Man is by nature gregarious/social as he likes about in groups. When two or more persons meet, they tend to talk on various topics. As a result there arises a secondary network of information in the organizations. This network represents informal channels of communication which exists side by side with the formal channel of communication. Informal communication is also known as grapevine. It represents the unofficial channel of communication which is created and controlled by the people themselves rather than by the management.
Informal communication or grapevine becomes routine under the following conditions:
(i) When organization is passing through a difficult period and members lack a sense of direction and develop feeling of uncertainty.
(ii) Employees form informal groups due to feeling of inadequacy and lack of self confidence.
(iii) Managers form a favored group due to which other employees get a feeling of isolation or insecurity.
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