A rumor is a piece of information gathered informally that is used to interpret an ambiguous situation (Schaefer, 2004). It is an unsubstantiated 'news' about a subject that is spread informally by people. Like gossip, a rumor is also an unverified piece of information or story. But unlike gossips, rumors are more focused on social issues or matters that affect a group or community. Thus, if the release of some information for the employees on a specified date is delayed without prior notice from the company, rumors are expected to circulate to explain why this incident occurred.

Rumors fly when employees are worried or a change is underway. Rumors often exaggerate the problem and spread misinformation. Rumors are bad for morale and often lead to lower productivity and loss of good employees. If you are a leader, you will have to deal with rumors that twist or falsify benign information. Rumors impact performance.

Reference

Schaefer, R. (2004). Sociology: A Brief Introduction. 6th ed. Princeton, N.J.

Discussion Prompt

Assume you are the President of a health care agency that is about to be sold to a competitor. What do you say to your employees? Draft a memo to your employees explaining the decision that was made. This memo should address issues that you think will concern employees the most. On an additional page, justify the decisions made in the memo, and outline your plan to motivate employees to improve performance as the agency is sold.

Tasks

1. Create a memo to employees explaining a decision to sell the organization to a competitor.
2. Address issues of concern to employees within the memo.
3. Justify the decisions made in the memo.
4. Outline a plan that will motivate employees to improve performance as the agency is sold.