Good News - Bad News

o Son: Dad, I was speeding, I crashed your

car.
o Father: What!!??

o Son: Dad, the car's accelerator jammed and

it hit a tree ... But, I am OK.
o Father: Thank God!
Learning Objectives

0 Describe goals of business communications in delivering bad news

0 Identify causes of legal problems in business

0 Explain the component of bad-news message

Compare direct and indirect patterns for breaking bad news
Identify routine requests & describe strategy for refusing such
requests

Describe a strategy for sending bad news to customers while

maintaining goodwill

0 Explain the best strategy for managing negative organizational

news

0 Compare strategies for revealing bad news in different cultures

 Strategies for Breaking Bad News

o Bad news irritates, disappoints and even angers the

•
receiver

o The sting of bad news can be reduced by:

ll Giving reasons
ll Communicating Sensitively

"It wasn't so much the bad news that I resented. It

was the way I was told"
 Goals in Communicating Bad News

o Acceptance
CJ Make sure the reader understands and accepts

CJ Use indirect pattern

o Positive Image
CJ Promote a good image of yourself and the organization. Act
Ethically
 Goals in Communicating Bad News

o Message Clarity
D The message should be clear. No need for additional
correspondence

o Protection
D Avoid creating legal liability for yourself or the organization
Indirect Pattern - Prepare the Reader

o The indirect pattern softens the impact of bad news

giving reasons and explanations first.

o A blunt announcement of disappointing news might

cause the reader to stop reading.

o The indirect pattern makes you capture the reader's

attention until the reasons for the bad news have
been explained.
Indirect Pattern - Prepare the Reader

• Neutral but meaningful

• Does not mention bad news

• Explanation
• Before the bad news

• Clear but understated announcement -l

• May include alternative / compromise

• Personalized / Forward looking

• Pleasant statement
Avoid Legal Problems

o Abusive Language
IJ Legally actionable if it is false or harmful to the
person's good name and published

IJ Defamation is a legal term and is a statement that

harms an individual's reputation

IJ Employees must add a "not speaking for the company"

disclaimer to any private messages transmitted through
the network.
Avoid Legal Problems

o Care-less Language
c Be careful making statements that could be damaging
or misinterpreted

C Communicate only what you intend. No more

information than required.

"There is no such thing as the delete key".

c Emails stay there forever.

Avoid Legal Problems

o The Good-Guy Syndrome

IJ Feels good but misleading & inaccurate statements

"Although you were by far the most qualified candidate we

interviewed, unfortunately, we have decided that we do not
have a position for a person of your talents at this time"

IJ Avoid statements that make you feel good but may be

misleading or inaccurate.
IJ Your word is the organization's word.
 Developing Bad News

o Buffering the Opening

Here are a few possibilities of opening negative news:
c Best News
• Start with the part of the message that focuses on best news
"To ensure that your correspondence goes out with the with the last pickup
we are starting a pickup service at 2:30 PM ..... "

c Compliment
• Praise the receiver's accomplishments, organization or efforts
"The Tho/ions have my sincere admiration for their fund raising proiects
on behalf ..... "
 Developing Bad News

o Buffering the Opening (contd.)

Here are a few possibilities of opening negative news:
c Appreciation
• Convey thanks to the reader for doing businessand for having
confidence in you etc.
"I appreciated learning about the hospitality management program at
Cornell and about your qualification in the interview ... "

c Agreement
• A statement with which both the parties agree upon.
"We both realize how the export business has effected ... "
Developing Bad News

o Buffering the Opening (contd.)

