Rumors in Grundfos

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Rumors in Grundfos

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Abstract

Grundfos is a well-established company on both the Danish and the Global market. The Group is one of the world's leading pump manufacturers.
According to one of the handed out fictive situation, there are rumors about the closing the financial department of the French subsidiary.

The closing of this department will allow expanding the sales and marketing department. The rumor is also about the relocation of the financial department employees in the German financial department.

People spread rumors in all contexts and about all subjects. Rumors could be observed in the professional context and managers have to be aware of their diffusion and their effects. This paper will focus on the rumors, the reasons why they appear, the types of rumors in organizations, their consequences and the means to control them.
Usually, rumors appear when employees feel uncertain regarding to a situation, most of the times it is during a change process. Researchers distinguish several types of rumors. Some have a positive content and do not have negative consequences on the organization; whereas others are negative in their content and could be harmful for the organization.

Introduction
Problem statement: Dealing with rumors through organizational communication
Theoretical framework
Method and structure
1. Background knowledge of organizational communication
2. Introduction to Grundfos
Rumours in organizations
1. Definitions
2. Reasons of the existence and the diffusion of rumors
3. The types of rumors
4. The consequences of rumors
The control of rumors
1. Theories
2. Advices to Grundfos
3. Suggestions to deal with the present rumors
4. Suggestions to avoid future rumors
Conclusion
Bibliography

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[...] If the rumors are also spread in all the Grundfos Group, a newsletter should be sent to all the employees to clarify the situation and explain that the rumors are wrong. If the rumors about the closing and the relocation of the financial department are right, Grundfos has to react quickly by providing the real information. In this case, it is not sufficient to Grundfos to say that the rumors are true. In fact, rumors are transmitted by word of mouth; with the result that message is often modified. [...]

[...] rumors in organizations and to provide solutions to Grundfos several theories about rumors will be used. This report is based on the book Organizational Communication by Katherine Miller and on articles. In the book Organizational Communication by Katherine Miller, one chapter is devoted to change and leadership processes in organizations. This chapter underlines the roles of leaders in a change process and the reactions during organizational change. This is relevant for this report, because it explains that change causes uncertainty for individuals. [...]

[...] The last type is “gossip-rumours”, it is composed by rumors about individuals in particular those who take decisions about change The consequences of rumors According to G.Michelson and V.Suchitra Mouly, some authors consider that rumors have always a negative outcome on the organizations. Others believe that rumors have generally a negative result, as working time lost, but could be used by managers to transmit information, because employees could spread the information faster than the formal network. Finally, some authors underline the positive effect of rumour on the social aspect; in fact rumors create more interaction between employees who are bound by a same concern The control of rumors Theories Managers have to attach importance to rumors and they need to know their content because rumors reveal the uncertainties of employees. [...]

[...] But in the same time, informal network can not be used as he only communication channel, in fact, most of the time the message is modified because it is not written and it is just conveyed by word of mouth Advices to Grundfos Today Grundfos is confronted to the diffusion of rumors in its French subsidiary. The rumour is serious because it concerns the closing of the financial department and its relocation in Germany. This rumour relates to a change, and as we saw in the third part it is during change process that the rumors are very frequent. [...]

[...] If the rumors are also spread in all the Grundfos Group, a newsletter should inform the employees about the change in the French subsidiary and specify that further explanations are available on intranet. Grundfos must be aware that by confirming the rumors, employees will be even more anxious concerning the change. In this context, many rumors could appear and spread. In order to avoid new rumors, several suggestions can be given to Grundfos Suggestions to avoid future rumors Grundfos can adopt a preventive strategy which its goal is to avoid that rumors appear. [...]

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