PROJECT REPORT

BUSINESS COMMUNICATION
SUBMITTED TO: MISS HUMA WAQAR

SUBMITTED BY:
Muhammad Umair
Mir Ehtesham ul Haq
M Shahzeb Khan
 Contents
GRAPEVINE AND CRISIS MANAGEMENT ........................................................................................... 2
Introduction of Grapevine ......................................................................................................................... 2
Structure (Types) of a Grapevine .............................................................................................................. 2
Features of Grapevine Communication ........................................................................................................ 4
Pros and Cons of Grapevine .......................................................................................................................... 6
Pros ........................................................................................................................................................... 6
Cons........................................................................................................................................................... 8
Choosing The Organization ......................................................................................................................... 10
Access and Core Network Provisioning .................................................................................................. 10
Network Field Maintenance (Telecom Part) ........................................................................................... 10
Resource Provisioning ............................................................................................................................. 10
HISTORY ...................................................................................................................................................... 11
About us .................................................................................................................................................. 11
Our Vision................................................................................................................................................ 11
Mission Statement .................................................................................................................................. 11
Values ...................................................................................................................................................... 11
CEO's Message ........................................................................................................................................ 11
WHAT IS CRISES? ......................................................................................................................................... 12
FINANCIAL CRISES ....................................................................................................................................... 12
CRISES DUE TO FACTS ................................................................................................................................. 13
CRISES DUE TO RUMORS............................................................................................................................. 13
OTHER REASONS OF WORKPLACE CRISES .................................................................................................. 14
SOLUTIONS FOR WORKPLACE FINANCIAL CRISES....................................................................................... 14
MANAGING WORKPLACE RUMORS CRISES ................................................................................................ 15
CASE ANALYSIS AND FINDINGS ................................................................................................................... 16
SUGGESTIONS ............................................................................................................................................. 17
HOW GRAPEVINE SHOULD BE USED EFFECTIVELY ..................................................................................... 17
OUR LIMITATIONS ....................................................................................................................................... 19
Questioner .................................................................................................................................................. 20

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 GRAPEVINE AND CRISIS MANAGEMENT

Introduction of Grapevine

It is very essential to understand that human beings are communication social

animals who favor alternative ways of interaction: formally, informally, vertically,
horizontally, and diagonally, in chains, in wheels, in grapevines, etc. to their
preferences. In the following section, a comprehensive review of one of the
alternatives that human beings like to communicate, the grapevine communication,
is made. The review included the history, the structure, the participants, the merits
and demerits and the ways of monitoring grapevine (informal) communication (in
an organization).

Structure (Types) of a Grapevine

Pravin (2013) identified four major structural flows of a grapevine communication.
These are:

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 The Single Strand Chain- in this structure, it flows like a chain, i.e., ‘A’ tells
something to ‘B’ who tells it to ‘C’ and so on.

The Gossip Chain- in this chain one person tells everybody else. This chain
passes a message regarding a ‘not-on-job’ nature.

1.3 The Probability Chain- in probability chain information may move from
anybody to anybody. This chain is found when the information is somewhat
interesting but not really significant.

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 The Cluster Chain- in cluster chain information move through selected
groups. ‘A’ tells something to a few selected individuals and then some of
these individuals inform a few other selected individuals. Cluster chain is the
dominant grapevine pattern in an organization. Most informal communication
flows through this chain.

Features of Grapevine Communication

As we know that the most informal communication system of an organization is

grapevine communication system. Grapevine network is commonly criticized for its
widely features. The features of grapevine communication can be discussed both in
positive and negative manners. We will go for that after a few moments. Grapevine
has three main characteristics: it is not controlled by management; it is perceived
by the most employees as being more believable and reliable; it is largely used to
serve the self-interest of those people within it. Now features of grapevine can be
discussed in the following manner:

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Flexibility: there is no formal control on grapevine; or this reason, it is more
flexible communication system than any other ways of communication.

Lack of control: Actually, there is no managerial control over the grapevine

communication system. It is grown by itself.

Rapid communication: grapevine communication system is faster than other

formal or informal channels of communication.

No record: we can't keep any documentary record or evidence of grapevine

communication system that can be shown or produced as future reference

Used for self-interest: as grapevine communication system is produced by gossip

and rumor, it is basically used for self-interest of the employees of an organization.

Popular among employees: this communication system is much popular among the
employees than other formal or informal channels.

Distortion: distorting of real massage is one of the major features of grapevine

communication system. In this communication process, information passes rapidly
man to man. That's why the information losses its originality.

Spontaneous: grapevine is basically spontaneous. It passes rapidly and

spontaneously from top to bottom of the organization. Here is no need to make any
effort to make it successful.

