Layoffs Planned at WeWork

After a failed IPO and questions about its leadership and financials, WeWork is planning to downsize. New co-CEOs Artie Minson and Sebastian Gunningham warned employees to expect layoffs but said they will be handled “humanely.”

The new leadership had already prepared employees: "While we anticipate difficult decisions ahead, each decision will be made with rigorous analysis, always bearing in mind the company's long-term interest and health." The new information gives employees a better sense of what will come.

But news stories aren’t consistent. Fortune reports 2,000 layoffs or about 16% of WeWork employees affected, while Dice reports 5,000. Dice acknowledges differences in reporting.

Affected employees could be in business segments that will be spun off, so they may still have a job. WeWork may try to sell Meetup, Managed by Q, and Conductor brands.

Discussion:

• Assess WeWork’s communications to employees so far. Even if the percentage were clear, the number of layoffs may change. Are the new leaders doing the right thing in giving an estimate now?

• Employees know layoffs are coming “soon.” Should they have more specific dates? Consider whether this is a good idea.

https://fortune.com/2019/09/25/wework-new-ceos-memo-employees/

East Carolina University Leader Placed on Leave

East Carolina University’s interim chancellor is being investigated for inappropriate behavior with students. One video shows Dan Gerlach chugging beer and dancing with students, and photos show him with his arm around a student at a local hangout in Greenville, NC.

Gerlach wrote a statement in his defense:

When I first started here, and even before, one constant concern that I heard was that our students needed a leader of the university to be present and approachable, someone who can speak to them in their language. That’s what I’ve set out to do at ECU. I regret that these photos are being perceived as anything more than what they are.

A member of the board of trustees said, “This is very concerning without question.” However, the bar owner defended the chancellor in a tweet:

I wasn’t there, but two of the staff told me that several people were kind of excited to see the chancellor out and in the bar…It really is a damn shame. The guy came in with some off duty cops to have some beer. Just wrong place, wrong time.

Discussion:

• How do you assess Gerlach’s response? Explain his perspective of the situation.

• Analyze the bar owner’s tweet. How much credibility does he have in this situation?

• What do you think of university administrators socializing with students in this way? Do you have a different perspective of faculty? Why or why not?
  
  

Online Reviews Written by Attractive People Carry More Weight

A study published in Consumer Marketing found that reviews written by more attractive rather than less attractive reviewers lead to “enhanced brand evaluation.” The Cornell and Penn State researchers swapped out photos of reviewers to test the impact of bias.

Marie Ozanne, assistant professor of food and beverage management in the School of Hotel Administration, explains the result:

“More often than we think, we are replicating our offline behavior online, and we don’t know the impact of all our general offline thinking on our online thinking. Hopefully, understanding it can help us be more conscious about it and find ways to focus more on the information that matters.”

Negative reviews didn’t see the same effect, which Ozanne believes illustrates how people think about products or services. When reading negative reviews, people may think more deeply about the product or service, and then the reviewer’s image becomes less important.

Image source. (Confession: I added a period after the first sentence.)

Discussion:

• To what extent do you rely on online reviews?

• How do you think appearance might influence your judgment—of online reviews or in other situations?

• How can you ward against the effect of appearance bias?

Google Reassures Employees They Can Speak Out

The National Labor Relations Board has ordered Google to allow dissent among its workforce. Although you might think of Google as a place of open ideas, some employees feel stifled.

The first public incident was the infamous “Google Memo,” which argued conservative ideas about women. The employee was terminated—a decision some thought essential for the company, and others thought unfair.

More recently, employees have complained that management puts restrictions on what they can say, including how they express attitudes about the company on social media. But employees in the U.S. are allowed to engage in potential union organizing activity, which includes discussing pay and issues with management.

The Wall Street Journal explains the agreement between NLRB and Google, which does not include a statement of responsibility:

“The settlement orders Google to inform current employees that they are free to speak to the media—without having to ask Google higher-ups for permission—on topics such as workplace diversity and compensation, regardless of whether Google views such topics as inappropriate for the workplace.”

Image source.

Discussion:

• What is the value of allowing debate in the workplace? What are the drawbacks?

• How can managers draw the line between employees’ right to dissent and what’s right for the company?

