Leadership Case Study
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GMB Travels Ltd was established in 2000 and their core services are to offer travel services to both local and international tourists. There has been a national move to centralize organizational structures and this has led to resistance of many CEOs and eventually the resignation of the outgoing CEO.
Change of Management
In March 2012, the board of directors recruited Jane Murray to replace the previous CEO. She has a background of executive management and was heading a national company. The previous CEO had handed in her resignation 4 months prior and a senior member of the corporation was in acting capacity. The resignation led to anxiety among the employees who were now opting to seek employment in other companies. When the new CEO arrived, the employees were almost losing hope and they had put all their trust in her hoping she will do a wonderful job.
The Chief Executive of GMB Travels is a very respectable and hardworking lady who sees that the company runs smoothly. As she assumed her new role, she was faced with a number of challenges which she inherited from the previous CEO and other industry challenges.
One of the alarming situations that the new CEO came across was the situation in the company involving the previous CEO and which was causing a lot of stress and pressure on employees. The matter on the ground was that, the previous CEO had tight control over all operations that took place in the company and also the decision making process was all left to him to make the final straw. This was seen as a normal practice since he was the one responsible for the undertakings of the company and its financial results. However, these practices rubbed other employees the wrong way as they felt under pressure and stressed by the executie officer.
Another issue that came up was the fact that the organization focused more on redeveloping revenues as opposed to having a great service for its customers and clients. This was a major concern for the new CEO.
Jane Murray had to know the underlying factor as to why this was the case. The first factor that came up was the leadership style of the previous CEO who was more of an autocratic leader and was more focused on the company’s revenue rather than the employees’ morale which eventually translated to poor services to the clients.
The other contributing factor was the inability of the various experts to perform there duties due to the tight control of the previous CEO and this led to various errors in other departments that cost the company millions. Additionally, there was lack of accountability between the previous CEO and the board of directors. The board of directors did not see the necessity of having a strategic plan and left all financial matters to the CEO with which he did as he pleased.
Tight Control by The Previous CEO
When he first started out in the company, he signed and reviewed all mail deliveries and even delivering some of them which seemed important. This was a good gesture from him as the CEO could have had other important things to do than deliver mail. He went ahead and signed purchase orders for everything that was purchased. This however, was not his responsibilities at all but she did them anyway. The sales manager was mistrusted and he did all the duties that the sales manager was meant to do, he could not delegate authority. He was a great leader and wanted to save on company expenses, especially the electricity bills which contributed enormously to the company’s expenses.
After a while, his determination to save on expense was paranoid as he wanted to save even on rubber bandds and waste papers. The company was in a good financial position hence such drastic measures to save on rubber bands and pens were not in order. He went ahead and performed almost all duties that the sales manager was supposed to conduct. He did not allow the sales manager to come into contact with any major customers. At first, it may seem prestigious for a customer to work directly with the CEO but she did not have all the information and knowledge required to attend to the customers. All suggestions taken up with the CEO to delegate was received as personal assault and he did not want to let go of some of the company’s operations to the various experts of those activities. His leadership brought upon mounts of pressure on the employees and eventuallytransferred to the clients as well as they were not treated well by the various employees.
The clients saw themselves as second rate as the organization was more focused on their revenues and did little to meet their expectations and needs. The staff themselves did not treat them well as they should and their services were poor.
Staffing and Team Culture
Since its inception, GMB Travels Ltd has had only one CEO till his resignation when Jane Murray took over. The previous CEO’s management style was described by his employees as being autocratic with a very strong personality. They said that this type of management style had a major negative impact on their morale and the way they did there work.
As Jane Murray prepared for a meeting regarding the prevailing situation in the organization, she pondered on the challenges that faced her in this organization and strategies that she will employ to make a difference. She had a greater challenge of proofing to the employees that she could make a great leader who took their interests seriously for the benefit of the whole organization.
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