Y Ltd is a bank, functioning in India. It is planning to diversify into insurance business. Lately, the Government of India has allowed the private sector to gain entry in the insurance business. Previously, it was the prerogative of LIC and GIC to do insurance business. But now with liberalisation of the economy and to make the field competitive other companies have been given licences to start insurance Regulatory and Development Authority'. Y Ltd plans to recruit high quality employees and agents and exercise effective direction to capture a substantial part of life and non-life insurance business.
Identify the qualities of leadership in this line of business that the company manger must possess to motivate employees and agents.

Explanation

Informal communication takes place outside the official channels of communication. It fills the gap tha might exist in the formal communication.
Merits of informal communication are :
(i) It helps the members to discuss the matters which cannot be discussed at the official level.
(ii) It is a way of knowing the reactions and opinions of the people about a change.
(iii) It helps in building team spirit.
(iv) The information flows at a faster speed.