IJ Facts
• Objective information that introduces the bad news
"During the last 5 years the number of employees .... "
IJ Understanding
•Show that you care about the reader
"We know that you want superior performance from our
product, that's why we are personally ..... "
IJ Apology
• If you do apologize, do it early, briefly and sincerely.
"We are genuinely sorry that you were disappointed ... "
 Developing Bad News
.. ---~~~~~~~~~~~~~
o Presenting the reasons
This part explains why a negative decision is necessary
c Being cautious in explaining
• If not confidential / liable, you can be specific
"On January 7th we have a board of director's meeting that I must
attend .... "
c Citing reader or other benefits
• Readers accept bad news more readily if they see that
someone benefits
"To improve our service to you, we are increasing our fee ... "
 Developing Bad News
.. ---~~~~~~~~~~~~~
o Presenting the reasons (contd.)
c Explaining the company policy
• Instead of hiding behind the company policy, explain why the
policy makes sense.
"We prefer to promote from within because it rewards the loyalty
of our employees. In addition we've found that people familiar
with our organization make the quickest contribution to our team
effort."
 Developing Bad News
.. ---~~~~~~~~~~~~~
o Presenting the reasons (contd.)
c Choosing positive words
• Objective is to hold the reader's attention
• Avoid words that might cause the reader tune out
Such as: claim, impossible, unwilling, regret, never, mistaken ....

C Showing the matter was treated seriously & fairly

• While explaining demonstrate that the matter had been
investigated carefully and taken seriously.
Developing Bad News

o Cushioning Bad News

Reduce the pain by breaking the news sensitively
c Strategic positioning
• Instead of highlighting, sandwich the bad news between sentences
perhaps among the reasons.
• Don't let the refusal begin or end the paragraph.
"Although, another candidate was hired, we appreciate your interest in
our organization and we wish you every success in your iob search"

c Using passive voice

• To depersonalize an action
"Cash refunds are not given because .... "
Developing Bad News

o Cushioning Bad News (contd.)

CJ Accentuating the positive
•Emphasize on what can be done rather than what can not
be done
"We are now selling gasoline at discounted prices ... "
Developing Bad News

o Cushioning Bad News (contd.)

IJ Implying the refusal
• Sometimes possible to avoid a direct statement of refusal.
"We hope next year we will be able to support your worthwhile
charity"
IJ Suggesting compromise / alternative
"Although private tours are not given, we do open the house and
its gardens for one charitable event in the fall."
Developing Bad News

o Closing Pleasantly
Close with a pleasant statement that promotes goodwill
Cl Forward look
• Anticipate future relations or business
"We look forward to working with your talented staff "

Cl Alternative
• If an alternative exists, end the letter with follow through
advice.
"I will be happy to give you a free inspection ... "
Developing Bad News

o Closing Pleasantly (contd.)

D Good wishes
"We appreciate your interest in our company, and we extend ....
your search to find the prefect match between your skills and
job requirements."
D Freebies
• Send coupons, samples or gifts to build confidence.
D Resale or Sales Promotion
• When the bad news is not devastating or personal
references to resale information or promotion may be
appropriate
-
WHEN TO USE DIRECT
AND INDIRECT PATTERN

BY:M.NABEEL HAIDER
KHAN
 Federal Express

llses cllrect Dear Valued FedEx• Customer:

str2ie9v bece use
bad news (small -1--- Effective Februruy 15, your rates for FedEx U.S. domestic services will change to those
in the enclosed rate agreement. These new rates reflect an average increase of between
rate increase) is 3% and 4%. However, rates for FedEx Standard Ovemight"' arc decreasing for heavier -----t 01fsats l>ad
i.o( dcmaging weights, and FedE>< Express Saver rotes ore slaying the same for heavier weight.. news with
some good
FedE.'< Express Saver• gives you FedEx value foc your less-urgent shipments. It
provides delivery in 3 business days at some of our most affordable rates ever, yet with news {lo\l\ler
Promotes reader such FedE><extras as committed delivery, 24-ho'!r access to shipment status inform:nion, rates and stav-
and our Money-Back Guarantees." even r<itFI~)
benefits (econom-
!<:81 committed --1--1 In addition, recogni2ing the growing number of businesses whose worlc extends right
t!Gliverv.24-hour through !he weekend, FedEx announces a welcome innovation: Sunday delivery.
Starting March 6 shipments dropped off or picked up on Friday or Saturday" can be
shipment infor- delivered to 50 U.S. metro areas on Sunday via FedEx Priority Overnight"' service for a
mation, etc.] $10 special handling fee.

