ORGANIZATIONAL BEHAVIOUR

1 Time allowed: 3 hours.
2 Answer any FOUR questions. Marks for subdivisions of questions are shown in brackets.
3 All questions carry 25 marks.
4 No books, dictionaries, notes or any other written materials are allowed in this
examination.
5 Calculators, including scientific calculators, are allowed providing they are not
programmable and cannot store or recall information. Electronic dictionaries and
personal organisers are NOT allowed.
6 Candidates who break ABE regulations, or commit any misconduct, will be disqualified
from the examinations.
7 Question papers must not be removed from the Examination Hall.
1.12OB
OB0608 © ABE 2008 D/500/3698 OB0608
The Association of Business Executives
Diploma
Organisational Behaviour
afternoon 2 June 2008
OB0608 2
Answer any FOUR questions
Q1 (a) Explain the concept of organisational culture. (7 marks)
(b) Using an example of a suitable organisation, suggest why a newly appointed senior
manager might attempt to change its culture. (8 marks)
(c) Distinguish between an entrepreneurial power culture and a bureaucratic role structure.
(10 marks)
(Total 25 marks)
Q2 (a) Giving examples, distinguish between personality and perception. (8 marks)
(b) In the context of supervisors and their subordinates, explain the process of perception.
(7 marks)
(c) Explain why it is important for supervisors to understand the following aspects of
perception:
(i) Selectivity
(ii) Stereotyping. (10 marks)
(Total 25 marks)
Q3 Prepare notes for a presentation to newly recruited trainees on the following:
(i) The formation and measurement of workplace attitudes
(ii) The relationship between attitude change and learning
(iii) The nature of an effective learning process. (25 marks)
Q4 (a) Using one example of each type of theory, explain the different approach to motivation
taken by:
(i) Needs theories
(ii) Process theories. (16 marks)
(b) How would your management of motivation in the workplace differ according to which
one of the two theories you applied? Justify your answer. (9 marks)
(Total 25 marks)
Q5 (a) Identify the task and maintenance functions of an effective workgroup. (12 marks)
(b) Explain how you would know when a workgroup was ineffective. (6 marks)
(c) Assess the importance of team spirit in an effective workgroup. (7 marks)
(Total 25 marks)
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Q6 (a) Compare and contrast business leadership and business management. (15 marks)
(b) Discuss the view that management involves the delegation of authority whereas
leadership is the effective exercise of power. (10 marks)
(Total 25 marks)
Q7 As Production Supervisor in a car plant, produce a report for the Manufacturing Manager on
the following:
(i) The relationship between job satisfaction and job performance
(ii) The causes of frustration and alienation on the shop floor
(iii) The indicators or examples of worker frustration
(iv) A fully justified recommendation for overcoming one type of job dissatisfaction.
(25 marks)
Q8 (a) As a management trainee in a large retail store:
(i) Use examples to distinguish between verbal communication and non verbal
behaviours in a customer contact situation. (8 marks)
(ii) Outline three barriers to communication that might arise in a customer contact
situation. (9 marks)
(b) Critically examine the role of the grapevine within an organisation. (8 marks)
(Total 25 marks)
End of Question Paper
OB1207 4
Diploma
Organisational Behaviour
Examiner’s Suggested Answers
Q1 (a) The concept of organisational culture may be defined as the deep-seated beliefs and
values that underpin the organisation. Further explanation of the concept would
involve:
– it tends not to be written down but is an intangible mix of rules, relationships, values
and customs that have evolved over time
– culture is “unique” to each organisation and retained in the corporate memory but
actively transferred to new recruits
– individuals work and behave within the cultural framework from which they learn the
norms and values to which they are expected to subscribe
– examples include accepted dress codes, social behaviours and formalities.
(b) The culture of a voluntary organisation such as a charity is one based on social rather
than commercial principles. Much of the work is done on a voluntary basis as are the
donations to fund good works for the needy or deprived people the charity seeks to
help e.g. Help the Aged.
