Communications channels are of extreme importance within an organization, where if topics and projects were not clearly informative, then confusion could take place, coupled by rumors and of course, loss of motivation.

We have had a recent situation where a new director has been hired for global sourcing, however, upper management has not been too clear about the depth of this individual's activities into our department,

where he had been interacting with us, creating new projects and basically getting us involved in new areas of activities, all under the nose of the current director of operations. Performance of the latter has also been negatively affected, not only because of this situation, but also because of previous lower performance activities.

There was no other news beyond the hiring process, but managers and employees within the ranks have been expecting changes.

How would such situations affect the interaction between managers and employees, as well as the overall organizational performance?