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Pros and Cons of Grapevine
Pros
Alternative System: there are some messages which cannot be sent through formal
way and therefore requires some alternative. Such alternative can be informal
communication.

Interpretation: message sent to subordinates requires explanation or interpretation

and informal communication is the valuable means here.

To Present Grievances: employees can't make any complaints to superiors through

formal communication. But informal communication gives the employees a better
opportunity to raise their complaints, grievances or claim. Sometimes, in this way,
as an informal communication system, grapevine affects much.

Increase Efficiency: employees can freely exchange their opinions in terms of

informal communication. They can ask any question without any hesitation. Thus a
cordial environment is created to increase the efficiency of employees.

Improving Relations: any created between management and the labor can be
settled through informal communication. Co-operation and co-ordination can be
established through harmonious relationship between management and labor. Such
relationship is only possible through informal communication. And as an informal
system, grapevine may give this opportunity too.

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Providing Recommendations: subordinates feel free to provide management with
their suggestions and recommendations on different job related issues like work
methods, procedures and conditions etc.

Measuring Reaction: before releasing any new information, management wants to

know the reaction of employees. In such a case, informal communication can be
valuable in measuring the reaction of employees before any information is conveyed
through formal channels.

Transmission: information flows quickly through informal channels, Management

may take advantage to send or receive the message of urgent nature through such
network.

Provide Emotional Relief: for different reasons, some employees may become
emotional which can't be removed through formal communication. But informal
communication acts as a safety measure to provide emotional relief and therefore
helps in concentration to job.

Solution to Problems: with the help of informal communication, the management

is able to know problems, conflicts and complaints and the like. Therefore
management can take necessary action timely and effectively.

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Cons
Distortion: informal communication networks do not follow any set of rules,
definite liners or ways. So it can transmit any kind of information to any person
without any respect or fear. It may spread wrong or distorted news which may
sometimes prove harmful even to the employees. So, it is the one of most
considerable disadvantages of informal communication.

Lack of Secrecy: in informal communication, everybody can freely interact as there

are no restrictions or rules. Any secret matter is likely to be flashed without any
problem or hesitation. This may cause a huge damage to any organization.

Incomplete Information: information released from such communication network

is usually incomplete. So, there is each and every chance of it to be misunderstood
or misinterpreted.

Non-Co-Operation: sometimes, confusion develops among the persons involved

in informal communication. As a result, they may remain separate without any co-
operation.

Lack of Resistance: as informal communication does not follow any established

system, it is beyond any control. Organization has no mechanism to resist its
movement.

Huge Rumor: most of the time, informal communication fabricates the real facts
and makes some rosy picture. This really damages the working environment of any
organization.

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Misunderstanding: lack of conduct, decency, decorum and rules cause
misunderstanding in informal communication. As a result there may be conflict
between employees.

Committing Mistakes: these sort of communication are subject to errors and

mistakes because no officials’ rules or regulation operate in this case of informal
communication.

Difficult to Control: such communication can produce division or groups and

subgroups in the organization. People involved here do not follow any rules and
regulation as they depend on their own philosophy. All these may destroy the control
of the respective authority.

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 Choosing The Organization
Komkonsult Pvt Ltd

KomKonsult provides services that are tailored to customer's needs. We have

skilled professionals who have expertise to handle all aspects of Network
Deployment.

Access and Core Network Provisioning

Network Field Maintenance (Telecom Part)
Resource Provisioning

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 HISTORY
About us
KomKonsult, established since 2001, is providing professional expertise in
Telecom, Implementation, Network Optimization, Regulatory Policy, Spectrum
Management and Training. Over the decade, our business volume, technical
competence and customer base has expanded remarkably. KomKonsult works as a
business partner enabling clients to select the right level of support from Network
Implementation to Network Optimization and to future technological evolution.

Our Vision
To create a highly innovate, agile and profitable business enterprise

Mission Statement

To acquire Strategic Service Partner Status with the leading telecom vendors and
operators by continuously developing and consistently delivering, high quality,
high value, responsive and cost effective portfolio of telecom services.

Values

Customer focus and corporate core value plays central role in achieving our vision.
Without fully understanding and adapting the core values, we will not be able to
accomplish our vision. In today’s competitive world, only knowledgeable and
disciplined workforce centered on following values can survive and lead:

 Customer Focus
 Respect
 Trust
 Knowledge Sharing

CEO's Message
Over the years, we have assembled a team of loyal and talented managers,
engineers and employees. We would like to reassure every employee that our
strong entrepreneurial spirit has not faded and that there are diverse challenges
ahead for us all.

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 WHAT IS CRISES?
Crisis refers to sudden unplanned events which cause major disturbances in the
organization and trigger a feeling of fear and threat amongst the employees. There
are different types of crisis i.e. Natural crisis, Technological crisis, Confrontation
crisis, Crisis of malevolence, Crisis of organizational Misdeeds and Crisis due to
rumors, Financial Crisis etc.

