Importance of grapevine?Grapevineis 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 superior's 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 Communication1. 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 CommunicationAdvantages of Grapevine Communication1. 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 Communication1. The grapevine carries partial information at times as it is more based on rumours. Thus, it does not clearly depicts 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 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.

1. Small Business>2. Business Communications & Etiquette>3. Importance of Business CommunicationThe Importance of the Grapevine in Internal Business Communicationsby Kristie Lorette, Demand Media

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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.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.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 lower-level 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.Related Reading:Importance of External Business CommunicationThe 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.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.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.

9 important Features of Grapevine as explained Keith DavisARTHITA BANERJEEKeith Davis explains the following features of Grapevine:1. Although grapevine information tends to be sent orally, it may be written. Handwritten or typed notes sometimes are used, but in the modem electronic office these messages typically are flashed on computer screens, creating the new era of the electronic grapevine. This system can spread the transmission of more units of information within a very short time.It won't replace the face-to-face grapevine however, for two reasons. For one, not every employee has access to a network of personal computers at work. The other reason is that many workers enjoy the more personal social interact gained through the traditional grapevine.2. Since the grapevine arises from social interaction, it is as fickle, dynamic, and varied as people are. It is the expression of their natural motivation to communicate. It is the exercise of their freedom of speech and is a natural, normal activity. In fact, only employees who are totally disinterested in their work do not engage in shoptalk about it.3. In a sense, the grapevine is a human birthright, because whenever people congregate into groups, the grapevine is sure to develop. It may use smoke signals, jungle tom-toms, taps on the prison wall, ordinary conversation, or some other method, but it will always be there. Organisations cannot 'fire' the grapevine because they did not hire it. It is simply there.4. People tend to think the grapevine is less accurate than it is because its errors are more dramatic and consequently more impressed on memory than its day-by- day routine accuracy. Moreover, one inaccurate part may make a whole story inaccurate.5. Grapevine information usually is incomplete, so it may be seriously misinterpreted even though the details it does carry are accurate. That is even though the grapevine tends to carry the truth, it rarely carriers the whole truth. These cumulative inadequacies of the grapevine mean that in total it tends to produce more misunderstanding than its small percentage of wrong information suggests.6. The grapevine gives managers much feedback about employees and their jobs. It also helps interpret management to the workers. It especially helps translate a management's formal orders into employee language, in this way helping to make up for management failures in communication.7. In several instances the grapevine carriers information that the formal system does not wish to carry and purposely leaves unsaid.8. Another grapevine feature is its pace. Being flexible and personal it spreads information faster then most management communication systems.9. Another grapevine feature is its unusual ability to penetrate even the tightest company security screen because of its capacity to out across organizational lines and deal directly with the people who know. The grapevine is well known as a source of confidential information.