The points of tension between Tony Ridder and Wall Street
Every company must conform to and incorporate cultural norms and industry standards into its procedures. Tony Ridder was unable to look above the needs of the shareholders or his methods or opinions of cost-cutting structures despite the demands and requests of the employees and other stakeholders. He was completely unaware of the impact on employee morale and respect. He was unaware of the trend toward humanistic approaches to human resources and corporate management. Due to the recession and the possibility of a takeover, the mature Knight business has a hostile management structure to address the growing wants and demands of an uninterested shareholder. Following this conflict, Tony Riddle’s business and leadership style was founded and concentrated on making money and raising stock price by reducing costs without taking into account its repercussions or finding an alternative strategy for boosting revenue.
Tony prefers to concentrate his efforts on increasing his income while using the classical trade approach to work organization.
Respected publishers and personnel have resigned as a result of ongoing firings (both of perceived underperforming workers and other causalities) and unethical welfare issues. The result of this is evident in the fact that most fired employees provided negative feedback regarding the management leadership approach. Additionally, there was no consideration for loyalty or honesty; rather, the pursuit of revenue and cost-cutting measures was valued above interpersonal relationships.
The company’s largest expense, labor, is also directly related to the sources of its revenue, therefore adequate compensation and remuneration should be taken into account. Termination policies and procedures should be used to determine the causes, and processes rather than relying on perception, decision, or intuition.
Tony Ridder, CEO of Knight Ridder, struggles with the dilemma of having to simultaneously serve two masters. One is the constant push to maximize profit from his shareholders and Wall Street, and the other is the pressure from the community to uphold the sacred journalism codes. These two demanding parties are at odds with one another. Tony has essentially done the opposite of what he intended to do in an effort to appease them both.
All employees should be properly informed about and given a review of termination policies. All exits must follow the company’s established procedures.
By addressing employee’s needs, paying attention to their concerns, and implementing worthwhile solutions, employers may advance the interests and wellness of their workforce.
Define new operational guidelines that promote personal and societal well-being.
Plan and refocus the business model to prioritize moral obligations alongside profit and to demonstrate value to all stakeholders, particularly employees.
Utilize the profit that is earned to lessen or minimize the detrimental effects of operational processes and the impact on employee welfare during difficult times. This will boost employee morale and loyalty. Drive a common objective by using efficient communication.