managing change

Read the Case and answer the question given below (Suggested reading Time: 20 minutes) Case - Firing on Zoom Better.com CEO Vishal Garg announced the mortgage company is laying off about 9% of its workforce on a Zoom webinar Wednesday abruptly informing the more than 900 employees on the call they were being terminated just before the holidays. if you're on this call, you are part of the unlucky group that is being laid off," Garg said on the call, a recording of which was viewed by CNN Business. "Your employment here is terminated effective immediately." He then said employees could expect an email from HR detailing benefits and severance. "Having to conduct layoffs is gut wrenching, especially this time of year," CFO Kevin Ryan said in a statement to CNN Business. "However a fortress balance sheet and a reduced and focused workforce together set us up to play offense going into a radically evolving homeownership market." Garg cited market efficiency, performance and productivity as the reason behind the firings. Fortune fater reported Garg accused the employees of "stealing" from their colleagues and customers by being unproductive and only working two hours a day. "This is the second time in my career I'm doing this and I do not want to do this. The last time I did it, I cried," Garg said on the call, which remained short and emotionless. Among those fired were the diversity, equity and inclusion recruiting team. Better.com, which is backed by SoftBank, has brought on a third party firm to assess its leadership and culture, according to a copy of the board's memo obtained by The New York Times. Several top employees resigned following the firings, two in communications and one in marketing. Christian Chapman, 41, a former underwriting trainer at Better.com, said he was used to preparing for company meetings by making sure his children weren't around, because Mr. Garg tended to use foul language. But last Wednesday, when he received an unexpected invitation to the company call with Mr. Garg, he got a sense of foreboding because the chief executive looked so solemn. As Mr. Garg impassively delivered the news, Mr. Chapman said his "gut dropped to the floor," and he tried to message teammates to ask what was happening but his computer access was shut off almost immediately "I've been through layoffs and usually there's closure because you talk to H.R., you go to your desk and grab your personal belongings and say goodbyes," Mr. Chapman said. "There's no closure here. You're staring at an empty screen in your house." It took about three hours for him to receive a follow up email, reviewed by The Times, that explained the terms of the termination, Mr. Chapman added. On Thursday, the company increased his termination package from one to two months of pay. He also received a Christmas package containing a trophy, certificate and company T-shirt (which his wife offered to burn). Mr. Chapman said that the chief executive's messaging about fired employees "stealing" from the company by working only two hours a day -- which the former employee said was contradicted by his team's recent promotions and raises -- had made it challenging for them to apply for new jobs. Backlash Owing to the beavy criticism and public outcry over Garg's insensitive and brutal behaviour, several senior executives of the company have resigned. Garg later sent a message to Better employees apologizing for how he handled the layoffs. "I failed to show the appropriate amount of respect and appreciation for the individuals who were affected, and for their contributions to Better, "Garg wrote." realize that the way I communicated the news made a difficult situation Page 2 of 3 worse." But this was too little, too late. The company board sent an email to the employees and investors that says following "the very regrettable events over the last week," CEO Vishal Garg will be taking time off "effective immediately," and Better CFO Kevin Ryan will manage day-to-day operations. Based on the case answer the following questions - 1. Write a summary of the case study and identify the main issues in this case, State in your opinion what could have been the reasons behind the CEO choosing such an approach to layoff the employees. (Summary and Issue identification 15 marks; reasons behind leadership choice of approach towards layoffs - 10 marks = 25 marks) (Suggested time - 25 minutes). 2. Discuss the situational leadership and various styles of situation leadership. Identify the approach the CEO of Better.com CEO has adopted. Explain why the style of leadership the CEO has chosen is ridden with faults. (Situation Leadership and styles of situational leadership - 15 marks; Choice of CEO's style of leadership and analysis of his leadership style 10 marks = 25 marks) (Suggested time - 25 minutes)). 3. If you were appointed the CEO of this company, suggest the main changes you would bring about in the company related to the strategy and people management. Critically assess whether the company culture needs to change before any change can be implemented. (Changes that one will bring as a CEO - 15 marks; role of culture in managing change - 10 marks = 25 marks) (Suggested time - 25 minutes). 4. Explain the various principles of persuasion. The board has made you the CEO of this company and has entrusted you to persuade some of the employees who have been fired to return to the company as well as persuade the public in general to change their poor opinion about Better.com. Choose the adequate persuasion strategies to persuade the employees and public Justify your answer. (Persuasion strategies - 20 marks; choice of persuasion strategy for employees and public - 5 marks = 25 marks) (Suggested time - 25 minutes)