Year: 2020

Many business laws in India precede the country’s independence in 1947. For example, the Indian Contract Act of 1872 is still in force, although specific contracts such as partnerships and the sale of goods are now covered by newer laws. The Partnership Act of 1932 covers partnership firms in India. Business laws regulating chartered accountants and cost accountants were passed in 1949 and 1959, respectively. The Banking Regulation Act of 1949 continues to regulate private banking companies and manage banks in India. In 2012, it was amended by the Banking Law (Amendments) Act. Under these amendments, the Reserve Bank of India (RBI) was given power to restrict voting rights and shares acquisition in a bank. The RBI established the Depositor Education and Awareness Fund. Banks are now able to issue both equity and preference shares under RBI guidelines.

While India is often criticized for complex regulations, it is important to keep in mind that that in some cases, these laws are simpler than those of the U.S. Furthermore, most regulations are consistent across the country, and attorneys in India can practice in any state. Filing lawsuits is seldom productive in most commercial disputes since court cases can drag on for decades and collection can take even longer. For large deals, binding third-country arbitration can be the best way to resolve disputes.

Following India’s economic development in the 21st century, the Ministry of Corporate Affairs passed the Competition Act of 2002 and the Limited Liability Act in 2008. These promote sustainable competition in markets, prohibit anti-competitive business practices, and protect consumer interests while ensuring free trade.

The Parliament of India passes and amends regulations for both businesses and investors. In addition to provisions from the Companies Act of 1956, the Companies Act of 2013 features provisions regarding mergers and acquisitions, board room decision-making, related party transactions, corporate social responsibility, and shareholding. The act was further amended through the Companies Act of 2015 which eliminated the procedural common seal, declarations for commencement of businesses, and minimum paid-up capital requirements. The amendment also relaxed governing-related party transactions while limiting access to strategic corporate resolutions in India.

As a member of the International Labor Organization, India offers protections for employees. These include the Payment of Wages Act of 1936, the Industrial Employment Act of 1946, the Industrial Disputes Act of 1947, the Payment of Bonus Act of 1965, and the 1972 Payment of Gratuity Act. Protections include annual bonuses of 8.33% and separation fees of about 15 days per year of employment. Other labor laws such as the Building and Other Construction Workers Acts of 1996 and the Workmen’s Compensation Act of 1923 (amended in 2000) are in effect. Passed in 1926, the Trade Unions Act deals with the registration, rights, liabilities, and responsibilities of trade unions. The Industrial Disputes Act of 1946 regulates trade unions and matters between industrial employers and employees.

Business laws in India include consumer protection. The Consumer Protection Act, 1986 mandates Consumer Dispute Redressal Forums at local and national levels. Older laws, such as the Standards of Weights & Measures Act of 1956, ensure fair competition in the market and free flow of correct information from providers of goods and services to consumers.

Due to the growth of trade, the Indian government passed the Foreign Trade (Development and Regulation) Act of 1992 to facilitate imports and augment exports. The latest EXIM Policy, known as the Foreign Trade Policy, was issued for April 2015 to March 2020. The Service Exports from India Scheme (SEIS) replaced the Served from India Scheme. The SEIS extends the duty-exempted scrip to Indian service providers and provides notified services in a specified mode outside the country. Under the Export Promotion Capital Goods Scheme, the export obligation requires six times the duty saved on imported capital goods; in the case of local sourcing of capital goods, the export obligation is reduced by 25%. Beyond goods and services, the Foreign Exchange Management Act of 1999 regulates foreign exchange transactions including investments abroad.

As a founding member of the World Trade Organization in 1995, India has updated business laws regarding copyrights, patents, and trademarks to meet the Agreement on Trade Related Aspects of Intellectual Property Rights. Indian companies and the federal government honor global IP rights. However, because music copyrights are different in India, both Indian and Western IP owners in the entertainment industry have suffered due to digital piracy. Even so, there are few IP-related disputes outside of several celebrated pharmaceutical industry cases. In 2013, India’s Supreme Court denied Novartis an extension to update its cancer drug Glivec due to “evergreening” charges.

E-commerce and online expansion of companies prompted India to create regulations to cover cyber law and security compliances, such as the techno legal regulatory provisions in the Companies Act of 2013. The Information Technology Act of 2000 is the primary law for e-commerce regulation in India. In 2008, the IT Act was amended to provide explicit legal recognition of electronic transactions.