• Have you expressed political opinions at work? When and how were they received? Have you ever felt uncomfortable during others’ discussions? What did you do?

United Air Kerfuffle

A United Airlines representative participated in an entertaining Twitter exchange about seat prices. The customer has a point: it’s silly to have empty seats on a plane. But United also has a point: the seats are more expensive, and this customer didn’t pay the extra fee.

The Lexus analogy is a curious one. The better analogy may be stadiums or theaters. In some cases, we will see people move closer to a field or a stage, but I understand (although I’ve never been) that this isn’t allowed at the U.S. Open.

Discussion:

• What’s your view of United Airlines’ policy? What other examples are similar? Can you think of a better analogy?

• What’s your view of the Twitter exchange? Is the customer right, antagonistic, rude, or something else? How about the United rep?

Creative Charts

The Wall Street Journal created a chart to show what Americans value—and how those values have shifted over time. The graphic is a variation on a line chart with generations represented by color.

Understanding the chart may take a while. At first glance, the generation identifiers at the top look like headings, but they point to small bar colors.

The information is interesting, and some points probably aren’t surprising. Older Americans value patriotism, religion (which the poll describes as “belief in God”), and having children more highly than do younger Americans.

Discussion:

• Assess the graphic design. How intuitive do you find the chart? What works well, and what could be improved?

• What are your reactions to the data? What do you find surprising—and not?

• What implications do you see for companies’ attempts to keep employees engaged at work?

Research About Befriending Your Boss

A Wall Street Journal article describes the positive and negative effects of being friends with your boss. Research shows that managers do give preferential treatment to employees they consider friends.

However, a study published in the Journal of Experimental Social Psychology demonstrates that managers may favor others when decisions are public. To avoid perceptions of bias, Alex Shaw, an assistant professor of psychology at the University of Chicago, offers three solutions for managers:

• Recuse yourself. I’m skeptical about this because a manager’s job is to make such decisions, but I see the point: if you can get out of being the final decision maker, that might be best in some situations.

• Make the criteria public. This is a good practice, anyway, to ensure transparency in decisions, particularly those that are sensitive and affect people personally.

• Ask for opinions. This could work, for example, when peer feedback may be as relevant—or more relevant—than the manager’s point of view.

Image source.

Discussion:

• Have you considered a boss a friend? How might the relationship have affected decisions?

• What’s your view of the strategies suggested here? In what types of situations could each work or backfire?

Shirtless Video Calls

Child interruptions, toilets flushing, clinking ice—I’ve seen and heard it all on video and audio calls. The Wall Street Journal reports that more remote workers have brought more mishaps, like a coworker appearing shirtless, forgetting to turn off his camera. And who can forget the adorable kids who walked in on a BBC interview.

The article suggests signs outside a home office door to indicate when calls are in progress—”On Air” or “Do Not Disturb.” Double-checking your mute button is a good idea too.

I would also suggest being clear about whether a call will be video or audio. A job candidate was surprised to know that her interview was via video. The employer insisted that she turn on her video, and she wasn’t dressed for it.

Image source.

Discussion:

• What mishaps have you experienced on audio or video calls?

• What other ideas do you have to prevent embarrassing situations?

• How does this story relate to the concept of authenticity?

Another Blackface Disaster

Belgium’s Africa museum hosted an event for which people arrived in pith helmets, blackface, and other offensive and stereotypical clothing. Understandably, the Congolese community is upset. As one representative said, "Ethnic, exotic or African is not a costume that you can put on and take off.” You can read about Belgium’s occupation of the Congo to understand the history.

The party was organized by a separate company, Thé Dansant, and one organizer defended the party: “Even if one person painted his face black, it was not meant to be offensive. Many people of African origin were enthusiastic about the concept and were present.”

So far, the Royal Museum of Africa is trying to distance itself from the event and hasn’t issued a statement or apology.

Museum image source.
Party image source.

Discussion:

• What’s your view of Thé Dansant’s response?

• What is the museum’s accountability? What should the leaders do or say?

