Informal communication arises out of all those channels that fall outside the formal channels and it is also known as grapevine. It is established around the societal affiliation of members of the organization. Informal communication does not follow authority lines as in the case of formal communication.

Informal communication takes place due to the individual needs of the members of an organization and subsists in every organization. Normally, such communication is oral and may be expressed even by simple glance, sign or silence. Informal communication, is implicit, spontaneous multidimensional and diverse. It oftenly works in group of people, i.e. when one person has some information of interest; he passes it on to his informal group and so on.