Question: n the late 1 9 9 0 s , almost every browser had Yahoo as its home page, and Yahoo wasa market leader. But by
n the late s almost every browser had Yahoo as its home page, and Yahoo wasa market leader. But by the early s Yahoo lost its leadership position in contentaggregation, web searches, and ad placement. In the early days of the Internet, Yahoowas a popular search engine, news site, and social forum that received decentrevenues from online display advertising. While it did each of these acceptably,competitors entered the market and developed greater competencies and have nowtaken over.Google now leads the search engine industry, while Facebook cornered the socialnetworking market. Currently, Yahoo has no technology advantage, no productadvantage, and no market advantage. While the company is hanging in there,revenues are flat and there is no clear strategic direction forward. Yahoos board hasbeen aware of these problems and has been trying to find the right CEO to turn thingsaround.In Marissa Mayer was selected as the CEO of Yahoo in hopes that the formerGoogle executive could bring new life to the struggling company. This is the fourthCEO within a year, and the company is in dire need of a new strategy and visionaryleadership. During her first year, she reduced costs, got all employees newsmartphones to be better in touch with what customers are using, and started pushingthe app development market. However, there is still much to do to make Yahoocompetitive again.Mayers bet is that employees will be inspired by spontaneous interactions to createnew products and services that will enhance Yahoos bottom line. Shes had somesuccess resulting from such interactions before. The new mobile app called YahooWeather came to be when someone from the Weather team and someone from theFlickr team encountered one another serendipitously on the Yahoo campus. Aftersharing projects, new ideas started flowing and led to the creation of the app. Toinspire and capture more of these ideas, Mayer rolled out a policy that eliminatedtelecommuting at Yahoo. In the memo sent to all its employees, Yahoo executiveswrote the following:To become the absolute best place to work, communication and collaboration will be important,so we need to be working sidebyside. That is why it is critical that we are all present in ouroffices. Speed and quality are often sacrificed when we work from home. We need to be oneYahoo, and that starts with physically being together.Thousands of Yahoos employees telecommute at least once a week. Telecommutingallows employees greater flexibility in doing their jobs; managing their personallives; and facilitating meetings between employees, customers, or suppliers.Previously, Yahoo used teleconferencing and videoconferencing to allowtelecommuters to be part of meetings, and other work could be completed via email,over the phone, or by using the companys virtual private network. The removal ofthe policy is leaving a number of its employees with families in a lurch and may forcesome employees to leave Yahoo. Further, telecommuting can reduce costs, ascompanies need less office space and less technology as well as spend less onelectricity and employee benefits.With the new policy, all employees will be forced to complete the normal to atthe offices, though they are allowed to telecommute on weekends and after hours.Will the time in the office be as productive as Mayer hopes, or will the policy lead todifferent kinds of inefficiency? Only time will tell.Please answer the following questions: The memo stated this: Speed and quality are often sacrificed when we work fromhome. How might Yahoo executives have come to this conclusion? marks What type of message did such a decision send to Yahoo employees? To the rest ofthe world? How might the medium an internal memo have affected the employeesinterpretation? What would have been a better way to communicate this change toemployees? marks How do you think this policy change affected employee attitudes and employeemotivation? Do you think that this change positively or negatively affectcommunication within the organization in the short and long term? How could thesituation influence organizational effectiveness? marks What else could Mayer and Yahoo managers done to motivate employees to be moreaccurate, swifter, more creative, more talkative, and more collaborative? marks It seems that Mayer is counting on her employees to come up with the answer thatwill revitalize the company. What kinds of communication channels will berequired? What changes do you think should be made to Yahoos other policies andculture in order to facilitate the needed communication for new ideas? marks Discuss Mayer leadership style that is helpful at Yahoos time and explain how farMayer leadership match Yahoo's time or not? Justify your answer.
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