Organizational communication is the compounded interpersonal communication process across an organization. Communication within an organization flows in a vertical, horizontal, or lateral way throughout the firm. It may also be conveyed through the grapevine, which goes in all directions.

Vertical communication is the flow of information both up and down the chain of command. It is often called formal communication because it follows the chain of command and is recognized as official. Horizontal communication is the flow of information between colleagues and peers. It is often called informal and lateral communication because it does not follow the chain of command.

As an employee, you may find it necessary to communicate with your peers, employees in other departments, and people outside the organization, such as customers, to meet your objectives. The grapevine is the informal way messages flow throughout the organization. The grapevine will always exist and should be considered a communication vehicle.

Gossiping about people can really hurt your relationships when they find out. The adage “If you can’t say anything good about someone, don’t say anything at all” is a good human relations rule to follow. Some people prefer personal face-to-face communication, whereas others prefer electronic communications. Either way, digital information technology has clearly changed the way we communicate in our personal and professional lives.

Although ability to use technology is a predictor of performance, interpersonal skills remain the key to effective communications.