Rumours are a result of informal organisation. They can have adverse effect on the working environment. It may result in arguments or conflicts among the people of the organisation. For example, a rumour about the boss may pop up during a communication among a group of employees, which may affect the superior-subordinate relationship.

In informal organization, all the employees are like friends whether they are boss and labourer. We will talk more frankly with our friends only. So, romours rise in informal organization only. Hope so it helps you......

Informal organization is the form of organization known for giving rise to rumors. Informal organization refers to the network of social relationships and interactions that exist within a formal organization but are not officially recognized or mandated. These informal relationships develop naturally among employees based on their common interests, social interactions, and personal connections.

Rumors are often spread through informal channels within an organization. This is because informal organization is characterized by informal communication networks that bypass formal channels of communication. These informal networks can be based on friendship, shared interests, or common goals, and they often involve communication outside of the established hierarchical structure of the organization.

The reasons why informal organization gives rise to rumors are as follows:

1. Lack of official communication: In informal organization, there is a lack of official communication channels, which can lead to gaps in information flow. When employees do not have access to official information, they are more likely to rely on rumors to fill in the gaps.

2. Grapevine communication: The grapevine is a term used to describe the informal communication network within an organization. It is characterized by informal and unofficial conversations among employees. The grapevine is often the source of rumors as information is passed from one person to another through these informal channels.

3. Psychological factors: Rumors tend to thrive in situations where there is uncertainty or ambiguity. In informal organization, employees may feel uncertain about their job security, promotions, or organizational changes. This uncertainty can create fertile ground for rumors to spread.

4. Lack of accountability: In informal organization, there is often a lack of accountability for the information being shared. Unlike formal communication channels, there is no system in place to ensure that the information being passed along is accurate or reliable. This lack of accountability can contribute to the spread of rumors.

In conclusion, informal organization is the form of organization known for giving rise to rumors. The informal communication networks and lack of official channels in informal organization create an environment where rumors can easily spread. It is important for organizations to recognize the existence of informal organization and take steps to manage rumors through effective communication strategies.