This is the case Human Relations), and the questions are at the bottom of it.

The Mysterious Stranger

When Jan wood came to work on Monday morning, she noticed a group of people she had never seen before at the insurance company where she was a claims supervisor. “Who are those people?” she asked one of her co-workers. Nobody seemed to know. The presence of these strangers seemed especially suspicious because they were often seen talking quietly among themselves. They would stop talking as Jan, or anyone walked past them.

For a week, rumors spread throughout the building. Since Jan was a supervisor, her crew found it hard to believe that she didn’t know what was really happening. The more questions her employees asked her, the more frustrated she became. Although Jan approached her own manager, Ron Morris, several times, she was met only with vague answers.

Finally, on Friday morning, she caught Morris along and demanded a straight answer “I’m looking like a fool here, Ron,” Jan complained. “Now, come on; as a supervisor I really need something to tell my workers, It’s gotten so they spend more time talking about the mysterious visitors than they spend working on claims.” Okay, Jan, Ron replied. The top brass have hired a management consulting firm. Mostly, they are just looking at cost cutting. I wasn’t supposed to be a big deal. Does the cost cutting involve cutting people’s jobs, by any chance? Was Jan’s automatic response. No, said Ron.

In fact, we’ve kept quiet about this because we were afraid a panic might start on that very issue. Well the panic has started anyway, and I think it is time to get everyone calmed down, said Jan, shaking her head.

The next morning, Jan Wood held a briefing with all of her workers in which she explained what Ron Morris had told her. Most of her ten employees were still skeptical. They found it hard to understand why they hadn’t been told the truth from the start if, in fact, there was nothing to fear. Top Management had still not sent even a brief memo to all the employees telling them that no positions were being cut. After three more weeks, Jan’s two best claims workers left for other companies. Three others told her that they are looking for elsewhere.

Questions:

1. How could the company have handled this situation differently? What principles of effective communication have been broken in this case?
2. If you were Jan Wood, what would be your next step? Why?
3. If the company decides to explain the situation, what form of communication should they use? Meetings, memos, personal letters? Why?
4. If the company decides to explain the situation, what form of communication should they use? Meetings, memos, personal letters? Why?