Downward communication is used by managers to assign goals, provide job instructions, inform about policies, provide performance feedback, and to point out problems. This type of communication deals more with the manager communicating with employees. Upward communication is used to provide managers with information about current problems, updates on employees progress toward goals, suggestions for improvements, proposals for innovations, employee grievances, and feedback about employee attitudes. 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.