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informal and formal system
Management Information Systems 2010/2011

Lecture … (5)

Sources of Information
Information

systems

should

support

both

formal

and

informal

communication. Formal communications can include reports and accounting statements. Informal communications can include conversations and notes.

Formal Communication
Information transmitted by formal communication tends to be presented in a consistent manner. Company reports, for example, will often use the same basic format. This allows the recipient to locate items of interest quickly and easily. Since formal communications tend to be presented in a more structured manner, they are also more likely to present a more comprehensive view of the situations or circumstances they describe. In addition, the information transmitted in this way is likely to be accurate and relevant, since it is normally created for a specific purpose.
However, formal communication also has several disadvantages. The structure imposed on information is often inflexible, sometimes limiting its type, form and content. In addition, formal communications often overlook information obtained by informal means. This can affect the decision-making process, reducing the quality and accuracy of any decisions made. Finally, formal communications often ignore group and social mechanisms. A formal report, for example, might marginalize or ignore staff opinions, causing offence and leading to reduced morale.
Informal Communication
Informal communication is always present in an organization, regardless of its size or nature. Information of this kind can be considered a valuable resource
45

Management Information Systems 2010/2011

Lecture … (5)

and one of the aims of knowledge management is to harness it to work for the benefit of the organization. Perhaps the most common means by which informal communication takes place is by word of mouth.
Informal communication tends to offer a high degree of

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