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You arrive at work one morning to find the facility surrounded by fire trucks. It turns out an employee was responsible for the fire. A few days earlier, the new CEO had made an unpopular announcement that the company would be closing its warehouse and trucking operations, and outsourcing them to FedEx. The news was not received well. However, the CEO knew that this incident was a symptom of a larger problem.

As the new CEO, you were determined to root out the toxic culture that had developed. There was a lack of trust, negative employee attitudes, and resistance to collaboration. It started at the top with the majority owner, who had no formal position but was very involved in the company, creating a fear culture. It was evident that employees feared him, and he preferred it that way. Even in your e-mail exchanges with him, he was aggressive and abusive.

After six months, you were able to buy out the majority owner. However, you knew that was just the first step. At the headquarters in California, you spent time meeting with the top thirty people of the company. You had these employees complete a culture survey to gather anonymous feedback and create a new mission statement and company values based on their input. Although you spent time communicating the new mission statement and company values throughout the company, nothing changed over the next few months. Some employees had been working at the company for many years and were not compelled to change.

However, a change was needed, so you decided to move the headquarters from California to Colorado. The move made sense as you lived in Colorado, as did most of the organization's executives. Leaving California would also allow you to leave behind employees impeding your ability to dismantle the toxic culture. Next, you and the executive team assessed each employee on competencies and cultural fit. People were rated as positive cultural influences, neutral, or cultural detractors. Individuals who were cultural detractors, no matter how competent, were not invited to move with the company. Many of these individuals were long-tenured employees who were too entrenched in the negative, toxic culture. Although the move was not easy or without costs, you and the executive team were confident that these significant changes were necessary. Shedding these cultural detractors would allow for a more positive, collaborative culture. However, your team was uncertain how long it would take and how to maintain the profitability of the company.

Case Notes:
A. Negotiation skills are used in everyday events, not just in contract negotiations. Use the skills developed in MBE 581 to address the issues in the case.
B. In order to repair a toxic workplace culture, negotiation objectives may consider:
1. Start from the top. Although one may ask employees for open and honest feedback, there must be follow-through. Leaders must use this information to make tangible changes.
2. Leadership and management teams ultimately cultivate the organizational culture. As a result, the CEO's decision to buy out the majority owner was wise in this case.
3. Cultivating a safe environment.

How do you use negotiation in this situation?

Answer :

The negations in this situation can be used To address the toxic workplace culture, start by gathering and acting on employee feedback, communicate the new mission and values, assess and manage cultural fit, and consider relocating if necessary.

To repair this toxic culture, you should consider starting from the top by gathering open and honest feedback from employees and ensuring follow-through. Leadership teams should use this feedback to make tangible changes, as demonstrated by your decision to buy out the abusive majority owner.

To further break down the existing toxic culture:

  1. Gather feedback: Conduct anonymous surveys to understand employee concerns and perceptions.
  2. Communicate changes: Develop and communicate a new mission statement and company values.
  3. Assess employees: Evaluate employees based on their competencies and their fit with the new culture.
  4. Shed cultural detractors: Identify and remove employees who resist the new culture, even if they are competent.
  5. Relocate if necessary: Moving headquarters can sometimes be an effective way to symbolically and practically start fresh with a new organizational culture.
  6. Ongoing support and training: Implement training programs that reinforce new cultural norms and behaviors.

This comprehensive approach can help create a safe and positive work environment, although it may take time to see significant changes.

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