1. The flow of communication and knowledge is important in an organization. When workers know the company’s strategy and what the other sections of the company are working on, synergies can be created.
2. Companies that are organized functionally can, more easily, have problems with this flow of communication and knowledge because there nature doesn't tend to promote communication (functionally organized companies will be what the bulk of this essay is targeted towards).
(A functionally based company is one that (like above) has different business segments, and in each of those segments, a separate departments to support it Marketing in Widgets is a completely different segment than Marketing in Greek Yogurt, they work separately and have different goals than the other).
3. This flow of communication and knowledge is facilitated by the forming of social groups. A social group is a group of people who exchange information with each other (business or personal) due to some bond or trust. The bigger and more diverse the group the better because facilitates the flow of knowledge in the company. It is best if some members have access to multiple social groups and exchange information from one to another (IE two people from Marketing, one from Finance, two from Accounting, and all from different segments of the company).