Importance of Communication in Corporate World in Recent Time

In 21st Centuries, business has become highly complex and competitive. To survive one needs the services of specialists are required in every single field. Communication takes place within the organization as well as between the business and outside world. Today professionals have to compete globally and hence they have to be extra cautious while communicating.

In a global world, we have to communicate globally to negotiate, to deal and to reach out the targeted audience. The ability to communicate effectively with others also and along with a variety of different types of personalities are two of the most desirable qualities in job candidates.

Good communicators have complete control of oral and written communication. Today business communication skills are important for executives as businesses in a professional environment require a rapid inflow, and environment need fast inflow and outflow of communication.

Importance of communication in the corporate world is depicted in the following image.

1. Helps to increase the sale

To increase the sales, a company requires a salesman who is a good communicator, who can sell products, convey company’s ethos and also outlines the values of company to people who will not only buy the products but will become company loyalist. Thus, communication helps to increase sales.

2. Helps in retaining the client

A company executive must have necessary skills to deal with the customers. This helps in retaining the clients as customers are business lifelines and their concern is very important for the organization to succeed.

3. Helps to implement strategies

With the help of effective communication organizations can implement strategies. This builds employment commitment toward the organization, and they feel the sense of sharing of responsibility and capabilities.

4. Helps in corporate branding

Communication has always been the core of the corporate world. Communication between people and company is the core element of a good corporate reputation. Many companies invest millions in strategies, which aim to reinvest their profile in important ways.

5. Helps to develop global competence

Communication helps to develop an understanding of other regions, lifestyles and culture of all around the world. This helps in overcoming the cross-cultural barriers during the conduct of business.

6. Helps in crisis management

To handle the economic crisis is the worst. Each person associated with the company needs information and reassurance with proper communication, thus employees can become the strength of the organization. The stockholders should be communicated properly so they do not indulge in panic and sell off their shares.

THE IMPORTANCE OF GLOBAL COMMUNICATIONS IN THE WORLD TODAY

In a globalized world, effective communication is a necessity. When friends, relatives, and colleagues need to reach all corners of the world, it is easy to see the importance of global communications in the world today. Whether you need to connect from Barcelona to Buenos Aires or Boston to Beijing, instant contact has become the norm and expectation. But how did we get here? Just 10 years ago, we were being introduced to new programs called YouTube, Skype, and Facebook. Now these are household names that are used on a daily basis at home and in the office. But in a business environment, there is more to communications than just opening up Skype and connecting to the other side of the planet. Learning the importance of global communications and implementing effective communications policies are key to helping a global organization thrive in this new world.

Global communications is not only the interaction between two employees within your organization. The first step in achieving effective communications is to know your audience. Your entire company profile and history is available to the whole world at the click of a button, making you a sitting duck if you’re not prepared. If you’re not, your company could wind up as the next viral sensation. Communicating with your customers, your suppliers, your stockholders, and many other stakeholders all factor into the global equation. Proper handling of a customer complaint can be just as important whether it is sent to company headquarters or at a local store – one insensitive comment could wind up being viewed by millions on Twitter. Company owners have to be kept informed about the status of the business and employees have to be able to be in constant contact in order to reach deadlines. Even governments need to be involved in your communications strategy, and having a good one can save you a big headache.

Affecting the true meaning of global communications would be the intercultural factor. Now that we expect to do business on multiple continents, understanding the language and cultural difference between two people can bridge gaps and make business transactions much smoother. Even within Europe, making sure your organization understands the business customs of Spain versus Germany will help grow your business. And in a globalized world, it is absolutely vital.

When analyzing the changes in global communications, technology is, by far, the biggest factor. There have been many changes in technology and something new seems to develop every single day. But just because communication has gotten faster and easier doesn’t mean that it’s always a good idea to implement. Video conferencing is a great way to have face-to-face communication while separated by thousands of kilometers. Without the need for travelling, video conferencing can instantly and vastly improve your internal and external communications over what can be done with a phone call. But installing a video conferencing network can be very costly. Is clear and visual communication a necessity worth such an investment or is it just a nice-to-have? How do you go about making a decision like this?

These are just a few of the many issues that affect global communications on a daily basis. And with an ever-growing globalized world, the importance of global communications becomes more evident every year. Studying a Master’s in Communication can help prepare you to understand how to tackle the various issues and make decisions on your communications strategy. With thorough studying of the core concepts and specific examples, you will be able to cope with the ever-changing world and be ready to guide your organization to new heights in a global world.

