The macro problems in this case include a lack of support from higher management and the need for climate of change. The micro problems include the ethical aspect of bringing in new people to replace existing employees, the motivation of the existing employees due to lack of vision, and the moral of employees from rewarding incompetent employees. 2. What are the potential causes (please support your view)? Management has a conservative view for its steady loss in the market and has led to the company’s stagnate condition. Further, the board of directors has lost confidence in the current management team and the team has not been effective in increasing earnings and sales. Further, decisions were made within specific guidelines or by the next higher level. Moral was also low from poor promotion decisions by advancing incompetent managers to high-level jobs 3. What are your recommendations?
The new CEO needs to evaluate the current management team and determine who has the abilities to make the needed changes and replace any members that are ineffective. Appointing one as a practitioner would also be effective in helping the organization implement change. Hiring additional team members that have innovative methods and a record of leadership, highly motivated and high performance levels will further strengthen the management team. A long range plan to should be developed to train current employees for future management positions. A team should be developed to incorporate a motivational climate where lower level managers have the ability to solve problems without having to involve upper management. A company vision and future goals need to be established.