Regal Industries is an apparel manufacturing company. The firm's revenues have taken a serious beating over the last three quarters, owing to poor economic conditions, and the top management is now faced with some tough decisions.
At a high-level executive meeting, members of the board come to the conclusion that they will have to lay off 10 percent of the workforce to reduce costs. Though they did not intend to announce the layoff process for another 2 months, 3 weeks after the decision had been taken, the company was abuzz with speculation about impending layoffs. Which of the following would best explain this situation?
A) Horizontal communication within the organization is minimal, as employees work in silos.
B) Only top level managers are privy to the information discussed at board meetings.
C) The company carefully regulates the flow of information inside and outside the organization and all communication is monitored by managers.
D) Owing to the company's closed-door policy, employees were unable to have their concerns addressed by their managers.
E) The company has a strict policy regarding the use of confidential information.
Question 2
For a rumor to spread rapidly it must be ________.
A) the objective fact or truth regarding a situation
B) oriented exclusively to past events
C) in agreement with the official information
D) ambiguous and vague in nature
E) controlled by official sources
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