Jose,the newCEO of a division of ABC Company just recently began his tenure as CEO.He inherited a very poor performing division of the company and knew the company had recently went through some very difficult financial times.After some observation, he felt the employees were not overjoyed with the company as he felt a negative vibe from the employees.Jose felt morale appeared low and there was a widespread disengagement amongthe employees.The atmosphere was such thatpeople were not communicating across departments or evenwith their colleagues.

Jose held a management meeting and the general feedback from his staff was that people do not feel this is a good place to work anymore; turnover is high and those that are here often threaten to resign.There were leaders in the informal organizationthatwould initiate the bad 'vibes'.His management staff went on to say that it was not always this way; people used to feel this was a fun place to work, people would hang out togetherafter work; however, there was no longer a sense of community.Jose learned that it was the perks that boughtpeople together such as bonuses and company sponsored events (e.g. luncheons etc.).However, do to difficult financial times and the company's focus was the bottom line, such 'perks' that once existed no longer are an option.The message from corporate was 'be happy you have a job'.

Corporate informs Jose that his responsibility is to get the division back on track making his division profitable.Corporate is giving Jose 1yearto show progress in turning the division around.

First, what is the problem with Jose's division, and second, what are your recommendations for Jose to 'fit it'?