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ACCA Applied Knowledge · Business and Technology · Communicating in business

Staff at a company hear through the grapevine that a department will be closed, although management has made no announcement. Which of the following is the most likely consequence of relying only on formal channels during this period?

Rumours may spread and be believed because there is no authoritative information. When formal channels are silent, employees use the grapevine to fill the gap, and informal messages can be quickly passed on and distorted, which may harm morale and trust in management.

  1. ARumours may spread and be believed because there is no authoritative informationCorrect
  2. BEmployees will ignore the rumours because formal channels are always more trusted
  3. CThe grapevine will stop operating while formal channels are silent
  4. DCommunication will become more accurate because it is less distorted

Explanation

When formal channels provide no information, employees fill the gap through the grapevine, which spreads quickly and can distort facts. The grapevine does not stop; it often grows. Informal channels are not more accurate in this situation.

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