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Weymouth Steel Corporation

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Weymouth Steel Corporation
WEYMOUTH STEEL CORPORATION

Case Overview:
Weymouth Steel Corporation in September, 1990 is having a critical time in finding out the ways to communicate the bad and good news to its salaried employees. An erroneous selection of time and communication channel selection may demoralize the workforce completely resulting in a disaster for the company.
The good news is that the company management has decided to increase the salary and benefits of almost all the salaried employees regardless of their grades while on the other hand the bad news (because of the long time slump in the steel industry), the management has decided to go for downsizing of the salaried workforce. The chairman of the board Carl Weymouth and the management realized the sensitivity of the task, however, if the management is able to inspire its workforce with a new vision and hope for future success; this dilemma can easily work as a catalyst for company growth.
But once the management will speak out the downsizing news to its employees, the challenge to reduce the arising stress will be higher. Therefore I will recommend the following strategy with time lag to communicate the good and bad news to employees and to curb the rumors in the media. But firstly the new changed vision of the company should be: Proposed Vision:
"Weymouth steel corporation will endeavor to become a leading steel corporation, committed to excellence in product quality and continuous innovation to best satisfy our customers, where all people grow to their best potential in safe, positive and nurturing environment".

The underline theme and its explanation are given in the exhibit 1. A vision is a crucial underpinning for change and management should repeat it again and again to get it absorbed by the employees.

Recommended Communication Strategy:
I believe that there should be multiple stage announcements of the bad and good news with the time lag, as if the management announced the good news and bad news
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