Employees Pressure Walmart to Consider Role in Gun Violence

Walmart is in a tough spot after recent shootings. Some employees are pressing the company to do more to fight gun violence, but no policy changes are planned. After previous attacks, Walmart stopped selling assault-style weapons and raised the minimum age to purchase guns and ammunition, but it’s unclear whether the leaders will do more. Employees are asking Walmart to stop selling firearms and to disallow customers from carrying guns into the stores.

The company seems divided about employees’ activism. Chief Executive Doug McMillon wrote, ”We are proud to be woven into the American fabric as a place for all people. We are more resolved than ever to foster an inclusive environment where all people are valued and welcomed.” At the same time, the company blocked two employees’ access to Slack, encouraging employees to use “more constructive ways for associates to offer feedback such as emails or conversations with leaders.”

A study recently published in the International Journal of Business Communication found that employees are more likely to “express dissent to managers and coworkers” when they are more socialized in the company and when they believe their company is “more ethical and reputable.”

A Wall Street Journal article explains the risk for Walmart to take more action against gun sales:

“[A]ny change to its gun policies risks alienating Walmart’s core customers, who often live in more conservative-leaning rural and suburban communities. The company faced some consumer backlash after raising the minimum age to purchase guns to 21.”

Image source.

Discussion:

• How can the company balance employees’ and customers’ perspectives? What else, if anything, should company leaders say and do?

• Did the company do the right thing by blocking Slack access? In what ways are email and conversations more or less “constructive”?

• What leadership character dimensions are illustrated by this situation?

Republican Google Employee Claims Bullying

Google engineer Kevin Cernekee was fired because, as the company claims, he downloaded information and used software inappropriately, violating company policies. But Cernekee says he was fired because of his political views, particularly because he was outspoken and conservative.

Cernekee is an “outlier,” according to a Wall Street Journal article that describes how rare his beliefs are at Google:

“Some 95% of Google employee donations to candidates in the 2018 midterm elections went to Democrats, according to the Center for Responsive Politics, citing public disclosures.”

Google contends that open dialogue is encouraged and valued, but some of Cernekee’s internal posts were deemed offensive. In one, Cernekee wrote that “many Googlers strongly disagree with Social Justice theory and even more Googlers are concerned about the ‘internet mob’ shaming and intimidation tactics employed in support of this agenda.”

This situation echos the 2017 case when another Google employee was terminated after his memo criticizing diversity and inclusion initiatives at the firm was made public.

Discussion:

• What’s your view of these situations at Google? After researching these two cases further, do you tend to side with the terminated employees or with Google management?

• How do you think your own political views might influence your feelings about these situations?

Rossello's Resignation

After initial resistance, the governor of Puerto Rico announced his resignation. More than a week of protests about inappropriate chats and financial mismanagement forced Ricardo Rosselló to step down, effective August 2.

Rossello’s video was posted on Facebook. In his statement, Rossello first described successes of his administration, for example, “We raised the salary of teachers in the middle of a bankruptcy.” Then he said, “I was willing to face any challenge, fully understanding that I would prevail against any accusation or process.”

But Rossello admitted he could not continue, having “heard the demand of the people,” and recognizing that his failure to resign “would endanger the successes we have achieved.” He also tried to quell protests: “I hope this decision serves as a call to citizen reconciliation.”

Rossello image source.

Protests image source.

Discussion:

• Did Governor Rossello make the right decision by resigning? Why or why not?

• Analyze his speech (if you understand Spanish or find a translation). Consider his audience, communication objectives, word tone, organization, and tone.

• What similar business situations come to mind? Think about a CEO who was under pressure to resign and what happened. What conclusions can you draw between the business and political situations?
  
  

Email Niceties

We write certain phrases in emails by convention, but perhaps “I hope you’re well” is overdone.

A New York Times opinion writer pokes fun at the overuse of the phrase by showing a few examples. The emails are short and include ridiculous requests, for example, about a missing attachment or whether someone has rubber bands. Still, the writers apparently can’t resist asking about the receiver’s health.

In their responses, recipients answer the question, which of course, is not really expected. It’s like saying “How are you?” when passing someone in a hallway.

Image source.

Discussion:

• What’s the value of this phrase and others in email and in person? How do you feel writing emails without something like it?

• What’s your view of the phrase: expected, overused, or something else?

