If the formal organisation is the skeleton of your business, then the informal network is its central nervous system. Employees gathered around the water cooler are just as likely to be passing on tips for better working practice as details of last night’s TV. So how can companies harness the speed, skill and efficiency of this communication network and turn it to company advantage?
Informal networks by definition have no structure. People responding to new work directives may act instantly to update their procedures, or may take days to organise themselves in line with company policy. The nature of employer-employee trust is such that managers cannot regulate how quickly employees communicate and carry out certain tasks, only by measuring the outcomes after the event.
“Informal networks: The reality behind the company structure chart: the network of informal relationships that make things happen in the business” (Anand and Nicholson 2004)
The “grapevine” or “rumour mill” is the major informal communication medium in an organization. As the name suggests, the grapevine is entwined throughout the organization with branches going in all directions. Rumours are a rapid form of communication, uncontrollable and, once started, often hard to stop. Because rumours can harm both individuals and the organization itself, managers must consider how to control or manage rumour mills.
Generally speaking, studies indicate that informal networks transmit messages faster than formal ones. This means that information reaches its destination before formal communication networks even begin to communicate with employees. The characteristic of accuracy has also been researched, with estimates of accuracy rates ranging from 75 to 90 percent. Even if the grapevine is accurate as much as 90 percent of the time, it is the 10 percent or more that is inaccurate that can cause organizations problems.
Grapevine activity will increase under four conditions: a) during times of uncertainty, b) when the subject matter is important, c) in an insecure environment where formal communication is poor or lacking, and d) when the subject matter is ambiguous.
Given the current global recession, industries changing rapidly due to technological advances and skilled staff being headhunted by bigger fish, rumours of staff layoffs, cutbacks, new hires and company mergers are all contributing to an explosion in grapevine activity. Managers need proactive strategies to benefit from the positive consequences inherent in grapevine activity.
Knowing the informal procedures used in your company can mean the following:
- You can recommend proactive communications solutions to the boss
- You can participate in the grapevine and steer news to minimise fears and boost enthusiasm
- You can harness the topics posed online, via messenger or over coffee for their creative solutions
Informal business networks allegedly benefit men more than women, since women are less likely to be connected to individuals higher up in the company, (mostly men.) These female professions lack advocates of influence within the organization and even though this Old Boys Network has been derided for years, it still holds true in many blue-chip companies today. As a result more women pay attention to the grapevine as an opportunity to get ahead. Female communication skills being what they are, this is the number one method for most female employees to discover news, changes at work or threats to work stability. If your workforce comprises many women, it would not be surprising to hear that online social networks have been banned. However, harnessing this informal communication makes more sense – to keep current employees happy, encourage new staff to feel welcome and spot when a formal communication is necessary to kill a vicious rumour in its tracks.
Independent, off-the-grid communities have proliferated in recent years, and many companies have counted on them to deliver creative solutions to challenges that bridge functional gaps. Networking groups created by employees are as likely to take their skills to your competitors as bring brainwaves back to work. So encouraging virtual discussion space through social networks in the work place is a good way to keep track of some of the new ideas circulating. In which case, the grapevine may be more profitable for your business than you think.
For more on internal networks for business see Social Media in Business by Steve Nicholls (Bookinars)