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Differences Between Formal and Informal

Communication Channels

Article  in  Journal of Business Communication · April 1994

DOI: 10.1177/002194369403100202

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This research compares formal and informal organizational communication
structures, specifically focusir^ on salience, channel factors, and channel usage.
The major hypotheses of this research were partially supported with data collected
from a large, technically oriented governmental agency (n = 380).

Differences Between Fbrmal and

Informal Conuniinication Channels
J. David Johnson
William A. Donohue
Charles K. Atkin
Mtchtgan State Untverslty
Sally Johnson
Lansing Community College

lis research focuses on a central problem in organizational com-

JL munication structures, the relationship between formal and
informal structures (Hartman & Johnson, 1990). An organization's com-
munication structure consists of formal and informal elements, as well
as other ingredients, and is not reducible to either (March & Simon,
1958). However, to most organizational researchers this fundamental
distinction captures two different worlds within the organization, worlds
that have different premises and outlooks and most importantly, differ-
ent fundamental assumptions about the nature of interaction (AUen,
1977; Dow, 1988).

LITERATURE REVIEW
Very few research studies have attempted tocompare these approaches
directly, to assess how they may differ along critical dimensions. A re-
cent attempt to systematically compare formal and informal groupings
and their impact on the levels of role ambiguity found more similarities
than differences and suggested a complex set of contingencies in which
one or the other would have the most impact on organizational variables
(Hartman & Johnson, 1990).
A formal structure identifies individuals who are the official sources
of information and the information that is their special concern. This
has been the traditional view of managers and professional business
communicators. Since relationships are determined by one's role, struc-
ture is viewed by managers as a static entity which conforms to a top
down configuration (Monge & Eisenberg, 1987). This perspective, which
has been termed the configurational view, emphasizes the authoritative
coordination of work in the service of stated organizational objectives
Ul
112 TTie Journal ofBusiness Communication 31:2 1994

(Dow, 1988). Recent reviews suggest that formal approaches focus on

the configurations resultingfiromformal authority relationships repre-
sented in the organizational hierarchy (Dow, 1988; Jablin, 1987), from
differentiation of labor into specialized tasks (Dow, 1988; Jablin, 1987),
andfiromformal mechanisms for coordination of work (Dow, 1988). These
characteristics, along with the notion of goal or purpose, have been seen
by Schein (1965) as representing the very essence of an organization.
On the other hand, informal approaches recognize that a variety of
needs, including social ones, underlie communication in organizations
and that, as a result, the actual communication relationships in an orga-
nization may be less rational than formal systems (Johnson, 1993). In-
formal structures function to facilitate communication, maintain
cohesiveness in the organization as a whole, and maintain a sense of
personal integrity or autonomy (Smelser, 1963). The coactivational per-
spective recognizes that communication rdationships are not solely based
on the positions individuals occupy within formal organizations. Infor-
mal groups often arise out of a combination of human needs and formal
factors (Schein, 1965). Fbr example, increasingly business communica-
tors have focused on the role of informal communication in generating
innovations within organizations (Johnson, 1990).
Scholars in the two camps have completed many research projects,
hut have rarely attempted to examine the relationships between the two
perspectives, especially in terms of specific organizational factors such
as salience, channel factors, and channel usage.
Salience
Three means of characterizing salience, personal, effect, and cul-
tural, will be used in this research to compare the relative importance of
formal and informal channels.
Personal Salience
"Information is valued to the degree it is salient. Salience to an indi-
vidual means the perceived applicability of information to a problem
that he or she faces" (Evans & Clarke, 1983, p. 239). Individuals use
particular channels for a variety of motives, including some intensely
personal ones, such as securing information related to advancement
and merit increases. Using a channel to seek feedback about perfor-
mance can be seen as an instrumental response on the part of employees
who desire to eam positive evaluations (Ashford & Cummings, 1985).
Individuals who are skilled at seeking feedback are more likely to be
successful (Ashford & Cvunmings, 1985). H i ^ performers within re-
search and develc^ment laboratories have been found to be much more
likely to communicate widely within their organizations, using a variety
of informal sources (AUen, 1977). Accordingly,
Fbnnal and Informal Channels / Johnson, Donohue, Atkin, Johnson 113

