Communication Network; Formal & Informational Networks

A communication network is defined as the shape of directions in which information passes in an organization. The networks through which information passes can be categorized as formal networks or informal networks. Formal networks are communication flow that follows the authority chain and are used for job-related communications. The informal network which is also known as grapevine is the flow of communication which is free to pass in any direction and is mostly used to satisfy group members' social needs.

Formal network

It is based on formal relationships

The channels of communication are prescribed

It is rigid as deviations are not allowed

The speed of message travel is slow because of formalization

It is treated as authentic

Informal network

It emerges out of social interactions among the people

Channels of communication depend on the individual’s relationships

It is quite flexible because nothing is prescribed

Message travels faster

Messages are often distorted

It is not authentic even if the message is correct

Patterns of Formal Network:

Formal networks are critical structures that control interactions and communication inside organisations, enterprises, and other systems. Understanding the patterns embedded in these networks is critical because it provides insights into organisational dynamics, decision-making processes, and strategic planning.

Circle Pattern:

Nodes (representing entities or individuals) are organised in a circle arrangement, with each node connected to the ones next to it.

Characteristics: 

• Promotes equal participation and communication among members.
• Encourages equality and togetherness.
• Suitable for teams or groups where collaboration and consensus-building are required.

Examples include project teams where all members participate equally.

Committees have joint decision-making responsibility.

Chain Pattern

A chain pattern connects nodes sequentially, creating a linear structure that allows information or communication to flow from one node to another.

Characteristics: 

• Enables hierarchical communication and control. Information travels along a predetermined path, ensuring clarity and responsibility. 
• Communication that must flow through numerous nodes may result in delays or inefficiencies.

Examples include hierarchical organisations in which lower-level staff members receive instructions from upper management. Networks that connect manufacturers, distributors, and suppliers in the supply chain

Y Pattern:

The Y pattern consists of a primary node that branches out into two or more sub-nodes, like the letter Y.

Features:

• Enables decentralised decision-making and information transmission.
• Allows for job specialisation and allocation depending on sub-node responsibilities.
• Allows for greater flexibility and adaptability to changing conditions.

Examples of organisational structures include semi-autonomous divisions that report to a central authority.

Academic departments inside universities contain department who specialise in various subjects.

Wheel Pattern

In a wheel pattern, a central node (hub) is linked to several peripheral nodes (spokes), but the peripheral nodes are not linked to one another.

Features:

• The hub node serves as a focal point for control and coordination.
• Effective communication between the hub and the periphery nodes.
• Dependence on the hub for information sharing and decision-making.

Project management teams, for instance, are supervised by a project manager who arranges team meetings and activities.

Leadership arrangements in which all communication lines go through a single leader.

Free Flow Pattern:

The free flow pattern lacks a specified framework, allowing nodes to communicate with one another based on ad hoc relationships or needs.

Characteristics:

• An emphasis on teamwork, innovation, and creativity.
• Allows for flexible conversation and exchange of ideas across the network.
• If not properly handled, there may be a lack of central coordination, resulting in uncertainty or disorder.

Examples include cross-functional teams formed to address specific tasks or issues.

Networking events in which people from various backgrounds meet to share knowledge and possibilities.

E. Free Flow Pattern

Case Study:

Improving Communication Networks at BHEL INDIA

Background:

BHEL INDIA, a prominent player in the technology and engineering sector, had long relied on a traditional hierarchical communication network within its organization. The chain pattern was deeply ingrained, with information flowing strictly from top management down to lower-level employees. However, as the company expanded and diversified its operations, it became increasingly evident that this rigid communication structure was hindering collaboration, innovation, and timely decision-making.

Bharat Heavy Electricals Limited (BHEL), founded in 1964, stands as a cornerstone in India's industrial landscape. Established with the vision of self-reliance in power generation and heavy engineering, BHEL has emerged as a key player in the global engineering and manufacturing sector. Over its illustrious history, BHEL has continually evolved and diversified its portfolio, contributing significantly to India's infrastructural development. Initially focused on power generation equipment, BHEL expanded its offerings to include a wide range of products and services, encompassing thermal, hydro, and nuclear power plants. Noteworthy among its offerings are steam turbines, gas turbines, boilers, and generators, which form the backbone of power generation facilities worldwide. BHEL's commitment to innovation and excellence has propelled its growth, enabling it to venture into new domains such as transmission systems, industrial automation, and renewable energy solutions. With a steadfast dedication to quality and reliability, BHEL has earned a reputation as a trusted partner for engineering excellence, serving diverse industries and sectors both domestically and abroad.

The chain pattern communication network at BHEL INDIA posed several challenges. Firstly, communication bottlenecks were frequent, as all information had to pass through multiple levels of hierarchy before reaching its intended recipients. This led to delays in decision-making and a lack of agility in responding to market changes. Secondly, employees felt disconnected from the decision-making process, leading to decreased morale and engagement. Lastly, innovative ideas often got lost in the hierarchy, stifling creativity and hindering the company's ability to stay competitive.

Recognizing the limitations of the chain pattern, BHEL INDIA decided to transition to a more decentralized and flexible communication network: the Y pattern. By adopting this new approach, the company aimed to empower employees, promote collaboration, and foster a culture of innovation.

The transition to the Y pattern communication network involved several key steps: Leadership Buy-In, Training and Development, Structural Changes, and Technology Integration.

Leadership Buy-In: Top management spearheaded the initiative and communicated the rationale behind the switch to all employees. By championing the change, they instilled confidence in the new approach and set the tone for organizational transformation.

Training and Development: Employees were provided with training on the principles of the Y pattern communication network and how it differed from the traditional chain pattern. This included workshops on decentralized decision-making, effective collaboration, and leveraging individual strengths within teams.

 

Structural Changes: Organizational structures were realigned to reflect the Y pattern, with decision-making authority distributed among various sub-nodes. Clear roles and responsibilities were defined, allowing for greater autonomy and accountability at every level of the organization.

Technology Integration: Advanced communication tools and platforms were introduced to facilitate seamless information exchange and collaboration among teams. This included project management software, video conferencing solutions, and cloud-based document sharing systems.

The transition to the Y pattern communication network yielded significant benefits for BHEL INDIA: Improved Collaboration, Faster Decision-Making, Enhanced Employee Engagement, and a Culture of Innovation.

Improved Collaboration: Teams were able to collaborate more effectively, leveraging their diverse skills and expertise to solve complex problems and drive innovation.

Faster Decision-Making: Decentralized decision-making led to quicker responses to market dynamics, enabling the company to adapt and capitalize on emerging opportunities more rapidly.

Enhanced Employee Engagement: By involving employees in the decision-making process, morale and job satisfaction increased, leading to higher levels of productivity and retention.

Culture of Innovation: The new communication network encouraged the free flow of ideas and creativity, resulting in the generation of innovative solutions and products that met the evolving needs of customers.

Additionally, BHEL INDIA has been a pioneer in the engineering and technology sector, providing a wide range of products and services including power generation equipment, transmission systems, and industrial automation solutions. With a rich history spanning several decades, BHEL INDIA has established itself as a leader in the field, delivering cutting-edge technologies and engineering solutions to clients both domestically and internationally.

Questions:

·         Describe the communication network challenges encountered by BHEL INDIA.

·         Detail the company's adopted solution to address these communication network issues.

·         Outline the advantages and improvements resulting from the implementation of the new communication solutions at BHEL INDIA.