Enhoncc.ments to our Web .site (www.fedex.com) make using FedEx as easy and f'astas
Emphc>sizc~ ---l·--- ever. Here S justsome of \Yluit you can do:
9
Starts each line
"'fou" view • Use FedEx intcrNetShip• to prepare shipping documentation. store recipient addresses, with a verb for
and send n FedEx Ship Alert- an email to the recipient that o package is on its way. parallelism and
Uses bullets eo • Go to our Drop-Off Locator to find a map of your nearest FedEx location.
readability
• Track your shipment status 24 hours a day.
l?i;ihli!!ht eus-
( "mer benefits FedEx gives you lots ofwoys to satisfy your customers' expectations, from reliable, on- Shows emp11thv
time delivery to coasistent, dependable handling. We appreciate your choosing FedEx. by IG0!1ing Gt its
Clases wi~h ----11--- and strive always 10 meet your cxptCSs shipping needs. If you hnvc any questions. please
call 1 •800-•Go•FcdEx" (800-463-3339).
services through
uppreciation ·" tha 0\ltl~ of tilt:>
.•
&r.d fo;·ward- Sincerely, receiver
looking thou!jilf
Federal Express Corporetion
1 na 1 hree t'hases ot t11e wr1tang Pf"ocess

. 1··':c:; ~-~c~·""x':Cl:i\'·
[tm1;!§'iffi\JJ!f!*ltfii!fiki~?iJ1~
...~1
.J;
~~ ..
_

: -, ·. -'·~·,·: ·;~:;:~:,. ;_--f•: )'

Analyn: Tho purpose of thi•''mem.; is'..,;;.· Research: Gather necessary data, ioclud-- Revise: Respe<:t the reaocr's footings U.{ ;
refuse e respected emplovee·s reci..ies.t ,.· " ing reasons e.xpfainingthe refusal. softening the tone. Show that refusal· the
without damaginggood relations. : · is in the reeders best intef'ests
. Don't ·
Organl~e: In the buffer, praise the man.. apologize: you've done nothing wrong.·-·
., Anticipate: The audience is a valued age,·s contributions. Mention the confer-
manager who want:s to attend a confer- ence date to provide a transition. ln the Proofread: Verify spelling of troublesome
ence. reasons soction. explain why the request words, Use commas after beginning
cannot be granted. Imply the refuse t. clauses and around "Mark" {direct.ad-
Adapt: Because the reader will probably Close by suggesting a feasible alterna- dress)
be hurt and disappointed at this message. tive. Show appreciation.
-"the mdireei pattern is best. Evalute: Wilt this message make the
Compose: Prepare the first draft. reader understand and accept the re-
fusal? '
.,,._ ..... ·.• . '- ··- ~ ._. :..:

DATE: July 2, 2000

TO: Marl< Stevenson

Ma.n&ger. Te1eoo.mmunie&ttons
AIOM: Ann weus-Jl'reeCl A'-tfJ
VP. M&nagemant Information Systems
SUBJECT: R.EQOES'l' TO A'ITJl:ND SEPTEMBER CONFERENCE
Transttion; usas
d~~a to move Tbe Management OowlDU and J are extremely pleased W1t.ht.ne leaderahlp you Burfcr: lnclmlcs
h!Lveprovided in setcing up live vidao transmission to Ollt' regional offices.
~moomly lrorn Bece12•e of your ganul.ne protess-1onal com.m.ttm.ont, Mark, l oa.n. understa.nd aincare prn,sra
b11ffor ·io your desire to attend the oonterenoe of the Teleoom.munle&tion Speol&llsts or
,-L---- America. September 23 to 28 In Atla.nta.
r~as<>Ps ----l
''---'-----
f!r d m;ws: ----1------
The l~ two we<llta In SGptember -ve been
you and I know, we've onJy sara<che<l the surrace oc ow- \eleoonrerenail\lJ p~-
ect.s for the next five ye&rs. Since you a.re the apecla.U.sta.nd we rely heavily
set a.side fOC' budget pl&rull.ng. A1J
-----t--- Reesons:T~l!s
on your expertise. we need you here tor those pla.n.n.JnS sessions. why refusal is
1;:1!].lics raius<>!
09C0SS211'lf
If you're able to attend a. slmila.r conference In th& spring and If our work kJadB
pertnit., wa•u try t.o aend you then. You •re a valuable pl.ayer, Ma.rk:... and I'm
tlosing: Crm- --L---~ grateful you're on our MIS team..