Business communications consisted of formal business letters and a conversation in the boss’s office. Today’s technological advances have moved communications into a new realm, where messages are delivered almost instantly, tasks are assigned and managed by computer programs and people are even removed from the communications equation. And while most advances have improved workflow and efficiency, some concerns about the quality of business relationships have surfaced.

Continued Evolution of Email

Perhaps one of the most obvious developments in business communications has been that of direct correspondence through email. Although it’s existed for almost 50 years, email has experienced continual change. It’s gone from being simply a method of sending a message to becoming a means of workflow management. Within an email system users can:

• Flag priority messages and set tasks for follow-up
• Program alerts for when messages from VIP senders arrive
• Send automated responses when out of the office and unable to personally respond

Project Management Systems and Scheduling

Another use of technology in business is the implementation of project management systems for collaboration between employees. Workers no longer need to be in the same building or sit in a lengthy meeting to share their ideas. Whether they’re at the corporate headquarters or working from home, individuals can create task lists, assign work, upload content, set appointments and track progress all in one online application.

Automated Voice Systems Provide Service

Automated voice response systems are another way to provide customer service while allowing employees to stay focused on other tasks. Instead of a “live person,” the automated system handles the call and either directs the customer to the appropriate individual or retrieves data and communicates the basic information requested by the caller. Similarly computer “bots” handle online requests for information through live chats. Customers feel like they are being served by a live representative, but often the site is served by a computer programmed with basic responses to routine questions.

Artificial Intelligence Engages in Marketing

Artificial Intelligence (AI) systems are being used to predict and influence future sales based on consumer preferences. Knowledge of customer preferences in real time can assist marketing departments in determining where to spend their money by tracking trends more closely and adapting promotional and sales efforts. The streaming entertainment industry, for example, suggests additional programming based on shows already being watched. “Because you watched this … you might enjoy this.”

Easy Collaboration with Remote Workers

The gig or freelance industry has also grown dramatically because of technological advancements that allow talented workers to be hired and perform remotely for an organization. Needs can be posted online and workers hired, sometimes within hours. Freelancers can collaborate with managers and employees through project management platforms, without any one-on-one interaction. The cost savings by using contractors adds up as companies save time and effort by not hiring and managing long-term employees.

The Downside of Technology in Communications

Despite the savings to companies, there are some negative effects to this surge in technological integration into business communications. Some studies have shown a decrease in productivity over the long term due to an “always connected” lifestyle fueled by easy access to information. Many employees may never actually take a break from the work routine because they are always checking email or status updates on a project through a mobile app, resulting in high levels of stress and increased illness. Additionally, many workers are lacking in proper sleep, less connected with people outside the office and lacking the ability to relate to each other in face-to-face interactions.

Communication is the lifeblood of an organization. It is the vehicle that ensures proper performance of organizational functions and achievement of organizational goals. As a separate field of study, business communication has the following objectives:

1. To exchange information

The main objective of business communication is to exchange information with internal and external parties. Internal communication occurs within the organization through orders, instructions, suggestions, opinions etc.

2. To develop plans

Plan is the blueprint of future courses of actions. The plan must be formulated for attaining organizational goals. In order to develop a plan, management requires information. In this regard, the objective of communication is to supply required information to the concerned managers.

3. To implement the plan

Once a plan is prepared, it is to be implemented. Implementation of a plan requires timely communication with the concerned parties. Thus, communication aims at transmitting a plan throughout the organization for its successful implementation.

4. To facilitate policy formulation

Policies are guidelines for performing organizational activities. Policies are also termed as standing decisions to recurring problems. Every organization needs to develop a set of policies to guide its operation. Preparing policies also require information from various sources. Therefore, the objective of communication is to collect necessary information for policy formulation.

5. To achieve organizational goal

Collective efforts of both managers and workers are essential for achieving organizational goals. Communication coordinates and synchronizes the efforts of employees at various levels to achieve the stated goals of the organization.

6. To organize resources

Various kinds of resources are available in an organization such as human resources, material resources, financial resources and so on. In organizing these resources in an effective and efficient way is a key challenge to the managers. Communication is the vehicle to overcome this challenge.

7. To coordinate

Coordination is a basic management function. It involves linking the various functional departments of large organizations. Without proper and timely coordination, an achievement of organizational goals is impossible. Therefore, the objective of communication is to coordinate the functions of various departments for the easy attainment of organizational goals.

