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Why It Is so Hard to Be Fiar

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BEST PRACTICE
Everyone knows that being fair costs little and pays off handsomely. Then why do so few executives manage to behave fairly, even though most want to?

Why It’s So Hard to Be
Fair
by Joel Brockner


Reprint R0603H

This document is authorized for use only in Managerial Communication by Caroline Wang, HONG KONG UNIVERSITY OF SCI AND TECH from August 2015 to January 2016.

For exclusive use at HONG KONG UNIVERSITY OF SCI AND TECH, 2015

Everyone knows that being fair costs little and pays off handsomely.
Then why do so few executives manage to behave fairly, even though most want to?

BEST PRACTICE

Why It’s So Hard to Be
Fair
by Joel Brockner

COPYRIGHT © 2006 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED.

When Company A had to downsize, it spent considerable amounts of money providing a safety net for its laid-off workers. The severance package consisted of many weeks of pay, extensive outplacement counseling, and the continuation of health insurance for up to one year.
But senior managers never explained to their staff why these layoffs were necessary or how they chose which jobs to eliminate. What’s more, the midlevel line managers who delivered the news to terminated employees did so awkwardly, mumbling a few perfunctory words about “not wanting to do this” and then handing them off to the human resources department. Even the people who kept their jobs were less than thrilled about the way things were handled. Many of them heard the news while driving home on Friday and had to wait until Monday to learn that their jobs were secure. Nine months later, the company continued to sputter. Not only did it have to absorb enormous legal costs defending against wrongful termination suits, but it also had to make another round of layoffs, in large part because

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