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Case Problem Y limited is a bank functioning in India. It is planning to diversify into increase business. Lately, the Government of India has allowed the private sector to gain entry in the increase business. Previously, it was the prerogative of LIC and GIC to do insurance business. But now with liberalisation of the economy and to make the field competitive other compnies have been given licenses to start insurance business under the regualtion of Insurance Regulatory and Development Authority’. Y limited plans to recruit high quality employees and agents and exercise effective direction to capture a substantial part of life and non-life insurance business.How can informal communication help to supplement formal communication model given by you in answer to question? |
Answer» Informal communication takes place outside the official channels of communication. It fills the gaps that might exist in the formal communication. Merits of Informal communication are (i) It helps the members to discuss the matters which cannot be discussed at the official level. (ii) It is a way of knowing the reactions and opinions of the people about a change. (iii) It helps in building team spirit. (iv) The information flows at a faster speed. |
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