Impact of ineffective formal communication combined

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Reference no: EM132292614

This case illustrates the impact of ineffective formal communication combined with informal communication on employee morale, motivation, productivity, and profits. Eastern International provided the concession-stand service to the Ocean Point Amusement Park. Given summer as the only operating season, the company utilized primarily student labor to staff the stands and other restaurant facilities on the premises.

Eastern International’s contract was to terminate in two weeks and no renewal confirmation was issued yet. Rumors were floating around that the contract would not be renewed, that Ocean Point would operate the stands itself, and that no existing employees from Eastern International would be hired by Ocean Point. Mr. Strayhorn, the general manager of Eastern International, has maintained silence throughout this ordeal. This has affected the attitude, morale, and productivity of the employees. Turnover has gone up while sales and profits have gone down, and two more weeks of peak season remains.

II. Answer the following - discuss from multiple perspectives, do not pick a side.

1. Assess Strayhorn’s communication effectiveness. What impact has his approach had on morale and productivity?

2. Comment on the impact of anxiety, stress, and crises on employee use of informal communications (the grapevine) in this case.

Reference no: EM132292614

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