Communication through the chain of command is known as formal communication. Formal communication is closely associated with a formal organizational structure. The communication flows through formal channels, i.e., officially recognized positions along the line in the organization. In the organization, the path along which a communication is to travel is deliberately created to regulate the flow of communication so as to make it orderly, and thereby to ensure that the required information flows smoothly, accurately, and timely to the points at which it is required.
Advantages
a) It passes through line and authority and consequently ensures the maintenances of authority as well as accountability of the executives' in charge.
b) It helps to develop intimate relations between immediate boss and his subordinates.
c) It keeps uniformity in the dissemination of information.
Disadvantages
a) Increases the workload of various managers as communication is to be transmitted through them.
b) Widens the communication gap between top executives and employees at the lower level. As a result it adversely affects their relationships.
c) Dilutes the accuracy of the message when filtering and coloring take place at middle level.