Case study: Human resources management and the failure of Yahoo In this essay, our group will summarize human resource theories and the process of determing human resources as well as explore the factprs that contribute to Yahoos demise and examine the lessons that can be learned from this case study for effective human resource planning in orgsnizations.
DIPLOMATIC ACADEMY OF VIETNAM FACULTY OF INTERNATIONAL ECONOMICS MIDTERM ESSAY Module: Business Administration TOPIC: HUMAN RESOURCES MANAGEMENT Advisor: Assoc Prof Dang Hoang Linh Student: Ngo Mai Huyen KT47C10159 Le Kim Ngoc KT47C10162 Nguyen Ngoc Cam Tu KT47C10167 Class: KT47C1 Ha Noi, 3/2023 TABLE OF CONTENTS A Summary of human resource management I Overview of human resource management 1.1 Introduction of human resource management 1.1.1 Definition 1.1.2 The role of human resource management 1.1.3 Goals of human resource management 1.2 The fundamental functions of human resource management 1.3 Models of human resource management applied in enterprises 1.3.1 Overview 1.3.2 Types of human resource management models 1.4 Human resource management environment 1.4.1 The surroundings 1.4.2 Internal environment 1.4.3 Human factor 1.4.4 Management factors 1.5 Challenges of human resource management II Theories of human resource management 2.1 Abraham Maslow's Theory of Needs 2.2 William Ouchi's Theory Z 3.1 Human resource planning 3.1.1 Definition of human resource planning 3.1.2 Human resource planning process 3.2 Job analysis and design 3.2.1 Job analysis Job analysis process contains steps 3.2.1 Job Design 3.3 Manpower recruitment 3.3.1 Definition 3.3.2 Recruitment process 3.4 Training and development in human resources 3.4.1 Overview 3.4.2 Training process and training methods 3.5 Performance appraisal 3.5.1 Performance appraisal process 3.5.2 Methods of performance appraisal 3.6 Payment for labor 3.6.1 Overview of payment for labor 3.6.2 Payment methods B Case study: Human resource management and the failure of Yahoo! 4 4 4 5 5 6 6 6 8 8 9 10 10 10 10 10 10 10 11 12 12 12 12 13 I Reasons for choosing this case study II History of development and operation of Yahoo! 2.1 A little about Yahoo! 2.2 Milestones of the history of Yahoo! III Human resource management and the failure of Yahoo! 3.1 A little about Marissa Mayer 3.2 The controversial human resource management policies of Marissa Mayer 3.2.1 About working culture 3.2.2 About the recruitment 3.2.4 About the stage of job performance evaluation 3.2.5 About employee compensation and benefits 13 13 13 14 15 16 16 16 18 19 19 INTRODUCTION Human resource planning is a critical component of any organization's success By strategically managing its workforce, a company can achieve its goals and objectives, adapt to changing market conditions, and stay competitive in today's fast-paced business environment However, poor human resource planning can have devastating consequences, as evidenced by the case of Yahoo Once a leading internet giant, Yahoo's decline and eventual sale to Verizon in 2017 can be attributed, in part, to its unstable human resource planning policies In this essay, our group will summarize human resource theories and the process of determining human resources, as well as, explore the factors that contributed to Yahoo's demise and examine the lessons that can be learned from this case study for effective human resource planning in organizations A Summary of human resource management I Overview of human resource management 1.1 Introduction of human resource management 1.1.1 Definition Human resource management refers to the process of developing and implementing tools, means, strategies, and solutions to logically and effectively use employees' abilities and strengths In other words, human management in the employer-employee relationship As a result, the enterprise's corporate goals are met while employees' particular needs are met 1.1.2 The role of human resource management Human resource management has four primary roles, which are as follows: The first is to manage and create policies for the enterprise's human resources The second is the consultancy for various aspects of the company The third function is to support other departments with recruiting, training, and welfare services The fourth responsibility is to check personnel and oversee the application of HR regulations 1.1.3 Goals of human resource management Human resource management focuses on basic goals related to business, people and society as follows: 1) The objective of the enterprise is to attract, develop and maintain a quality and effective workforce that meets the strategic business objectives 2) Objectives of functional departments in the enterprise are responsible for contributing to the common goal of the whole enterprise in accordance with their professional scope 3) The personal goal is to meet the increasing needs of the employees of the enterprise, creating conditions for the employees to be career-oriented, to develop