Grapevine Communication (An Informal Channel of Business Communication)

Grapevine (An Informal Channel of Business Communication)

Introduction:
Grapevine is an informal channel of business communication. All of the information
within the grapevine is undocumented and is thereby open to change and interpretation as it
moves through the network person to person. It often travels faster than formal channels

Definitions:
“The informal transmission of information, gossip or rumor from person to person”

“A usually unrevealed source of confidential information”

Explanation of Definitions:
From the above definitions we understand that grapevine is informal, gossip and rumor
statement and travels from one to another person. It is an unrevealed source of confidential
information of organization.

Man is known by a social animal. Despite existence of formal channels in an

organization, the informal channels tend to develop when he interacts with other people in
organization. It exists more at lower levels of organization.

Examples of Grapevine Network of Communication

1. In Bake Parlor Company a rumor statement is announced before Annual Increment that
company is facing loss so a minimum increment will be given to employees.
2. Profit amount of company is known by the employees. Rumor is spread that this much
profit is there and on that basis bonus is declared.
3. CEO may be in relation to the Manager. They may have friendly relations with each
other. But some time a rumor statement will be transferred by the Assistant Manager
due to differences in perception of reality

Current example of Grapevine:

1. In meeting of Ruling Party, It was discussed that notice of Reinstatement of Judges,

should be revoked a journalist, who was attending the meeting broke this news in
Media without any written or oral proof, immediately after this news member of Ruling
Party denied such discussion.

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Grapevine Communication (An Informal Channel of Business Communication)

The formal network, made up of memos, reports, staff meetings, department meetings,
conferences, company newsletters and official notices is highly documented and as such has
very little chance for change. However, nearly all of the information within the grapevine is
undocumented and is thereby open to change and interpretation as it moves through the
network. It often travels faster than formal channels. The grapevine is very useful in
supplementing formal channels. It provides people with an outlet for their imaginations and
apprehensions as well. It also helps satisfy a natural desire to know what is really going on. The
primary objective of this article is to develop a conceptual model to be tested later. The article
defines tile term rumor/grapevine, discusses reasons for grapevine, explore show accurate is
grapevine, type of grapevine, how grapevine is spread, role of various participants and how to
manage the grapevine. Dealing effectively with the grapevine is a challenge that will always be
a part of a manager's job. Those who are able to understand the power of the grapevine will be
better prepared to utilize it to provide stability and credibility in the work environment that is
needed in order to achieve organizational.

Travel of Grapevine
Management

Managers/Heads

Subordinates

Lower Level

Advantages of Grapevine Communication

o Grapevine channels carry information rapidly. As soon as an employee gets to know
some confidential information, he becomes inquisitive and passes the details then to his
closest friend who in turn passes it to other. Thus, it spreads hastily.
o The managers get to know the reactions of their subordinates on their policies. Thus,
the feedback obtained is quick compared to formal channel of communication.
o The grapevine creates a sense of unity among the employees who share and discuss
their views with each other. Thus, grapevine helps in developing group cohesiveness.
o The grapevine serves as an emotional supportive value.
o The grapevine is a supplement in those cases where formal communication does not
work.

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Grapevine Communication (An Informal Channel of Business Communication)

Disadvantages of Grapevine Communication

o The grapevine carries partial information at times as it is more based on rumors. Thus, it
does not clearly depict the complete state of affairs.
o The grapevine is not trustworthy always as it does not follows official path of
communication and is spread more by gossips and unconfirmed report.
o The productivity of employees may be hampered as they spend more time talking rather
than working.
o The grapevine leads to making hostility against the executives.
o The grapevine may hamper the goodwill of the organization as it may carry false
negative information about the high level people of the organization.

Conclusion:
Despite of the facts it is clear from the above discussion that Merits of Grapevine
Communication are more superior than its De Merits It travels faster than formal
communication but a smart manager should take care of all the disadvantages of the grapevine
and try to minimize them. At the same time, he should make best possible use of advantages of
grapevine.

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