According to a March 2014 study published in Psychological Science gossiping actually encourages co-operation among groups.

The research, led by Stanford University psychologist Matthew Feinberg, was based on 216 participants who played games involving financial choices.

By encouraging participants to work in groups and encouraging gossip, Feinberg found those who acted selfishly were ostracised. With these people out of the picture, the groups performed tasks more effectively.

But most people's experience in business would suggest gossiping is rarely a positive force.

It may be a common feature of every workplace, but water cooler chatter can easily get out of hand. Harmful gossip can leave staff ostracised and unhappy, foster an unhealthy work culture and earn businesses ugly reputations.

Business coach Matt Collins has a flat rule: no gossiping. Banning his clients from gasbagging frees up more time for them to be productive and focused, he says.

“It's a blanket rule that they aren't allowed to talk ill of anyone,” Collins says of his coaching program.

“The program was about them getting fitter, but also having a positive lifestyle and positive relationships around them.

“Gossiping is a really bad habit to break, it's like losing weight or trying to stop smoking. And listening to negative opinions about a third party is just as toxic.”

Hearing the latest titillating details on the grapevine can be entertaining and addictive, but it's also a sure way to spread lies.

“Truth is very rarely taken into consideration,” Collins says.

“What happened in someone's version of events versus what really happened, can be miles apart.”

While gossiping can forge working relationships, Tim Simons, founder of Build Coaching, says it can quickly turn malicious if left unchecked.

“Negativity spreads like wildfire and when it becomes personal, it can really affect workplace morale and productivity,” he says.

“I often hear people say things like, 'I heard that I'm not getting that promotion' or 'I'm going to be made redundant'.

“These people then start looking for new jobs because they are making decisions on information that is not real.”

Simons says rumours can linger for months, even years, and leave lasting effects on individuals and businesses.

He points to a recent example where an executive left a company and her workmates speculated it was because she hated her boss. Simons says this wasn't the case, however the boss was quickly labelled as “the guy who drives people to resign”.

It's crucial to gag gossip before it drags down workplace well being. And it all starts with management, says Simons.

“It can definitely be controlled, it's just a question of when you pick it up,” he says.

“Leaders and senior managers should never gossip. If they do, all their staff will see them setting an example and of course they will get involved.”

Here are Simons' tips on how management can control office gossip:

1. Be proactive and plentiful with communications.

Staff will make up their own versions of what's happening when businesses are slow to communicate any upcoming strategy, changes or plans – all because there was no official announcement to set the story straight.

2. Be on the lookout for “triangle conversations”.

If two parties start talking about a third party who is not there, a triangle is created. This triangle is often where whispers and gossip start.

3. Keep staff focused on the job at hand.

Boredom can create an unstimulated mind. And an unfocused mind loves negativity. So keep things interesting at work. If staff are focused and enthused about their work, the results will show.

4. Set expectations early.

When inducting any new employees into the company, let them know that office gossip is not tolerated. Use the company values, culture or behaviours guide to show why.

5. Don't put your head in the sand.

If gossip is out of control, never ignore it. Plan some discussions with the key people involved and hit it on the head. Make them aware this is a behavioural issue and explain how being involved reflects on them.