their personal capacity, to be motivated and motivated at the workplace work school 4) The goal for society is to meet the needs and challenges of society 1.2 The fundamental functions of human resource management Attracting, training, developing, and keeping employees are the three major roles of human resources Attracting human resources entails guaranteeing a sufficient quantity of individuals with the necessary skills for the job The purpose of training and development is to increase staff capacity and ensure adequate working skills and certifications The maintenance function's role is to stabilize and effectively utilize the enterprise's human resources 1.3 Models of human resource management applied in enterprises 1.3.1 Overview A human resource management model is a set of human resource management policies and viewpoints that are used to implement human resource management in an organization 1.3.2 Types of human resource management models First is the secretarial model This paradigm is primarily concerned with data collection, reporting, and administrative responsibilities Second is the legal framework This strategy is primarily concerned with understanding legal difficulties to assist firms in avoiding labor disputes Third is financial modeling This concept focuses on resolving wage disparities between employees and businesses Fourth, is the governing model Human resource managers understand and share goals and values to provide business-appropriate solutions The human resource management department's employees serve as online managers' trainers The fifth model is the humanistic model This concept is intended to foster and nurture human ideals and potential The sixth model is based on behavioral science Organizational psychology and behavior serve as the foundation for human resource management activities in this approach This concept is now extensively utilized in areas like evaluation, incentive, training, staff development, and so on 1.4 Human resource management environment The external environment, internal environment, human factors, and management elements comprise the human resource management environment Each section has several aspects that influence each company's human resource management process 1.4.1 The surroundings The external environment includes basic factors: 1) The economic environment; 2) The work force; 3) Legal rules; 4) Culture - society; 5) Science and technology; 6) Agencies and authorities; 7) The client; 8) Competition 1.4.2 Internal environment Internal environment affecting human resource management includes 1) Objectives of the enterprise; 2) Business development strategy; 3) Corporate culture; 4) Union 1.4.3 Human factor The human agent consists of factors including 1) Qualifications of workers; 2) Tastes; 3) Salary 1.4.4 Management factors Managers are in charge of establishing policies and directives for the overall development of the company Managers must also establish an open and intimate environment for the company, making people glad to work there Managers must also be paid and evaluate staff objectively and equitably 1.5 Challenges of human resource management The first is business restructuring Workers confront several obstacles following the reform and restructuring of the enterprise apparatus, including job loss, lower benefits, relocation, workplace… Second, because globalization will be a regular trend in the future, businesses will confront various human resource issues such as communication, loyalty, wage, and so on Thirdly, delayed growth might be attributed to market shifts and competition reasons Fourth, there are two major types of labor diversity Age, social trends, ethnicity, gender are core factors, while supplementary variables include income, marital status, religion, education… Finally, as a company grows, its employees' ideals and desires alter dramatically They desire better treatment, a more productive workplace II Theories of human resource management Some prominent theories include Abraham Maslow's theory of needs, Douglas McGregor's theory of X and Y, William Ouchi's theory of Z, Frederick Herzberg's two-factor theory, etc 2.1 Abraham Maslow's Theory of Needs Maslow's Hierarchy of Needs has five stages The first level is physiological requirements (Physiological Needs) Each person's most practical and vital necessity is physiology Eating, relaxing, physiology, and so on are all things that help individuals live and develop Physiological requirements are at the bottom of Maslow's hierarchy Higher wants will be unable to arise until this need is supplied and satisfied The second level is security requirements, and safety (safety, security needs) The Maslow pyramid moves on to the next requirement As these basic requirements are addressed, individuals will progress to greater demands for their security and safety It is the desire for a pleasant life and a stable community The third level is societal requirements (Belonging needs) Social