Question 2:

Merits of Information flows within the organization can considered under the
following headings.

Vertical information flow- This the flow of information up and down the
organizational structure.

Horizontal information flow- This is the information flow between people in the same
level or position.

Merits of vertical information flow:

i) Provides management with feedback on information which is vital for decision

making.

ii) Gives opportunity to subordinates to participate in decision making.

iii) Opens up lines of communication to management to understand employees

better and try to resolve their problems.

iv) Gives employees an avenue to vent out their grievances.

v) Information given is accurate especially when it is downwards.

vi) Information moves faster to the subordinate.

vii) It reduces conflict among the employees since tasks to be carried out are
explained and clear.

viii) Fills the gap of grapevines since everything communicated is clear.

ix) Uniform communication is enhanced.

x) Usually information is documented and can be used for future reference.

Demerits of vertical information flow:

i) It is dictatorial since management gives directions on what to be done.

ii) There is lack of open door policy.

iii) Fear of victimization by the superiors.

iv) There could be deliberate distortion of information by juniors to the seniors.

 v) The superior and the top management can take advantage of the juniors and
own the communication.

vi) It tends to generate too much bureaucracy which may hinder communication.

Merits of horizontal information flow:

i) Brings harmony between departments i.e unity of purpose.

ii) There is free generation of ideas and no fear of victimization.

iii) There is proper co-ordination between departments.

iv) Brings teamwork in various departments.

v) Improves Organisational efficiency since each departments supports the

other.

vi) Corporate image is improved.

vii) Saves time because departmental vertical communication bureaucracy is

eliminated.

viii) It is easier to resolve conflict.

Demerits of horizontal information flow:

i) Leakage of confidential information.

ii) Inaccurate or distortion of information.

iii) Inter-departmental meetings are time consuming.

iv) Unhealthy competition which may lead to sabotage.

v) Unnecessary interruption that lead to time wasting.