In a major financial crisis of NBFC’s, the rumor proved much more accurate than the announcements from the top management. CEOs at major companies like IL&FS defended their companies and practices right through the crisis. Some economist and financial pundits got the story right. But the real gossip came from people in the trenches who knew the practices were poor and credit risk was much greater than stated. In this situation the accurate information came from?
A.    Formal communication
B.    Informal communication
C.   Grapevine communication

The accurate information here is coming from rumors and the informal interaction of the employees which follows no chain of command for the flow of information. The Informal Communication is the casual and unofficial form of communication wherein the information is exchanged spontaneously between two or more persons without conforming the prescribed official rules, processes, system, formalities and chain of command. It is based on the personal or informal relations such as friends, peers, family, club members, etc. and thus is free from the organizational conventional rules and other formalities. In the business context, the informal communication is called as a “grapevine” as it is difficult to define the beginning and end of the communication. The informal communication is characterized by an indefinite channel of communication, which means there is no definite chain of command through which the information flows. Hence, the information can flow from anywhere. Often such communication arises out of the social relations that an individual creates with other persons on the basis of common interest, likings or disliking.