Axcel College is a medium-size educational institution established in 1990 and is registered with the Ministry of Higher Education. The centre is managed by Mr. James who is also a major shareholder and the Chief Executive Officer, while the Chairman is Dato Zakaria, a former civil servant the Ministry of Education. As the CEO, Mr. James' duties include acting as registrar, course counsellor and marketing director. The college works in partnership with a local university to offer courses ranging from diploma to postgraduate qualifications. In addition, it also conducts Continuous Professional Development programmes on demand.

Based on the previous 3 years' intake, the number of students is estimated to be around 300 and turnover is RM5 million annually. Mr. James practises an autocratic style of leadership. Decisions are top down, and most meetings are monologue, where Mr. James would announce the 'Board's' decisions on new procedures and policies to be implemented. In the college, Mr. James is assistedby a course coordinator, an administrator, an accounts executive and a figure-head principal. All the lecturers are part-timers except for the principal who doubles as the only full-time lecturer. Being disciplined and strict with his pliant employees, Mr. James was able to manage without much resistance.

Reaching his 50s, Mr. James looks physically fit and healthy until one evening he collapsed while in his office. The doctor pronounced him to have suffered a stroke. After being hospitalised for a month, he was sent home to recuperate.As to be expected, the college is now without a captain and none of the existing employees know what is going on or what to do next. As the chain of command has never been clearly spelled out, no one dares to assume authority in the job. Classes have to be rescheduled or cancelled, lecturers not paid their fees on time, examination scripts are not marked and the students' coursework submissions delayed, etc.

1.What is the main cause of the organisation's failure?

2. What should have been done when the CEO Mr. James was hospitalised?