tsins raulistic
E1!termltive. :i
praise, and
f·!lrrecietion ''
-~
~--·-~. ~·.:'--....:.··. .;. •.. ~-;..;. •.,...;.c..;;;;~-..-----:-·.,x.~-....:~ .... 1
 MEMO TO: l\4ark Stevenson

J.r:i~·: i.::,~&~ tit: t:i::. ;'i&1J~ :s:.. _ _. v\Je can't allmN you to attend the conference in September, Marl<. Perhaps
you didn't know that budget planning meetings are scheduled for that month.

:1::.;;:: s, JJ1
l·~~~:;l i;;~bJ~:: ·' _ ___, Your expertise is needed here to help keep our telecommunications network
,.,,t·-.,·.;..,11,r
l \.o
.1,.,.,."' .. r'''
\j,f';IW.~l• [Jy;;1•.::;1.J1..~
on schedule. V\li~hout you, the entire systBm-which is shaky at :>est-might
• • y

s(~.W:1:~i1\ s~G1t:\ li1e ".:h 2!:y'' fall apart. I'm sorry to rave to refuse your reqcest to attend the conference. I
... 11. :Jr'V"'Mmn'-~R,·-·s
.. 'r"rt
-:..:i~td ull.7 l ~-h";:::,i:,t;: ·\·
a1,l#
knovv this is small then ks for the fine work you have done for us. Please ac-
~·J.J.z:.:,u 1 c11bu ~~n 1Ji~J\!.
-: .... rt,.. 1,..
••• 1 ··• cept my humble apolooes.

r··i~1i:;:> cl \i!'Ji~dso ·(;lfa i•1~;irt --~ In the spring I'm sure your work schedule 'Nill be lighter, and we can release
L1ci' r:l;.ir;d1 ic [;as~t you to attend a conference at that time.
 Dear Ms. Brown:

G1[}3fig wi(;1 aclrnm~~edgmer.t -- We appreciate your letter describing the good work your Tri-Valley chapter of
Gf i:1:(Ui~1 BITU rrn1se iai ~i1e the National Reye's Syndrome Foundation is doing in preventing and treating
this ser:ous affliction. Your organization is tc be co11rnended for its s:gnificant
achievements resulting from the efforts of dedicated members.

Ee~Ea~s 1~1e k~~ r~e~ of good -- Supporting the good work of your organization and others, although unrelated
Wiidc. ~~p:ai~s ~hat 3 d11cli~e to our business, is a luxury we have enjoyed n past years. Bec:use of sales
[;i se,es requi,·es s c~foad~ in declines and organizational downsizing, we're for·:ed to take a much harder
.'1\~ rN~':l!!l!" ··o•ittr~r, fi~~·h1f
~ '"'· ri·.. vui;i,:) >111Uo1!l; :,v!ili ~ :ook at f undmg requests that Vie receive this year. We feel that we must fo-
\r.1itt1~M actus·~1v stali11g it cus our charitable contributions on areas t1at relate direct~ to our business.

~:1c sas ~i~e~mislv b\1 rGtk;ITij --

1 We're hopeful that the worst days are behind us a1d '.hat we'll be able to re·
fo~a~ard ~o ls::! \'e~r. nev~ our support for worthwhile projects li~e yours next year.
O::cr;:; cc&(i:Jl!~1t,~:-~t1 ~~fi,3•· Dear \t\lilliam:
S(Sit:mer.i praisbg 1·~.:::fte~·s
...ci.:om,:;lisi;r.:i;r.ts. ------ News of your leadership position m Epsilon Phi Delta, the campus business
honorary club, fills me with de! gh1 and pride. Your father must be prcud also
l::;pi~ins11;e writer's ~llrmrari.::e OJJ
of your educational and extracurricular achievements.
.cpic a\' enncs. .essens lh& im-
'Ji:;,
~r.~tai the ~efusai '.::.~• placi11g it -- You honor me by asking rte to speak to your group in the spring about codes
irl a subanlinete clause (Aitfu;;1Jfa of ethics in the lccounting field. Because our firm has not yet adopted such
j'.:u;· k111ii':tifou mes: se dec!ined'} a code, we have been investigating t'ie codes developed by other accounting
i·:~i:1li i:he !l:iSSl'!e 'J·Jit:~. Concen- firms. I am decidedly not c;n expert in this area, but I have met others who
e; ..;~ -~l-~"'r.··io~
•• ·-·tL,c:- .. , ... '·. ;, r··,:·~"\
i"" c.••-1
. . . ""~""'l""'ll I''"c.,
.c; 0

