AOL boss Tim Armstrong sacks employee in front of 1000 staff
Being fired is unpleasant when done compassionately. But imagine getting the sack in front of an audience of about 1000 colleagues.
That's what happened to an employee at AOL, when the company's chief executive, Tim Armstrong, lost his cool during a major conference call.
Mr Armstrong was reportedly not pleased about the employee taking his photo. So, in a snap decision, he fired him.
"Abel, put that camera down right now," Mr Armstrong can be heard saying in the audio leaked to the internet. "Abel! You're fired. Out!"
The now-former employee was Abel Lenz, the creative director of the AOL-owned local news platform Patch, according to Jim Romenesko, who published the recording on his media blog.After pausing for about five seconds, the executive continued the briefing as if nothing happened.
Alannah Rafferty, who is an associate professor of organisational behaviour and management at UNSW's Australian School of Business, said the incident was the perfect case study of what not to do when firing someone.
"Not only is it devastating for the individual involved but it's also quite devastating for the morale of the company because these senior executives provide the standard for the kind of behaviour that's acceptable in an organisation," she said.
She said the negative repercussions would be long term.
"He's really influencing the culture quite powerfully because people will be talking about this forever in this company," she said. "It's part of the myth-making that occurs in organisations.
"Reactionary decision-making is also not good behaviour to be modelling to your employees - and also to other leaders in the company."
Ironically, just moments before the outburst, Mr Armstrong told staff he did not care if anyone leaked information about Patch.
"I don't care what the press says. I don't care if people leak information," he said.
Mr Lenz has not yet commented publicly, except to tweet "no comment" with a blurry picture from Old Town Bar in Manhattan, New York City.
When Mr Romenesko asked him for comment via Twitter, he replied: "I appreciate the interest Jim, but I have nothing to share. Go Patch!"
According to the UK's Daily Mail, the call last week was about possible major cuts to Patch. The meeting with staff was meant to boost morale among those staying with the company.
Associate Professor Rafferty said such times of change are when strong leadership is most important.
"The fact that he's engaged in this behaviour during a period of high uncertainty is just devastating."
She said it would be very hard to counter the effect of such a critical incident.
"He could apologise. He could send out a letter. He could try a whole range of things. But it's not going to negate the effect of that very powerful incident on culture and morale."
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