needs include both mental and emotional requirements As a result, everyone desires to be a part of social ties such as the workplace, school, family, etc This is an incredibly significant and fundamental necessity for everyone The fourth level is esteem requirements In every company or setting, this is the urge for recognition, they want to be liked and respected The urge for self-actualization is the fifth stage The ultimate need in the Maslow hierarchy is self-actualization This is the drive to succeed To follow their talents and interests while contributing positive values and advantages to society Source:Simply Psychology.com 2.2 William Ouchi's Theory Z Some features of Theory Z include: First, mutual trust and openness According to Ouchi, there should be mutual trust among employees, supervisors, workgroups, unions and management In fact, trust and openness are closely related When trust and openness exist in an organization, the chances of conflict are reduced to a minimum Second, close links between the organization and employees To make employees loyal and committed to the organization, a strong bond (strong connection) must exist between the organization and the employee Third, collective decision-making To elicit employee commitment, it is desirable that employees participate in the decision-making process Fourth, the free-form organizational structure Theory Z holds that there is no formal structure for organizations The structure should be based on teamwork and collaboration with the sharing of information, resources, and plans Fifth, the role of facilitator and coordinator for management and leadership Managers must act as facilitators and coordinate the actions of everyone, including within their workgroups Sixth, general culture To promote mutual understanding, excellent human relations and cooperation within an organization, theory Z emphasizes on common culture, e.g uniforms for employees without distinction, common canteens for all everyone, III Human resources management process 3.1 Human resource planning 3.1.1 Definition of human resource planning Human resource planning is the process of studying and determining human resource needs in order to make policies and activities related to human resources to ensure that enterprises have enough quality, productive and qualified human resources and achieve the stated overall goals 3.1.2 Human resource planning process Step 1: Analyzing the environment and defining goals => Step 2: Analyzing the current status of human resource management => Step 3: Forecasting human resource needs => Step 4: Forecasting human resource supply => Step 5: Planning human resource programs => Step 6: Inspecting and evaluating the implementation status 3.2 Job analysis and design 3.2.1 Job analysis Job analysis is essentially the process of studying job content in order to determine the working conditions, tasks, authority, and necessary qualities and skills Job analysis process contains steps Step 1: Defining the scope of job analysis => Step 2: Preparing for job analysis => Step 3: Collecting data and analysis => Step 4: Developing job descriptions and job specifications 3.2.1 Job Design Job design is the process of combining discrete pieces of work together to form a complete task to be assigned to an individual or employee Job design is the process of identifying specific tasks to be completed and the methods used to accomplish them, and the relationship of that work to other jobs in the organization Several approaches to job design include: Method Strength Weakness - Reduce the scope of work, divide the time to get the work done - Repetitive work leads to Work specialization - Save time, allow workers to learn boredom and mechanical work quickly - Employees lose interest in work - Training costs are low - Reduce stress, boredom, create excitement at work - Improve the quality of workers’ Job rotation life (switching positions - Create conditions improve their and positions) professional qualifications - Enterprises can flexibly use labor in the future Job expansion (taking on many different jobs at the same time) Job enrichment - It is easy to disrupt production because in the early stages, workers have not caught up with the work - Complicated in controlling, organizing learning and working - Requires a lot of deep training - Inefficient use of time and - Satisfy employees, create resources attractiveness in work - Criticized for increasing the - High flexibility and mobility to amount of boring work quickly adapt to market changes - Increased pressure on workers - Ensure specialization according - Resources are fragmented, (expanding work in to each job reducing the advantage of scale depth, enhancing - High flexibility should create - Reduced system control workers' power) good adaptability - Promote the initiative and creativity of employees 3.3 Manpower recruitment 3.3.1 Definition Recruitment is the process of attracting human resources from different sources