Answer to Question 1
Information flows formally in organizations in three ways:
Downward flow: Information flowing downward generally moves from decision makers, including the CEO and managers, through the chain of command to workers. This information includes job plans, policies, procedures, and feedback about employee performance.
Upward flow: Information flowing upward provides feedback from nonmanagement employees to management. This information includes such items as progress reports and suggestions.
Horizontal flow: Lateral channels transmit information horizontally among workers at the same level. These channels enable individuals to coordinate tasks, share information, solve problems, and resolve conflicts.
Information also flows informally in organizations, most commonly through the grapevine, an informal channel of communication that functions through social relationships and carries organizationally relevant gossip. The grapevine can also be used by managers as an excellent source of information about employee morale and problems.
Answer to Question 2
False