Century-Old Company Closes And Loses A Vital Employee After Taking Bad Business Advice From Consultants

Knowing your worth in any relationship, whether personal or professional, is essential. It helps you make decisions that will greatly affect you in the long run.

It’s especially important when you feel like you need to stand up for yourself finally, even if it might hurt to part with something you’ve known for a long time.

In a r/AITA story, OP demonstrated the value of that exact lesson. OP started working in the building materials industry for a small company, taking on more responsibilities without increased pay. 

It was rewarding; despite challenges like slow-paying customers and pressure from larger companies, OP worked long hours to keep the business going. He didn’t mind it as much as he was compensated hourly until it started taking a toll on his personal life.

OP finally went to his boss and asked him to reduce his hours without cutting his annual pay or to keep the same schedule with increased pay. Instead of considering OP’s capabilities to run the show, the boss hired a ‘business consulting’ company to identify problems.

Afterward, his boss announced that all overtime, including OP's, would be cut. OP couldn't afford the significant change and resigned, offering to train a replacement. The boss declined, calling him selfish but agreed to pay for the notice period and owed vacation. 

OP then found a new job immediately with a vendor he had been working with for years, who surprisingly offered better pay and a regular schedule. In the end, it worked out for OP, but the business he left, which had been running for over 100 years, closed six months after his departure.

Here's how OP's story went

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Although OP's responsibilities were significant, he regarded his job as rewarding

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But there were too many factors that always kept the company on edge

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Business Decisions and Psychological Impact

Dr. Michael Porter, an organizational psychologist at Harvard Business School, emphasizes the psychological ramifications of poor business decisions on employees.

In this case, the company's abrupt closure after following misguided advice reflects how leadership decisions can create a culture of fear and uncertainty.

Employees often internalize these decisions, which can lead to stress and decreased morale.

The Consequences of Poor Business Decisions

Dr. Kevin Brown, an organizational psychologist at Harvard Business School, highlights the critical role of informed decision-making in business success.

His research indicates that poor advice from external consultants can jeopardize organizational stability.

This situation reflects a common pitfall where companies prioritize short-term gains over long-term sustainability.

There had been many changes after the boss hired the consulting company; one of those was cutting back overtime for everyone

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OP resigned when they didn't see eye to eye

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The business eventually couldn't continue and then closed

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Research published in the Journal of Business Psychology reveals that poor leadership decisions can have long-lasting effects on employee engagement and overall company culture.

When employees feel their livelihoods are at stake due to mismanagement, it can foster a sense of betrayal and disillusionment.

In this scenario, the loss of a vital employee may signal broader issues within the organizational structure.

According to studies published in the Journal of Business Ethics, organizations that fail to consider the broader implications of their decisions often face negative repercussions.

When businesses cut wages and hours without assessing employee morale, it can lead to decreased productivity and increased turnover.

This incident illustrates how short-sighted strategies can create a cycle of instability.

OP added more insight

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He pointed out the dramatic changes that the company wanted to implement

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He is aware that his departure played a part in why the business closed suddenly

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The Role of Effective Leadership

Effective leadership is essential for maintaining employee trust and organizational stability.

Dr. Brené Brown's research on leadership highlights the importance of vulnerability and transparency in decision-making processes.

In this case, fostering open communication regarding business changes could have mitigated employee fears and potentially retained talent.

Building a Resilient Business Culture

A resilient business culture is built on transparency and employee engagement.

Research shows that organizations that prioritize open communication and employee well-being tend to outperform their competitors.

Encouraging feedback from employees about company strategies can foster a sense of ownership and commitment.

Redditors are suspicious of how the boss rewarded himself

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A business that can only run if an essential person is present wouldn’t be sustainable

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Turning a blind eye to what really needed to change damaged the business greatly

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Encouraging an environment of open dialogue can help employees feel valued and respected.

Research suggests that leaders who prioritize employee feedback create a culture of trust and collaboration.

In this instance, the company might benefit from implementing strategies that promote transparency and inclusion in decision-making processes.

Implementing regular reviews of business strategies can help organizations stay aligned with their values and mission.

Psychological studies suggest that organizations that adapt to changing environments are more likely to thrive.

Creating a culture of continuous improvement can enhance resilience and long-term success.

If it were any other reason, the business would still have suffered...

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since they refused to train someone to be as capable as OP

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Other Redditors proposed that the business failing had more to do with the fact that it faced heavy competition

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Building a Resilient Organizational Culture

Ultimately, fostering a resilient organizational culture is crucial for long-term success.

Dr. Ed Schein, known for his work on organizational culture, emphasizes that a strong culture can sustain employees through turbulent times.

Creating spaces where employees feel safe to voice concerns can enhance loyalty and retention.

The Role of Ethical Leadership

Ethical leadership is essential for guiding organizations through challenges and fostering a positive workplace culture.

Research indicates that leaders who model integrity and accountability inspire greater loyalty and engagement among employees.

When leadership prioritizes ethical considerations, it creates a foundation for sustainable success.

There could also be the reason that it was already on thin ice

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Redditors have shared different stories similar to OP's and even opinions on why the business failed. Some sided with OP's theory that it might be because a vital employee parted with the company, but others attributed it to outside factors.

Either way, OP's lesson of knowing your worth should still stand, as it would have a great effect on your life. It might give you the courage you need when you need to make your next big decision.

Psychological Analysis

This situation illustrates the dangers of prioritizing short-term gains over long-term stability.

From a psychological perspective, effective decision-making should consider the well-being of all stakeholders involved.

Analysis generated by AI

Analysis & Alternative Approaches

Poor business decisions can have far-reaching effects on organizations and their employees.

Research supports the idea that ethical decision-making and transparency are vital for long-term success.

Ultimately, it's about fostering a culture that values employee well-being and sustainable practices.

Psychological Analysis

This situation underscores the profound impact that leadership decisions can have on employees' emotional well-being and organizational culture.

From a psychological perspective, fostering open communication and transparency is key to building trust and resilience within a company.

Analysis generated by AI

Analysis & Alternative Approaches

Understanding the impact of business decisions on employee well-being is essential for fostering a positive workplace environment.

According to leadership expert John Maxwell, "People buy into the leader before they buy into the vision." Promoting transparency and inclusivity in leadership can significantly enhance employee engagement and retention, as highlighted by Maxwell's insights on effective leadership.