The elimination of Yahoo's work-from-home policy by Marissa Mayer had a detrimental effect on employee motivation and morale. This was especially difficult for those employees who appreciated the flexibility of working remotely, as they believed it enhanced their productivity. Consequently, there was initial discontent and apprehension among the workforce, which was exacerbated by reports of Ms. Mayer constructing a nursery adjacent to her office for her child. These factors contributed to diminished motivation, with some employees expressing concerns about losing their flexible work arrangements.
Unofficially, it was communicated that the policy's true targets were full-time work-from-home employees and those who received paychecks despite minimal work for Yahoo. The decision to eliminate the policy, though initially unpopular, was considered necessary by both current and former Yahoo employees to address the specific issues facing the company. Yahoo's workforce lacked
...direction and suffered from low morale, largely due to a widespread belief that the company was in decline. Additionally, Yahoo's bureaucratic structure, which included additional management levels responsible for overseeing new technology products, resulted in slow decision-making processes that hindered effective competition with rivals. Consequently, Yahoo missed out on the biggest trends in the internet industry: social networking and mobile platforms.
Yahoo was facing multiple challenges, including becoming outdated and being overtaken by Facebook and Google in the display ad market. The company's frequent change in leadership, resulting in six CEOs in five years, added to the confusion surrounding its objectives and direction. Moreover, Yahoo's stock price was experiencing a significant decline. As a result, employee morale and enthusiasm within the company were negatively affected.
Ms. Mayer called for all employees to report to work in order to promote
new culture of innovation and collaboration within the company, revitalize Yahoo's products, and reverse the deteriorating morale. Unlike her predecessors, she focused on fixing the company internally and prioritized motivating employees. This approach aimed to address deeper cultural issues within the company and sought everyone's active input (Burke, 2013). To improve employee morale and motivation, Ms. Mayer introduced free cafeteria food, provided trendier phone models, and initiated a weekly meeting where employees could openly communicate with the executives.
These have increased employee optimism, resulting in most employees gathering in the cafeterias to share and discuss new ideas. From an Equity Theory standpoint, eliminating the work from home policy has the benefit of applying to all employees equally. However, its drawback is that employees may perceive the loss of flexibility in working from home as unfair and potentially detrimental to their productivity. The Expectancy theory acknowledges the advantage of fostering collaboration and collective effort, as it can stimulate innovation (Dornyei and Ushioda, 2013).
The employees are expected to increase their effort and improve their efficiency by working from a central location, which makes it easier to measure their work output and meet their requirements. The Need Theory examines how a successful company impacts its employees in terms of achievement, power, and affiliation. Getting rid of this policy allows the company to align itself with competitors and regain the prestige associated with being employed by it.
References
- Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA.
- Dornyei, Z., & Ushioda, E. (2013). Teaching and researching: Motivation. Routledge.
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