At the close of a meeting with you and six others, your leader says, "I don’t think we know for sure just how we are going to handle our budget reductions, and I would prefer that we keep out discussions within the room at this point. Let’s decide what we are going to do before we start upsetting everyone."

A member of the group responded, "I think we already have rumors. I’d like your permission to allow me to summarize the options we are considering should a staff member bring it up to me."

"I understand," replied the leader. "My preference would be to keep a lid on this until we get a little more information, but I trust each of you to handle the situation if it becomes an issue."

The issue centered on restructuring several departments due to budget constraints. There is a high probability the restructure will impact your department. Some of your people will likely be moved and several may be reassigned to lesser responsibilities. You understand the necessity of the changes, but you worry about the impact it will have on the morale of your staff.

Three days after this meeting, Randolph, one of your long-term and high-performing staff members, approaches you and asks, "Do you know anything about a restructuring decision? I heard a rumor that there will be layoffs in our department."

Consider the following options for responding to Randolph.

A. Well there are always rumors going around and the rumors exaggerate everything. I’d like to know how these things get started. I suggest that everyone stay focused on our mission. Everything else will take care of itself.

B. I’d like to tell you more but I’m under orders to not say anything at this point. I’ll tell you more as I find out more.

C. Well, rumors can be serious. How widespread is the rumor? I’d like your opinion on how best to handle this, but I reserve the right to make the final decision on how to approach the situation.

D. We are currently discussing upcoming budgets and how they may impact us. Restructuring is an option we are considering, and this will likely impact us. I’m sure that I don’t have to tell you that the best security we have is good performance. I’ll update our team as I get more information.