Grayson Chemical Company

1. Problem

a. Macro

i. The company has become stagnant – doing things because “they have always been don that way”

ii. The company is losing market standing and profitability

iii. Declining earnings and sales

iv. Management lacks competence

b. Micro

i. Board of directors does not have a unified approach

ii. Corporate culture is not evolving

iii. Performance measurements not used

2. Causes

i. The company has not grown with external and internal forces they are doing the same things the same way touting “they have always been done that way”

ii. Decision making is either by the book or passed to upper management – workers are not given a sense of ownership and unable to make decisions

iii. There seems to be no performance review system – no HR involvement

iv. Promotions are not based on merit or knowledge

v. Upper management is unable to provide unified support

3. Systems Affected

a. Structural

i. Mr. Baker will need to make several changes to the organizations structure

ii. HR will need to change its position/integration in the organization

b. Managerial

i. Management will need to change if hired internally or from another firm there will need to be drastic changes

c. Psychosocial

i. The general consensus is business as usual – this will need to change

d. Goals and Values

i. A system to assess performance is essential – HR will need to implement a reward system.

4. Alternatives

i. Proceed