At the beginning of this chapter you read about both Apple and Valve’s corporate organizational strategies. Using the information presented in this chapter, you should now be able to answer the following questions.

When you think of the word gossip, it’s most likely that the term has negative connotations. Take it one step farther, into the workplace, and you almost certainly have concerns. However, there is considerable research to support the claim that gossip, or the grapevine, is an important part of organizational culture. According to Professor Kathleen Reardon of the USC Marshall School of Business, “We learn who we are through what people say to us and about us.”²⁹ Managing the office grapevine and your role in this informal communication can be tricky.

Several guidelines can help you understand when to participate in gossip as a sender or receiver. First, you should understand the benefits of gossip. Gossip, or the office grapevine, may be the first place that you hear important information, such as a new job opening up or a major contract that the company is about to sign. However, as you pass along information, you must remember that what you say will reflect upon you. If you share negative information about a coworker, it is very likely that others may come to distrust you. In addition, you should carefully consider the people with whom you share gossip and information, making sure that they will keep confidential information private. Your supervisor may be particularly uncomfortable if you develop a reputation as a gossip, as your comments may be perceived as threatening. Finally, be very careful about the medium that you choose to share information. An email is never private and should not be used for any communication that you would not want shared publicly.³⁰

As a manager, you may have a slightly different perspective on gossip or the office grapevine. You may be concerned that gossip limits your ability to control how information is shared and may limit your power. Holly Green, in an article in Fortune magazine, shares several suggestions about managing the office grapevine.³¹ A vigorous grapevine is often the sign of boredom. Rather than having employees spend hours a week gossiping about others, find other outlets for their creative abilities. You should also realize that grapevines grow most quickly when information is scarce. Employees turn to the grapevine when they believe that they are not getting enough information from formal channels of communication. Therefore, to control rampant gossip, a manager should work towards intentionally sharing as much information as possible. Managers should also keep their ear to the grapevine, as it may convey important information, such as manageable concerns of employees. Managed correctly, the grapevine can be a powerful tool for employees and managers.