Elon Musk: In Need of Responsible Human Resource Management Practices At Twitter

Name: Elon Musk: In Need of Responsible Human Resource Management Practices At Twitter (English version)
SKU: W32382

Arpita Agnihotri, Saurabh Bhattacharya

Product #:W32382

Supplier:Ivey

Discipline:Human Resource Management, Organizational Behaviour/Leadership

Setting:United States, 2022

Details:Case (PDF) • 16 pages • 2023-07-06

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By early November 2022, Elon Musk, the new owner of the social media platform Twitter, had fired approximately 75 per cent of the company’s workforce. The decision regarding which employees to dismiss was based both on low performance criteria and unwillingness to commit to a new demanding corporate culture. Twitter had mainly incurred losses since its launch in 2006. Musk acquired the company after several glitches in the purchase agreement regarding the accuracy of verified versus fake (spam) Twitter accounts. Musk’s new corporate vision, which he termed “Twitter 2.0,” would require employees to work long hours at Twitter’s offices. This plan was in stark contrast to the work-from-home policy that had been established by the company’s previous leaders. Musk also fired large numbers of employees without appropriate notice. Understandably, these actions generated negative responses from fired employees. But there were also concerns from observers regarding the damaged brand image of Twitter under Musk’s leadership. Could Musk lead a positive change in Twitter’s culture? Could he improve the company’s employer brand value? What traits and strategies should he consider to become a more responsible leader?

Learning Objectives

This case is intended for undergraduate and graduate-level courses on strategic human resource management, human resource management, and organizational behaviour. The case deals with challenges a new leader experiences in leading and turning around a loss-making firm. Students will understand and analyze appropriate ways of downsizing and communicating essential information to employees. Students will also evaluate the various types of work cultures in different workplaces and how a new leader can effectively change the corporate culture. The case discusses challenges leaders can face when bringing about transformational cultural change. After working through the case and assignment questions, students will be able to

examine reasons why a new company leader and owner may fire the existing employees of a newly acquired company;
explore traits of a responsible leader and how to demonstrate responsible leadership of human resource management, especially during turnaround management;
examine different types of workplace culture and how an organization can successfully introduce cultural changes; and
critically analyze how an organization’s human resource management practices influence its employer brand value and how it can sustain a high employer brand value during turbulent times.

Elon Musk: In Need of Responsible Human Resource Management Practices At Twitter

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Learning Objectives