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You are the new general manager for a firm. The previous manager believed that competition between departments and department managers would lead to improved efficiency, productivity and profits. That manager set up situations where the departments were forced to compete for the firms resources (e.g., money, personnel and equipment) in order to improve. As a result, there is a near total lack of trust, communication and cooperation between the departments and their managers in the firm. The prevailing attitude is "survival of the fittest". In spite of the prevailing situation, the company is profitable. When compared to other firms in their industry, their financial results are in the middle of that group.
1. Do you agree with the previous managers' approach to managing the firm? List and explain specific reasons as to why or why not?
2. You are not satisfied with the financial results of the firm. What steps would you take to improve the profitability of the firm as a whole? Outline and explain the specific steps you would take.
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