Hla: Employees will perceive informal channels as more effective

than formal channels for advancing their personal agendas.
Eftact Salience
An individual's beliefs about the outcomes of channel usage are also
important. Individuals ask themselves: Can I do something? A belief
that there is no procedure available for con&ondng their problems would
impede channel usage. Somewhat relatedly, if an individual believes
there are costs (for example, loss of self-esteem) associated with a par-
ticular channel, this will reduce bis or her level of channel usage (Bdiga
& Jaeger, 1984; Miller & Jablin, 1991; Reinsch & Beswick, 1990). Be-
cause of the capacity of information channels to be shaped to fit indi-
vidual needs and circumstances we expect to find that,
Hlb: Employees will evaluate the effect salience of informal chan-
nels more highly than formal channels.
Cultural Salience
In some cases cultural norms may identify which information is sa-
lient and should be gathered in decision m a ^ g situations (Feldman &
March, 1981). Strong cultures can also severely restrict the content and
the communication partners available to in^viduals. But, because of
the sophistication of shared understandings, strong cultuires can in-
crease the effectiveness of communication by clearly delineating roles,
relationships, and contexts within which individuals use channels. Thus,
a strong, monolithic organizational cultuire would likely enhance per-
ceptions ofthe effectiveness of formal channels of communication.
Hlc: Formal channels will be perceived as more culturally salient
in achieving organizational goals than will informal ones.
Channel Factors
The channel factors are drawn from a model of Media Exposure and
Appraisal (MEA) that has been tested on a variety of information carri-
ers and in a variety of international settings (Johnson & Meischke,
1993). These fectors focus on the characteristics and utUity of channels.
Characteristics
Characteristics, such as editorial tone £ind communication potential,
relate primarily to message content attributes. Editorial tone reflects an
individual's perception of the credibility and intentions of a source. If
individuals perceive that a source has motives other than the mere
provision of information, then this will weigh heavily in their exposure
decisions. Scholars have argued that source credibility and trustworthi-
ness affect anticipatory socialization (Jablin, 1987) and the upward fiow
of information in organizations (Glauser, 1984).
114 The Journal (^Business Communication 31:2 1994

Communication potentitd, the other dimension examined in prior

research, refers to an individual's perception of the manner in which
information is presented. This dimension relates to issues of style and
comprehension. For example, is an article in a company newsletter visu-
ally stimulating and well written? Comprehension has been found to be
a critical factor in determining the selection of technical reading mate-
rial of engineers (Allen, 1977).
Because of the mixed-motives often attributed to formal communica-
tion (Eisenberg, 1984) and the greater understandability of informal
channels.
Hid: Employees will evaluate informal channels more highly
than formal ones for channel characteristics of comprehen-
sion and credibility.
Utiiity
Is the information contained in the channel relevant, topical, and
important for the individual's purposes? Atkin (1973) has argued that
mass media exposure will resultfiroma combination of receiver needs
and message attributes. Utility is a central concern in determining for-
mal structures that filter the upward fiow of information in organiza-
tions, since reducing information overload requires choices about which
information should be provided to decision makers (Glauser, 1984). Be-
cause of the greater flexibility inherent in the choice of informal chan-
nels, which can be tailored more to fit individual needs.
Hie: Employees will evaluate informal channels as more useful
than formal channels.
Channel Use
Employees use channels in several different ways within formal and
informal structures. For example, Lenz (1984) has identified three dif-
ferent dimensions of information seeking: method, scope, and depth.
Method relates to the channel selected—in this current research, for-
mal and informal channels. The two major variables examined here
related to technical corrununication are scope, in terms of the number of
different peoplefiromwhom information is sought, and depth, in terms
of the number of different messages involved. Diversity in the number of
people contacted and the depth of each contact have both been found to
be very important to successful performance within research and devel-
opment laboratories (Allen, 1977). Here we will argue that the level of
individual initiative differs for formal and informal channels, with much
more fireedom of action for the individual within informal channels.
Accordingly,
H2; In comparison to formal channels, employees will report
that they receive fewer informal-channel messages firom
Formal and Informal Channels / Johnson, Donohue, Atkin, Johnson 115

fewer people and send more informal-channel messages to a

larger number of people.
The primary research question this study addresses concerns the
different perceptions of various organizational factors and how those
relate to formal and informal communication channels. As we have seen
formal and informal channels have inherently different capabilities,
they also have different historical patterns of development and usage,
which should result in individuals evaluating them differently.

