MANAGEMENT STUDENT OF AIMIT, BANGALORE

1. Grapevine Communication
Case Study
By:- Sachin Mohan Padwal.
MBA 1ST YEAR
AIMIT, BANGALORE

2. In Hyderabad a maintenance employee of Brigade
construction company asked for three months leave of absence
for personal reasons. The request was granted because it was in
accord with the company and union policy. A few week later,
MR. Sudheer the industrial relations manager of the Brigade
construction heard by grapevine that MR. Raju actually had
taken his leave to work on a construction project in other part of
the state. The report was that MR. Raju needed some extra
money and he had taken his job in order to earn contract
construction wages as an electrician because these wages were
nearly twice those earned on his regular maintenance job.

3. The act of taking leave for personal reason, with the hidden
purpose of working for another employer during the leave
period was contrary to the labour contract and the penalty for
this could be dismissal . After investigation for determine that
the grapevine probably was correct . MR. N. Sudheer prepared
a notice of hearing concerning dismissal action to be mailed to
MR. Raju at his local address where his wife and children
remained . The letter of notice was dictated by MR. Sudheer on
Monday morning.

4. The same night Raju called Sudheer at his home , saying
that he had heard that the noticed was being prepared and that
he felt there was misunderstanding . He said that his action was
acceptable under the contract but it was not acceptable , he
wanted to return immediately , because he did not want to give
up his permanent job.
When Sudheer pressed him to learn how he know about his
pending dismissal notice , Raju said that his wife had called
him that evening telling him that at the local super market the
mother of their son’s friend had told her about the pending
dismissal order.

5. SWOT Analysis
Strengths:
1.Experience
2.Knowledge
Weakness:
1.Less Salary
Opportunities:
1.Other Companies
Threats:
1.Losing Of Permanent Job

6. QUESTION:
1. Is there any evidence in this case that both management and
employees use the grapevine for their benefit ? Discuss?
2. After raju’s telephone call , what action should sudheer take
? Discuss?
3. Explain various uses and disadvantages of grapevine in the
organisation?

7. ANSWER:
• 1. No, there is no evidence in this case that both management
and employees used the grapevine for their benefit because
the manager came to know from other person which cannot
be taken as evidence. But, definitely, they’re using these
grapevine channel for their benefits.
• 2. Mr.Raju doesn’t want to lose his permanent job and
Mr.Sudheer (Manager) has just drafted the letter and not
actually posted. So, he should suppress the order which is
been generated on Monday night.

8. Advantage Disadvantage
Grapevine communication is highly
rapid and can be used to send
messages very quickly.
Grapevine carries Malicious and
damaging rumors, which can create
a Suspicious and tense environment
in the company.
The grapevine provides a valuable
feedback to the management, if it is
used intelligently.
At times, details of a message are
lost, as it is subject to filtering by
many people. Sometimes people
may add new details to it.
Advantage & Disadvantage of Grapevine

9. Grapevine communication is an
indicator of the employee's interest
in their work because the grapevine
serves as an emotional outlet for
workers.
A grapevine, at times can seriously
hamper the development or
productivity of a company.
Grapevine communication can act
as a morale booster because it can
be used effectively by the
management for transmitting good
and positive ideas.
A grapevine carries messages so
quickly that it is difficult to control
or regulate the flow of
Communication.

10. THANK
YOU