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1. (TCO B) Faxco Incorporated is a business with 500 employees. The CEO of the company has recently learned, based on employee surveys, that the employees are not very happy with the company. In fact, the CEO is starting to believe that this may be the reason why Faxco is experiencing slower sales and a recent budget crisis that threatens to shut down the company in 3 years if it is not fixed.

You are a consultant and the CEO has asked you to visit the company for a week and analyze what might be going wrong. Here are your notes from the week.
(1) Attended Manager 1's staff meeting. He has 200 employees working under him. Manager 1 talked about the recent budget problems that Faxco is having. He said, "It's not like we didn't know this was coming. The company makes a junky product compared to our competitors, and half the time, I think the manufacturing department is cutting corners." Manager 1 was overheard telling an employee, "I don't blame anyone if they are looking for work elsewhere."

(2) You overheard three employees talking after Manager 1's staff meeting. Employees are upset about the idea that the manufacturing department might be cutting corners and creating junky products. The company advertises its products as having the finest quality and durability.

(3) You attended Manager 2's staff meeting. He runs the tech department and has 20 employees. He was very upset with the marketing department. He stated, "Someone over in marketing reported to the CEO that a computer technician from this department was rude to them. I did not even ask who it was that was supposedly being rude. I know we're all techies in this department together and we don't behave that way." He also read an e-mail from a customer who said that someone from the tech department was rude. His response was, "All these customers do is complain. It's us versus them apparently, so we have to watch out."
In light of what you learned in MGMT591 about diversity, job satisfaction, and

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