Problem Identification

1. How effective leadership can be ensured in the company?

2. Mr. McRae’s proposal should be accepted or not?

Iggy's bread of the world witnessed a sudden and quick growth in business. So it required
development in terms of infrastructure, both physical and human. Yet, the introduction of another
administration and unexpected change in hierarchy raised some fundamental issues like worker
dissatisfaction, disruption in organizational culture and conflict between the Ivanovics and the new
management. It could have affected the growth of business as well as the brand reputation and
product quality. So the decision mentioned above associated with leadership was extremely
important from the perspective of employee satisfaction, organizational culture, brand image and
keeping up the quality of the product.

Mr. McRae had a decent experience of running a successful organization. Ivanovics hired him in light
of the fact that the business was growing quickly and they were not sufficiently experienced to deal
with the circumstance. As Mr. McRae was knowledgeable about the business, they appointed him as
the COO with the hope that the business could be managed well. But the approach of McRae was
business driven, along these lines the organizational culture got neglected under his administration
that prompted employee disappointment. Additionally he expected excessive autonomy that
brought about clash among his administration and the Ivanovics. His proposal showed that he was
more intrigued by money which was not in resonance with the culture and philosophy of the
organization. So it was really tough for the Ivanovics to choose whether to hold McRae by accepting
his proposal or to release him.

Course of action

A. Accept the proposal

B. Reject the proposal and replace the management team

C. Bring back the control over the business

D. Negotiating with Mr McRae

A. Accept the proposal

Mr. McRae and his team can be given a second chance by Mr. Ivanovics. There is a perceived
notion among the employees that the team is not acting according to their interests and the
above option may not help to achieve employee satisfaction. According to Mr. McRae has
kept money as the important factor in his proposal, another criterion which includes passion
may also remain unsatisfied. Mr McRae could not fit into Iggy’s culture because the culture
there was for passion and not money and Mr McRae thought otherwise and his expectations
was different. But here Mr McRae was able to satisfy a criterion which was his ability and skill
 to develop a business and this was proved by his previous experience in a company. Thus
there were high probability that he could reproduce the same results if he is given a chance in
Iggy’s growth.

B. Reject the proposal and replace the management team *

As the management of McRae caused dilution of the organizational culture which was the
base of the organization's success, his administration group can be replaced by another
administration group. Since the business is developing quickly so they require a management
group that can give a proper direction to the business. In any case, this time they can hire
individuals who are expert in their respective field as well as consider cultural fit as the most
noteworthy need. Also Mr. Ivanovic being well acquainted with the work culture of Iggy’s he
can implement some strategy that can cope up with the present situation so that the
differences and concerns raised due to the new management can be resolved. Thus, the
organizational culture can be retrieved and the quality of the product can be maintained. He
also can take help of Mr. Nickola in administration so that he will have a control over the
management instead of allowing it complete autonomy. So Mr. Ivanovic must use this
alternative.

C. Bring back the control over the business

Before the expansion project, Iggy’s was operating at good level thus rolling back to the
previous situation would help Iggy’s gain it’s previous level and also the customers which
were associated with company before expansion. Rolling back would also make sense
because making monetary growth was never the motto of the company and it goal was to
provide quality product to it customers and also to create a flexible and comfortable
workplace for its employees.

D. Negotiating with Mr McRae

Mr McRae had an effective career of running a leased company therefore letting him go
would not a good option and moreover his is a very knowledgeable person. So Mrs. Ivanovic
should try to negotiate things with Mr McRae by revising his proposal and try to remove the
problem by mutual understanding.
Evaluation of the solutions

Sl. no of Criteria Weightage

solutions
A Effect on the future 30%
business/development of Iggy

B Effect on the notoriety of Iggy 25%

C 25%
Effect on the work culture of the
organization and the workers

D Cost Implications for the organization 20%

Solutions Weightage A B C D
A 30% 3 3 4 3
B 25% 2 4.2 3 2.5
C 25% 2 4.5 3 2.5
D 20% 2 2.5 3 3
Total 2.3 3.575 3.3 2.75
Note: points are given out of 5. Highest: 5, Lowest: 1

(*) Best solution: Reject the proposal and replace the management team
Backup plan

In the worst case scenario, if McRae doesn’t agree to step down, the owners should use their
authority and force him to bring Nikola in place of Diana Coleman. Moreover they should try to
enhance Nikola’s authority and responsibility within the management team, this would help the
management keep a check on McRae’s growing influence in the company.