Comm

2310 Team Case Study

Team Case Study Michael Dorcelly _______________________ Brandon Jimenez _______________________ Juliana Quintero _______________________ John Rivera _______________________ Lauren Siciliano _______________________ William Paterson University

Comm 2310 Team Case Study

Introduction Jerry Yang and David Filo founded Yahoo in January of 1994. The company is an American multinational Internet corporation that is headquartered in Sunnyvale, California. They are commonly known for their search engine Yahoo. The word yahoo is an acronym for Yet Another Hierarchical Officious Oracle. The company grew rapidly during the 1990s. Like many search engines and web directories, Yahoo added a web portal. In 2000, Yahoo began using Google for search. Over the next four years, Yahoo developed its own search technologies. They started using these search technologies in 2004. Yahoo also revamped its mail service to compete with Google`s Gmail service in 2007. During the first quarter of 2012, when Scott Thompson became CEO, many rumors began to spread about impending employee displacement. These rumors forced several key executives, such as Chief Product Officer Blake Irving, to leave. On April 4, 2012 Yahoo announced a cut of 2,000 jobs, which was roughly 14 percent of its 14,100 employees. Yahoo expected to save $375 million annually after the layoffs in 2012. On February 22, 2013, Yahoo sent an internal memo stating that all employees currently under a work-from-home-arrangement would be required to work in Yahoo offices effective June. In the memo, Yahoo claimed to be taking these steps in order to focus on experiences and interactions that are only possible in the workplace. The goal was to improve communication and collaboration efforts among employees. There was a

Comm 2310 Team Case Study great deal of controversy that came out of this paradigm shift introduced by the new CEO, Marissa Mayer. Many employees were shocked by this decision and the sudden

effect that the same would have on their work life and earnings. These employees would now have to account for the expense of a commute that was not part of their plan prior to this change. There were many opinions floating through social media. There were also plenty of experts sharing their views on network news stations. Ultimately, this was a change and decision that would have to be addressed and implemented by the leadership of Yahoo and the employees who would be the ultimate recipients of this new corporate culture. The book, Organizational Communication: Approaches and Processes, by Katherine Miller, discusses culture as being viewed in several different ways, first by what an organization already has in place, second by what the organization is. The first approach identifies culture as a thing. The second approach emphasizes more on how the individual interprets the environment through their communicative behaviors (Miller, 2012). Yahoo has grappled in its efforts to find their distinct culture in the midst of giant companies, like Google or AOL, especially during the burst of the dot-com bubble and even to this present day. An Internet companys culture must be permeable in order to survive. Yahoo has encountered quite a challenge with its leadership. This has been a difficult journey and the media and general public have taken notice. The company has lacked vision, values, and sense of true leadership. Marissa Mayer previously worked for Google over a period of thirteen years. She is well known in the technology industry for her work with Google and its Google Maps

Comm 2310 Team Case Study technology. Mayer is experienced in two of the most prominent areas of that industry.

Her primary skill set is that of management and engineering, both of which Yahoo needs. Silicon Valley Business Journal credits the recent increase in Yahoos stocks to Mayers point of view and the recent policy changes she has made. As stated earlier, Mayers recent decision to end the work-from-home policy created quite a debate. The events that led to this major cultural shift were simple but weighty. In short, Mayer checked how often telecommuters logged onto their virtual private network and concluded they were not logging in as expected, which resulted in an extensive review and modification of this long standing policy. Yet there is another issue at stake, culture. Since Mayer saw interpersonal dynamics as an important ingredient of their culture, she decided it was best to have all employees come in to the office. Her theory is that in a setting where colleagues spend time together, there is an increased opportunity for invaluable productivity and ingenuity. The idea presented by Mayer is that experiences are created by these interactions and can inspire innovation and forward movement for the company. Mayer believes that these are the necessary ingredients to make Yahoo the competitive giant that it should be in that market. Mayers leadership perspective has not been the only major change in the company; she has brought over several key players from Google and is continually seeking great talent to join Yahoo. This new shift of individuals with old members will have a creative affect as they build this new culture (Miller, 2012). It is the very people of the company that will create a change and then lead the company towards success. Zorn Page (2000) stated in his study, The sources of innovation remain mysterious; life experiences can serendipitously

