John is a manager in the Gardening department at ABC Hardware. Last week the general manager was fired for incompetence. The chief executive officer appointed John to be the new general manager. John's salary will increase from $150,000 annually to $350,000 annually. John wants the job and is willing to accept the responsibilities that come with it.
The CEO said that there are many changes in the making and that everything will go digital. The employees are used to doing their work by hand written orders. This new change will have to be implimented within the next 60 days. Most of the employees have never used a computer and do not understand what is meant by digital.
The CEO told John that the plumbing department, which consist of 25 employees is not working efficiently. The workers continuously arrive late to work and do little or no work during the time that they are at work. The morale in that unit is very low. Their manager is attending school at nights and could care less about the employees or the business. He has a total" hands off "approach to running the business and totally neglects the business. The supervisor of the unit is off on disability caused by alcoholism, so no one is there to monitor the work.
The electrical department, consisting of 100 workers, is working efficiently, however the morale is extremely low there. The workers are upset that they cannot advance and they have not received a wage increase in two years. John discovered that the manager continuously shows up to work late and never engages the employees. Sometimes he tells the workers that they are not professional and that they are lucky to have a job. Most of the workers are afraid of him and want to transfer or quit. It has been rummored that he sexually harrasses the woman in the unit. The supervisor of this unit has been in the hospital suffering from a stroke for the past month. They are not sure if he will ever return to work.
Other than the above mentioned problems, the company is doing well financially. Last year it made a profit of 100 million. It has the potential to make 500 million.
John has been given one year to turn these departments around. John comes to you and he asks your advice about how to turn this business around. He was told that if he did not turn these units around, he will be looking for a job as well. The CEO is a nice guy, but he is demanding and he has fired managers before.
You will be required to answer one of the four questions for your exam. You have 2 hours. You may not use your notes, books or electronic devices.
1. Provide a written analysis of how John should tackle these problems. Explain the different approaches and the relative success that each approach might have.
2. Analyze the issue regarding "going digital" and explain how that change can be carried out. Also analyze the approach that should be taken regarding the managers and supervisors of both units.
3. Analyze what it will take for John to get the workers to accept the digital change, production improvement and the morale increase.
4. Analyze the leadership skills that are necessary for John to be able to to be successful in this new position. Analyze whether it would be necessary for John to use a team approach.