By JULIE MIDDLETON
Keeping an ear on office gossip can tell managers a lot about the health of their patch and its people.
Rumour-mongering in companies about, say, the state of the balance sheet or suspected redundancies is often almost an act of desperation, says Wellington industrial psychologist Keith McGregor.
It tends to be prevalent in companies where management is uncommunicative and agendas obscure - and it should be a warning to bosses.
Another example why bosses should grasp the grapevine: "When I have found staff gossip about managers," says McGregor, "then invariably it's a very accurate predictor of poor customer service.
"A manager is by definition a customer - an internal customer, and [gossip] reflects a lack of understanding of the bigger picture."
Gather more than two people together at once and you have politics and gossip. And the informal network by which information is passed on - the office grapevine - is powerful.
One academic study found that 70 per cent of all work communication occurs at that level.
But another study to assess bosses' attitudes to the gossip grapevine, by Americans Suzanne Crampton, John Hodge and Jitendra Mishra, found that 92 per cent of companies have no policy to deal with it, and managers didn't take an active role in managing it.
They need to be a little more savvy and see cultivation of the grapevine as another management tool.
Fuelled by email, it's fast; cutting it down is futile because it's as robust as a summer weed and will spring up elsewhere.
Attempts to suppress, says another American academic, David Nicoll, would tend to foster any latent staff belief that bosses can't be trusted.
"A strong, accurate and reliable grapevine increases the flow of information and feedback through the company," says Nicoll, "which can reduce cynicism and even increase allegiance."
So how do you grow a good one?
* Plug into the grapevine by having open-plan offices and a single staff cafe for everyone, says Nicoll. Do a bit more "management by walking about" - but not at set times, and not with a large gaggle of hangers-on, presidential-style.
* Hold regular meetings and keep staff informed of as much information as is practical, says psychologist Iain McCormick.
The more staff know about the business and its plans, the less unfounded chat there will be.
* Give out the whole truth. "Give out half-truths ... and gossip is inevitable," says McGregor.
* Deliver important information face to face rather than in a memo. Eighty per cent of communication, says McGregor, is conveyed non-verbally, and a memo doesn't allow your voice, eyes and body language to complete the picture.
* Build trust with staff by acting in a consistently open manner, adds McCormick. "This will enable staff to come to you with concerns about organisational change.
"It will enable you to reassure staff, if this is possible, or quash gossip at an early stage."
* Praise in public and punish in private, he says. "And never tell stories or complain about one staff member to a second one. Deal with performance issues directly and promptly."
* Consider setting up a rumour board, says McGregor, as one Australian corporate did. Staff posted rumours about company business, and managers responded.
It was a light-hearted way of dealing efficiently with gossip that might have had the potential to cause problems.
But be aware, he says, that one manager's way of cultivating his gardens, by spending long periods eavesdropping from a toilet cubicle, is a method quickly rumbled by staff.
And what if the gossip about staff is personal stuff? Ignore it, he says. It is often driven by "pathological behaviour: someone who derives pleasure from hurting others".
Managers buying into gossip about staff members' private lives, an area that should be none of a boss's business, are "going to validate it".
Harvesting the office grapevine
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