Comm 2310 5 Team Case Study provide insights. By building diverse teams of employees, organizations increase their chances of making a breakthrough. The Issue Companies and corporations allowing their employees to work from the comfort of their own home is not a new practice. That is why the decision made by Yahoos CEO to ban all work-from-home arrangements and have all employees work from their offices stirred quite a response from the industry, media and the corporate sector. In his article, Martin, (2013) shared how Silicon Valley giant, Nolan Bushnell, went as far as to call Mayer massively stupid. Everyone had an opinion about Mayers efforts to pull all the Yahoos back to the mothership (Martin 2013). However, before delving further into the issues faced by Yahoo, it is important to note that there are many definitions and variations of working from home. Following is a list of these variations as presented by Guiler, J. K., & Kelly, M. (2009): 1. The after hour worker This employee brings work normally done at the office to an off-site location with or without the permission of the employer. 2. The part-time self-employed worker This individual is employed by the organization while at the same time is exploring the possibility of doing his or her job out of a home-based operation. 3. The self-employed employee This individual owns and operates his or her own organization. They are their own bosses running their company out of their home. 4. The franchisee This person has purchased a franchise that allow him or her to work out of an office based at the individuals residence.

Comm 2310 6 Team Case Study 5. The employer-sponsored telecommuter The telecommuter is employed on a full-time basis by an organization. His or her company is the primary source of income, and the employer has given permission for this individual to work outside of the traditional office on a regular basis. This may include an office space set up in the employees home specifically for completing the employees duties to the employer. For the sake of this discussion, we will consider the 5th option, as it most resembles the policy that was rescinded by Yahoos CEO. Upon reading the articles and statements given by employees of Yahoo, there seems to be a significant number of them who believed that this change in the organization is for the better. According to Rebecca Greenfield (2013), the change in the organization is working rather well as part of a broader cultural shift under Mayer at the flailing company. Mayer instituted the change in the beginning of March of this year. The rationale behind Mayers decision became clear once she observed the work patterns of those employees working from home. The verdict was that employees who were working from home were abusing the privilege and failed to execute to the expected standard set by corporate leadership. With little productivity and many distractions, employees working from home were facilitating Yahoos declining profits. This realization is supported by a study conducted by Standen (1997). In his study, he determined that companies with prolonged cultures of telecommuting experienced a shift in its employees focus over time. In short, the employees became increasingly focused on completing tasks and projects by a given deadline. While there were instances of poor performance and reduction of standard, the greater finding was of significant interest to

Comm 2310 Team Case Study the researcher. Standen discovered that over time, the employees who worked from home focused less on the mission and culture of the organization and became disconnected from the overriding values of the company. This created a unique, and at times challenging dynamics between Yahoos employees and senior leadership. In many of the chapters of Organizational Communication: Approaches and Processes, Miller often presents numerous challenges between different organizations working together and employees within the same organization. In the case of Yahoo, the

challenge comes from within, as there are employees who do not want to relinquish their old ways of working from home. However, their choices are limited, as the mandate intimated that those who do not wish to embrace the change cannot be part of the Yahoo team. This edict carries significant traits of the classical model of organizational management and communication. A glaring reality in this case is that the employees who have made their living working from home had slacked in their work, and many have even launched their own start-up businesses on the side during their work hours (Greenfield, 2013). The communication between these employees and their managers who had been working in the office was limited because there was no face-to-face interaction. This made it difficult to operate effectively and efficiently. With this problem, the culture of the organization was tattered and Yahoos image became that of a failing company. To the surprise of many and chagrin of some, the recent decision by Mayer has actually caused a noticeable increase in production. There have also been more applications for employment than ever. One of Mayers supporting strategies was to provide free food to employees in their corporate offices. Since the introduction of this

Comm 2310 8 Team Case Study fringe benefit, more employees have lingered to discuss ideas (Greenfield, 2013). This sheds a positive light on the company and shows that Mayers change may be for the better. While Mayers initial approach to this change may be categorized under classical management, this portion of her strategy can be considered as one that falls under the management style of human resources (Miller 2012). The free food clearly conveys the message that Yahoo appreciates the intelligence, contribution and creativity of its employees; therefore, the benefit provided by Yahoo becomes an expression of gratitude and to some extent, a reward. Analysis Many experts have deliberated quite a bit over the decision made by Marissa Mayer. There have also been many discussions and debate about ways to manage the issues associated with a significant cultural change as witnessed through Yahoos recent decision. Clearly there were two options available to Yahoo as it relates to organizational change models: Following are the two options discussed by Miller (2012): 1. The Natural Way The organization changes with the ebb and flow of institutional life and industry history. 2. Planned Change Frequently, organizations encounter problems within or in the marketplace that alert them to the need for a change in the way they conduct business. With situations like this, the leadership is able to implement change over a period of time to bring necessary course correction. This will ensure that the organization is able to resolve or improve accordingly.