are .A.lthou;ihyour invi:ation must be declined, I would like to recommend

Dr. Carolyn S. Marshall, who is a member of the ethics subcommittee o' the
296 Institute of Internal Auditors. Di. Marshall is a orofessor whn ntrnn ;irlrlrA<;<;P.c:

groups on the sub1ect of ethics i

club, and she indicated that she :~~fdo~nt1~9. I spoke vv1th
her about your
e appy to consider your invitation:
J r'i•JSi~~\;;"l~:,, ,r;,:.w~·"il ~·-·r·-
_.~J UL.~ "ia.:-1._:;!-

en:s ~;~J £JBS~t:iJncs d·c,r It's goo::f to learn that you are guidir . .
..~ tf~O'" ·r.,,., .,.,.i,c... ,1i.:..r.~
.;... ,.~- tws and tin1ely program tcpics. Pleas~ yo~r ~-rga~zat1on tovvard such construc-
.,, ';,<<.t...,...,"-10.·

[:e•·. you would like to arrange for her to ad~r:ss ~c~c ~~:." at (4 15) 389-2210 if
 CHECKLIST FOR REFUSING ROUTINE REQUESTS

-
-

Close pleasantly.
Supply more information about
alternative, look forward for
future reason, offer good
wishes and compliments
• Problems with customers order can sometimes be
resolved by telephone .
• Large companies rely on written messages
• If the message contain any good news begin with
direct pattern and messages are disappointing
use the indirect method(buffer and explanation}.
 Effective Letter
Dear Mr. Ronzelli:

You were smart to reserve a block of 500 Space Stations, which we have .--- Opeaing com~liments ihe rs·
been holding for you since August. As the holidays approach, the demend for cei\fer whil~ estsblisMng ihe
all our learning toys, including Space Station, is rapidly increasing. iaets,

Toy stores from Florida to California are asking us to ship these Space ---- Reasons justify the comii1g bad
Stations. One reason the Space Station is moving out of our warehouses so Hews. Instead ni focusing on
quick~ is its assortment of gizmos that children love, including a land rover tfie writer's ooeds lwt? hlive a
vehicle, a shuttle craft, a hovercraft, astronauts, and even a robotic arm. As full tM&rehouse and ~vg need
soon as we receive your deposit of $4,000, we'll have this popular item on its rour diJposi~. the reasoss con-
way to your stores. Without a deposit by September 20, though, we must re- centratG on moti'lfaiirng tile
lease this block to other retailers. Use the enclosed envelope to send us your i'e6der. Aiter the reasons, iha
check immediately. You can begin showing this fascinating Live and Learn toy ~ad news is clea1ly spell~d oot
in your stores by November 1.
Closing promotas die cotilp;mv's
Please visit our Web site, which replaces our paper catalog, for pictures, de- -- V~eb site and l!iolts ahead to
scriptions, and prices of other popular Live and Learn toys. We were voted futrJre bl!siness.
one of the best on-line toy stores-with higher ratings than even FAO
Schwarz, Etoys, and all the biggies. We look forward to your check as well as
to continuing to serve all your toy needs.
 Denying CLAIMS
.. Letters that say No to emotional involve ..
customers.

