Business organizations contain formal and informal networks. Networks are patters of communication in an organization. They are channels through which messages pass from one person to another. Formal networks are legitimate (authorized by management) and often indicated by an organization chart that displays who answers to whom.
An organization chart shows the levels of authority within an organization and reflects the expected flow of information. Normally, each employee answers directly to only one person. Such formal networks indicate a unity of command. A higher-ranking company official who wants an employee under the authority of another to perform some task normally communicates the request through an informal network or asks the employee’s immediate supervisor to see that the task is completed.
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