The effectiveness of each network depends on the dependent variable that concerns the individual. The structure of the wheel enables the development of a leader, the all-channel network is best if one wants high member satisfaction, and the chain is best if accuracy is most important. However, there is no single network that is best for all occasions.
The informal communication network in a group or organization is called the grapevine. Rumors start due to people wanting to react to situations that are important to them especially when there is lack of information. People tend to be anxious under these conditions. As lack of information is prevalent in the workplace, rumors tend to thrive in organizations. The grapevine is an important part of any organization communication network. It allows managements a sense for the employees’ mood, recognizes issues workers think is important, and facilitates understanding employees’ uncertainties and reservations.
The grapevine also fulfills employees’ needs to small talks. Small talk creates a sense of closeness and friendship among those who share information, although it may often does so at the expense of those not in the group. There is also proof that gossip is motivated largely by employee social networks that management can study about how positive and negative information is flowing through their organization. Managers should minimize the negative consequences of rumors by limiting their range and impact.