This company’s sales force has been split into two separate locations. One location has no direct manager and has developed strong team cohesion and works productively. Once a new manager, Tony, comes on the scene, things deteriorate quickly. Tony has no experience and therefore commands no respect from the sales force. His new hires are unsuccessful and quickly leave. Existing staff resent that he gets referral bonus that cut into their commissions. He arbitrarily changes work processes, locking up contracts that are required for customer service, asks employees to spy on each other and creates a toxic environment in which people keep their doors closed and don’t cooperate with each other.

1. Identify and list the outward manifestations in company performance and/or employee behaviour that suggest that Fox is a less effective organization than it could be.

2. Using theories and concepts from the leadership, motivation, and team dynamics chapters, diagnose the main causes of ineffective organizational behaviour (1) after the sales division was split into two groups and (2) after the introduction of Tony Rice

3. If the situation had been brought to your attention just prior to the hiring of Tony Rice, what measures would you have taken to maintain or enhance the effectiveness of the group as well as the organization?

4. Given the current indications of ineffective organizational behaviour, what would you recommend be done to improve the company’s performance?