If the mood is overly anxious, then anxiety must be reduced by lowering uncertainty. Very simply, uncertainty is reduced when people are told what's going on and what will happen to them. In the vacuum of no news, people imagine the worst. Since disappointment is much easier to handle than anxiety, then, good news or bad, honesty is honestly the best policy.

The message to organizations is this: You have to increase the number of categories of contributing, or the types of career paths, which people can experience as successful. You cannot restrict esteem to the fewer and fewer who will be climbing up the management ladder. You need to have the majority of your people feeling like winners.

The Psychological Recession is the cluster of feelings that the present is really scary and the future will likely be worse. It comes from the sense you have no control over what's happening to you and you don't see a way to get your life back under control. It's the feeling that life is unfair; you paid your dues, you worked hard, and you ended up naked and vulnerable. There is no comfort to be found in the dismissal of the Psychological Recession as being just an idea; it is a real phenomenon with real consequences, all of them bad.

Nothing creates more self-respect among employees than being included in the process of making decisions.

The best worst example of making people feel unappreciated today lies in the casualness, indeed indifference with regard to massive lay-offs even when there isn't a financial crisis. That is a message to employees that they are expendable, interchangeable, easily dismissed and replaced, often by younger, less experienced and cheaper employees. The essential message being conveyed to people is, You are worthless. What an incredibly dumb thing that is for management to say!

Leaders must (1) define the business of the business, (2) create a winning strategy, (3) communicate persuasively, (4) behave with integrity, (5) respect others, and (6) act.

Credibility is lost when there are big discrepancies between what leaders say and what they do. ... Increasing credibility requires openness. Hidden agendas will destroy trust.