The newly appointed senior manager might attempt to change the charity’s culture for
the following reasons:
– to meet intensifying competition from other charities for fund raising and attracting
volunteers
– to change the behaviour of those working for the charity to improve productivity and
effectiveness
– to secure greater willingness to accept change in new technology, working practices
– for example, to develop a proactive culture that responds positively to new legislative
requirements
To achieve this, the senior manager might:
– seek to change the charity’s mission statement placing more emphasis on the need
for change
– introduce a change to the style of leadership placing more emphasis on task
– re-structure the organisation in order to redistribute authority and roles to favour
change
– modify currently dominant behaviour patterns by force of example and the
employment of change agents
– through re-training
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(c) C Handy classified organisational cultures into four types of which the entrepreneurial
power and bureaucratic role cultures are two of the more important ones. They may be
distinguished as follows:
Entrepreneurial Bureaucratic
– focus on centralised power – formal structure based on logic and
rationality
– powerful and influential figurehead – functional departmental structure
– represented by a spiders web – represented by a Greek temple
– central power source/rays of dependence – distributed roles, power, authority and
tasks
– appointment of loyal individuals to key roles – chain of command with defined
rules/processes
– effectiveness based on results – efficiency via performance of defined
roles
– power based on personality and influence – power based on position/application of
rules
– found in fast growing/organic SME’s – found in stable large scale
organisations
– flexible and potentially responsive but dependent on a central entity versus reactive
and unchanging.
Q2 (a) Personality is characteristic patterns of behaviour and modes of thinking that
determine a person’s adjustment to the environment, whereas perception is the
process by which an individual interprets the stimuli received from the environment.
Perception is a sensory process that tries to make sense of a complex world, whereas
personality is the psychological structures and processes that shape the individual’s
actions and reactions to the environment.
The psychoanalytic approach to personality focuses on unconscious motivations of
overt behaviour, whereas perception transforms sensations into patterns and meanings
that prompt responses.
Examples of personality in terms of trait theory include a continuum from introvert
(withdrawn/shy/prefers to work alone) to extrovert (sociable/seeks out others/work with
others/outgoing). Examples of perception include labelling (perceiving people
according to a label given to them as a group rather than by individual characteristics),
perceptual sets (framework of familiar groupings based on experience), ambiguity
(confusion over fore/background factors etc.).
(b) Perception is the process by which individuals organise and interpret their sensory
impressions in order to give meaning to their environment. It is a transformation
process as data input (sensations) from all of the five senses are perceived and
converted into outputs of information, patterns and meanings which may then prompt
action, reaction or other behaviour.
The process, however, may be subject to a number of distortions not least with how the
stimulus is received. If one or more of the senses fail then the perception process will
be impaired e.g. if a superior’s instruction is misheard.
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Although the way stimuli are received and transmitted is probably broadly similar for
different people, their perception or the way they see a situation may vary widely
depending on such factors as their background, previous experience and their position
relative to the event.
In terms of superior–subordinate perceptions therefore, the authority relationship
between them will colour their understanding. Communication from the superior may be
misinterpreted or distorted while those of the subordinate may be undervalued. The
perception that older subordinates cannot learn new skills may wastefully rule out many
valuable prospects in a retraining or promotion exercise.
(c) (i) Selectivity is an important perceptual principle because only a relatively small
proportion of the huge amount of potential sensory inputs can be registered,
absorbed, made sense of and processed. As such it prevents information and
perceptual overload.
In dealing with the massive potential sensory input, threshold levels of attention
are employed, below which stimuli are ignored i.e. we learn to screen out the
familiar and focus on unfamiliar (selective perception).
The supervisor must be alert to the need to get the subordinate’s “attention” in
terms of ensuring that important messages are communicated and perceived
appropriately e.g. in safety matters by highlighting the delivery of the message
and reinforcing it through repetition.
In bringing about change the supervisor needs new approaches to capture and
then hold the employee’s attention.
(ii) Stereotyping is the tendency to class people on the basis of their general
characteristics, traits or similarities rather than assessing them on their own
merits.
The supervisor must judge individuals on their respective merits rather than
stereotype them as Theory X or Theory Y type workers.
It is a form of labelling and involves predicting traits from just one general
characteristic.
Where the stereotyping is inappropriate e.g. a supervisor perceiving that women
workers tend to have higher absenteeism due to family responsibilities or older
workers being more resistant to change, this may lead to important negative
consequences in terms of recruitment, selection and promotion.
Supervisors must recognise that individual subordinates are complex and require
greater understanding than reliance on one or two traits, not least when the
process of motivation is considered.
Q3 Notes for Presentation on Workplace Attitudes and the Learning Process:
Introduction
Emphasise the importance to newly recruited trainees of:
(i) understanding the learning process it is critical
(ii) recognising how attitudes are formed and changed
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(i) The formation of workplace attitudes
l defined as affective responses or feelings towards employees, management,
situations and relationships
l the product of a complex process of distillation
l The formative nature of early family life and relationships are formative
l other key influences include:
– life experiences
– learning and education
– groups that individuals belong to e.g. trades unions, workgroups’ informal groups
– the media e.g. coverage of current affairs
Measurement of Workplace Attitudes
– Attitudinal surveys – used to assess the potential reaction of employees to particular
courses of action.
