The employees of an organization have heard rumors about rapidly dropping profits and impending layoffs. The grapevine is abuzz with bad news. People are nervous and anxious, and tend to believe whatever is being said without verifying the source. In this situation, which of the following is an appropriate action for a manager to take?
A) Block all forms of electronic communication in office.
B) Restrict the length of breaks taken by the employee.
C) Fire employees found spreading false stories.
D) Closely monitor each employee's activities in office.
E) Neutralize the rumor by openly confirming any parts that may be true.

Question

Quizplus · Accepted Answer

The manager should neutralize rumors once they have started. Disregard the rumor if it is ridiculous; openly confirm any parts that are true; make public comments (no comment is seen as a confirmation of the rumor); deny the rumor, if the denial is based in truth (don't make false denials); make sure communications about the issue are consistent; select a spokesperson of appropriate rank and knowledge; and hold town meetings if needed.

The Employees of an Organization Have Heard Rumors About Rapidly