and selecting the right people with suitable standards to use in the right job positions that the business wants to recruit Human resource recruitment is a specific step towards realizing the goal of human resource planning Human resource recruitment activities in the enterprise include: activities to ensure that the enterprise has enough qualified candidates in order to select the most suitable people for the enterprise 3.3.2 Recruitment process The content and order of the recruitment process in enterprises is usually carried out in basic steps: Step 1: Recruitment preparation => Step 2: Recruitment announcement => Step 3: Receipt and study of applications => Step 4: Preliminary interview => Step 5: Multiple-choice test => Step 6: Second interview => Step 7: Verify investigation => Step 8: Health check => Step 9: Hiring decision 3.4 Training and development in human resources 3.4.1 Overview The process of training and development is an activity that tries to provide employees with information, skills and understandings about the organization’s work and goals with the aim of improving the organization's effectiveness and the performance of the individuals to future work 3.4.2 Training process and training methods About the training process, training programs need to be developed systematically and based on consideration of the real needs of enterprises The process consists of stages: needs assessment, training phase and evaluation phase 3.5 Performance appraisal Performance appraisal is the process to ensure that employees meet current standards and improve job performance in the course of their work in the organization This is a very important activity in human resource management General Purposes Particular Goals - Identify individual training needs - Feedback on job performance Personal development - Define transitions and job duties - Identify individual strengths and development needs - Wage - Advancement - Maintain or lay off Administrative decisions - Recognition of personal achievements - Temporarily laid off (temporary unemployment) - Identify weak employees - Human resource planning - Identify the training needs of the organization - Evaluate the achievement of the organization's goals Maintaining and - Information for creating and setting goals developing the - Evaluate human resource systems organization - Consolidate and maintain the organization's development needs - Standards for reasonable research Providing - Documentation for human resource decisions documentation - Assistance in achieving legal requirements Table The basis purposes of the performance appraisal 3.5.1 Performance appraisal process Picture Performance appraisal process 10 3.5.2 Methods of performance appraisal Scorecard method: list the main requirements for employees when performing work such as: quantity, quality of work, style, behavior, …Alternate ranking method: rank employees from best to worst on a trait or vice versa on key points such as work attitude, work performance, … Retention criticism method: record employees’ major errors or good results in the work in order to evaluate who performs very well or very poorly Behavioral observation method: observe the employee's job performance behaviors based on the number of observations and repetition frequency of the behaviors 3.6 Payment for labor 3.6.1 Overview of payment for labor Salary is a motivating factor Employees will feel excited if they are well-paid which deserves their effort and performance, thereby striving more in the future Payment for labor is not only the needs of employees but also the responsibility and obligations of the enterprise towards employees About the employee's income structure, an employee's income includes basic salary, allowances, bonuses and other benefits 3.6.2 Payment methods There are two types of payment methods: material payment and non-material payment Material payment includes direct payment (daily salary, monthly salary, basic salary, allowance, bonus) and indirect payment (health insurance, social allowances; other types of benefits such as retirement benefits, job search, bonus for workers working in hazardous environments, sickness, maternity; ) In addition to material payment, enterprises also have non-material payment for labor Non-material payment is shown through factors such as attractive, interesting work or a working environment with reasonable payment policies and comfortable working conditions, 11 B Case study: Human resource management and the failure of Yahoo! I Reasons for choosing this case study Yahoo! once held the monopoly throne of the internet, while Google was still a startup and Facebook had not yet formed Yahoo! rapidly became the most well-known brand in the world and experienced many unexpected triumphs However, for a variety of subjective and objective reasons, Yahoo declined from the top to the bottom before being bought out by another business The following are some of the major causes of Yahoo's