Abstract
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 the term rumor/grapevine, discusses reasons for grapevine, exploreshow 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 goals.
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