In theory, the network of formal communication may seem sufficient for information exchange within an organisation. In practice this is rarely the case. As a result of inadequacies in the formal system, and for a variety of other reasons, employees can and do modify the formal procedures by operating an informal communication system, known as the ‘grapevine’ or ‘bush telegraph’ .This poses some obvious problems for the management of communication.

The grapevine spreads information with a speed that the formal system can only aspire to!
In can distort and exaggerate information

People tend to believe the ‘unofficial’ version regardless of its factual foundation.

The grapevine is a fact of organisational life, and may, more positively, be regarded as a salutary challenge to managerial effectiveness. The onus in on the formal communication system to keep opportunities for the spread of misinformation to a minimum by providing sufficient and appropriate information to employees. Some organisational structures are enhanced by the ability of people at various levels to talk to one another informally. It may, therefore, prove beneficial to managers to promote informal contacts by, for example, ‘walking the job’.