decline: Firstly, Yahoo!'s inflexible and cautious operating system and human resource management system should have long-term effects Yahoo! lost out on numerous M&A deals due to poor and arbitrary choices made at the top, such as declining to purchase Google and Facebook, two companies with current market values in the trillions of dollars Secondly, despite changing many generations of leaders and hiring Marissa Mayer, who was expected to turn the situation around, Yahoo! could not reverse the decline Within a year under CEO Marissa Mayer, in 2013, Yahoo! continuously bought 16 new companies with too much haste Many times, Yahoo! announced carrying out two M&A deals in just one day or six in a month (Thanh Hai, 2013) From the reasons mentioned above, the team decided to choose Yahoo! as a typical case of human resource failure, although CEO Marissa Mayer implemented many new policies and reforms for HR during her tenure II History of development and operation of Yahoo! 2.1 A little about Yahoo! Yahoo!, in full Yahoo! Inc is a global Internet brand and services provider based in Sunnyvale, California, and owned by Verizon Communications since 2017 (Britannica, 2023) Yahoo! provides users with online utilities, information, and access to other websites such as: Yahoo! Search, Yahoo! Directory, Yahoo! Mail, Yahoo! News, Yahoo! Finance, Yahoo! once had a golden age and became the most popular “first social network” globally in the period 1995 - 2007 but for many reasons, after 2008, the development of Yahoo! was more bleak than ever 12 2.2 Milestones of the history of Yahoo! Timeline 1994 - 1995 Yahoo!’s milestones January 1994, Yahoo! Inc was founded as “Jerry and David's guide to the World Wide Web” by Jerry Yang, David Filo and renamed “Yahoo!” in March 1995 From 1995 to 1998: Yahoo! was growing fast and becoming one of the most visited websites in the world 1998 - Yahoo! Messenger's first version (Yahoo! Pager) was born Google has “touted” Yahoo! bought the company for million USD but was rejected From 2002 to 2007: The Golden Age of Yahoo! when accepted by millions of users and had potential M&A deals 2002 Yahoo! chance to own Google again for $3 billion But during negotiations, Google raised it to $5 billion CEO Yahoo! At that time, Terry Semel said no because he thought that the partner's price was too high 2005 Yahoo! acquired Ludicorp Research & Development (Canada), the company that owns the famous photo-sharing website Flickr, and acquired a 40 percent share of the Chinese e-commerce company, Alibaba 2006 Yahoo! had the opportunity to buy Facebook with an offer to buy back billion USD, but again CEO Semel refused the opportunity to acquire this social network From 2008 to 2017: The “unlucky” and volatile period of Yahoo! 2008 Yahoo! began to fall into a difficult situation, many times having to cut staff In February 2008, Microsoft offered to buy Yahoo! with a price of 44.6 billion USD but Yahoo! refused - 2009 - 2011 - Yahoo! repeatedly changed CEO, after Terry Semel, Jerry Yang, Carol Bartz, Scott Thompson to Ross Levinsohn, but all were unsuccessful On July 28, 2009, an agreement between Yahoo! and Microsoft was reached in which Yahoo! would use Microsoft's search engine, Bing, for its Web site and would handle premium 13 advertisements for Microsoft's Web site, an arrangement scheduled to last for 10 years 2012 - 2013 In July 2012, Marissa Mayer took over as President and CEO of Yahoo! and caused the company to have many positive growth signs, the stock increased - 2013 - 2014 - 2016 - 2017 - now - Yahoo! had data stolen twice in a row, causing 500 million user accounts to be leaked, causing more than 300 million USD in damage On March 12, 2014, Yahoo! officially announced its partnership with Yelp, Inc., which will help Yahoo! boost its local search results to better compete with services like Google On November 21, 2014, Yahoo! announced that it would acquire the video advertising provider BrightRoll for $640 million Yahoo! shuts down messaging app Yahoo! Messenger to switch to the new version, but only for years On February 2, 2016, Yahoo!'s CEO Marissa Mayer was expected to cut 15% of its workforce Yahoo! was sold to Verizon for nearly $5 billion, 10 times lower than the price nearly 10 years ago Microsoft asked to buy and Yahoo! has officially "collapsed" from here Yahoo! subsequently became part of the newly created subsidiary Oath, though it continued to exist as a distinct brand The portion of Yahoo! that was not sold—notably its interest in Alibaba—was reformed as Altaba III Human resource management and the failure of Yahoo! Human resource managers need to be careful that their decisions not lower employee morale, as it can greatly impact the future of the business After more than 10 years of development, Yahoo! reached its peak in 2006 with revenue of 1.9 billion USD and profit of over 5.3 billion USD (Ngoc Vy, 2016) However, not long after peaking, Yahoo! began to rest on its laurels