Formal communication refers to the structured and official way of exchanging information within an organization. It typically follows established protocols and channels, ensuring clarity and professionalism. Examples include emails, reports, and official meetings, which help maintain a clear hierarchy and facilitate effective decision-making. This type of communication is essential in business settings as it minimizes misunderstandings and promotes accountability. By adhering to formal communication practices, organizations can foster a culture of respect and efficiency, ultimately leading to better collaboration and productivity among team members.