Use neutral objectives to explain why claims

must be refused.
 e~~~~~¥)~
fifi> ~
<C)
c• e• I· e• s• t·i ·a ·I
~ ~ ~c n I a I n g s a I e s
~if)~~~ 430 Market St~et, San Francisco CA94230 • phDn<! (415) 450-2100
fax (415) 455-3260 • hltp:/h/ww.c.,loslial.com
•

l"ebrua.ry 1 9, 2000

agreement Mr. Matthew R. Tyson

6801 Hollywood Bouleva.rd
• dth resale Pembroke Pines, FL 33026
Dear Jl(r. Tyson:
i:i:r,ilains prtce-
:1\atching polic·{ You're right, Mr. Tyson. We do take pride In selling the finest products &t; rock-

.~ml how reed-

bottom prices. The Boze speakers you purchased la.st mont.h a:re prellller ------·t---3uffer
concert ball apea.keC"s. 'l"hoy're t.he only ones we present. lo our ca.ta.Jog bec&uae
they're t.be best.
~··S p!!iCh3S6
is diifare11t fr.nm We ha.ve suoh confidence in OW" product.a and price.a t.hat. we offor the prtce-
lc.w<ir-price~ ---1·---~ mat.ch.lng policy you mention In your lette1' of February 15. That polJcy
«uara.nteea a. ref"unclof the prtce d.1.fference1C you see one of your purchases R3aisons
m3clal offered at a lower pr-tee for 30 days aft.er your purchase. To Quel.lfy for th&t
ret\md, cuatomers are asked to send us an advertisement or vermable proof of
the pl'oduct. price and model. A1' our Qa.ta.logstates, tbJa prlce-mo.t.oh1ng polloy
11l'1thcut actually a.pplles only to exact. models with USA warranties.

saying na, shows Our Boze AM-6 n spe&.kers sell for $749. You sent us a IOC&l Advert!Jlemen'
showt.ng a price of $098 for Boze &pea.kens. Tb.la advertlsement, bowe'Ver.
wltyraarler's --1----- describes an ea.rller veralon. the Boze A.M-4 mod.el. The .A.M-8 speakers you
:leim can't lie received have a wider dyn&m.lc range and smoother !requenoy response t.ban
the A.M-4 model. Natu.ra.l.ly, th• improved n>odal you purcbaaed oosts a ll~le
----+-- Implied reiusa.
fl•Jl'Or.ad mare than the older AM·4 model tha.t I.Ile local advertisement describes. Your
spea.ker& have a new tbree-oh.a.mber bass modUle tha.t virtually eliminates ,
harmonic dlstortlon. Finally, your speakers are .20 percent more oomp&ct
il1ilds reade1's ---+---~ than the AM:-4 mOdel. j
coefidence in ·.·;
t~isdom of p1.1•-
You bougbt the fin.est compact spe&.kers on the market, Mr. Tyson. U you
haven't l.nsta.Jled them yet, you may be Interested In celllna mounts, shown In . Positive
chase t . __ the enelosed oats.Jog on page 48. Por t.ne most up-to-date prloes and product ·1
~ormatJon, pleaso see our en-une catalog at our prize.Winning Web site. We ·: closing
value your busine.s.s and lnvtt.o your continued OOinparlaon shopp1ng. 1
1;Jntinues ~ :•
res!lr.; teems Sincerely yours, ·:J
j

itrward to fu- ·~-u:_ ""/'1t .. £..1~_,.___

1t!re austness
Rick K. Thalman
Customer Service
j,
mmt •
~
Enclosure .1
-~
'I
. . -··-
 Dear Ms. Margolis: BUi'fer identifies applicatic11 and
/ shows appreciation for it
We genuinely appreciate your application of January 12 for a Fashion Express /
credit account. · Long seatence and passive
voice deemphasize bfld nows.
After receiving a report of your current credit record from Experian. we find -- To prevent possihle litigation,
that credit cannot be extended at this time. To learn more about your record, offe:-s no reason
yoo may call an Experian credit counselor at (212) 35tHJ922. We've arranged for ~enia!.

for you ~o take advan:a·;e ol this service for 60 days from the da:e of this let-
ter at no cha:ge to ycJ.

