A rumor is a crisis of malevolence, in that individuals employ unethical tactics to harm or gain from an organization. Rumors are especially damaging in that they exemplify three characteristics of crises: suddenness, uncertainty, and urgency.
Suddenness refers to the fact that crises appear to arise without notice, even when warning signs may have been present. Under the right circumstances, a plausible rumor can spread like wildfire and cause as much damage. Before a company can refute a bogus press release, stock prices can plummet. In the rumor dissemination stage, repetition fosters belief, and the story grows in credibility as it’s repeated. Furthermore, rumors aren’t merely repeated, they’re refined according to the teller’s beliefs to enhance credibility.
Uncertainty in organizations is a given in environments that are unstable and complex, and uncertainty serves as a precursor to rumor generation. During the rumor generation stage, people develop a susceptibility to rumors, based on an optimum combination of uncertainty and anxiety. Rumors can develop after lingering questions about events that are themselves unsettling. Rumors explain and give meaning to these events. For example, when a company announces that it’s replacing its CEO, and no replacement is named, a fill-in-the-blank strategy can reduce uncertainty among employees and shareholders.
A third characteristic of rumors is urgency: managers must make a quick decision in a sudden, unpleasant situation. Damage control must take place in battle-like conditions, which distorts the leaders’ sense of reality and undermines the decision-making process. The Internet compounds the power of rumors by spreading allegations at lightening speed before management is even aware of the problem.
You must undertake some intervention strategies to change the conditions that favor rumor formation. Reduce the generation of rumors. Explain events fully to dispel anxiety and stop the need to fill in the blanks. Practice tactics aimed at lowering anxiety levels. For example, a relaxed demeanor costs nothing and signals that the situation doesn’t warrant anxiety. Organizations at risk for rumors can conduct communication workshops to instruct employees on the nature and consequences of rumors. Cultivate a climate of trust to reduce the credence of rumors within an organization.
The most conscientious rumor prevention efforts can fail, so prepare to neutralize rumors. You may ignore outrageous rumors that die down quickly. Use this approach with caution; what sounds implausible to one person might be totally credible to another. Confirm the truth: rumors often contain a kernel of truth, and it’s beneficial to acknowledge the accurate part. Assign a spokesperson to represent the organization. Assign this individual carefully to reflect the magnitude of the problem. Denials issued by low ranking staff won’t be seen as credible. However, using too high a source may draw undue attention to a rumor.
Companies can never completely avoid the harbingers of rumors, uncertainty and anxiety. However, by implementing rumor guidelines and strategies, managers can understand the rumor process, and perhaps even control it.
Other helpful resources include Plan for Crisis at Work and Cope with Crisis in Corporations.
Sources:
Difonzo, N., Bordia, P., & Ralph, L. (1994). Reining in rumors. Organizational Dynamics, 23, 47-62.
Lerbinger, O. (1997). The Crisis Manager. Mahwah, NJ: Lawrence Erlbaum Associates, Inc.