– Aim to measure the strength of feeling about the job; the value of the job to the
individual; social pressures on behaviour; general attitudes and intended behaviour.
– Other methods include: self-reporting techniques and direct observation of employee
behaviour.
– Care must be taken with the phrasing of questions or the manner of the survey to
avoid influencing the outcome.
(ii) The Relationship between Attitude Change and Learning
o Learning is a key factor in attitude formation and also therefore in attitude change
o Attitude change may also be associated with other forms of learning:
– involvement in small group decision-making processes
– exposure to new ideas and experiences e.g. re-training programmes
– peer pressure as found in small groups e.g. behavioural norms
– the structure of incentives (although this might only change behaviour not
attitude)
o Learning as a process in which experience brings about permanent changes in
attitudes and behaviour.
o Learning, broadly defined, is constantly modifying employee behaviour and attitudes.
o Learning will not necessarily produce attitude change if the challenge to entrenched
ideas leads to cognitive dissonance (psychological discomfort).
o Behaviourist theories saw conditioning and positive reinforcement as a means of
changing attitudes or reinforcing new ones.
(iii) The nature of an effective learning process
l Cognitive theories consider the processes by which employees acquire and
internalise learning/new information while interacting with their environment.
l R M Gagne saw the learning process as a chain of events common to all situations.
The starting point was motivation/desire to learn combined with perception of the
need to be satisfied.
l Learning then requires acquisition of information, memory retention and recall.
l Real learning also requires the ability to generalise it, apply it and obtain feedback
on what was learned.
l Kolb’s experiential learning cycle captures these ideas in a simpler four stage cycle
of learning.
l All the stages must be completed in full for learning to occur.
l They include experiences; reflection on their meaning/significance;
conceptualisation/generalisation of the learning and application.
l Emphasis on the importance of putting learning into practice and feedback on
outcomes and reactions.
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OB0608
Q4 (a) Motivation is the internal driving force that energises behaviour and gives it direction
towards desired goals in order to fulfil some need or expectation. It determines a
person’s behaviour and resulting performance is a product of both ability level and
motivation.
(i) Needs Theories
– Are based on the assumption that all behaviour has a cause and motivational
behaviour is consciously or unconsciously driven or caused by human needs.
– They assume there is a cause and effect process at work in all human
behaviour
– Well known so-called “content” theories includes Maslow (hierarchy of needs),
Herzberg (motivators and hygiene) and McClelland (acquired needs)
– Maslow’s Hierarchy of Needs is perhaps the best example of this approach
and may be explained as follows:
l people are assumed to be in a state of continuous motivation
l people seldom reach a state of fulfilment except for short periods because
as one need is satisfied another emerges
l as the new need emerges this motivates further effort to satisfy it
l needs are arranged in an ascending hierarchy with substantial physical and
physiological ones at the base to those providing self-fulfilment at the peak
l individuals tend to satisfy their needs in rising order of precedence so as
safety and security needs are satisfied, love and social needs at the next
level become the prime motivators
l higher order needs such as ego and esteem were seen by other needs
theorists as motivators (i.e. need for recognition and achievement) rather
than hygiene factors
l Maslow acknowledged that there were observable variations and rigidities
in his models and that individuals could revert to lower levels e.g. through
redundancy but the ascending hierarchy would reassert itself
(ii) Process theories
– Concentrate on the thought processes by which individuals decide their course
of action in any given situation.
– Seek to illuminate the processes by which the individual decides a course of
action.
– Suggest that individuals are motivated by the expectation that their action(s)
will achieve a desirable outcome.
– Associated with the work of Vroom (Expectancy theory), Porter and Lawler and
Stacey Adams (Equity theory)
l employees are predicted to perform effectively if they can see a clear link
between effort and performance, and performance and reward.
l expectancy is the probability that a particular action will lead to a particular
outcome e.g. that extra effort will produce the improved performance which
will lead in turn to outcomes such as promotion and more pay.
l valence is the strength of an individual’s preference (+ or -) for a particular
outcome, instrumentality is the extent that one outcome leads to another.
l Motivation is the product of the valences (with account of instrumentality)
times the expectancies.
l As an approach while it recognises that many people probably do consider
the likely outcome of their actions, evaluate the alternatives and rationally
decide what to do, in practice it is likely to be a much more complex, less
conscious and disorderly process of decision-making
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(b) – Since “Needs theories” are universal the management approach to motivation would
apply to all employees whereas “Process theories” are necessarily focussed on each
individual and tailored to their requirements.