''~"'- n·,·1'
.,11,;,_ya "WIJ •U
01'!•!1· ..,,.,;I~- ic··'•<
, J\,.., --- Panks, Ms. Marg-:>lis, for the confidence vou've shown Fash;on Exnress .
''1
We invite vou to continue s~opping at our stares, and we look fo;ward to your
ieapp!icallon in tie future.

Some busmesses do provide reasons explaining credit denials {Credit cmwot be

grnntcd because your ,'inn's autcnt and long-term credit obligatfo11s ,;re nearly twice as
great ns yourfirn1's total a>Sets). They may also provide alternatives, such as deferred
bi!liJ1g or cash discounts. When the letter denies a credit application that accompa-
nies an order, the message may contain resale iaiormation. The writer tries to con-
vert the order from credit to cash.
Whatever form the bad-news letter takes, it's a good idea to have the message
reviewed by legal counsel because of the litigation landmines awaiting ui:wary com-
rnunicators in this area. The following checklist provides tips on how to craft effec-
tive bad-news letters.
CHECKLIST FOR DELIVERING BAD NEWS TO
CUSTOMERS

BEGIN INDIRECTLY. Express appreciation, show

agreement on some point, review facts or show
understanding.

PROVIDE REASON. Except in credit denials, justify the

bad news with objective. Avoid blaming the customer.

PRESENT THE BAD NEWS. State the bad news objectively

or imply it.

CLOSE PLEASANTLY. Suggest action on an alternative,

look forward to future business, offer best wishes, refer
gifts. Don't mention bad news.
MANAGING NEGATIVE ORGANIZATION
NEWS
 MANAGING NEGATIVE ORGANIZATION
NEWS
.. ---~~~~~~~~~~~~~
).;- Announcing Bad News to Employees

).;- Saying ''No'' to Job Applicants

ANNOUNCING BAD NEWS TO EMPLOYEES

,. Start with a relevant, upbeat buffer.

)..> Discuss reasons

:;. . Reveal the bad news

>- End positively

 A MEMO TO STAFF

- Memo To: Staff

Beginning January 1 your monthly payment for health care benefits will be
increased to $1 09 (up from $42 last year).

Every year health care costs go up. Although we considered dropping other
benefits, Midland decided that the best plan was to keep the present comprehensive
package. Unfortunately, we cant do that unlesswe pass along some of the extra
cost to you. Last year the company was forced to absorb the total increase in health
care premiums. However, such a plan this year is inadvisable.

We did everything possible to avoid the sharp increase in costs to you this year. A
rate schedule describing the increases in payments for your family and dependants
is enclosed.
 IMPROVED VERSION

- Dote: August 15,2009

To: Fellow Employees
From: Roger Federer, President
Subject: MAINTAINING QUALITY HEATLHCARE

Health core programs hove always been on important port of our commitment to employees at Midland, Inc.
We ore proud that our total benefits package continues to rank among the best in the country.

Such a comprehensive package does not come cheaply. In the lost decode health core costs alone hove risen
over three hundred percent. We ore told that several factors fuel the cost spiral: inflation, technology
improvements, increased cost of outpatient services , and " defensive "medicine practiced by doctors to prevent
lawsuits.

Just two years ago our monthly health core cost for each employee was$ 415. It rose to $469 lost year. We
were able to absorb that jump without increasing your contribution. But this year's hike to $539 forces us ask you
to shore the increase. To maintain your current health core benefits, you will be paying $ 109 a month. The
enclosed rote schedule describes the costs for families and dependents.

Midland continues to pay the major portion of your health core program ( $430 each month). We think it's a
wise investment.

Enclosure.
SAYING "NO" TO JOB APPLICANTS

,. Avoid rude letters

J..> Use Indirect Pattern

:;. . Keep the letter short and simple

>- Close Harmoniously

 Example of a Job Refusal Letter

-
Dear Mr.Hasan:

Thanks for letting us review your resume submitted for our advertised management trainee opening.

We received a number of impressive resumes for this opening. Although another candidate was selected , your
interest in our organization is appreciated. So that you may continue your search for a position at another
organization, we are writing to you immediately.

We wish you every successin finding a position that exactly fits your qualifications'.