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I believe that it's possible to be rigorous and polite/tactful at the same time. In fact, it's traditional and civilized to aim for that.

Excessively tough-minded bluntness is frowned upon for good reason.

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Yes, I think there's a balance we need to strike here. Being excessively rude and tough can demotivate employees and decrease productivity, but being too nice and polite won't get the message across.

I agree with finding a balance. A blunt attack may knock one person's confidence causing them to no longer offer ideas while for another it may encourage them to think a little harder about the problem before offering a solution.

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