The type of crisis that we identified in Komkonsult Pvt Ltd are the following:

FINANCIAL CRISES
These are the Crisis which occur in the organization due to prevailing financial
Conditions. The cash flow of organization is disturbed. What happened in
organization is unable to pay salaries of their employees on time because of
improper cash flow. What leads towards imaging a bad reputation for the
organization? When organization was not able to pay salaries of employees for
somewhat two months they started delaying employee salaries even up to four
months as well what happened there was there were good informal relations among
the management and employees at start and they did not bothered in the initial
stage of delaying salaries and supported the organization through thick and thin
because of their informal good relations but the situation got worse month by
month and management start making it a habit to delay the salaries of employees.

It was told to the employees that their clients are delaying their payments so that’s
why they are unable to pay them salaries on time. But Employs in turn were saying
that we are working for you people not for your clients that is justified as well and
they were on their right to ask for salaries on time.

When employees were left out of money everyone has a point of extreme and a
right to say no employees internal informal relations were also so strong they
decided to put a demand and asked their management to solve this problem but
their management did not provided them any solution and said if one is not happy
he or she can leave the company.

Then employees realized that this is the time to be united and take a stand everyone
new or old employee working in organization except managers decided to call a
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strike. They eventually stood to their call and implemented the strike which caused
reputation of company more badly.

Then management realized and asked them to take the call off and they will pay
one or two months salaries to them. Still one or two months for those who have e4
or more pending salaries but nevertheless employees agreed.

When the salary was transferred to accounts some of employees realized then
salary was a bit low when asked to management they told that you people were on
strike for those days. They were shocked and those employees were mostly the
new hired one.

Then employees realized that this organization is no more beneficial to them and
its time to say good bye to the organization.

CRISES DUE TO FACTS

Those who leave the organization Posted it on social media Linkedin where
company was posting for new jobs that don’t join this company you will never be
going to get paid. If you are willing to work free do join this company. This was
embarrassing situation for the company.

Because of this no one was willing to join this company because of grapevine as
every employee has referrals and they told everyone in industry of telecom that this
company never pays on time which was true and factual.

CRISES DUE TO RUMORS

Spreading false rumors about the organization or other employees lead to crisis.
Employees must not spread anything which would tarnish the image of their
organization. This can also be categorized as grapevine communication. In KK
people are also involved in such activities like gossips, spreading wrong
information about the organization or colleagues. As we tried to identify, we came
to know that People now a days are spreading rumor that organization is going to
layoff many of their old employees in near future, who have more salaries and

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have a chance of getting promoted to upper level of management. They will hire
new employees on less salary package. So such bogey rumors are when circulating
through office, those people start to worry about their jobs, doubt their future and
have concerns they’re being talked about or portrayed in an unflattering light.

OTHER REASONS OF WORKPLACE CRISES

Employees are not appreciated much for their hard work and efforts. Many people
are leaving their job because they do not get much appreciation from their superiors
and due to the strict policies of the company. At times, if they have queries they
cannot directly communicate to their practice manager which also creates problems.
So employees look for other jobs which is also a negative point for a company.

SOLUTIONS FOR WORKPLACE FINANCIAL CRISES

For the success and growth of organization communication is very important. It can
make or break the organization. Communication should be clear and effective. One
common practice that hinder the efficiency of the company is the grapevine
communication.

If we want to look true picture The cash inflow and outflow team Finance
Department was responsible for all that crisis they use to invoice late to their clients
due to which their payments got late to them which led them to Financial Crisis.

So a better Finance Manager should have been there to lead and support the team in
proper way.

It was also been told that Finance Manager was involve in some kind of corruption.
So a Proper check and balance should have been made over him from the start.

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MANAGING WORKPLACE RUMORS CRISES
KK is facing another problem currently. There is rumor spread in organization that
company is going to lay-off employees in next two months and hire new employees
on less salary package. To deal with this kind of crisis KK have following ways;

 Rumors spread when the situation is not clear. When the things are not
explained clearly, other people may tend to explain it incorrectly. KK should
open all channels of communication, present the facts positively and fight the
negative message positively.

 Periodic meetings are very important in every organization. As this is the

venue where team is made aware of what happened in organization. KK can
also arrange periodic meetings to inform employees about current issues
occurring is organization.

 It is up to the management if they want they can use grapevine as a barometer

of the public opinion in the organization or to feel the pulse of the employee
in the particular situation. If KK also practice this they can revise policies
which make their employees happier and satisfied. And this will also cut the
negative rumors as well.