8. To direct the subordinates

The job of a manager is to get the things done by others. In order to get the things done, management needs to lead, direct and control the employees. The performance of these managerial functions depends on effective communication with subordinates.

9. To motivate employees

A pre-requisite of employee motivation is the satisfaction of their financial and non-financial needs. Financial needs are fulfilled thorough monetary returns. However, in order to satisfy non-financial needs, management must communicate with employees on a regular basis both formally and informally.

10. To create consciousness

Employees of an organization must be conscious regarding their duties and responsibilities. Communication supplies necessary information and makes them conscious about their duties and responsibilities.

11. To increase efficiency

In order to increase employee efficiency, they should be provided with necessary information and guidelines. Communication supplies such information and guidelines for them.

12. To bring dynamism

Organizations should be dynamic to cope with the internal and external changes. Bringing dynamism requires finding new and better ways of doing things. For this purpose, communication helps to seek new ideas and suggestions from the internal and external parties.

13. To improve labor-management is relationships

Harmonious relationship between workers and management is a prerequisite for organizational success. In this regard, the objective of communication is to ensure the free and fair flow of information and to create good understanding between them.

14. To increase job satisfaction

Communication enhances job satisfaction level of employees. It creates a friendly environment where employees can express themselves. As a result, they become more satisfied with their job.

15. To convey employee reaction

Communication conveys employees’ reactions, opinions, suggestions, and complaints to their superiors about the plans, policies, programs and strategies of the company.

16. To orient employee

Communication orients the new employees with the company’s policies, rules, regulations, procedures etc.

In an organization, information flows forward, backwards and sideways. This information flow is referred to as communication. Communication channels refer to the way this information flows within the organization and with other organizations.

In this web known as communication, a manager becomes a link. Decisions and directions flow upwards or downwards or sideways depending on the position of the manager in the communication web.

For example, reports from lower level manager will flow upwards. A good manager has to inspire, steer and organize his employees efficiently, and for all this, the tools in his possession are spoken and written words.

For the flow of information and for a manager to handle his employees, it is important for an effectual communication channel to be in place.

The Working of a Communication Channel

Through a modem of communication, be it face-to-face conversations or an inter-department memo, information is transmitted from a manager to a subordinate or vice versa.

An important element of the communication process is the feedback mechanism between the management and employees.

In this mechanism, employees inform managers that they have understood the task at hand while managers provide employees with comments and directions on employee’s work.

Importance of a Communication Channel

A breakdown in the communication channel leads to an inefficient flow of information. Employees are unaware of what the company expects of them. They are uninformed of what is going on in the company.

This will cause them to become suspicious of motives and any changes in the company. Also without effective communication, employees become department minded rather than company minded, and this affects their decision making and productivity in the workplace.

Eventually, this harms the overall organizational objectives as well. Hence, in order for an organization to be run effectively, a good manager should be able to communicate to his/her employees what is expected of them, make sure they are fully aware of company policies and any upcoming changes.

Therefore, an effective communication channel should be implemented by managers to optimize worker productivity to ensure the smooth running of the organization.

Types of Communication Channels

The number of communication channels available to a manager has increased over the last 20 odd years. Video conferencing, mobile technology, electronic bulletin boards and fax machines are some of the new possibilities.

As organizations grow in size, managers cannot rely on face-to-face communication alone to get their message across.

A challenge the managers face today is to determine what type of communication channel should they opt for in order to carryout effective communication.

In order to make a manager’s task easier, the types of communication channels are grouped into three main groups: formal, informal and unofficial.

1. Formal Communication Channels

A formal communication channel transmits information such as the goals, policies and procedures of an organization. Messages in this type of communication channel follow a chain of command. This means information flows from a manager to his subordinates and they in turn pass on the information to the next level of staff.

An example of a formal communication channel is a company’s newsletter, which gives employees as well as the clients a clear idea of a company’s goals and vision. It also includes the transfer of information with regard to memoranda, reports, directions, and scheduled meetings in the chain of command.

A business plan, customer satisfaction survey, annual reports, employer’s manual, review meetings are all formal communication channels.

2. Informal Communication Channels

Within a formal working environment, there always exists an informal communication network. The strict hierarchical web of communication cannot function efficiently on its own and hence there exists a communication channel outside of this web. While this type of communication channel may disrupt the chain of command, a good manager needs to find the fine balance between the formal and informal communication channel.

