He told a trusted subordinate of his plan to award higher salaries to a few key staff, who would also have to take on greater responsibilities. As expected, news spread rapidly through the company and employees were surprisingly positive about the proposal. So he decided to press on with the new pay structure.
Such an experience, says Grant Michelson, research director at Audencia Nantes Business School in France, shows that senior managers can use office gossip networks as a quick way to test reaction to proposals.
As the economy slows and companies cut costs, the rumour mill is likely to focus on where the axe falls next. Managers have traditionally seen gossip about such an issue as detrimental to productivity and bad for morale. They think they “must do something about the ‘problem' of gossip”, says Mr Michelson. But many believe that informal channels and conversations in the workplace can be helpful to employers.