This case examines leadership communication's impact on employee trust and organizational reputation amid cultural tensions.
Learning outcomes Upon completion of this case, students will be able to understand the implications of psychological contract theory in organizational contexts. It will allow them to analyse how leadership communication affects internal trust and public perception and critically evaluate the reputational consequences of symbolic leadership behaviour. Case overview/synopsis S.N. Subrahmanyan, Chairman and Managing Director of Larsen & Toubro (L&T), India’s leading engineering conglomerate, made a public statement encouraging employees to work 90 h a week and use Sundays to achieve global excellence. Although intended as a motivational message, the statement triggered nationwide backlash. Employees, industry leaders and the public interpreted the comment as reflecting an outdated, unsustainable work culture, sparking debates around work–life balance and generational shifts in employee values. Internally, the comment created anxiety and ambiguity regarding the company’s expectations, especially among younger professionals. The case will allow students to examine how leadership communication can reshape psychological contracts, explore generational tensions in the workplace and evaluate how organizations should respond to reputational challenges while preserving performance culture. The case dilemma centres on whether L&T should clarify, retract or reinforce the chairman’s statement. Complexity academic level This case is appropriate for upper undergraduate- and graduate-level programs in organizational behaviour, strategic human resource management, business ethics and leadership studies. Potential programs include, BBA, MBA HR and industrial and organizational psychology. Supplementary Material Teaching notes are available for educators only. Subject code CSS 6: Human Resource Management.
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Balasundaram et al. (2025) studied this question.
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