and eventually had to sell itself in 2017 Marissa Mayer, the female CEO of Yahoo! at that time, was considered to be one of the main reasons for the collapse of the company There are many theories 14 about the demise of Yahoo!, such as being backward, conservative, lacking a defined development direction, or making wrong decisions in buying and selling However, Mayer's governance is the most controversial issue 3.1 A little about Marissa Mayer After graduating with honors from Stanford University, Mayer received 14 job offers, including a consulting job at McKinsey & Company However, she decided to join Google in 1999, becoming the company's first female engineer when Google was still not an internet search giant In fact, the company had only 19 employees at that time Mayer became the 20th employee and an excellent one during her 13 years of working at Google, even though experts believed that there was only a 2% chance of survival (Nguyen Nguyen, 2017) In 2003, she officially took the position of managing Google's products, including the company's core search engine However, Mayer's focus on details and management orientation made many employees at Google unhappy, such as Doug Bowman, a famous designer at Google who quit his job because he could not work with her (Ngoc Vu, 2016) In 2011, Mayer decided to go to Yahoo! to take over as CEO with the mission of resurrecting the company that had been surpassed by Google in many business areas Thus, Mrs Mayer “Googled” Yahoo! by repeatedly acquiring small and medium-sized companies to acquire talented employees, the same way Google did (Thanh Hai, 2013) Mayer's focus on this strategy was an important part of the plan to turn the tide at Yahoo! at that time, but it also raised many potential risks leading to the collapse of Yahoo! in 2017 3.2 The controversial human resource management policies of Marissa Mayer 3.2.1 About working culture Firstly, Mayer forced employees to work at the office Mayer's first major policy at Yahoo! was forcing remote employees to work at the office Mayer believed this would increase the efficiency of communication and collaboration However, this policy was thought to be not suitable for Yahoo! Working in an office has many benefits, however, there are some types of work requiring more operational than creative, especially in a technology company like Yahoo! Mayer didn't realize that one of the advantages of working remotely was that 15 it would reduce the social burden and pointless interaction that can waste hours in the workday Forcing an unproductive, unmotivated person into the building is not a solution to their lack of productivity or their motivation Working remotely helps individuals be more focused and efficient while avoiding affecting the productivity of others Moreover, many experts believed that this policy could prevent Yahoo! from attracting the best employees who might not want to work in San Francisco or other cities where Yahoo! has offices If that was an issue for a potential employee, they would simply look elsewhere at more flexible companies Some analysts even said that this new HR policy could have negative consequences for a company which was looking for more talented people But Mayer defended and said it was necessary for the organization's current conditions Secondly, Mayer was conservative in receiving or listening to employees' opinions related to the survival of Yahoo! The lack of ability to listen and absorb ideas was one of Mayer's biggest failures According to Yahoo! employees, Mrs Mayer repeatedly rejected the opinions of her subordinates, making them hesitate to share as well as feel untrusted and disrespected Instead of arguing for the sake of learning, Mayer, who was an aggressive person with a high ego, always tried to justify her opinion and constantly disapproved of other opinions that were different from hers While a great leader needs to know how to put themselves in the shoes of others to come up with the most intelligent strategy For instance, by the decision to ban employees from working remotely, Mayer’s way showed a lack of trust, a lack of respect, and a lack of partnership She didn’t ask employees to work with her to solve a problem but ordered them to follow her decision The consequences of these mistakes were a series of improper decisions such as spending more than $2 billion to buy 50 different companies causing losses, failing" to catch up with Google and Facebook, ignoring security that caused more than billion accounts to be hacked and a $350 million loss for Yahoo!, etc 16 3.2.2 About the recruitment Mayer's hiring policies were reasonable and considered necessary to Yahoo’s human resource change However, they were not suitable for Yahoo's circumstances at that time Yahoo employees had struggled with the fact that Yahoo was no longer at the top and was facing fierce competition to attract talents in Silicon Valley Some problems in the recruitment process under Mayer's policy include: