CMA Foundation · Fundamentals of Business Economics and Management · Planning, Organizing, Staffing and Leading
In a Mumbai firm, a junior accountant hears about a policy change first from colleagues over lunch, before any circular is issued. Which channel carried this information?
The information travelled through the grapevine, the informal communication network that spreads news through social contact rather than official channels. Because no circular had been issued, it was not formal downward communication, which flows through the authorised chain of command from superiors to subordinates.
- AFormal downward communication
- BGrapevineCorrect
- CFormal horizontal communication
- DUpward communication
Explanation
Information spreading through informal social contacts, outside official channels, is the grapevine. Formal downward communication would be an official circular from superiors, so it is not what occurred here.
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