A rumour may have the positive social effect of relieving tension, problem solving, or providing a method of adapting to change. For example, an untrue but colourful joke about another staff member can promote laughter and thus relieve tension. However, a rumour can also have the negative social effect of supporting a hostile belief system and increasing stress and conflict. For example, the incorrect information may be spread in an attempt to divide staff, or to discredit and demoralise an individual or group of staff. When rivalry between staff exists, such as between staff who belong to a union and staff who do not, rumours are a common way to stimulate discontent.
Rumours often function as expressions of unconscious fear and anxiety.
For example, when a new director of nursing is appointed and staff know little about his or her philosophy of nursing, information regarding potential changes may circulate among the staff. If the new director provides little information and is seen infrequently by staff, information about changes will continue to circulate and rumours will proliferate. The more important and ambiguous the situation, the more rumours will circulate. Another psychological factor which contributes to rumours is a situation where strong personal emotions are aroused. The presence of a strong emotion often precipitates other strong emotions so that high anxiety may be joined quickly by feelings of guilt, envy or hostility.