1.

In this case, grapevine refers to the channel of communication which is informal in nature and results in transmission of rumors, gossip and information amongst the employees. There is an instance in which there was a rumor that the annual bonus for this year has increased by almost 20 % in comparison to previous year. The employee had planned their expenses and some of them have already taken liability in the wake that once they get the bonus they will payback all their dues. However when the bonus was declared there was only 2% increase which hurt the employees who have already incurred big liabilities in wake of increased bonus.