Comm 2310 Team Case Study Clearly, Mayor employed the planned change model, as she identified the need for immediate change as necessary for the good of the company. With that change, there were a number of issues and challenges that resulted. Following are several viewpoints and ideas considered as part of our analysis.

The executive decision made by Mayer to require all Yahoo employees to work in company offices primarily portrays the organizational concept of power, where a clear authority figure is present and that same authority is exercised (Miller 2013). Mayer, as CEO of the organization, recognized what she considered to be a potential hindrance to the companys productivity, and therefore took the initiative to bring about necessary change. Though she had the companys best interest in mind, Mayer could not deny that the elimination of telecommuting among Yahoo employees would potentially become the groundwork for apprehension within the organization. One of Mayers primary goals was to create a new culture of innovation and collaboration in the company (Miller & Perlroth, 2013). She believed that this necessary feature for Yahoo was at risk because so many employees were putting in minimal effort in their telecommuting positions while still receiving steady pay. Her sudden decision is an example of the vertical flow of information, where communication flows downward in the form of orders, rules, and directives (Miller, 2012, p. 31). Despite how modern a company Yahoo may be, there is a trace of classical management style to Mayers leadership approach. Mayers memo, as she might have predicted, created organizational intergroup conflict, as collective groups of employees were affected. On a very basic level, current Yahoo off-site employees were not receptive to this new executive order because it

Comm 2310 10 Team Case Study became a significant source of inconvenience. Moreover, the CEOs plan to discontinue telecommuting within the company altered a component that can arguably be considered part of the companys schemata, or the common understanding of how the organization functions and how change ought to occur within it (Miller 2012). The communication regarding change used by Mayer displayed the managerial strategy of Withhold & Uphold, where management keeps as much information as they could from employees and then maintains their beliefs when confronted about related situations (Miller 2012). As previously mentioned, Mayers goal was to increase innovation and productivity within Yahoo, and her means by achieving that was ending the telecommuting practice of the company. In order to realize the innovation and employee satisfaction, perhaps Mayer and the rest of Yahoos executive leadership team could have considered some alternative approaches. For example, some corporations have incorporated fixed schedules that require a certain number of work hours to occur in and out of the office, as this would present a compromise as well as sound accountability on the part of the employee. According to Mayer, telecommuting is not the major challenge of the organization; rather, it is the lack of accountability among off-site employees that concerned the CEO. Mayer argues that there are interactions and experience that can only happen in the work place, and this point is valid. Perhaps she could have considered other ways in which Yahoo employees could have valuable experiences. John Chen, chief executive officer of Sybase Inc., has argued, creativity shouldn't get restricted by time or space (Pearlson & Saunders, 2001). Perhaps Yahoo leaders should consider ways in which employees senses and creativity could occasionally be stimulated outside of the

Comm 2310 11 Team Case Study office and even the home space. It is indeed possible to not be confined in an office and provide significant contributions to a company seeking new insight and ingenuity. The employee can perceive this as a form of compromise on the part of the Yahoo leadership team. Linda Berger once stated, it requires organizational skills and discipline to run a home office (Berger, 2005). If a lack of discipline is truly hindering the creative endeavors of Yahoo, Mayer should consider implementing different methods to correct any sub-par performance among them. For example, Yahoo could provide workshops and training for their employees. These workshops could reinforce the companys vision and culture and introduce creative work systems and solutions that could demonstrate to the employees that Yahoo is investing in their work environment and is concerned about their satisfaction with the work place. Workshops are an example of the many critical tools that help cast a vision of how a company can stay innovated, regardless of practice or the absence of telecommuting. Unifying the body of employees with a passionate goal may help motivate and steer them down the proper road to success and ensure productivity. The vision of the company at hand is the upmost importance to its success and innovative aspirations. Over the years, there have been those executives who have endorsed flexible work arrangements. Barry Melancon, president and CEO of The American Institute of Certified Public Accountants was quoted in an article where he staunchly supported flexible work arrangements. According to the article, he believed in retaining talented people and helping them achieve work/life balance (Berger 2005). He also asserted that his firm measured success on output, not input, and flexible work arrangements fits in

Comm 2310 Team Case Study with this philosophy (Berger 2005). Interestingly enough, the lack of output by