An example of an informal communication channel is lunchtime at the organization’s cafeteria/canteen. Here, in a relaxed atmosphere, discussions among employees are encouraged. Also managers walking around, adopting a hands-on approach to handling employee queries is an example of an informal communication channel.

Quality circles, team work, different training programs are outside of the chain of command and so, fall under the category of informal communication channels.

3. Unofficial Communication Channels

Good managers will recognize the fact that sometimes communication that takes place within an organization is interpersonal. While minutes of a meeting may be a topic of discussion among employees, sports, politics and TV shows also share the floor.

The unofficial communication channel in an organization is the organization’s ‘grapevine.’ It is through the grapevine that rumors circulate. Also those engaging in ‘grapevine’ discussions often form groups, which translate into friendships outside of the organization. While the grapevine may have positive implications, more often than not information circulating in the grapevine is exaggerated and may cause unnecessary alarm to employees. A good manager should be privy to information circulating in this unofficial communication channel and should take positive measures to prevent the flow of false information.

An example of an unofficial communication channel is social gatherings among employees.

In any organization, three types of communication channels exist: formal, informal and unofficial.

While the ideal communication web is a formal structure in which informal communication can take place, unofficial communication channels also exist in an organization.

Through these various channels, it is important for a manager to get his/her ideas across and then listen, absorb, glean and further communicate to employees.

Vertical communication is the communication where information or messages flows between or among the subordinates and superiors of the organizational. Some important definitions of downward communications are given below:

According to Stoner and his associates, “Vertical communication consists of communication up and down the organization’s chain of command.”

According to Bovee and his associates, “Vertical communication is a flow of information up and down the organization’s hierarchy.”

According to Ricky W. Griffin, “Vertical communication is the communication that flows both up and down the organization, along formal reporting lines.”

The graphical presentation of vertical communications is as follows:

So, vertical communication is the communication where information or messages flows within the top level of the organizational structure and bottom level of the organizational structure.

Advantages of vertical communication

Without communicating with superior and subordinate, no organization runs a single day. Communication without upper level and the lower level employee is very much essential for organization. Some advantages of vertical communication system are as follows:

(i) Conveying message of subordinate

Through upward direction of vertical communication system, the upper-level management covey their suggestions, complains and recommendations to the subordinates.

(ii) Maintains good labor-management relations

There is a systematic flow of information under his communication system, so a good relationship can be developed between superiors and subordinates.

(iii) Maintains organizational discipline

There is a chain of command in vertical communication system. So, a sense of discipline may be developed among the employees.

(iv) Explaining policies and plan

Through vertical communication system, upper level management can send the policies and procedures to the subordinates.

(v) Effective decision making

Superiors needed various information to take decision making in the organization. With the help of vertical communications, superiors collect information form subordinate.

(vi) Help in decentralizations

Duties and responsibilities can be delegated among departments thorough vertical communication.

(vii) Avoid by-passing

Under this communication system superior and subordinates exchange message directly. So there is no chance to by-passing.

(viii) Maintains chain of command

proper chain of commands is easily maintained through vertical communication system.

(ix) Assigning jobs and evaluating performance

Vertical communication facilitates job assignment and job evaluation of the employees.

(x) Increase efficiency

Necessary instructions are sent to subordinates and they perform their duties and responsibilities accordingly that is help to increase efficiency both superior and subordinate.

Disadvantages of vertical communication

In spite of having many advantages vertical communication, there are some disadvantages which are given below:-

(i) Delay process

Vertical communication system is a delay process. It maintains long chain of command in large organization to exchange information.

(ii) Disturbing discipline

In this communication, if the boss’s role of direction is seen by doubtful eyes by the subordinates, the chain of command and discipline may be broken.

(iii) Efficiency reduces

Downward direction of vertical communication is commanding in nature. So, there is no opportunity of the workers to become efficient.

Loss or Distortion of information: Information may be fabricated by the employees to maintain lengthy channel. So, through his communication information may lose its originality.

Reduces relationships: By this communication system relationship between superior and sub-ordinate may be reduced due to inability and inefficiency.

Slowness system: Vertical communication is the slowest communication method because it requires passing through the various levels of an organization. For this, it may become ineffective.

Negligence of superiors: In this communication superiors can neglect to send message to their subordinates.

