Question

In: Operations Management

4. You are a manager at a local manufacturing plant, and it has come to your...

4. You are a manager at a local manufacturing plant, and it has come to your attention that the “grapevine” is talking about the fact that the company will soon be purchased by a foreign investor who intends to close the plant and move operations to another country. What are the dangers of allowing this kind of informal communication to continue, and more important, what can or should you do to stop it?

Solutions

Expert Solution

The danger for allowing such type of informal communication inside the organisations are as follows -

1) The information travels in a very unsystematic manner and get distorted while passing through various channels.

2) Informal communication in the organisation led to spread rumours inside the organisation.

3) Confidential or secret information can be leaked out.

4) Responsibilities cannot be fixed as source of information cannot be fixed.

We can perform the following steps to avoid or stop such type of communication in the organisation -

1) The leader should follow the open door policy. According to this policy, the leaders in the organisation keep their doors open to interact or have conversation with their employees. It will help in stopping the rumors.

2) Set the boundaries of informal organisations inside the organisation. It should be stated clear where to use informal communication and for which topics.

3) Recognize where informal organisation are happening unnecessarily. Point out those unnecessary conversations and take major steps to stop them.

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