Please read the case below and answer the following questions. Be sure to clearly identify your answer to each question.

1) What is the OB problem in this case

2) What is (are) the cause(s) of the problem

3) Discuss the theory surrounding the cause(s)

4) Suggest practical, theory based interventions that may help solve the problem.

"I am a long-time manager, but promotions are a rarity on my team. When an unexpected opportunity for a promotion arose earlier this year, there were two obvious candidates: Annie and Beth. Annie was more of a star individual contributor than Beth, and also had more experience covering the open position. But Annie can be volatile, and in particular has a history of butting heads with Jane, who would be her direct supervisor in the new role. So I chose to promote Beth, who has better soft skills and an excellent relationship with Jane (they're good friends outside work).

When I gave Annie the bad news, she said that she had determined that she was not a good fit for the role anyway and did not want the "drama" of the higher level position.

Since then, Annie has continued her excellent work and been scrupulously polite. She does, however, avoid Beth and Jane when she can. She has also stopped going "above and beyond." She no longer volunteers for the hardest assignments when we're in a pinch, and has opted out of all social gatherings. The gatherings are not technically required, but I do think that they're important for team-building purposes. I'm disappointed, although not really surprised, that Annie seems to be boycotting them.

The problem is that a tense unhappiness has settled over the rest of the team. General consensus seems to be that I used Annie to cover the position without a promotion and screwed her over by promoting Beth instead because Beth is Jane's friend. Beth and Annie's respective relationships with Jane were absolutely a factor in my decision, but Beth is more than qualified for her new role even setting that aside."