• What other phrases in emails do you think might be overused?

Government Scandal in Puerto Rico

Gov. Ricardo A. Rosselló says he will not resign despite protests about private messages that included personal attacks and crude language. With 11 of his top aides, Rosselló participated in chats via the messaging app Telegram. Almost 900 pages of text are now public, and we see insults about other officials with references to people’s sexual orientation, gender, and weight.

The news comes after government corruption chargers earlier this week. The governor admitted, “I committed inappropriate acts,” but also said, “I have not committed illegal acts.”

In a news conference, Rosselló used the words “improper” and “shameful,” but didn’t agree with the reporter that the chats were unethical.

Discussion:

• Should the governor resign? Why or why not?

• What’s your view of the private chats? Should government officials be able to message each other freely? Why or why not?

• How well did the governor respond to the reporter’s questions? Did he convince you?

Suicide Among France Télécom Employees

Management couldn’t fire employees at France Télécom, so, according to critics, they harassed them hoping they would quit. But at least 35 committed suicide under the pressure, and some reports claim the number is closer to 60.

France Télécom was privatized and rebranded as Orange in July 2013. The company wasn’t keeping up with technological changes and, according to executives, were saddled with state employees, who are protected from termination. In 2007, Didier Lombard, the former chief executive of France Télécom, said they would get to their ideal number of layoffs “one way or another, by the window or by the door.”

A New York Times article describes the environment: “A grim universe of underemployment, marginalization, miscasting and systematic harassment was established at the huge company, according to testimony at the trial.” Managers tried changing job responsibilities for some workers, but employees were left without tasks or with tasks they couldn’t do.

With France’s high unemployment rate, employees felt they had few options. Union members, shown here, express their support during the trial in Paris. We’ll see whether the judges find company executives guilty.

Discussion:

• How did management justify its practices? On the other hand, how could they have acted differently?

• What experience do you have with international labor laws? Describe differences and how they might affect business decisions.

• Should France reconsider its lifetime employment protections?

• What leadership character dimensions are illustrated by this situation?

Nike Flag Shoe Controversy

Nike pulled shoes with flag decorations and is taking some heat for the decision. The shoes featured 13 white stars, reflecting an early version of the American flag created by Betsy Ross in 1776. But, according to a Bloomberg article, “The design recently has taken another meaning for some Americans as far-right groups have claimed it as a symbol of their cause. It has also been criticized as evocative of an era when slavery was still predominant in the U.S.“

Former NFL quarterback Colin Kaepernick, who endorses Nike products, and others asked the company to remove the shoes because they are considered offensive. The company complied but is facing backlash from some groups, and the Air Max 1 USA sneakers are selling for up to $2,500 a pair. The company also issued a statement:

“We regularly make business decisions to withdraw initiatives, products and services. Nike made the decision to halt distribution of the Air Max 1 Quick Strike Fourth of July based on concerns that it could unintentionally offend and detract from the nation’s patriotic holiday.”

Sneaker image.
Colin Kaepernick and sneakers image.

Discussion:

• What’s your view of the sneaker image: offensive, patriotic, or something else?

• How do you assess Colin Kaepernick’s role in the controversy?

• Did Nike do the right thing in pulling the sneakers? Why or why not?

• Assess Nike’s statement in response to the controversy. What else, if anything, should company leaders have said?

Kim Kardashian West Accused of Cultural Appropriation

Kim Kardashian West named her new line of shapewear Kimono and was accused of cultural appropriation. Kardashian West said the name, which, like her other brands, starts with a “K,” is “a nod to the beauty and detail that goes into a garment.”

A New York Times article describes the controversy over using the name of this traditional Japanese garment:

“But while traditional kimonos, which date from the 16th century, according to the Victoria & Albert Museum, have many associations, those tend not to involve lingerie, Hollywood celebrities or reality TV. Hence, the problem.”

Kardashian West is unapologetic and plans to continue with the line. She said, “I understand and have deep respect for the significance of the kimono in Japanese culture.”

The Times article mentions two other brands that haven’t received the same backlash: Kimono condoms, and Kimono Lash. The author considers whether the Kardashians’ use of social media made them both popular and vulnerable.