12

Yahoo employees was the reason for the change in policy. In short, it is safe to say that most executives would make the same tough decision to change policy that is ultimately hurting the organizations bottom line and ability to remain relevant and fresh in the market. While there are many opinions about the way Mayer handled the work from home transition, it is clear that she made the best decision for Yahoo, given the course that she believes will ultimately lead them to success as a company. It is never advisable to make a sudden and harsh change to a companys culture without consideration of the possible effects on employee morale, performance and ability to transition. Although change is an enduring feature of organizational life, the degree and impact of that change can vary substantially (Miller 2012) based on the leaders command of the issue and applied solution. For that reason, effective leadership is critical in the organizational change process (Miller 2012). The commitment of the leadership to deliver proactive and comprehensive communication will determine the long term effects of any planned or crisis change process. For example, leaders (like Mayer) who use visionary content in their communication are more effective than those who use more pragmatic content. In other words, saying the right thing and effective use of nonverbal communication can be particularly important for leaders facing critical change management scenarios. One principle that could bolster Mayers communication during this change process is that of framing. Miller (2012) defines framing as a way of managing meaning in which one or more aspects of the subject at hand are selected or highlighted over other aspects. Miller (2012) also states that leadership is not about events or

Comm 2310 13 Team Case Study situation but is instead a process of managing meaning. This is most important for those leaders managing considerable change such as that which is currently in process at Yahoo. In their research, Fairhurst and Sarr (1996) shared several great points to support this topic: 1. Effective leaders know where they are and know where they want to go. 2. Effective leaders are also those who pay attention to the context, recognizing times and situations in which there are opportunities for shaping meaning 3. Effective leaders use language in ways that manage meaning in powerful and appropriate ways. This form of effective change management communication has also been evident in the aftermath of recent natural disasters in New York and New Jersey. Those organizations and leaders who effectively managed the flow of information and the process of change within their respective organizations were those who are today thriving in their resurgence and reestablishment. It was once said, leadership is about change. If change is not needed, then leadership is not required. During times of change, employees seek out more and better leaders. Effective leadership and communication of change is essential to the successful upkeep and growth of any thriving organization. It is evident that Mayers leadership and willingness to make difficult decisions has already begun to affect the value of Yahoo in the market and its appeal to job seekers. Her commitment to ongoing communication with her employees will ultimately bring Yahoo to a new era of success and long-term sustainability in the industry.

Comm 2310 Team Case Study References

14

Berger, L. (2005). Making Flextime Work. Journal Of Accountancy, 200(3), 96. Fairhurst, G.T. & Sarr, R.A. (1996). The Art of Framing: Managing the Language of Leadership. San Francisco: Jossey-Bass Greenfield, R. (2013, March 6). Marissa mayer's work-from-home ban is working for yahoo, and that's that. Retrieved from http://www.theatlanticwire.com/technology/2013/03/marissa-mayer-workhome-ban-working/62810/ Guiler, J. K., & Kelly, M. (2009). "Don't Look for Me, I'll Be Working from Starbucks Today": A Review of Regulations That May Apply to Off-Site Workplaces. SAM Advanced Management Journal (07497075), 74(2), 23-31. Martin, A. (n.d.). Marissa Mayer: Everyone's got an opinion - Silicon Valley Business Journal. Business News - The Business Journals. Retrieved April 5, 2013, from http://www.bizjournals.com/sanjose/news/2013/04/02/nolan-bushnell-on-marissamayer.html?page=all Miller, C. & Perlroth. N. (2013). Yahoo says new policy is meant to raise morale. New York Times. Retrieved April 9, 2013, from http://www.nytimes.com/2013/03/06/technology/yahoos-in-office-policy-aims-tobolster-morale.html?pagewanted=all&_r=0 Miller, K. (2012). Organizational communication: Approaches and processes, sixth edition. (6th ed., pp. 6-13). Boston, MA: Wadsworth, Cengage Learning. Pearlson, K. E., & Saunders, C. S. (2001). There's no place like home: Managing telecommuting paradoxes. Academy Of Management Executive, 15(2), 117-128. doi:10.5465/AME.2001.4615008 Standen, P (1997). 'Home, work and management in the information age'. Journal of the Australian and New Zealand Academy of Management, 3, 1-14 Zorn, T.E., Page, D.J. & Cheny, G. (2000). Nuts about Change: Multiple Perspectives on Change Oriented Communication in a Public Sector Organization. Management Communication Quarterly