Moet Hennessy Espana Harvard Case Solution & Analysis

Problem Statement

The company is facing a change in cultural values in the company due to increased mechanistic work environment.Due to this, the employees are demotivated and they may lack in company loyalty in future.

Analysis

Views of the CEO 

The company is a fashion statement for the people. The company has innovation and creativity in its ideas. The CEO is of the view that the company has achieved this success on the expense of the informal behavior and informal relations of its employees.

The company has made its employees work in a structured manner like machines. The employees are feeling betrayed as the company has restrained itself from having a human touch in its approach.

The CEO can see that the employees are feeling demotivated because of the behavior of company. Things need to be changed in the approach of the company so that the employees may not feel demotivated anymore.

The CEO has to change the environment of the organization so that the employees do not feel left behind. The change should be communicated to the employees and should be acceptable to them. The company should make employees friendly policies to encourage them and to motivate them.

The leadership style of management needs to be changed as the employees are well skilled and are experienced, therefore the most suitable leadership style will be either paternalistic leadership or democratic leadership style. In a paternalistic leadership style, the leader takes care of the employee which keeps them satisfied.

In order to enhance motivation among employees,they should be provided with the environment they were used to. The employees should be allowed to communicate with each other and to have informal interaction so that they enjoy their work. Events should be organized, which would make the employees interact with each other and this would allow employees to have a healthy relation among them.

PRIORITIES OF THE CEO 

The priorities the CEO set should be to make his employees feel motivated to do the job and to stay loyal towards their company. The company is making good returns as per their objectives however, if the employees will keep up the good work and will stay motivated, then the company will achieve the objectives in an effective way.

ISSUES TO BE ADDRESSED:

The company is in a good position and when a company is in a high profitable state, the company lacks in looking at the deficiencies in it. The CEO is of the view that the relationship between employees with the management and with their fellow employees should be nice to achieve a healthy environment to work.

The company, in the short run, can allow poor relations between employees however, in the long run it cannot be acceptable as the employees will feel demotivated and the company loyalty will be missing. The employees may betray the company and may reveal the company’s secrets as a result of bad relationship.

Therefore, employees cannot be neglected as they are the resources of the company and help the company grow. Also, the company itself cannot work without its loyal employees as there would be no one in the company who will loyally work for the company.

Departmental conflict in a company can create a number of problems. The departments may not share information with each other because of conflict, which may cause the company to suffer from lose of time and money.

The departments may use impaired information and pass it to the other department so that the efficiency of that department impairs and the department, as a result, may suffer from losses. Thus, this will ultimately result in a loss to the company.

The departments may get into a conflict and back bite with the management about each other and ultimately, the company or the management may lose confidence in its departments. Hence, departmental conflicts have to be resolved in time. Any conflict left unresolved may lead the company to face losses.

EFFECTIVE PLANS FOR THE ORGANIZATION:

The company is in a position of departmental, inter group and interpersonal conflicts. If conflicts are left unresolved by the management of the company, then the conflicts can cause the company heavy loses. These losses can be for short term or for the long term, as it depends on the nature of loss....................................

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