Explain how the grapevine functions and why it exists in organizational communication

What will be an ideal response?

The informal communication system is the grapevine. While it is informal it is still an important source of information. A survey found that 75 percent of employees hear about matters first through rumors on the grapevine. The grapevine has three main characteristics. First, it is not controlled by management. Second, most employees perceive it as more believable and reliable than formal communiqués issued by top management. Finally, it is largely used to serve the interests of the people within it.
Rumors emerge as a response to situations that are important to us, when there is ambiguity, and under conditions that arouse anxiety. The fact that work situations frequently contain these three elements explains why rumors flourish in organizations. The secrecy and competition that typically prevail in large organizations encourage and sustain rumors on the grapevine. A rumor will persist either until the wants and expectations creating the uncertainty are fulfilled or the anxiety has been reduced.

Business

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Pat and Abe do not sign a contingency from the sale of the buyers property. However, it is clear that if Pat is not able to sell her home, she will not have the down payment funds necessary to buy Abe's home. This is a/an:

A. Hidden contingency B. De facto contingency C. Contingency by estoppel D. Acceptable sale practice

Business

Which of the following is an example of a services business?

A) airlines B) FMCG C) confectionaries D) office furniture

Business