Capital Management Is in a Budget Crunch and Plans to Make

question 60

Multiple Choice

Capital Management is in a budget crunch and plans to make major layoffs next month. What is the best advice for communicating this crisis to employees? 

• A)Because the grapevine is so effective, use this tool to get the word out to all employees quickly.
• B)Deliver the bad news to employees personally if possible.
• C)To be upfront about what is going on, announce the bad news in the first sentence of an e-mail message.
• D)Let employees learn about the layoffs in the local newspaper.

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Definitions:

In-group Members

Individuals who belong to a particular group and share a sense of identity or common goals with other members.

Organizational Citizenship Behavior

Discretionary actions by employees that are beneficial to the organization and are not part of their formal job requirements.

Participating Style

A leadership approach that involves seeking input and sharing decision-making responsibilities with others, particularly team members.

Situational Leadership Model

A leadership theory proposing that the most effective leadership style varies according to the readiness or development level of the people being led.