Problems that have arisen could be due to the differencesin personalities.
The chief executive has a more extraverted personality as heis “keen” on “rapid expansion” whereas the employees are more conscientiousnessas they are more “cautious” and don’t want to open new offices where there isrisk. Therefore, what we have now is a clash between personalities. (Graham,2009) It is evident there is now conflict within in the workplace that needs tobe addressed. This is where another issues arises as the conflict is not beingaddressed which has resulted in “strained” relationships and, furthermore, thefinance manager resigning. There is a lot of staff turnover happening in thecompany which will have a detrimental effect on the company if no action istaken. Moreover, in order to overcome the issues there is a need to increasecohesion as it is evident communication has declined which has resulted in theteam falling apart. A meta-analysis found that cohesion is significantlyrelated to performance in a variety of teams (r = 2.
48; Mullen , 1994). Without cohesion there is a lack of communication which alsomeans no progress being made to come up with a solution to the problems whichis fairly obvious within this team. There is a problem in the way the change was presented tothe managers. As rapid expansion would be a big change it needs to be presentedto its employees in a steady manner where they can understand why the change ishappening and be on board with the chief executives ideas. Right now, allmanagers have different goals and for this reason problems are arising. From aSocial Identity Perspective in order to manage conflict the teams should re-categorise by creating and emphasising shared organisational goals and rewards.(Van Knippenberg, 2002) This is important as the goals of the team are veryunclear and by creating superordinate goals it will resolve many issues asteams will communicate more to obtain the shared goals as they will have aclear image of what is expected.
The theory of Management By Objectives (Weihrich & Mendleson, 1978) states thatemployees are generally more committed to goals that they have helped tocreate, therefore, it is important the employees take part in implementing thegoals with the chief executive.Moreover, to overcome these problems there should bestrategies in place to stop the situation from getting worse. For example, theemployee that is off sick because of stress, there should be a stress policy inplace where she can talk about it and overcome issues. Furthermore, there is a clear need forconflict management.
There needs to becommunication, problem solving and then negotiating to come to a commoninterest to avoid any conflict which is what is happening in this company. (Rahim,2002) Another issue is with the management style, a more obliging oraccommodating style is needed this is where two parties cannot agree which iscausing the conflict for instance in this case between the leaders and thechief executive, therefore, if the chief executive used a more accommodatingleadership style (Blake and Mouton, 1964) some of these issues can be overcome.Currently the chief executive has a more dominating style,this is where he is more concerned with his own interests than the teams.
Forexample he wants rapid expansion. His style is assertive as he is being co-operativewith his teams concerns who believe that the way the business is running isfine. (Rahim and Buntzman, 1990) A case study that looked at the relationshipbetween leadership style and job satisfaction found a positive significantcorrelation between a dominating style and low job satisfaction. (Ali, 2006) Thisprovides further proof that the style is ineffective as it will make the team lesssatisfied and there will be more staff turnover which is what is alreadyhappening. Therefore, a change of leadership style is a priority. (Rahimand Buntzman, 1990).
In order to implement changes effectively the manager canuse Lewin’s change management model, to manage change. The team right now is inthe unfreeze stage as they are not motivated by the change so there is a needfor this. The manager needs to promote effective communication and empower theteam to embrace the new change. Then the team will go into the refreeze stagewhere you return the organization to a sense of stability.(Lewin,1947)In conclusion, the problems have arisen due toconflicting personalities, different goals, leadership style and also the waythe change was being implemented.
This resulted in conflict, which did requirecommunication and a solution, however, it is evident communication was low asit resulted in the staff becoming stress and leaving the job and leaving. Toaddress these issues the Chief executive should demonstrate the ways in whichchange can actually improve the company and maybe the role of the employeestoo. This can be done by meetings and giving data to prove how the change willbe effective. There is a need to emphasise the goals of the company and makesure everyone is striving to reach the same goals and is clear on what thesegoals are. This will then give the employees a more insight of what the futureholds and will make the more comfortable to go ahead with change.