Read the text given below and answer the questions.

Mr. Murthy is the chairman of a leading business organisation. He grabs all possible opportunities and leads the organisation by example and trust. He always motivates his team and introduced a number of motivational schemes like;

-Employees are offered shares at a price lower than the market price.

-Employees are given individual autonomy and rewards for performance.

He realises that satisfied and secured employees can best focus on organisational success. He ensures hiring competent people for various jobs. Every employee is required to undergo training, their jobs are well defined and regular feedbacks are provided so that their long term interest is also served.

In order to keep an eye on employees performance, a strategic decision was introduced that all communication must be recorded and filed in the office. He has also devised various ways to know the reactions of employees on different policies and decisions. As a result, employees are highly motivated, goals are achieved and organisation is growing.

"All communication must be recorded and files in the office".

Which type of communication is best described in the above statement?

Formal communication

Formal communication flows through official channels designed in the organisation chart. This communication may take place between a superior and subordinate, a subordinate and superior or among same cadre employees or managers. The communications may be oral or written but generally recorded and filed in the office. Formal communication may be further classified as – Vertical and Horizontal. Vertical communication flows vertically, i.e., upwards or downwards through formal channels. Upward communications refer to flow of communication from subordinate to superior whereas downward communication indicates communication from a superior to subordinate. Horizontal or lateral communication takes place between one division and another.