Grapevine Communication (Informal Business Communication)

Grapevine is an informal channel of business communication. It is called so because it stretches throughout the organization in all directions irrespective of the authority levels. Man as we know is 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. Grapevine generally develops due to various reasons. One of them is that when an organization is facing recession, the employees sense uncertainty. Also, at times employees do not have self-confidence due to which they form unions. Sometimes the managers show preferential treatment and favour some employees giving a segregated feeling to other employees. Thus, when employees sense a need to exchange their views ,they go for grapevine network as they cannot use the formal channel of communication in that case. Generally during breaks in cafeteria,the subordinates talk about their superiors attitude and behaviour and exchange views with their peers. They discuss rumours about promotion and transfer of other employees. Thus, grapevine spreads like fire and it is not easy to trace the cause of such communication at times. Examples of Grapevine Network of Communication 1. Suppose the profit amount of a company is known. Rumour is spread that this much profit is there and on that basis bonus is declared. 2. CEO may be in relation to the Production Manager. They may have friendly relations with each other. Pros and Cons of Grapevine Communication
Advantages of Grapevine Communication

1. 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. 2. 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. 3. 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. 4. The grapevine serves as an emotional supportive value.

5. The grapevine is a supplement in those cases where formal communication does not work. Disadvantages of Grapevine Communication 1. 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. 2. The grapevine is not trustworthy always as it does not follows official path of communication and is spread more by gossips and unconfirmed report. 3. The productivity of employees may be hampered as they spend more time talking rather than working. 4. The grapevine leads to making hostility against the executives. 5. The grapevine may hamper the goodwill of the organization as it may carry false negative information about the high level people of the organization. A dynamic 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.

The Importance of the Grapevine in Internal Business Communications

by Kristie Lorette, Demand Media

Overview jokes with a colleague image by Andrey Kiselev from Fotolia.com

How word of mouth communication works in a company. Within a business, there are two types of internal communication, formal and informal. Formal communication spreads through newsletters, manuals, emails, memos, staff meetings, conferences and official notices. Informal communication occurs through the grapevine, which is generally word-of-mouth communication. Internal business communication that moves through the grapevine spreads throughout the organization in a random, undocumented manner and is open to constant change with individual interpretation. Although unstable, the grapevine carries some importance to internal business communication. Function The grapevine is useful as a supplement to formal channels of communication. It often travels more quickly than other channels and is usually more direct. The grapevine is present within all levels of staff. It exists because of a natural desire to know things and brings a sense of belonging to employees and managerial staff alike. It can create corporate identity and build teamwork. Benefits Although the grapevine can wreak havoc with misinformation, it can also be beneficial. In most cases, grapevine information holds at least a kernel of truth. Information from upper management that flows through the grapevine to lowerlevel employees can allow them to see, and possibly relate to, the struggles that management is facing. When employees have a sense (even if it is not entirely accurate) of these challenges, they can rise up and make suggestions or work to improve a situation of which they might not otherwise have been aware. Also, if trouble is on the horizon (according to the grapevine), it can give employees a chance to make plans and temper their reactions when the news is formally communicated to them. Methods The grapevine consists basically of rumors and gossip and travels from person to person during breaks, lunch and in after-work gatherings. It can bypass security because of its ability to cross over organizational lines. The grapevine functions best in situations where formal communication is poor, yet it is a natural part of human behavior. This information channel increases in times of stress or uncertainty, and from the lack of formal news coming directly from the upper management of the company. Effects The grapevine allows feelings to be expressed instead of bottled up. People need to talk about what is affecting them, and the grapevine allows this kind of expression.

Employees and staff can communicate important topics using their own language, instead of the technical jargon used in formal communication channels. If managers can tap into the grapevine, they can learn a substantial amount about the issues and problems of their employees. It is a solid indicator of health, morale and productivity in the company. Warning A large percentage of communication that travels the grapevine is true; however, it is difficult for one to discern fact from fiction through the grapevine. Management must effectively monitor the grapevine and jump in to correct inaccuracies or falsehoods. The grapevine is unstable and unreliable; it can fuel anxiety, conflict and misunderstanding in small or large group situations.