The informal communication network in a group or organization is called the grapevine. The grapevine is an important part of any group or organization communication network. It serves employees’ needs: Small talk creates a sense of closeness and friendship among those who share information, although research suggests it often does so at the expense of those in the outgroup. It also gives managers a feel for the morale of their organization, identifies issues employees consider important, and helps them tap into employee anxieties.

Evidence indicates that managers can study the gossip driven largely by employee social networks to learn more about how positive and negative information is flowing through the organization. One study found that social talkers are so influential that they were significantly more likely to retain their jobs during layoffs. In addition to the opportunities for managers to learn from the grapevine, some forms of gossip provide prosocial motivation for employees to help each other achieve organizational goals. Managers should do is minimize the negative consequences of rumors by limiting their range and impact.