This type of communication could be used between customer and employees or employees and managers. The customer can also make suggestions to the manager not just employees or the managers boss. Horizontal communication takes place among peers and can involve other departments and work groups. Diagonal communication is used to provide information to others in a group, to better effectiveness of the organization. Each type of communication must be used effectively in each situation to be effective.
Informal communication includes the grapevine and social gatherings.
The grapevine is best known in most areas for the spreading of gossip and rumors. The grapevine can not be controlled by anyone, but can be very damaging to a person or organization. Rumors can hurt the people that are being talked about and cause friction between the people spreading the rumors and the person or people that the rumor is about. If rumors about the company are started from employees and reach the public, the rumors can be very damaging to the company. If employees or the public spread rumors a restaurant that something is cooked wrong or there are bugs all over the floor and around the food, the rumor could cause business to decrease.