METHODS
This research was conducted in a large midwestern state govern-
mental agency that is charged with providing engineering and techni-
cal services. This study was part of a much larger project designed to
comprehensively assess current communication practices, to make rec-
ommendations, and to implement change strategies designed to im-
prove both internal and external communication within this agency.
Before developing the questionnaires thirty employees, selected ficom
various levels and functional divisions within the organization, were
interviewed at length (30 minutes to three hours duration) by the coau-
thors. After these interviews and a review of appropriate agency docu-
ments (for example, mission statement, standard operating pjrocedures)
questionnaires were pretested on agency employees.
C!opies of the final version of the questionnaire were distributed to
bureau executives who then distributed them to their administrators
and supervisors. In tum, administrators and supervisors distributed
questionnaires to employees along with plain, brown envelopes in which
the questionnaires were to be returned. The surveys included a cover
letter from the Interim Director of the agency stressing the importance
of the survey and the confidentiality of the responses. The employees
returned the sealed envelopes to their supervisors who then returned
them to the researchers.
Sample
The respondents (n=380) were characterized as follows: the median
report of education was college graduate, with 18 percent reporting at
least some post graduate education. Thirty-three percent reported they
were engineers; 32 percent, other technical specialties; and 15 percent,
administrative. Eighty-seven percent of the respondents were Cauca-
sians, 6 percent were Afiican-Americans, and 7 percent reported other
or did not report. Eighty percent of the respondents were male. There
was a 26 percent refusal rate among the 513 individuals drawn for the
total sample.
Scales
All psychometric scales were based on eleven point bipolar type items
embedded in a larger questionnaire. Questions for each of lAie scales
116 The Journal ofBusiness Communication 31:2 1994

were developed based on items derived fixtm the academic literature;

firom the initial exploratory, qualitative interviews; and firom formal
agency documents. The actual question wordings for the final individual
items are contained in Table 1.
Table 1
Scale Items, Factor Loadings, and Reliabilities
for Formal and Informal Channels

Scale Items Factor Loadings

Fbrmal Infonnal
Personal Salience (alpha = .78, .80)
When I communicate with this channel I get recognition
which can help me in getting promoted, ,80 ,82
When I communicate with this channel I get recognition
which can help me in getting a merit increase, ,80 ,82
Effect Salience (alpha = .91, .88)
It is pointless to communicate using tUs
channel since no one listens. ,87 ,83
Nothing ever happens when I communicate by
means of this channel, ,92 ,91
I dont get information helpful to me
in performing my job if I use this channel. ,86 ,79
Cultural Salience (alpha = .91, .82)
Using this channel I can help _
in performing its missions, ,89 ,91
By using this channel I can help
better serve the public, ,92 ,91
By using this channel I can help
inform the public, ,80
By using this channel I can help people in
omer units do their jobs, ,77 ,54
By iising this channel I can develop teams of people
to tackle spediic problems within ,73
Characteristics (alpha = .86, .85)
Accurate (10)-Inaccurate (0) ,80 ,72
Well-intentioned (10), questionable intentions (0) ,67 ,68
Very understandable (10), very difficult to understand (0) ,82 ,84
Material clearly presented (10), not deiu-ly presented (0) ,82 ,83
Utility (alpha = .85, .84)
Personally significant (10), not personally significant (0) ,69 ,65
Very useful (10), not at all useful (0) ,86 ,84
Very easy to get information from (10),
very difficult to get information (0) ,89 ,83
Ebrtremely valuable source of information (10),
not valuable at all (0) ,65 ,69
Note. Effect salience items were reverse coded. Items that show no value in the
"informal" coliimn were omitted because of parallelism problems.
Formal and Informal Channels / Johnson, Donohue, Atkin, Johnson 117

