A competitive strategy is not just an academic topic Changin

A competitive strategy is not just an academic topic. Changing competitive strategy has dramatic impacts on personnel and company culture. Considering the uncomfortable position many managers face when they possess knowledge that cannot be communicated to others in the company. As a manager, you will sometimes have information that you are not supposed to communicate to employees. If an employee asks you directly about that information, you can either divulge it or lie. Which would you choose? What are the consequences of either choice? Is there an alternative between inappropriately divulging information and lying? What is it? What disadvantages does that alternative have? In general what are the consequences on the organization\'s culture of moving from a differentiation strategy to a low-cost strategy? In general what are the consequences on the organization\'s culture of moving from a low-cost strategy to a differentiation strategy?

Solution

The manager should not reveal any confidential information to the employees. It is his duty to maintain confidentiality about the decisions taken by the company.

It will be considered that the manager is violating the rules of the firm if he shares everything he knows with employees. The reputation of the manager will be affected and will also have the effect in his future career with the firm.

At the same time, if he lies to the employee who approached directly to him, then the employee might lose trust on him. He should talk with employee in such a way that the trust is not broken and also at the same time the confidentiality about the information is not revealed.

If I was the manager, then I will not reveal the information and at the same time try my best not to lie. I will say something noncommittal with the employee, giving the employee hint about the information.