Grayson Chemical Case Study
The company had become stagnant – (although at Grayson, they refer to this as conservative) and had steadily lost market standing and profitability. Finally, the board decided to hire a new CEO and was able to hire a dynamic manager from another major corporation. Tom Baker, 47 and an MBA, has helped his former company Into a leadership position.
He has chosen to join Grayson after another executive was chosen for the top Job in his former company. Baker knows what he needs to do and that is to develop a topnotch management team that could provide leadership to turn the company around.
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Unfortunately, the situation at Grayson Is not very favorable. Decisions are made by the book or taken to the next higher level. Things were done because “they have always been done this way,” and incompetent managers were often promoted to higher level Jobs.
Baker met with three members of the board. Each of them had a deferent advice to offer to tom. Robert Temple said: “You can’t Just get rid of the old organization if you want to maintain any semblance of morale. Your existing people are all fairly competent technically. But It’s up to you to develop performance goals and motivate them to achieve these standards.
Make it clear that achievement will be rewarded and that those who can’t hack it will have to go. ” James Allen noted: “You need to bring in a new management team. Probably only six or so, but people who know what top management means, people who are using Innovative methods of managing and, above all, people you trust. You cannot retread the old people, and you don’t have time to develop young Mamba’s, so you need to bring your own team even though it might upset some old timers. ” Hartley Seafood said: “Sure, you’re going to have to bring in a new team from the
Alternative Courses of Action: 2. Create a new management team that is a mix of old timers and outsiders and develop a new corporate culture.
Advantages: 1 . Culture change will address inefficiency problems. 2. Collaboration between different people will make the system more robust/effective. 3.
Incompetent managers will be weed out. 4. May improve employee morale. Disadvantages: 1. Possible conflicts of interests.
2. “Old timers” may be uncooperative. 3. Developing new set of culture will take some time. VI.
Alternative Courses of Action: 3.
Create a new management team compose of people from the outside and develop a new corporate culture. Advantages: 1 . Culture change will address inefficiency problems. 2. Different people with different experience will give a more rational assessment of facts and solution to the problem.
3. Incompetent managers will be weed out. Disadvantages: 1 . “Old timers” may be uncooperative. 2.
Low employee morale. 3. Developing new set of culture will take some time. 4. Conflict and confrontations may arise.
VI’. Recommendation Detailed Course of Action Person Responsible
Tom Baker and Board of Directors Tom Baker and HER Manager Tom Baker and HER Manager Activities Call for a meeting to discuss plans for corporate culture change. Also discuss the hiring of ODD consultant. Hiring of ODD Consultant Evaluate current set of management team and select persons to be included on the new management team. “Removal” of some of the top management people Time Frame 1 day 1 week 1 week Tom Baker and HER Manager 1-2 weeks VI. Detailed Course of Action: Person Responsible Tom Baker and HER Manager Activities Hiring of external people to fill in new positions on the new management team.
Discussion on developing and implementing a new corporate culture. Develop a new system. Implementation of the new system on critical business units Review of system and make changes if necessary Full implementation of the new system Periodic review to continually improve the system Time Frame 1-2 months Tom Baker, ODD consultant and Top management team Tom Baker, ODD consultant and Top management team Tom Baker, ODD consultant and Top management team Tom Baker, ODD consultant and Top management team Top management team Top management team 2-3 days 2-4 weeks 1 month 1-2 weeks Continuous Every quarter