– “Needs theories” lead management to develop reward and punishment systems
geared to employees’ position on the hierarchy of needs whereas the “Process
“approach would ensure the relationship between effort and reward is made clear.
– “Needs theories” lead management to carefully consider job design in order to create
opportunities for job enrichment and scope for the positive motivators deriving from
the job itself (Herzberg advocated job re-design i.e. jobs needed to be made more
interesting with extra responsibilities being devolved to the individual and the group)
whereas the Process approach must identify what rewards and outcomes are most
important to staff and then make the link between effort, performance and reward
clear and consistent.
– “Needs theories” suggested that management must pay attention to maintaining
hygiene (to avoid dissatisfaction) while recognising that only by focussing on higher
level motivators would good performance and positive satisfaction arise. The
“classical” motivators, like money and improved conditions, were seen merely as
good hygiene with transitory effects at best. The Process approach will also lead to
concern for ensuring that rewards are attainable and fair (individuals will use
“comparison others” to assess this).
– Process theories therefore underline the conclusions of the Mayo studies that
managers must get to know their subordinates and relate to them in a fair manner if
they are to raise motivation. However, Needs theories, though rigid, do provide a
general framework for motivating the overall workforce.
Q5 (a) – a group is defined as two or more interdependent individuals who interact and
influence each other in collective pursuit of a common goal.
– Schein identified two primary functions of an effective group:
– The group’s purpose and objectives are achieved by carrying out or implementing
task functions
These include:
l Formulating objectives and setting targets
l Clarifying understanding of the task
l Exchanging information and seeking opinions to facilitate their achievement
l Ensuring that information gathered is fit for problem solving purposes
l Brainstorming and evaluating ideas
l Making optimal decisions through consensus
Maintenance functions are concerned with the health and effectiveness of the group
itself and relate to the establishment/continuation of norms, cohesion, a sense of
purpose and esprit de corps. They are as follows:
l Maintaining group harmony/resolving conflicts while achieving tasks
l Protecting and supporting individual group members – providing a buffer to the
organisation
l Encouraging contributions and participation from group members
l Assessing group performance and making any necessary improvements
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(b) Research by Bales found that effective groups were those that on the one hand
completed the task or tasks necessary to successfully achieve their agreed objectives
while also keeping the group integrated and meeting members’ social and emotional
needs. Ineffective groups are therefore characterised by:
3 A lack of agreed objectives
3 Tension within the group and serious personality clashes
3 Leadership often authoritarian rather than participatory
3 Limited consensus and recurrent interpersonal conflicts
3 Decisions by voting rather than agreement often to suppress ideas/disagreements
3 Failure to undertake performance assessment and “action” decisions are unclear
(c) An assessment of the importance of esprit de corps to the effective workgroup.
Originally identified as important by Fayol, esprit de corps results from harmony and
unity among members This spirit of cooperation is the product of group cohesiveness
and is the result of shared experiences and close relationships.
Importance
– Esprit de corps or team spirit is the product of norms or belief systems that develop
within the workgroup over its lifetime. This can be a positive culture in effective
workgroups that cause them to pull together in pursuit of organisational objectives
– It can be a source of great strength to the workgroup but this can produce a united
resistance against managerial change
– Esprit de corps embodies group purpose and weaves a number of influences:
commonality between members; motivation and desire of individuals to work
together; incentives for task completion; strength of leadership into a united bond
– Esprit de corps tends to strengthen as the group develops especially in the norming
and performing stages
– It tends to be positively correlated with improved group performance and successful
outcomes
Q6 (a) Business leadership may be defined as the process of influencing others towards the
achievement of organisational goals, securing commitment (towards achievement of
the goals) and getting the best (work) out of people.
Business management may be defined as the process of achieving organisational
goals through engaging in the key functions of planning, organising, directing and
controlling.
