. What’s your impression of what took place in the scenarios of managers delivering bad news to employees? Did the manager in each scenario communicate effectively? Why or why not? 2. For each of the scenarios of managers delivering bad news to employees, discuss what might have been a better way to communicate the message.

Understanding Business
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ISBN:9781259929434
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Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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1. What’s your impression of what took place in the scenarios of managers delivering bad news to employees? Did the manager in each scenario communicate effectively? Why or why not?

2. For each of the scenarios of managers delivering bad news to employees, discuss what might have been a better way to communicate the message.

• IBM CEO Ginni Rometty, after a disappointing earnings report, publicly
reprimanded all the company's 434 000 employees through a five-minute
internal video message. She specifically pointed to the sales staff for
missing out on several large deals. When the press heard about it, many
referred to it as a public spanking.13
• AOL's CEO, Tim Armstrong, broke the news about the company's
decision to cut employee retirement benefits on television network
CNBC. Only after informing Wall Street did Armstrong hold a
companywide conference call with employees to discuss the
announcement and explain the rationale. Employees complained about
"secret" cuts on Twitter and other social media sites. And Armstrong
only added fuel to the fire after he tried to blame the change on the new
federal healthcare law and medical expenses associated with two
"distressed babies" of AOL employees. After a week of bad publicity,
Armstrong informed employees through e-mail that he was reversing his
decision and apologized for his controversial comments.914
Some 90 workers at a Ford Motor Company's Chicago assembly plant
got an automated phone message announcing they had just been laid off.
915
Although each of the managers involved in these communications probably
thought they were doing the right thing, the choices they made led to an
outcome they weren't expecting.
Transcribed Image Text:• IBM CEO Ginni Rometty, after a disappointing earnings report, publicly reprimanded all the company's 434 000 employees through a five-minute internal video message. She specifically pointed to the sales staff for missing out on several large deals. When the press heard about it, many referred to it as a public spanking.13 • AOL's CEO, Tim Armstrong, broke the news about the company's decision to cut employee retirement benefits on television network CNBC. Only after informing Wall Street did Armstrong hold a companywide conference call with employees to discuss the announcement and explain the rationale. Employees complained about "secret" cuts on Twitter and other social media sites. And Armstrong only added fuel to the fire after he tried to blame the change on the new federal healthcare law and medical expenses associated with two "distressed babies" of AOL employees. After a week of bad publicity, Armstrong informed employees through e-mail that he was reversing his decision and apologized for his controversial comments.914 Some 90 workers at a Ford Motor Company's Chicago assembly plant got an automated phone message announcing they had just been laid off. 915 Although each of the managers involved in these communications probably thought they were doing the right thing, the choices they made led to an outcome they weren't expecting.
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