Question three [20 Marks Mr. Maurice Lacatush is the current chief executive officer (CEO) of Lacatush Industries Limited. The entity is a manufacturer and provider of microchips that are used in micro- computers. The entity's philosophy and operating style is to always adjust to the need of its customers. The company strives to morph to different changes in the environment by adjusting to the needs of the market as of result of customer diversity and conforming with the norms and values of the society where necessary. The entity always wants to adapt to changes expeditiously, but some of its managers are constantly averse to the changes proposed by management To facilitate change and other important decisions in the organization, the CEO's operating style and philosophy is to dictate orders to subordinates who are required to carry out tasks immediately, if not there will be possible repercussions such as punishments and suspensions where employees fail to adhere to the directives of the company's CEO. The CEO indicated to the board that the reasons for his operating style is due to his immense family issues that he is currently undergoing, which is also compounded by the daily stress a result of to his currently financial obligations from his past wife who is constantly bringing him to court for alimony and child maintenance. Consequently, he made a submission to board of directors that he also acting in the role of the entity's chief financial officer (CFO) due to his expertise in finance and accounting for the last two years, but has not been receiving any additional compensations for these tasks. The board however disagreed and indicated that they are unable to ratify a salary increase at this time. Required: a. Based on the information above, indicate what type of organizational structure would be deemed suitable to the entity and why? [ 3 marks) b. Indicate whether or not there is an increased risk of fraud at the entity and why? [7 marks) c. State and briefly discuss the leadership style of the entity's CEO. [ 4 marks] d. State two reasons why the employees may resist change and recommend one method to the CEO that could be used to overcome their resistance to change. [ 6 marks Question three [20 Marks Mr. Maurice Lacatush is the current chief executive officer (CEO) of Lacatush Industries Limited. The entity is a manufacturer and provider of microchips that are used in micro- computers. The entity's philosophy and operating style is to always adjust to the need of its customers. The company strives to morph to different changes in the environment by adjusting to the needs of the market as of result of customer diversity and conforming with the norms and values of the society where necessary. The entity always wants to adapt to changes expeditiously, but some of its managers are constantly averse to the changes proposed by management To facilitate change and other important decisions in the organization, the CEO's operating style and philosophy is to dictate orders to subordinates who are required to carry out tasks immediately, if not there will be possible repercussions such as punishments and suspensions where employees fail to adhere to the directives of the company's CEO. The CEO indicated to the board that the reasons for his operating style is due to his immense family issues that he is currently undergoing, which is also compounded by the daily stress a result of to his currently financial obligations from his past wife who is constantly bringing him to court for alimony and child maintenance. Consequently, he made a submission to board of directors that he also acting in the role of the entity's chief financial officer (CFO) due to his expertise in finance and accounting for the last two years, but has not been receiving any additional compensations for these tasks. The board however disagreed and indicated that they are unable to ratify a salary increase at this time. Required: a. Based on the information above, indicate what type of organizational structure would be deemed suitable to the entity and why? [ 3 marks) b. Indicate whether or not there is an increased risk of fraud at the entity and why? [7 marks) c. State and briefly discuss the leadership style of the entity's CEO. [ 4 marks] d. State two reasons why the employees may resist change and recommend one method to the CEO that could be used to overcome their resistance to change. [ 6 marks
