Answer to Question 1
There are three ways that managers typically deal with rumors. First, managers will do their best to communicate with employees in ways that minimize the chance that harmful rumors get started. Prevention can be achieved if managers anticipate what might be ambiguous and then provide as much of an explanation as possible. Second, some rumors will die relatively quickly on their own as members of the organization come to realize that the rumor is not true. If we accept the premise that a rumor is a search for the truth, then allowing a rumor to die without taking the time to refute it makes sense. This will work if the rumor is not very important or has an obvious weakness or flaw. Third, if a rumor persists, begins to spread widely, and its content is important to the stability of the organization, then managers will help employees by publicly refuting or confirming the rumor. This is done by addressing the specific rumor and providing credible evidence of how the rumor is or is not true because of other factual information. If the rumor is false, say so and then tell the truth so that employees can understand quickly how it became rumor.
Answer to Question 2
Electronic communication devices are everywhere people do business.These devices make communication quick and efficient. The proliferation of electronic devices among employees creates opportunities for feedback and participation in decision making. However, unfiltered news about what is happening in the company can be rapidly shared with everyone in an instant. Another problem is that brief summaries of reactions to events, widely disseminated, can contribute to employees being less educated about company issues than managers want them to be. Lastly, electronic communication, especially through texting and mailing, has a disadvantage of brevity of the information.
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