It Companies Case

This case study will explore how companies can and should respond, using electronic communications such as blogs, by asking several of these questions listed. Do you think Telsa CEO Mush did the right thing when he blogged about impending layoffs just before announcing them to company employees? Why or why not? Do you think employees have a responsibility to be careful about what they blog about their company? Why or why not? Do you think employees who blog about their companies have an ethical responsibility to disclose their identities? How can a company develop a policy for handling communication of sensitive issues inside, and outside, the company?

 Should companies that fire shoot first?

The use of electronic communication is ever growing with individuals and corporations. Facebook, MySpace, Texting, Emails, and Blogs are used throughout both. It is estimated that over 112 million blogs and more than 350 million blog entries are now read daily (Robbins & Judge, 2011). Layoffs are a last resort for most business. They know cuts can quickly throw their companies into a tailspin by decimating morale and can hobble turnaround efforts once demand revives. Many first try to find ways to reduce payroll costs without cutting staff on which they spent serious time and money to train and develop. Of course, not every company can avoid layoffs, particularly in a sharp downturn, when sales are tanking. I believe that in the case of Tesla Motors, their CEO, Elon Muck, acted in the best interest of not only his company but of their employees as well. I think the most important thing in dealing with anyone whose livelihood is at stake is pretty direct and open communication. That approach grounds employees with solid information and can alleviate workers' anxiety. In times of uncertainty, what people most crave is some information that helps make decisions.