The measurement model was analyzed by means of the confirmatory

&ctor analysis subroutine of the PACKAGE computer p n ^ a m (Hunter
& Iim, 1987). Confirmatory £actor anal}rsis is a superior technique when
the a priori specification of items expected to duster t ( ^ t h e r is possible
(Pink & Monge, 1985; Hunter & Grerbing, 1982). We assessed unidimen-
sionality with the three criteria proposed by Hunter (Hunter, 1980;
Hunter & Gerbing, 1982), homc^neity of item content (fece validity),
internal consistency (for example. Spearman product rule), and paral-
l ^ s m (for example, "flat" corrdation matrix). In addition, ihe scree test
was also used to determine the unidimensionality of factor structures
(Van de Geer, 1971). Tbsts of unidimensionality are essential to scale
development since alpha provides an unbiased estimate of reliability
only if scale items are unidimensional (Hunter, 1980; Hunter & Gerbing,
1982). Only psychometric scales that met these criteria were included in
thefilialtests. Naturally, during the process of scale development, items
that did not meet the psychometric criteria were dropped from the re-
spective scales.
Respondents were given the following instructions to help them in
distinguishing between formal and informal commimication for each
scale item:
Informal communication usually does notfollowtheorganizational
chart and tends to be more personal, fbr example, work-related
discussions with co-workers, calling Mends in another work unit
on how to handle a work problem, etc.
Formal communication is considered to be "official" such as oral
communication up and down theorganizational chart and written
communication contained in formal memoranda and departmen-
tal directives.
Table 1 presents actual question wordings and the results for the
psychometric scales for salience. The personal scale (2 items, alpha = .78
for formal and .80 for informal), the effect scale (3 items, alpha = .91 for
formal and .88 for informal), and cultural scale (5 items, alpha = .91 for
formal and 3 items, alpha = .82 for informal) were used as indicators of
salience. The cultural scale items were drawnfix)mthe agency's Mission
Statement which had been recently developed. Both the process of de-
velopment and the dissemination of the Mission Statement have made
values very central to the lives of organizational members, a conclusion
that is buttressed by the findings of the exploratory interviews. Scores
for this scale were adjusted to refiect the differing number of items
available for each channel.
Channel factors (see Table 1) were represented by two scales: charac-
teristics (4 items, alpha = .86, .85) and utility (4 items, alpha = .85, .84)
(Johnson & Meischke 1993).
118 The Journal ofBusiness Communication 31:2 1994

Channel usage was operationalized by items refiecting the number of

peoplefromwhom technical information was initiated and received and
tbe number of messages sought and received.
RESULTS
T-tests were used to determine if there were significant differences
for each of the separate organizational factors between channels (See
Table 2). Hla was not supported (p > .05), with very low means and an
exceptionally high Pbarson correlation (r = .84) between personal sa-
lience for the two channels. Hlc, cultural salience, and Hid, channel
characteristics, had significant differences, although not in the direc-
tion predicted by the hypotheses. H2, which dealt with messages initi-
ated and received and the numbers of people involved was only supported
for the number of messages initiated. Hlb, effect salience, and Hie,
utility, were supported as originally predicted.
Table 2
T-Test8 for the Hypotheses
for Formal and Informal Channels
Hjrpothesis Means t-value df Pearson
Formal Informal r
Hla, Personal
Salience 4.96 4.87 0.57 327 .84
Hlb, Effect
Salience 19.84 21.65 -4.64* 371 .57
Hlc, Cultural
Salience 19.12 21.43 -5.49* 332 .46
Hid, Characteristics 29.63 28.47 3.02* 368 .39
Hie, Utility 25.39 28.29 -6.06* 358 .29
H2, Messages
Initiated 9.90 12.09 -3.03* 349 .47
Messi^es
Received 10.27 12.06 -2.32* 359 .43
People
Initiated 6.94 7.10 -0.43 347 .68
People
Received 6.26 6.87 -1.57 355 .55

iVote. Results supported hypotheses concerning Effect Salience (Hlb), Utility

(Hie), and Messages Initiated (H2). Resxilts were statistically significant but con-
trary to prediction for hypotheses concerning Cultural Salience (Hlc), Character-
istics (Hid), and Messages Received (H2).

* p<.05
DISCUSSION
Earlier we adopted a contingency perspective, suggesting various
organizational factors for which informal or formal channels might be
more highly evaluated. However, tbe overall pattern of results, except
Formal and Informal Channels / Johnson, Donohue, Atkin, Johnson 119