The term lateral communication can be used interchangeably as horizontal communication. Horizontal communication is communication among people at the parallel or same level, position, rank or status people of the organization. Horizontal communication is the communication that flows laterally within the organization, involves persons at the same level of the organization. Horizontal communication normally involves coordinating information and allows people with the same or similar rank in an organization to cooperate or collaborate. Some definitions of horizontal communication are as follows:

Ricky W. Griffin, “Horizontal communication involves colleagues and peers at the same level of the organization.”

Bartol and Martin, “Horizontal communication is lateral or diagonal message exchange either within work –unit boundaries, involving peers who report to the same supervisor or across-work unit boundaries, involving individuals who report to different supervisors.”

According to William A. Conboy, “Horizontal communication is the exchanges between and among agencies and personnel on the same level of the organizational chart.”

According to Bovee and others, “Horizontal communication is the flow of information across departmetal boundaries, either laterally or diagonally.”

According to Ivancevich and others, “Horizontal communication occurs when the communicator and the receiver are at the same level in the organization.”

The graphical presentation of horizontal communication is as follows:

So, Horizontal communication is the communication where information or messages flows among the similar or same level statuses of people in the organizational structure.

Differences between horizontal and vertical communication

Horizontal communication is the communication where information or messages flows between the parallel same level or statuses people of the organizational structure. On the other hand, vertical communication is the communication where information or messages flows between or among the subordinates and superiors of the organizational. The difference between horizontal and vertical communication are as follows:

Essentials of effective Horizontal communication

 The essentials of effective Horizontal communication are as follows:

(i) Recognition

To make Horizontal communication effective top executive must recognize it is a realistic and useful way to exchange a message.

(ii) Emergency communication

To make it effective this communication system is to be considered a form of emergency communication to effect a quick resolution of a particular problem.

(iii) Direct supervision

To make more effective of this system manager should convince the workers.

(iv) Discipline

To make more effective discipline to be maintained strictly in every level. Otherwise, management may be broken.

(v) Clear understandability

To make effective, care should be taken so that managers may have a clear understanding that horizontal communication is a functional part of the total communication process.

(vi) Interdepartmental communication increase

To make it effective, organizational structure should be made in such a way that opportunity for interdepartmental communication can be ensured.

(vii) Act as Lubricant

To make effective, departments must be developed, so that it will act as a lubricant in the way of effectively using horizontal communication.

Communication that takes place between a manager and employees of other workgroups is called diagonal communication. It generally does not appear on organizational chart. For instance to design a training module a training manager interacts with an Operations personnel to enquire about the way they perform their task.

The modern business environment requires organizations to develop effective communication processes to cope with increased employee involvement, flattened organizational structures, advances in communication technology and the move toward an economy based more on knowledge than traditional industrial and service skills. Barriers to communication such as language differences, information overload and strained relationships lead to mistakes, misunderstandings and interpersonal issues. Diagonal communication offers employees the opportunity to communicate effectively with the organizational hierarchy.

Importance of Diagonal Communication

(i) Necessity

Business organizations are highly complex, and so are the projects they undertake. Projects often require the cooperative efforts of more than one department, and of employees of varying levels within the involved departments. Furthermore, a project-group member may have a different status on the project than he has within the organization, so the hierarchy of the project group is less clear-cut than is the hierarchy of the organization. A diagonal communications route allows this functionally diverse group to share information directly, as required for the project’s execution, rather than according to a hierarchy that has little relevance to the project.

(ii) Efficiency

The standard method of communication between a subordinate in one department and a higher-up in another is for the subordinate to engage in upward communications with her supervisor, and for that supervisor to escalate the message until it reaches the level of its intended recipient. At that time, the message reaches the recipient via a horizontal engagement. It’s an inefficient process unnecessarily so, in many cases that risks miscommunication as the message passes from one individual to another. Diagonal communication routes eliminate this inefficiency.

(iii) Speed

The shortest distance between two points is a straight line. Diagonal communication routes are the straight lines that speed communications directly to their recipients, at the moment communication is necessary. Communications that zigzag along horizontal and vertical routes, on the other hand, are vulnerable to the schedules and whims of the individuals who pass them along.

(iv) Challenges

Ultimately, it’s up to management to determine when diagonal communications are appropriate. It’s important to trust diagonal communications to individuals who can be counted on to use them in a cooperative manner, for the benefit of the project, by maintaining the exchange on a formal-communications level.