To begin with, Mayer's rigorous recruitment practices were said to have caused the company to miss out on top technical talent According to employees who worked at Yahoo, they complained about the way Mayer tightened recruiting practices that rejected good candidates because they didn't have qualifications from prestigious universities Moreover, Mayer challenged her employees to improve hiring practices Mayer brought Google's hiring standards to Yahoo, with a particular focus on special academic credentials from Stanford University or a degree in computer science that was valued much higher than others Secondly, Mayer personally reviewed and signed in every hires - another Google method that Mayer adopted at Yahoo - which inevitably slowed down the hiring process at Yahoo!, leaving applicants with a long wait and leading them to look for potential opportunities at other companies, including Yahoo's competitors 3.2.3 About training and developing human resources For new talents, the big problem with Yahoo was that it didn’t have the right system in order to nurture new talents, make them feel as a part of the company, which made employees feel like they were not welcome at Yahoo Sullivan who worked at Hewlett-Packard (a large information technology corporation) said that the stifling culture often made newcomers unhappy For talents to well under new management, the company must be enthusiastic to attract them to continue doing their jobs However, Yahoo! was not like that They did not have a clear strategy or policy for employee compensation and its employees even had to look for information in other news sites This made employees feel demoralized, unclear about their work and gave up working for the company 17 3.2.4 About the stage of job performance evaluation Firstly, Mayer often had her own way of evaluating employee performance, called Mayer's Q.P.R (Mayer's quarterly performance review) - a forced distributions performance appraisal that forces managers to rank employees from to and then those ranks are used to categorize the employee into various classifications, including the “bottom 5%” and then fired hundreds of employees using that data Secondly, Mayer often secretly conducted layoffs based on silent reviews Nobody knew who would be next and why they would be fired This had caused competition among employees, creating an atmosphere of tension, low employee morale, and even lower profits and web-traffic, the lifeblood of Yahoo! Thirdly, Mayer often prolonged layoffs in Yahoo! While other large and professional companies considered payroll cuts to be done quickly to take time to heal the "wounds" However, Mayer made this important human resource planning campaign for Yahoo! become more stressed She even announced to the entire company that the "mass layoff" campaign was over but then broke the promise This had discredited her, causing company employees to no longer trust this leader 3.2.5 About employee compensation and benefits Mayer spent a significant amount of money retaining key employees at Yahoo! when it was going into recession In addition to catching up with the trend of high salaries for other leaders, Mayer's main mission was to save costs while growing This meant there would have to be a pay cut when Yahoo! continuously lost As a result, Mayer used a centralized "investment" approach, paying high salaries to ensure the professionals didn't leave And while there was not much money on hand, the high wages of one group of people would affect the work of another group - the group of employees who did not meet the performance milestones set by Mayer The pay cut caused employee morale to drop, so it swept Yahoo! into a spiral of crisis after a series of human resource management policies that Mayer applied above and Yahoo!’s lower paying This created a wave of discontent among employees who were loyal to Yahoo! and further motivated senior employees to look for other companies 18 CONCLUSION In conclusion, the demise of Yahoo can be attributed to a combination of poor governance and unstable human resource planning policies implemented by former CEO Marissa Mayer Despite her efforts to turn the company around through acquisitions and product improvements, Mayer's leadership style and strategic decisions ultimately failed to bring the desired results The company's downfall serves as a cautionary tale for other companies, highlighting the importance of effective leadership, sound decision-making, and stable human resource planning policies in achieving sustainable success The legacy of Yahoo's demise also underscores the need for companies to prioritize their employees, their human resources and establish a culture that fosters growth, innovation, and long-term viability 19 REFERENCES Associate Professor Dr Dang Hoang Linh (2018) Business Administration (Giáo trình Quản trị Kinh doanh) Hai, T., (2013) How did Marissa Mayer turn Yahoo around? 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