for channel characteristics, suggests that informal channels in this or-

ganization were more highly evaluated in general. This is clearly seen in
the support for Hlb, effect salience; Hie, utility; £ind the partial support
for H2 in terms of messages initiated. Because business communicators
have traditionally concentrated on formal channels, this suggests re-
newed efforts might be in order to tap the communication potential of
informal channels.
Hlc posited that formal channels would be used more than informal
ones for cultural objectives. Interestingly, exactly the opposite was found.
Our personal interviews indicated a very high level of support for the
cultiial objectives of this organization, which was also found in other
studies in this research stream. These other studies have suggested
that culture constitutes another medium, or channel, in which people in
this organization interact (Johnson, Donohue, Atkin, & Johnson, 1993).
This result suggests that in this organization, where there is some de-
gree ofconsonance concerning the organization's culture, informal chan-
nels are better at communicating the overall mission ofthe organization.
Blau (1954) has identified two integrative processes that occur in
organizations: one's expertise, usually reflected in formal structure, and
establishing extensive informal relations, or emergent processes. Within
the fbrmal structure, communication behaviors are somewhat dictated
by the role and functions one performs; however, certain roles, such as
the technical ones we focus on here, provide the opportunity for indi-
viduals to communicate informally (Dow, 1988). Katz and Kahn (1978)
differentiate between roles and norms, viewing norms as expectations
for individuals within a particular role. Specifically, a role dictates what
is expected in terms of task performance. However, the social rules for
performing particular role behaviors may alter individual expectations
for that role behavior. These informal standards can differ from the
formally prescribed role behaviors. Thus role theory parallels formal
and informal structural theories. While communication researchers have
generally given primacy to the impacts of emergent, informal communi-
cation in these processes, this research suggests that for most organiza-
tional factors the channels are evaluated equally or informal channels
are perceived more highly.
Unexpectedly, for Hid, informal channels were less highly evaluated
for characteristics, which primarily reflects the editorial tone dimen-
sion of this channel. While Davis's studies ofthe grapevine suggest that
informal channels csin be highly credihle, more popular perceptions
suggest that the grapevine is inaccurate (Johnson, 1993). This also may
relate to the lack of support for the people element of Hypothesis 2, with
a relatively limited number of authoritative individuals generally ac-
cessible. Thus, the lack of support for this element of the hypothesis
may be artificially constrained by the number and nature of available
sources of information in this organization.
120 TTteJoumalofBusiness CommunioaUon 31:2 1994

Hla, which argued that informal channels would be perceived as

better for securing personally salient information, was not supported.
This could refiect the relatively stable, bureaucratic nature of this orga-
nization, whose members have relatively long tenure, and who apptur-
ently perceive little likelihood that communication is linked to personal
outcomes. Promotions, especially, were relatively scarce, with clear ceil-
ings for the opportunities for the advancement of technical profession-
als.
In sum, while the pattern of findings in this study were partially
supportiveof our original arguments, they also suggest that there is still
much to be done to unravel the mystery of the relative importance of
informal and formal channels. As in other work (Hartman & Johnson,
1990), our findings reveal rich and complex interrelationships between
these two channels. Part ofthe solution to this problem might lie in more
sophisticated typologies of the media within which people interact in
organizations (Johnson et al., 1993). Another element ofthe solution is
an even more sophisticated understanding of the conditions which might
create differences between the channels. Thus, this research study raises
as many questions as it answers and is but one step on the way to
unraveling the relationship between formal and informal communica-
tion in organizations.
NOTES
J. David Johnson (Ph.D, Michigan State University, 1978) is currently professor
and chairperson of the Department of Commiinicatdon at Michigan State Univer-
sity. He has authored over 40 refereed publications in such journals as Academy of
Mcmc^emeTUReview,CommunicationYearbook,HumanCommunicationResearch,
Communication Research, Communication Monographs, Communications, Jour-
nal of Business Research, and Social Networks. His major research interests focus
on organizational communication structures, information seeking, and health com-
munication.
William A. Donohue (Ph. D., Ohio State University, 1976) is a professor of com-
munication at Michigan State University. He has authored numerous publications
in such journals as Communication Yearbook, Human Communication Research,
and Communication Mont^raphs. His major research interests focus on conflict
and negotiation.
Charles K. Atkin (Ph.D., University of Wisconsin-Madison, 1971) is professor of
communication and telecommunication at Michigan State University. Most of his
work is published in mass communication journals, such as Journal of Broadcast-
ing and Electronic Communication, Journalism Quarterly, and Journal of Commu-
nication. His current research focuses on headth communication campaigns, and his
most recent book is Mass Communication and Public Health (Sage, 1990), with
Lawrence Wallack.
Sally Johnson (Ph.D., University of Denver, 1979) is an instructor of communica-
tion at Lansing Community CoUege. Her published research has appeared in Health
Communication and the Association for Communication Administration Bulletin.
Her current research interests include communication theory and the spoken word.
Fbrmal and Informal Channels / Johnson, Donohue, Atkin, Johnson 121

Requests for reprints or additional information can be addressed to the first

author at the Departm^it of Communication, Midiigan State Umversity, Elast Lan-
sing, MI 48824-1212.
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First submission 1120193

Accepted by NLR 9/14/93
Final revision 10/14/93
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