Differences and Similarities
– Management covers the broad spectrum of organisational functions and processes
while leadership is focussed on influencing the hearts and minds of others to achieve
goals
– Management encompassing direction (i.e. leadership) but not all managers are
leaders
– Management as more rational, quantitative and learnt behaviour whereas leadership
is a more fundamental, qualitative and historic relationship often based on spirit,
charisma and vision
– Managers as necessary business functionaries while leaders are essential in
providing strategic direction and inspiration
– Leaders are often thought to be born and managers made but many of the key traits
( e.g. intelligence, interpersonal skills, physical presence, extroversion, creativity) are
often found in managers
– Leaders tend to be catalysts for fundamental change and lead by example whereas
managers tend to make existing processes more efficient
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– Management is appointed and part of the formal organisation whereas some leaders
emerge as the situation demands
– Examples of managers are heads of functional departments, middle managers and
supervisors. A leader could be found at any of these levels but tends to be
associated with the chief executive officer at the helm of the business e.g. Branson
of the Virgin group of companies.
– Managers are given formal delegated authority to direct the work and behaviour of
others whereas leaders may be formal or informal and tend to exert influence
through power
– Management is competent in human resource management, leadership involves an
intuitive understanding of what motivates the members of the group and can inspire
them to unanticipated levels of achievement.
(b) Authority is the right to make decisions, carry out actions, and direct others in matters
related to the duties and goals of a position. As such it clearly encompasses
management but also contributes to effective leadership (making decisions and
directing others). A manager has the right to issue valid instructions that others must
follow and this authority is matched by the responsibility to achieve certain objectives
and accountability to report to higher authority for the discharge of that responsibility.
Although much more is involved in the role, delegated authority is the key to effective
management of the organisation and derives ultimately from the shareholders down the
scalar chain. It is important that subordinates are given sufficient authority to undertake
the task for which they are made responsible. However ultimate responsibility for task
completion remains with the delegating manager.
Authority over subordinates can only be effective if they accept it, but while this may be
customary in some organisations, acceptance of authority may in some cases require
the use of personal power. Authority can be delegated but power cannot. Power is the
ability of individuals to induce or influence the beliefs or actions of others and so is
complementary to the concept of leadership. Laissez faire leadership may appear to
rest on participation rather than the exercise of power but may be influential in many
situations. Power derives from two fundamental sources:
Positional powers, which are associated with the authority of a given position:
Legitimate power is based on a cultural system of rights, obligations and duties where
a position is accepted as “legitimate” by subordinates. Most managers possess such
power given that the acceptance is forthcoming. The same applies to reward power,
based on the ability of the leader to provide rewards e.g. pay/promotion and coercive
power, based on the leader’s ability to punish through job allocation/dismissal etc.
However, managers may be constrained by formalised policies in these areas and not
be able to use them in such an influential way as leaders. The manager’s position may
also confer information power, based on access to valuable organisational knowledge.
Personal powers used in day-to-day relationships:
The exercise of these powers are more effective in the hands of leaders and include
expert power, deriving from respect of others for possession of important
skill/expertise: connection power, deriving from influential relationships in/outside the
organisation and finally referent power, deriving from the leader’s charisma and
subordinate’s belief in them.
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Q7 Report
To: Manufacturing Manager
From: Production Supervisor
Re: Managing Job Dissatisfaction
Date: June 2008
1. Introduction
This report will focus on the production department of the XYZ car plant and specifically
consider:
– the relationship between job satisfaction and job performance
– the causes of frustration and alienation on the shop floor
– the indicators or examples of worker frustrations
– a fully justified recommendation for overcoming one type of job dissatisfaction
2. The relationship between job satisfaction and job performance
– job satisfaction may be defined as the positive attitude and feelings an individual may have
about his/her job. Job satisfaction is high when an individual takes a favourable view of
his/her work activities.
– Job performance measures the quantity and quality of output produced relative to the
target or expectation. It may reflect the degree of effort expended, the motivation applied
and productivity achieved in undertaking the task.
– The relationship would normally be expected to be a direct one in that a worker achieving
job satisfaction must be satisfying important needs (e.g. esteem, social, self-actualisation,
recognition) that at least partly derive from successful job performance.
– However job satisfaction does not necessarily translate into improved job performance.
Improved job performance might be contrary to the norms of the workgroup for example
and exceeding these might reduce social satisfactions.
– Increasing job satisfaction through job rotation or enlargement may negatively affect
performance due to less specialisation or greater stress.
– Similarly job satisfaction may derive from extrinsic factors rather than better job
performance e.g. improved pay package or improved relationships.
3. The causes of frustration and alienation on the shop floor
– Past studies of job satisfaction amongst assembly line workers in car plants have shown
that workers often despised their jobs.
