be delegated. As a result, all the information flowing through this method of communication is authentic, and there are minimal chances of miscommunication. An example of all-channel communication is a departmental/ grocery store where all the managers hold the same position pass on information amongst one another.

Conclusion 

The networks of communication play a major role in the smooth functioning of the organisations, and they also define the company’s policies as well as the status of the employees. The different networks of communication are a testimony to that. 

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Frequently asked questions

Get answers to the most common queries related to the CA Examination Preparation.

How does the hierarchical nature of the contemporary capitalist enterprise determine the efficiency of communication?

Ans. It is true that the organisations are hierarchical and are representative of the capitalist ethos and tenets. Effective comm...Read full

What happens when there is a discrepancy with regard to the flow of accurate communication?

Ans. There is a huge possibility that in case of any form of discrepancy with regard to communication, the smooth functioning of ...Read full

How are the networks of communication managed in regular life considering their vital role in the operation of the Companies?

Ans. This is usually done by setting fixed and specific protocols. These protocols are required to be followed by every employee ...Read full

Ans. It is true that the organisations are hierarchical and are representative of the capitalist ethos and tenets. Effective communication, in this regard, needs to take into account the nature of the company and its hierarchy. For example, Chain networks are representative of an extreme manifestation of hierarchy amongst the employees. Here the marked differences between the position of a CEO and that of a clerk are evident through obstructing any form of direct conversation between the former and the latter. The effectiveness of the communication amongst the employees is determined by this hierarchy where allegiance to the supervisors would pressure the employees to pass on accurate information for better functioning of the company. This runs contrary to the All Channel Networks of communication, where there is a minimal chance of miscommunication.

Ans. There is a huge possibility that in case of any form of discrepancy with regard to communication, the smooth functioning of any organisation might also get interrupted. Again this also depends on the significance of the information.

Ans. This is usually done by setting fixed and specific protocols. These protocols are required to be followed by every employee irrespective of their position in the company. Eviction and penalties are some of the major penalties with which the employees are charged in case of any deviance or mismanagement.

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