Company’s seminar sales are expanding at a large rate and this means that the company’s operations are improving quite drastically. The company needs to expand in order to meet the increasing demand and newer staff are needed to take part in the new operations. The rate of expansion has given the company the pressure to hire new staff and induct them.
inexperience of key employees
While the company is expanding, it is facing the increasing pressure of hiring and inducting new staff. However, it is identified that not employees are quite experiences. Under pressure company seems to have lowered their employment standards as well. People with zero or no experience in sales are hired at this point.
The pressures of performance are given a 5 as the company is ruthlessly competitive and hence this is a very high pressure for the company leading to high risks. Compared to the performance pressures, the rate of expansion is a 3. Expansion is necessary for the company but then they are also doing well as such, so the pressure here could be slightly avoided if necessary. On the other hand, if the company decides to hire new people, then pressure of inexperience is very high. Here once the company hires someone, the person is the representative of the company and the incompetence of the person reflects as the incompetence of the company.
Pressure points due to culture
rewards for entrepreneurial risk taking
In terms of entrepreneurial risk taking, the company has been doing well since it was incepted. The demand for the product has grown, so it was necessary to take risks for expansion and see how it can fare as a much more expanded company. Rewards exist for entrepreneurial behaviour, and with the increase of the rewards, there is high risk exposure.
ii) executive resistance to bad news
Executives are usually resistant to bad news. They want to hear that the company is doing well, “They want to be surrounded by people who share their pride in the business and exude confidence about reaching demanding performance goals. People who speak of obstacles, problems, or impending dangers are derided as annoying naysayers and accused of not being team players” (Simmons, 1999, para. 24). Now in the case study, the regional managers are supposedly surrounded by the “yes men”. The regional managers just want to hear that performance is handled and do not want to hear about the issues.
iii) level of internal competition
A very ruthless internal competition exists in the company as the consultants are pitted against one another. It is observed that the company employees, regional managers and consultants are only worried about what they must do or earn. They are not worried about the long-term impact and strategy.
At all levels, the score is high. Firstly, the rewards are not worth the company hiring incompetent employees. This will Destroy the reputation of the company. Secondly, the executive resistance to bad news will destroy the fragile state of company even more. Similarly, the level of internal competition driving by unfair performance goals is a problem.