**Type of Communication**

The type of communication described in the scenario is informal communication. Informal communication refers to the exchange of information, ideas, and messages between individuals in a casual, unofficial manner, outside the formal channels of communication within an organization.

**Limitations of Informal Communication**

1. **Lack of Reliability**: Informal communication is often based on rumors, personal opinions, and subjective interpretations. As such, the information shared may not always be accurate or reliable. In the scenario, Mikki's statement about people being retrenched due to computerization may or may not be true. Without official confirmation, it is difficult to determine the credibility of the information.

2. **Selective Transmission**: Informal communication is often subjective and selective in nature. Individuals may choose to share or withhold information based on their personal preferences, biases, or motivations. In the scenario, Mikki chose to inform Amit about the impending retrenchment, but it is unclear why Mikki specifically chose Amit and not others. This selectiveness can lead to uneven distribution of information within the organization, potentially causing misunderstandings, conflicts, or dissatisfaction among employees.

**Explanation**

Informal communication plays a crucial role in organizations as it helps foster social connections, build relationships, and facilitate the flow of information across departments. However, it is important to be mindful of its limitations.

In the scenario, Mikki's informal communication to Amit about the potential retrenchment is an example of grapevine communication, which is a type of informal communication network within an organization. Grapevine communication is characterized by its rapid transmission, often involving rumors or gossip.

One limitation of informal communication, such as grapevine communication, is its lack of reliability. Information shared through informal channels may be distorted, exaggerated, or misinterpreted along the way. In this case, it is essential for Amit to verify the information with official sources or seek clarification from the appropriate authorities before taking any action or spreading the news further. Relying solely on informal communication can lead to misinformation, anxiety, and unnecessary panic among employees.

Another limitation of informal communication is its selective transmission. Individuals within an organization may choose to share information based on personal preferences, relationships, or motives. This selectiveness can result in an uneven distribution of information, leading to feelings of exclusion, distrust, or favoritism among employees. In this scenario, Amit may wonder why Mikki chose to share the information with him specifically, potentially raising questions about fairness and transparency within the organization.

To overcome the limitations of informal communication, organizations should emphasize the importance of formal channels of communication, such as official announcements, newsletters, and meetings. These formal channels provide accurate, reliable, and consistent information to all employees, ensuring transparency, fairness, and equal access to information. Additionally, fostering a culture of open communication, trust, and collaboration can encourage employees to share information through formal channels, reducing reliance on informal communication networks.

Informal