Case EightOrganizational Culture20 Marks

As a senior management consultant, you've been asked to make recommendations on how to change the organizational culture of Carfrae Filters. Carfrae Filters has had one President at the helm for more than thirty years. There is a senior executive group, including a Director of Human Resources. Supervisors, line managers and various office and production workers manufacture filters and related products.

Over the thirty years the President has had a very authoritative and hierarchal method of management and his bad temper is legendary. While it would be expected that decisions would come from the knowledge and experience provided by the executive group - the President has consistently made unilateral decisions, including those concerning hiring and firing. Lately the company is not doing as well as it had, due to increased competition and increased cost of production, and the President is making changes and firing people for no apparent reason.

As a result, there is a culture of fear. A negative reputation is forming about the organization on various company and job rating sites. Each functional group within the organization responds differently to the fear, for example: the people on the manufacturing line don't understand why they have a new supervisor every six months, and several have begun calling in sick. The senior executive worry about their job security. No one looks forward to going to work anymore, and it is affecting the bottom line.

• What steps would you recommend Carfrae Filters take to improve the culture of their organization under the current President's leadership? (10 marks)
• What steps would you recommend Carfrae Filters take to improve the culture of their organization once the current President decides to retire.(10 marks)