Ceo Cant Afford to Panic

Only available on StudyMode
  • Download(s) : 313
  • Published : May 26, 2013
Open Document
Text Preview
Situation / Background

While on a regular Tuesday morning meeting at Boston’s Kaspas Financial Services headquarters, the subway located a few meters in front of Kaspas’s building is reporting coordinated bomb attacks, the explosions have left several people injured. Kaspas’s CEO Mr. Gerald Smarten needs to make some decisions about how the following minutes will play out. •The HR director Ms.Joan Kaczmarek suggest that is important to help, he starts by coordinating a census of the people missing within the organization in order to find out whether some of the employees can be in danger. •Mr.Smarten is told by the security chief Mr. Paul Schlesinger that the police department are going to call soon to ask if they can use their lobby facilities as a triage centre and temporary morgue. •The market has fallen due to the news, the chief investment officer Ms.Dana Rosi advises Smarten to move as much activity to the New York and Chicago offices due to the fact that the investments need to be followed up and she is also worried that lending the facilities might bring negative impact on the company and shareholder’s value. •The Marketing VP Mr.Sal Persano is worried about the negative implications that the image and logo of the company appearing in pictures where the victims of the bombing are being kept might bring. •The general council mentions that lending the facilities might bring liability issues for the company. The opinions of the different members of the board differ. Some are concerned that lending the facilities in order to aid the police could generate bad association for the firm in the future, other are concerned that the company would fail to act ethically just in order to maintain its image, and others are concerned that the trading operations might be affected and that the firm will be unable to fulfil its obligations towards the clients and maintain shareholder’s value. Problem Identification

1.With little time and limited information, Mr.Smarten faces the dilemma of making a decision that could affect the image of the company for better or for worse. The decision that has to be made needs to take into consideration both the business’s shareholders’ interests while at the same time being an ethical and humane decision that looks for the employee’s, bombing victims and community wellbeing.

2.The team’s point of views regarding what needs to be done differ, as they all look after the interests of the particular area they work for. Issue Analysis

Mr.Smarten needs to choose an option that portrays his personal values as well as business professionalism. Should he lend the facilities for morgue use or shouldn’t he? Can he come up with another solution for the request? Should he make the decision by himself, or would a consensus decision making be appropriate? This situation calls for a leader that has self-confidence, trustworthiness and courage as personality traits. Du Brin (2013) describes a self-confident leader as one that can maintain composure and calm when dealing when a crisis, Mr.Smarten firstly needs to communicate this self-confidence to the rest of his team even if he isn’t quite feeling this way. Whatever decision Mr.Smarten take will reflect on how trustworthy he is, his colleagues will conclude based on his actions weather he is a trustworthy leader, especially when they put themselves in the situation where one of them could be present at the bombings. Courage is the leadership attribute that Mr.Smarten will need the most in this type of situation, Du Brin (2013) describes courage as the attribute of a person that takes responsibility for his actions. Organization now a days have complex environments with everyday ethical challenges that must be faced (Hunter, 2003), and therefore require that managers with the appropriate character to deal with them. Du Brin (2013) also mentions the importance of cognitive intelligence as an attribute of effective leadership....
tracking img