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Grayson Chemical Company The Grayson Chemical Company has been experiencing a decline in revenue and sales over the past several years. The company has also lost their standing in the market along with profitability. Tom Baker was recruited and hired to be the new CEO for the purpose of turning around the company’s financial situation. The company is 40 years old and has consistently had stability in their management while only having two presidents (Brown, 2011). There may be a sense of complacency and the changes needed in the company may not be happening as a result of this (Ritchie, 2000). There is also a stagnancy within upper management as it does not seem to be supporting change. The Grayson Chemical Company has an open system and has not been making use of transformational management to address the changes happening in the business environment (Bass & Avolio, 1993). Managers that have consistently demonstrated incompetence have been promoted to higher levels of authority which has had a great deal to do with the situation the company now finds itself in. The changes needed within the company would affect the sociotechnical system as a whole. To some degree, these changes have already started with the establishment of Baker as CEO. The structural subsystem would also be affected as a result of the changes needed. The attitude and morale among the employee pool would experience effects due to change in the CEO position and additional changes in management. As the new CEO, Baker could make use of the recommendations and suggestions provided by the members of the board on the subject of making changes. It might also have some benefit to not make any sudden changes for the purpose of seeing how those currently in management positions operate, and once these observations have been made, then make the necessary changes. The new CEO should undertake an evaluation of every area of the company, especially management, and then make conclusions on what the ideal interventions should be (McKendall, 1993). The CEO should come to a decision on who is and is not demonstrating competence in their positions. The fact that the company has gone for so long without any real change probably means there will be cultural norms to be contested and overcome in order to get things on the right track again. The existing employees should also become involved by providing their own ideas for their specific areas (Maccoby, 2005). Involving the board members in the process may be beneficial as they may be able to assist with concerns or questions.
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- Spring '19