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Amar Kumar 8 years ago
The communication that takes place within groups – informal channels is called the grapevine. It is a carrier of news and gossips and affects the affairs of the organization in a big way. Some managers considered grapevine as an evil because they think that it spreads rumors and can destroy the morale of the employees. But since grapevine can not be eliminated we must learn to live with it. We can not control it completely but we can certainly influence grapevine.
Informal communication occurs through the grapevine, which is generally word-of-mouth communication. Internal business communication that moves through the grapevine spreads throughout the organization in a random, undocumented manner and is open to constant change with individual interpretation. Although unstable, the grapevine carries some importance to internal business communication.
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Varun Banda 8 years ago
- Economic Growth: The capital markets help to accelerate the process of economic growth. It reflects the general condition of the economy. Capital market helps in the proper allocation of resources from the people who have surplus capital to the people who are in need of capital. So, we can say that it helps in the expansion of industry and trade of both public and private sectors leading a balanced economic growth in the country.
- Promotes Saving Habits: After the development of capital markets, the taxation system and the banking institutions provide facilities and provisions to the investors to save more. In the absence of capital markets, they might have invested into unproductive assets like land or gold or might have indulged into unnecessary spending.
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Nisha Deshwal 8 years ago
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