Hence, the leader needs to know the communication structure in the organization so that the information can be
communicated effectively. Daniel et al., (1997) explained, formal communication refers to communication through
officially designated channels of message flow between organizational positions. Knowing the direction to which
the communication flow and end is paramount as it determines the result of the message being communicated. It is a
waste of time and effort should the members fail to comprehend the message; what more if it cost the organization
its profit. When discussing formal communication flow, the hierarchy structure of the organization is the important
element. To this, Daniel et al., (1997) stated, the concept of hierarchy is so ingrained in organizational life that
formal communication usually is described in terms of the three directions of message flow within a hierarchical
system: downward, upward and horizontal.