Transformations  in
Business & Economics

Restructuring Organization for Performance and Effectiveness: Applying Formal and Informal Electronic Communication Tool
Agota Giedre Raisiene

ABSTRACT. The goal of the article is to define the importance of formal and informal electronic communication to employees’ activity and organisation efficiency applying the method of meta-analysis. Formal communication directly correlates with employees’ productivity, a decrease in coordination costs, successful conflict resolution, diminishing of negative effect of gossips and others. However, it is important to emphasise that employees performance results are conditioned not only by formal but also by informal communication.

Informal communication facilitates solving of problems related to performing tasks in groups, individual approaches to goals of organisation and joint assignments are depolarised through informal communication, tolerance towards diverse opinions is developed and similarities in acknowledged values are identified. Under conditions of globalization, members of organisations more and more frequently have to work in virtual workgroups. Therefore, nowadays one more dimension of communication, that is, communication via electronic media and technological channels, has gained significance.

The research revealed that the contribution of electronic communication to efficiency of employees’ activity and organisation success is diverse. Compared to technologized communication, the priority should be assigned to direct communication while striving for efficiency in organisation activity. It has to be noted, that technological channels limit communication possibilities to some extent, e.g., electronic communication is not favourable for development of informal contacts among employees and for strengthening of the sense of staff’s commitment as well as for making of important decisions in groups.

It is important to perceive that electronic medium itself is not able to improve communication. Quality of electronic communication to biggest extent depends on personal motivation of contacting individuals and the real need to apply technologies. Pursuing efficiency in organisation activity, it is necessary to employ the widest possible range of communication channels and also to promote direct informal communication among employees.

KEYWORDS: electronic communication; technological channels of communication; formal and informal communication; information and knowledge management; organizational effectiveness.

JEL classification: L25, M12, D83.