Situation Analysis One of the main circumstances that was the basis of the first issue, which we identified

as a lack of sufficient policies to encourage employee integrity, is that the CEO, Chip, displayed a poor example when he allowed himself to be unduly influenced by one of the so called old guard, Dale, to forgo the Ombudsman role and to delay training related to the new open-door policy until HR had completed existing programs. Without training and an Ombudsman, there is little suitable means for identifying, codifying and disseminating firm-wide, open-door policies. After all, one cannot expect to cultivate an ethical corporate culture unless everyone is well versed in, and can access the policies that foster such a culture. According to Hasson, Chips reserved agreement to Dales unfounded opposition to training and an Ombudsman (Hasson, 2007, p. 3) is how the two proposals fell to the wayside. Dale seemed to speak with confidence and authority when he cautioned Anything that operated outside managements chain of commandmight let serious problems slip through the cracks and was therefore a recipe for disaster (Hasson, 2007, p. 3). Clearly, Dale deliberately and perhaps irresponsibly manipulated the power dynamics of interaction (Tannen, 1995, p. 141). to put himself in a one-up position at the meeting by using menacing language such as serious problems and disaster to sway others. Consequently, Chips inability to balance the leadership <--> followership dialectic within the management group diminished his effective leadership. Furthermore, according to Rothwells characterization of conflict management in groups, Chip and the other managers are terrible at managing conflict although conflict can be very advantageous to the group goals. Rothwell states that Conflict can be a constructive force in groups if managed completely conflict is a major part of a groups growth, change and evolution and can protect the group against stagnation, detachment, entropy and even extinction (Rothwell, 2004, p. 284). A true

manager need not coerce fellow managers or employees to see things his way, however as CEO, he should have clearly established the significance and value of the training and Ombudsman as vital elements of the open-door policy, by utilizing the collaboration style to manage the conflict with Dale and if that did not work, then competing (Power/Forcing) was certainly called for in this instance. Chip had forgotten that effective leadership is not a solo task it requires loyal, competent and responsible followers (Engleberg & Wynn, 2010, p. 20). The consequence of Chips lack of leadership is that he permitted one dissenter to ostensibly derail the most crucial aspects of the initiative, which defies one of the reasons that Chip was initially brought aboard as CEO. At this time, consider the second circumstance that contributed to the disintegration of what was supposed to be an innovative people initiative. That would be a lack of supervision, minimal oversight or accountability and apparently lax listening skills intrinsic to the Galvatrens management team. Engleberg and Wynn describes associations between effective leadership and broad listening skills. Good leaders are good listeners. They know when and how to use comprehensive, empathic, analytical and appreciative listening. Effective leaders are also proactive listeners (Engleberg & Wynn, 2010, p. 195). Evidently, Harrys failure to espouse executive listening skills for Mikes complaint confirms that he may not be an effective leader. The management team does not seem to value employee feedback or respect the sanctity of confidential information, which flies in the face of the purpose of the new policies. The incongruity is that the whistle-blower was immediately at risk, although he thought that he was protected and doing the right thing by confiding in a senior manager that he trusts; the complacency of management initiated a completely opposite outcome to the one person who was willing to risk everything by blowing the whistle on the channel stuffing scheme. This is not

an isolated occurrence, the management team seems to share this apathetic manner, and that could explain why no one else in the firm spoke up. This managerial style was evident in that Mikes manger was not helpful but brutal in reaction to Mikes performance deterioration (Hasson, 2007, p. 3). There is further evidence of managements lack of leadership as Harry did not participate in any of the meeting that addressed the law suit and it makes him look suspicious. Fortunately, the board of directors was keen on the next steps required to remedy the situation and Arch and Sheila, correctly took charge of the situation (Hasson, 2007, p. 4). The steps that they hash out should include removing the oversight responsibilities from the managers and placing them in the hands of the board. In addition, they should immediately schedule training, hire an Ombudsman, revamp the company policies and allow the failings of the managers to be reflected in their bonuses. References Engleberg, I. N., & Wynn, D. R. (2010). Working in groups communication principles and strategies (Fifth ed.). NY: Allyn & Bacon. Hasson, R. (2007, Apr). Why Didn't We Know. Harvard Business Review, 1-5. Rothwell, J. D. (2004). Conflict Management in Groups. In J. D. Rothwell, In mixed company, communicating in small groups and teams (5th ed., pp. 283-315). Belmont, CA: Wadsworth Thompson Learning. Tannen, D. (1995, Sep-Oct). The Power of Talk: Who Gets Heard and Why. Harvard Business Review, 138-148.