Corporate Communication and Its Types

Corporate communication is broadly defined as a corporation's attempt to inform the public, including all its consumers, private investors and the media. Corporate communication represents the very voice with which corporate institutions interact with the outside world and is inclusive of communications regarding investor relations, government relations, labor relations and employee development. Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. It is concerned with internal communications management from the standpoint of sharing knowledge and decisions from the enterprise with employees, suppliers, investors and partners.

Types of Corporate Communication:

It is basically of two types:

(i) Formal Communication

(ii) Informal Communication

A formal channel of communication is the officially prescribed route for the flow of communication. It is that route of communication which is institutionally determined and is associated with status or position of the receiver and sender. The formal channels are deliberately related to ensure that accurate information flows smoothly and timely.

The informal channel of communication is that channel of communication which is not officially prescribed. It is that route which is used by workmen in an organization to maintain social (informal) relationship amongst themselves. It is thus created as a result of operation of social force in an organization. It can be said that informal communication flows through corridors to water coolers, down hallways through lunchrooms and where ever workmen get together in groups. Informal communication co-exists along with formal communication and supplements it. Informal communication is known as grapevine. Grapevine arises because of the desire of the people to communicate without following the formal channel of communication. It follows no setlines, nor any definite rules, but spreads like grapevine, in any direction anywhere.

Difference Between Formal and Informal Communication

Formal and informal communication both are important and effective. Formal communication strictly follows rules and regulation prescribed by organization. On the contrary, Informal communication does not maintain any rule and regulation. Formal and Informal communication both can be effective communication for a organization if the Management can handle those properly. Although Informal communication is out of control of Management. But strategic planning may help to make it fruitful for organizational purpose. However, Differences between Formal communication and Informal communication can shown on the following aspects:

Differences	Formal Communication	Informal Communication
01. Rules	In Formal communication, Organizational rules are strictly followed.	It does not generally follow the rules of organization
02. Recognition	Such communication requires officials recognition.	In informal communication, It does not require any officials recognition.
03. Flexibility	It is inflexible in nature as it cannot be changed when desired.	Being flexible, It can be changed easily.
04. Secrecy	Such Communication is not free and open to all. So, Secrecy is maintained here.	It is free and open to all, So it is very difficult to maintain secrecy here. i.e.Grapevine communication which spread informally.
05. Time & Cost	It follows various rules of organization. So, It requires much time and cost.	Informal communication does not bother for the formalities of organization and therefore it requires less time and cost.
06. Record Keeping	This type of communication involves written procedure, So record can be kept in formal communication.	Permanent record is impossible here because almost nothing is written here.
07. Errors or Mistakes	Very careful attention is given here in encoding the message and sending the message through formal way. Due to this seriousness, there is less chance of placing mistakes or errors.	It is personal in nature and therefore less attention is involved which can cause many errors or mistakes.
08. Compulsion	It is bound to follow the formal rules of communication.	There is no pressure here to follow any rules.
09. Necessity	Formal communication is necessary to achieve organizational goal.	Informal communication is necessary to improve personal relation.
10. Delegation or Authority	Authority can be delegated through formal communication.	Authority can not be delegated through such communication.

Difference Between Formal Communication and Informal Communication
Differences	Formal Communication	Informal Communication
01. Rules	In Formal communication, Organizational rules are strictly followed.	It does not generally follow the rules of organization
02. Recognition	Such communication requires officials recognition.	In informal communication, It does not require any officials recognition.
03. Flexibility	It is inflexible in nature as it cannot be changed when desired.	Being flexible, It can be changed easily.
04. Secrecy	Such Communication is not free and open to all. So, Secrecy is maintained here.	It is free and open to all, So it is very difficult to maintain secrecy here. i.e.Grapevine communication which spread informally.
05. Time & Cost	It follows various rules of organization. So, It requires much time and cost.	Informal communication does not bother for the formalities of organization and therefore it requires less time and cost.
06. Record Keeping	This type of communication involves written procedure, So record can be kept in formal communication.	Permanent record is impossible here because almost nothing is written here.
07. Errors or Mistakes	Very careful attention is given here in encoding the message and sending the message through formal way. Due to this seriousness, there is less chance of placing mistakes or errors.	It is personal in nature and therefore less attention is involved which can cause many errors or mistakes.
08. Compulsion	It is bound to follow the formal rules of communication.	There is no pressure here to follow any rules.
09. Necessity	Formal communication is necessary to achieve organizational goal.	Informal communication is necessary to improve personal relation.
10. Delegation or Authority	Authority can be delegated through formal communication.	Authority can not be delegated through such communication.