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CMA Foundation · Fundamentals of Business Laws and Business Communication · Process of Communication

Rohit, a manager at Bharat Logistics, hears a rumour from colleagues over lunch that the company will relocate its office. No official announcement has been made. Which statement about this channel is correct?

This is the grapevine, an informal communication channel. It arises from social contact among employees and ignores the official organisation chart and authority lines. Rumours spreading over lunch without an official announcement are typical grapevine messages, not formal horizontal or downward communication.

  1. AIt is a formal channel because it moves among employees of the same company
  2. BIt is the grapevine, an informal channel that is not defined by the organisation chartCorrect
  3. CIt is a downward formal channel because managers are involved
  4. DIt is a formal horizontal channel because the colleagues are at the same level

Explanation

The grapevine is the informal network of communication arising from social relations among employees; it does not follow official lines of authority. Being within the company or involving managers does not make it formal. Formal channels need official sanction and recognised routes, which are missing here.

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