Case: Weymouth Steel Corporation Analysis

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Weymouth Steel Corporation is facing a challenge in communicating both good and bad news to its salaried employees in September 1990. The company has decided to increase the salary and benefits of all salaried employees, but also needs to downsize due to the long-time slump in the steel industry. The chairman and management realize the sensitivity of this task, but believe that if they can inspire their workforce with a new vision for the company’s future success, it can work as a catalyst for growth. The recommended strategy is to communicate the good and bad news in multiple stages with a time lag, while also repeating the new vision to employees to get them on board.

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Currently, Weymouth Steel Corporation is encountering challenges in effectively conveying positive and negative updates to its salaried employees. It is of utmost importance for the company to strategically determine when and how to communicate these news in order to avoid demoralizing the workforce, which may lead to disastrous consequences. Encouragingly, the management has decided to enhance salary and benefits for nearly all salaried employees irrespective of their grades. However, due to the prolonged decline in the steel industry, they have also opted for downsizing the salaried workforce.

The chairman of the board, Carl Weymouth, and the management recognize the sensitivity of the task. Nonetheless, if they can inspire the workforce with a new vision and positive outlook for future accomplishments, this tension can fuel company growth. However, after informing employees about downsizing, the challenge of reducing resulting stress will be even more significant.

Therefore, to prevent rumors in the media and effectively communicate good and bad news to employees, I suggest implementing the following strategy with a time lag. However, before doing so, it is crucial to establish the new vision for our company. Our proposed vision is as follows: “Weymouth steel corporation aims to become a prominent leader in the steel industry, focusing on delivering excellent product quality and fostering continuous innovation. We are dedicated to satisfying our customers and creating a safe, positive, and nurturing environment where all individuals can grow to their fullest potential.”

The theme of underline and its explanation can be found in exhibit 1. It is important for management to continuously emphasize the vision in order for employees to fully understand it. Recommended Communication Strategy: I suggest that the management should make multiple stage announcements of both good and bad news, with a time gap between them, in order to….

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Case: Weymouth Steel Corporation Analysis. (2017, Feb 28). Retrieved from

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