This (start watching at 26:30) is getting a lot of howls of outrage and laughter among the Slashdot set, for good reason given the initial answer from the nameless middle manager.

But if you listen to Hillary's follow-up (it continues through 30:30), which people are not commenting on, she gives a better answer than most managers would in her position (not being a tech). Basically she's encouraging people to tell them when there's a problem. There are worse messages to send your employees. Too bad her subordinate doesn't get that.