 Negative grapevine occurs when management is failed to maintain trust

relationship with employees. As employees are not appreciated much for their
work and sharing any ideas in KK. This result in great dissatisfaction. Mostly
workers left the job just because of this reason of not being appreciated and

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 paid on time. KK should appreciate employees and salaries should be paid on
time as this is the right of the employee.

CASE ANALYSIS AND FINDINGS

The case analysis of MTBC reveals some very serious challenges and issues being
faced by the organization which needs serious attention in order to resolve them in
a timely manner. Any delay in the crisis management will take organization towards
a disastrous situation as per the nature of current issues and challenges.

KK is presently confronting with following major issues and challenges;

 Inability to Pay Salaries on Time.

 Rumors about company and possible downsizing
 Communication gap between management and employees
 Lack of effective H.R structure
 Financial Crisis Because of Unable Finance Team

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SUGGESTIONS
Crisis at workplace can occur in many forms. It may also possible that this can cause
decrease in revenue which can lead to cut down the cost and downsizing. Here are
the few suggestions for KK to avoid workplace crisis or if they face any they can
handle it in a better way.

 Make transparent communication with employees about the crisis facing by

the organization. So, the know well about it and help as well. Conduct brain
storming.
 Gather all the facts about the crisis.
 Whenever company face some crisis establish crisis management team. Make
a leader of a team who possess ability to lead and tackle the difficult situations.
 Identify the other employee who can support the team leader in handling the
situation.

HOW GRAPEVINE SHOULD BE USED EFFECTIVELY

1. The management can open up all the channels of organizational

communication to present the facts positively before the employees and
thereby can fight the negative messages with the positive weapons of facts
and figures.

2. The negative consequences of the grapevine can be easily eliminated if the

management is successful in creating trust-relationship with the employees.

3. The rumors flourish beyond limits when the employees are not well informed
by the management regarding the policies, objectives and the work procedure
of the organization. The inadequate access to information and the feeling if

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 insecurity is the reasons behind the negative outcomes of the grapevines. The
managers must give their employees an adequate access to information and
the feeling of security.

4. Before taking any decision or action, the managers must consider its possible
effects on the informal groups and systems in the organization.

5. The management can use the grapevine as a barometer of the public opinions
in the organization or to feel the pulse of the employees in a particular
situation. This will surely help them to take right policy decisions.

6. The management should find out the people in the informal groups who are
more active on grapevine. These people should be accurately and adequately
informed so that the false rumors causing excitement and insecurity do not
spread among the employees.

7. Silence not always golden- companies should not ignore the grapevine, be
indifferent to it or try to kill it. Leaders should proactively communicate and
inject as much authentic information into the system as they can. Regular
interactions with employees are the best way to understand gossip and
politics, and one must be prepared for this, he says.

8. Keep an open culture- the grapevine is always about people, and travels
faster than any other mode of communication. People at the receiving end of

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 gossip may even take the drastic step of quitting. An open culture with the
freedom to approach the management is important to tackle the grapevine.

9. Communicate ASAP- employees hate it if they get know developments

about their company from the market, instead of from within. Company heads
should directly communicate these to employees, as soon as possible. A
beverage industry professional cited an example of how his CEO lost his job
because of the grapevine, as he did not communicate an update in time. His
company had sold a bottling plant to another company and workers went on
strike thinking they would lose their jobs, which was not the case.

10.Eliminate uncertainty- nervousness and uncertainty is potent fuel for the

grapevine. Even if times are rough for the company, it should be made known
to the employees and they should be involved at every step. Companies should
not hesitate to ask employees ideas for cost-cutting or going after new
businesses. They often have great ideas, which are many a time not obvious
to the company management.

OUR LIMITATIONS
Getting Information from an organization like KK was not an easy task as employees
are not allowed there to share any type of information so employees were hesitating
in giving information about the company.

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 Questioner

1.

Companies policies and procedures make sense to me.

Strongly Disagree

Somewhat Disagree

Undecided

Somewhat Agree

Strongly Agree

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 2.
The physical working conditions (e.g., heating, ventilation, space, cleanliness) are very
good.

Strongly Disagree

Somewhat Disagree

Undecided

Somewhat Agree

Strongly Agree

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 3.
Individual differences are respected here(e.g.,gender,race educational background,
etc.)

Strongly Disagree

Somewhat Disagree

Undecided

Somewhat Agree

Strongly Agree

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 4.
Employees feel secure about their jobs at this company.

Strongly Disagree

Somewhat Disagree

Undecided

Somewhat Agree

Strongly Agree

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 5.
I would choose [Company] again if I had a job choice to make.

Strongly Disagree

Somewhat Disagree

Undecided

Somewhat Agree

Strongly Agree

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 6.
I would recommend [Company] as a career to my friends.

Strongly Disagree

Somewhat Disagree

Undecided

Somewhat Agree

Strongly Agree

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