Image source.

Discussion:

• What’s your view of using the kimono name for a lingerie line?

• Assess Kardashian West’s response: on target, insensitive, or something else?

• Do you agree with the author’s conclusion about the Kardashian fame? Why or why not?

How to Navigate Multiple Offers

It’s one of those “good problems”: getting more than one job offer. But navigating the relationships and making a decision can be tough.

A Wall Street Journal article tells the story of a man faking his own death to avoid telling a company that he didn’t want to take the job after accepting an offer. According to an executive at the staffing company Robert Half, “ghosting” a prospective employer is most common among people out of school between two and six years. More and more, employers receive last-minute text messages or no-shows on the first day of work.

A management consultant believes the trouble is that college students lack the communication skills to handle these situations more professionally: “This is the generation that breaks up by text message, so in a professional context, to have to let someone down or give bad news was terrifying.”

Twice this past semester, students asked me for advice in reneging offers. Overall, I’m not a fan of the tactic. To me, it’s an issue of integrity: when students make a commitment to one employer, they shouldn’t change their minds when a better offer comes along. I also worry about their reputation in the industry—and whether their expectations will be too high for the new job, and they’ll end up disappointed. At Cornell, students also give up their access to career services in the future when this happens.

But students do what is best for them. What matters after the decision is how it’s communicated. I always suggest a phone call rather than an email, which takes courage. A direct, honest approach is best, with an apology and some understanding of how the decision affects the employer, who’s left with an unfilled position and additional recruiting time.

Ideally, students get offers at the same time with the same decision deadlines, but of course, that’s not always the case, and comparing offers becomes challenging. The WSJ article recommends these practices for evaluating and accepting job offers:

DO

* Make clear early what you’re looking for in a new job.

* Ask employers their timeline for making a decision.

* Express appreciation and enthusiasm when receiving an offer.

* Take time to assess each offer carefully, weighing both financial and quality-of-life factors.

DON’T

* Communicate important decisions by text or email.

* Try to pit one employer against another in a bidding war.

* Respond to a job offer by announcing that you already have a competing one.

* Base your decision solely on pay.

Image source.

Discussion:

• Have you been in a situation of having multiple offers? How did you handle it?

• Have you reneged on an offer? How did you communicate the decision, and how did the employer react?

• What other advice would you give students who have multiple offers?

Rutgers Chancellor "Berates" Police Officers

The Chronicle reported that Rutgers Chancellor Nancy E. Cantor “apologized for berating campus police officers.” On her way to the airport, Cantor’s driver hit a parked police car. She was detained and said, “If I miss my airplane, you folks are in trouble!” When an officer asked, “I’m sorry, who are you?” she yelled, “I’m the chancellor!”

The episode, which happened in March, was recorded on the officer’s body camera. Part of the debate is about whether Cantor needed to be detained because she entered the vehicle after the driver hit the other car.

Regardless, the video became public, Cantor apologized, and the Rutgers-Newark police chief responded:

“I appreciate Chancellor Cantor taking the time to review the video. I along with the RUPD are appreciative of her kind words and support. The sentiment is extremely appreciated, and we look forward to continuing a positive working relationship with the Rutgers-Newark chancellor’s office.”

Discussion:

• Watch the video exchange. What’s your view of the chancellor’s behavior with the police officers?

• Should the officers have done anything differently in this situation? Why or why not?

• Assess the police chief’s response. How well does he demonstrate forgiveness?
  

Harvard Rescinds an Offer

Harvard withdrew an admissions offer after discovering racist comments by the applicant online. The applicant, Kyle Kashuv, posted his version of events, including Harvard’s withdrawal and his responses before and after the final decision.

Kashuv became an activist for gun rights after he survived the school shooting in Parkland, Florida. He joined Turning Point USA, which The Chronicle describes as “a right-wing organization with chapters on many college campuses.”

Despite his explanation and apology, Harvard decided to rescind the offer. ]

Harvard College image source.

Discussion:

• Read Kashuv’s account of what happened as well as news articles. What’s your view? Did Harvard make the right decision? Why or why not?

• What, if anything, could Kashuv have done to prevent the withdrawal? Could he have been more persuasive in some way?