Grayson Chemical

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Grayson Chemical Company
I. Problems
A. Macro
1. Grayson Chemical Co. over the past few years has declining earnings and sales. Grayson has steadily lost market standing and profitability. 2. Tom Baker was recruited as the new CEO and tasked with turning the company around financially. B. Micro

1. The 40-year-old company has been run by a stable management and has only had two presidents and grown complacent with the changes needed within the company. 2. The upper management has grown stagnant and has not supported change within the company. II. Causes

1. Grayson is an open system and has not been practicing the renewing/transformational management to help with the environmental change that is going on around them, also know as sluggish management. 2. Incompetent managers were often promoted to higher-level jobs that have lead the company into the position that is currently in. III. Systems affected

1. The entire sociotechnical system can be affected by the changes needed within the company. The change has already started with the hiring of Baker as the new CEO. 2. The structural subsystem will be affected by changes needed in the company to help prepare it for the every changing environment. 3. The employees’ moral and attitude could be affected by the changes needed within the company. There could be some resistance within the workforce due to the change in CEO and any new changes within the management. IV. Alternatives

1. Baker could use the suggestions and recommendation of the board members for making changes within the company. 2. Make no sudden changes and see how the existing managers function and then task them with changes needed. Then evaluate their views of the recommended changes. V. Recommendations

The new CEO needs to evaluate all areas of the company and management and then decide how to begin the...
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