Communication Network Types & Examples | What is a Communication Network? – Video & Lesson Transcript | Study.com

Video Transcript

Communication Network

Could you imagine working in an environment where there was no clear communication? Are you wondering what type of communication your company uses? Having a good way of communicating and passing on decisions is vital to any organization.

A communication network refers to the method that employees pass on information to other employees in an organization. Let’s take a look at four different types: the wheel network, chain network, circle network, and all-channel network.

Wheel Network

A wheel network is a style of communication where the leader is the only one to receive or give communication. The leader, usually the supervisor or owner in the company, is like the bright light in the middle of a Ferris wheel; the light starts in the middle then gets passed on to all the spokes at the ends of the wheel. This one person has to know everything about the business and relays all messages. Employees have an exact idea of how decisions are made and how communication is handled.

For example, Gina is the owner and manager of a small boutique. She has only five employees. Information comes from her directly to these employees, and they communicate directly back to her. As the centralized decision maker, it’s important that she make the best decisions for the company.

Though direct and efficient, the wheel network has its disadvantages and may not be appropriate for some situations or for companies with a greater number of people. If the leader is not responsible, dedicated, or communicative, the whole business will suffer. Likewise, a company with many employees needs more decision makers or nothing would get done. Can you imagine if Google only had one person making decisions?

Chain Network

In a chain network individuals communicate in a set sequence. Communication starts at the top, like from a CEO, and works its way down to the different levels of employees.

This communication network is indeed like a chain in that the top of the chain has to go through each individual link before getting to the end. The CEO will talk to a manager who is next in the hierarchy but does not talk to a clerk at the bottom of the hierarchy. The chain network often takes up time, and communication may not be clear. This could cause people at the bottom to feel discouraged, but it could also give them the motivation to move up the chain.

Do you remember playing the game telephone in school? You tell one person a message, then they tell another person the same message, but by the time it gets to the last person, the message is often different. Everyone perceives information differently, so the more people that it goes through, the more it can be altered. Would you want to be the last person that is supposed to say ‘Al has a nice hat,’ but instead says, ‘Al is really fat.’ This could be the case in a chain network.

Circle Network

In a circle network people of similar rank have open communication, and the message will get relayed to other people in the group. For instance, the CEO may pass information to the managers. Then the managers will pass on the information to the employees in their department.

For example, a group of managers at a grocery store are all at the same level. In this network, they will communicate together and then pass on information to the assistant managers, then the assistant managers will pass information on to the cashiers.

The problem with this style is that communication flows slowly. If one individual does not do the work necessary, this could affect the whole group. Information may not be clear and accurate because of the various people the information goes through.

All-Channel Network

Unlike the other communication networks, in an all-channel network there is no direct leader and all levels of employees can communicate with anyone else of any level. This allows people to brainstorm and get ideas from one another, which can come in handy with small groups or for creative projects. For example, an all-channel network could be great for:

  • If you worked at an advertising agency and had a meeting to discuss a new marketing campaign: Workers can help each other come up with creative ideas.
  • A group working on a school project: Everyone can come up with ideas, they can split assignments evenly, and they can work together as a team.

However, the all-channel network can suffer from a lack of a centralized leader and experience slow downs from debating or indecision.

Lesson Summary

In a communication network, employees pass on information to other employees in an organization. We discussed four main types:

  • In the wheel network, there is one person in the middle that makes all the decisions, passing them on directly to each employee.
  • In the chain network, one person passes information down to the next person in the company hierarchy, on down to the lowest employee. Information may deteriorate as it goes.
  • The circle network is when groups similar in rank discuss among themselves and then pass the information around in a circle or to the nearest level groups.
  • The all-channel network has no direct leader. Everyone has the ability to make decisions, and there is a free flow of communication.

Learning Outcomes

After watching this lesson, you should be able to:

  • Explain what a communication network is and define each of the four main types
  • Examine the advantages and disadvantages of each type of communication network