Definition of Formal Communication

The communication which follows established systems,  rules,  regulation, procedures or any other prescribed ways and  means are known as formal communication. Such communication is also known as officials communication because it follows the official rules, regulation, procedures and systems established for communication.

Some authors defines formal communication as follows-

According to Hunt,
"Formal communication is that communication which follows the chain of command established by the organization hierarchy"

As C.B. Mamoria Said,
"Formal communication are those that are official and that are a part of recognized communication system which is involved in  the operation of the organization."

Formal communication can be internal i.e. within the organization and also can be external i.e. correspondence with various Stakeholders. Letters,  reports, memo, email, speeches, news release, bulletins and others are used for formal communication. When it  is used internally, it can be upward, downward or horizontal. It generally sent in writing.

Example of Formal Communication

1. Internal Communication:
Sales report, production report, inventory report, cash flow statement, ratio analysis,workers performance report etc.
2. External: Annual financial report of the business firm.

So, It is the communication made in a planned way both with the insiders as well as with the outsiders to  achieve any specific goal.