– This did not derive from low pay rates or poor working conditions and supervision but from
aspects of the work itself
– The high task specialisation led to anonymity of the individual worker as a result of the job
virtually removing everything that might have contributed to job satisfaction e.g. control
over pace; not completing a task; de-skilling
– The jobs were de-personalised with little or no scope for promotion
– Alienation refers to an individual’s state of mind/feelings of estrangement towards fellow
workers, the organisation and their true selves when the job does not allow for such
expression.
– Causes include a misunderstanding of purpose; lack of power/influence over the work
situation; social isolation and under-use of innate abilities.
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4. Indicators or examples of worker frustrations
– frustration is a negative response to the blockage of a desired goal and results in a
defensive form of behaviour. Indicators of frustration-induced behaviour include:
– aggression – in the form of a physical/verbal attack on a person (e.g. shop floor
supervisor) or object
– displaced aggression – where a direct attack is not possible (fear of dismissal) aggression
may be displaced to another object or person e.g. bad language on the shop floor
– regression – involves reversion to child-like behaviour e.g. damaging tools or the vehicle
– fixation – involves persisting in negative or unproductive behaviour despite the absence of
positive results
– withdrawal – involves a spectrum of possibilities from outright resignation through
absenteeism, lateness, lack of cooperation, apathy and shirking responsibility
5. A fully justified recommendation for overcoming one type of job dissatisfaction
Autonomous Working Groups
– this is a widely adopted job redesign approach in many car plants following initial
experiments in the Volvo plant at Kalmar Sweden
– it involves job enrichment but applied to the whole workgroup
– the group is given responsibility for the totality of tasks and their completion
– by enabling the group to set its own performance goals, methods of work, distribution of
work tasks, control of the work environment and interface with the rest of the organisation
it overcomes most of the frustrations and frustration reactions as outlined in parts 3 and 4.
– alienation is reduced due to the group membership and the scope for providing shop floor
workers with ownership of their own work
– management will need to underpin such groups by providing full information, training and
development together with flexible support to ensure the needs of the group are met.
Q8 (a) (i) A customer contact situation in a retail store would occur between a shop
assistant and the potential buyer. Communication between the two would include
primarily verbal but also non verbal communication. These may be distinguished
as follows:
verbal non verbal communication
– spoken word – body language
– normally face-to-face with customer – individual level in presence of
– first point of communication with customer
store – involves more than facial elements
– allows for immediate feedback/ – verbal messages also transmit non
response verbal ones
– understanding should be maximised – signals can be misinterpreted/missed
– an impermanent form of – first impressions may be lasting
communication – successful customer relations
– relies on communication and requires positive body language,
listening skills personal presentation and how
– focus is on what you say to the you say it to the customer
customer
– subject to formal training
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(ii) Three potential communication barriers in a customer contact situation would
include:
Semantics
– effective communication requires a common frame of reference and shared
understanding of words and their meaning. Individuals have a “semantic net” of
words and meaning with which to make sense of inter-communication. If the
customer/assistant’s nets don’t match then there will be blockages e.g.
imprecise use of language or negative body language can put the customer off.
– Another problem might be the use of jargon that the customer does not
comprehend e.g. in an electronics store.
Relationships
– problems may occur if the customer and assistant are perceived to be at
different social levels
– status differences may prevent clarity in communication e.g. if the assistant is
too deferential or the customer is perceived as being unworthy of attention
Receptivity
– communication will only work if both parties are open and willing to take part in
the communication process. Communication will fail if either the communicator
or the recipient is disinterested or distracted. The assistant might be more
interested in talking to colleagues while the customer insists on browsing rather
than being served.
(b) The grapevine is a complex network of informal communication that does not follow
official channels or organisational lines. It tends to occur socially during breaks, chance
meetings etc.
A critical examination would recognise the positive aspects of the grapevine that would
include its ability to bind employees to the organisation (especially new recruits); its role
in releasing tensions and conflicts between staff and management; and its use by
management as a means of testing sentiment or preparing the ground for policy
changes.
However, it should also be recognised that the grapevine can be a corrosive force
particularly in a climate of uncertainty or unexpected change. Negative aspects include
its ability to spread information very rapidly and this might be to the detriment of formal
communication systems. Most notable is its tendency to generate rumours and gossip
adversely affecting morale and its distortion of formal communications. The grapevine
can be a force for good when it is working in support of organisational objectives but
can create conflict, resistance and low morale when working against them.
Management must ensure that its own communication is open and timely if it is to

prevent such informal communications pre-empting its efforts.