Read the following passage and answer the question.

Asha is the head of finance department in her company. She is very fond of latest gadgets. With the launch of 5 new model of i-phone, she is confused for the last 3 days which model she should buy. Due to this, she could not concentrate to the discussion in the meeting. She said to her subordinates to set their own goals and make plans accordingly. Riya is working in the company as head of production department. One day at the tea break time, Riya told Asha that due to recession many people from the company are retrenched soon. Company takes care to the needs of its employees like food, shelter, clothing etc.

One day at the tea break time, Riya told Asha that due to recession many people from the company are retrenched soon.

Which type of communication is discussed in the above lines?

Informal communication

The correct answer is option 2- Informal communication.

Informal communication is discussed in the given lines.

Communication that takes place without following the formal lines of communication is said to be informal communication. Informal system of communication is generally referred to as the ‘grapevine’ because it spreads throughout the organisation with its branches going out in all directions in utter disregard to the levels of authority. The informal communication arises out of needs of employees to exchange their views, which cannot be done through formal channels. Workers chit chating in a canteen about the behaviour of the superior, discussing about rumours that some employees are likely to be transferred are some examples of informal communications. The grapevine/ informal communication spreads rapidly and sometimes gets distorted. It is very difficult to detect the source of such communication. It also leads to generate rumours which are not authentic. People’s behaviour is affected by rumours and informal discussions and sometimes may hamper work environment. Sometimes, grapevine channels may be helpful as they carry information rapidly and, therefore, may be useful to the manager at times. Informal channels are used by the managers to transmit information so as to know the reactions of his/her subordinates.