Organizational communication is seen as formal communication which incorporates aspects of interpersonal communication. It may be directed up the managerial hierarchy or down the managerial hierarchy. In both cases however, the communication is direct in nature and formal. This communication within the organization is also seen between various departments and also within the departments. These departments may be internal or outsourced, and levels of difficulty of communication are determined by the participants of the organization.
Informal communication is also a channel in the organization – for example the grape vine- which is established through informal means and channels in the organization. Information in contrast to the formal channels may be inaccurate in the informal channels and also be damaging to any one or more persons. Informal channels are more directed by the power play in an organization.
All communication channels are also faced with barriers of communication i.e. those disruptive modes and behaviors. Noise is one communication barrier which disrupts the message path. Other barriers may include differences in psychological, cultural and attidinal factors between the receiver and the sender as well as other semantic barriers. Barriers in communication may be reduced significantly by methods of simplification and active listening, the latter of which takes place at three levels: passive, active and attentive.