Questions What are the behavioral consequences of the way th

Questions

What are the behavioral consequences of the way the CEO is using his power?

What is the likely outcome of the new budgets?

How could Stokes motivate his staff differently?

PrimeDrive Challenges Granger Stokes is the new CEO of PrimeDrive Corporation. Stokes prides himself on his hard-driving management style. At the first management meeting, he asked two of the managers to stand. Then he fired them on the spot, just to show everyone who was in control of the company. At the budget review meeting that followed, he ripped up the departmental budgets that had been submitted for his review and ordered everyone to submit new budgets calling for at least a 40% increase in sales volume. He announced that he would not accept excuses for results that fell below budget.

Solution

1. The behavioral consequences of the way the CEO is using his power are mentioned below:

- The employees would develop a resentment towards the CEO and the company in general.

- There will be no motivation among the employees to perform better.

- The employees might decide to leave the organization in favor of a place where they are seen in assets.

2. The new budgets which will incorporate an unrealistic rise in sales volume will most likely not to be met by actual performance. The employees might not even try to achieve results as they will know that it is impossible. Further, all variances will be unfavorable.

3. Stokes could motivate his employees to utilize their skills to do the best they can and come up with new and innovative ways to increase sales revenue. He could incorporate a more participative approach and a friendlier approach towards the employees.