Define the Problem: Identify the major issue of the case, what are the problems and sub-problems
Bob Salinger, CEO of Tidewater Corporation, a manufacturer of luxury boats, is facing a dilemma of whether or not to fire Ken Vaughn who is troubling the company with his misconduct.
The problems they faced includes Ken Vaughn being the best artist in the industry when comes to designing boats. The company’s top management fears that if they fire him, there is high chance of him working with some other company. But at the same time Salinger is being reminded about the misbehavior Vaughn has towards his ’new’ boss, Morris Redstone. Almost all their discussions, as the case study described ended up in conflicts, in fact serious disputes which have even caused damage to the company products. Vaughn’s refusal to cooperate with the Tidewater’s employee assistance program also makes the matter even worse. According to his colleagues’ opinion Vaughn’s defiance might be due to his ‘fear of change’ due to redesigning the organization. They also notice that he has some personal behavioral complexities as well. Salinger’s emotional attachment to Ken Vaughn can also be considered as a problem.
For the company, Vaughn is the most popular one among the dissatisfied employees. There are other employees who also dislike the company’s decision of redesigning the organizational structure. Since Vaughn has a good rapport with his team members, firing him would even rise up the chances of high attrition. This is unthinkable for the organization at their present financial stage. Despite the disinterest the company has to forgo with the new organization structure, for the company’s sustenance.
Theory and framework that can be applied
The exit-voice-loyalty-neglect framework is helpful in analyzing the situation. It shows the four responses, which changes along two dimensions: constructive/destructive and active/passive. Broken window theory (1982) can also been applied...
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