Organizational Communication: Analysis of AOL Incident

Organizational Communication: Analysis of AOL Incident

Introduction

            Regardless of the nature and size of organizations, communication is a crucial element in initiating and sustaining relationships. Communication is not all about sending and receiving information. Instead, it entails the type of message that a person and how the message is sent or received. When engaging in this transfer of information, one has to make sure that the message is complete. People tend to interpret the message by considering how the sender communicates. Communication may be verbal or non-verbal. Non-verbal communication can occur independent of verbal communication, but elements of non-verbal communication such as facial expression will always accompany verbal communication. Poor communication, whether oral or non-verbal can attract long-term adverse impacts to the firm.

Case Study: AOL CEO Firing Creative Director and Apologizing Three Days Later

           

Communication can make or break a company. In this case study, Tim, AOL’s CEO called a meeting to announce to employees the changes that he was going to make to the firm. According to Kaufman (2013), the CEO did contrary to what his employees had anticipated. He announced to everyone that had attended the meeting that he had fired the creative director of the company. The creative director, just like everyone, was surprised by the company’s CEO. According to Kaufman, Abel was videotaping the meeting when the CEO told him: “Abel, put the camera down now. You’re fired.” Tim offered a public apology three days later regretting his behavior and explaining why he had to fire the company’s creative director.

Case Analysis

Organizational communication can be understood from two perceptions. The first perception views organizational communication as all forms of communication activities that take place within the firm to facilitate day-to-day operations. Such forms of communication may include sending emails, receiving letters, making phone calls, and addressing employees. Koschmann (2012) defines this type of organizational perception as an informational view of the organization. It essential for the daily running of the firm. Cacciatolo (2015) explains that the informational aspect of organizational communication helps employees to carry out day-to-day activities.

Internal communication is essential in building interpersonal relationships. In the case of AOL, the CEO had an opportunity of utilizing all channels of communication to fire the creative director. Each firm should have policies that define recruitment and termination of employment. If the CEO is responsible for firing employees, there should be a necessary procedure that he should follow when firing employees. It does not have to happen on air or before everyone like the case of AOL. Leaders in top levels of management have to learn how to separate emotions from communication. During AOL’s incident, the company was undergoing a financial crisis.  It seems the CEO lost his temper when addressing his employees.

The second perception of organizational communication views it as a symbol of informational exchange. Every entity within the firm adds up to form a communicating entity. Koschmann (2012) defines this perception as the constitutive form of organizational communication. It views the organization as a container where informational exchange takes place. When people look at the external appearance of the firm, they do not consider it as an independent entity. Instead, the external appearance is a reflection of what takes place within the firm. When a manager makes mistakes, he does not act as a separate entity. For instance, Tim’s poor communication is an indication that the firm has a failed structural system of communication.

Internal communication is the backbone for the success of organizations. Tim’s decision to fire the creative director in a conference is a sign of a failed system of communication within AOL Company. It is necessary for firms to have policies that guide employees on how to communicate. The rank of a person within the firm determines how one interacts with others. Senior managers engage in top-down communication while junior employees engage in down-top and horizontal communication. In the case of AOL Company, it is evident that the company did not have a formal procedure of communication. If the company had a formal process for firing or communicating with employees, Mr. Tim did not mind following the required procedure. He set an undesired example for other employees and establish a bad reputation for the firm.

Proposed Solution to AOL’s Communication Problem

            Organizational communication implies that any decision that the manager or CEO makes is on behalf of the firm. Taking the second perception of organizational communication, one would expect that Tim’s decision to fire Abel in the company’s conference was a corporate decision. The organization is symbolic in this case. The words of the CEO represent the whole firm. However, one cannot expect the entire organization to make such a terrible mistake. In this section, I assume that the company did not have policies to guide internal communication. As a result, I propose that AOL sets policies that streamline communication with the goal of guiding CEOs and other employees within the firm.

The crucial aspect of communication policies is to direct managers and employees on how to maintain relationships and create a harmonious environment for interactions. In top-down communication, the policy guides managers on how to relate with junior managers. Additionally, the policy should indicate who should send the information, how it should be communicated, when, and where it is to be delivered. I do not think that Tim could have made the mistake of firing the creative director in a public conference if the company had a policy directing CEOs on how to management recruitment and termination of services from employees.  Sethi and Seth (2009) explain that managers should also set ethical standards when communicating with others. Tim did not uphold moral standards when he decided to fire Abel in a conference.

Another emerging issue in Tim’s communication is when he apologized for his mistake is that he did not own up his mistake. Instead, he defended his behavior. This indicates that he was not regretting his mistake. Mainstream media had already learned of his actions, and everyone was looking forward to seeing how he was going to behave. One could have expected that he would offer a sincere apology by owning his mistake. A CEO is a top-most leader in the firm, and such behaviors should not be condoned. During his public apology, he was representing the entire firm. Listeners are keen to interpret non-verbal forms that accompany verbal communication. When apologizing, listeners can tell through voice, words, and facial expression that the apology is insincere. People have different methods of interpreting information. It is essential that the person sends the whole package to avoid being misunderstood.

Communication can break or build relationships. In complex organizations, there is a need for policies that guide the flow of information. Organizational communication can be viewed as the flow of information within an entity for facilitating day-to-day activities. It can also be considered to be in the container of information as a whole, representing people and other entities within the firm. When viewed as a whole entity of communication, the decisions, and activities that emerge from the firm reflect its nature. As a result, it is essential to have strict policies that guide the flow of information to avoid adverse consequences.

References

Cacciatolo, K. (2015). Defining organizational communication. European Scientific Journal, 11 (20), 79-87. Retrieved from https://eujournal.org/index.php/esj/article/download/5954/5740

Kaufman, L. (2013). AOL chief apologizes over the firing of a worker. The New York Times. Retrieved from https://www.nytimes.com/2013/08/14/business/media/aols-armstrong-apologizes-to-staff-for-firing-of-employee.html

Koschmann, M. (2012). What is organizational communication? YouTube,

. Retrieved from https://www.youtube.com/watch?v=e5oXygLGMuY

Sethi, D. & Seth, M. (2009). Interpersonal communication: Lifeblood of an organization. 31-40. Retrieved from https://iims.uthscsa.edu/sites/iims/files/Novel/communication/Communication-5.pdf

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