Jeffrey Smith Case

Questions:

1. What are the background factors important to understanding the case?

To better understand the case, the following factors must be taken into account:

--Jeffrey’s transition from member of the research team to running the research department at IMC.

--Differences in culture between the company Jeffrey worked at previously to a smaller organization with potential for growth.

--The opportunity afforded to David when hired on with IMC and the promotions that followed.

--Sam’s background prior to coming on board IMC in 1985.

--Changes in market forces due to globalization of financial markets.

--Organizational structure.

2. How would you characterize the problem Smith is having with Johnson?

One part of the problem is a lack of agreement on what IMC’s vision and mission are. With top management looking to redefine the role IMC will play in the industry, it is imperative to redefine both the vision and mission. Another angle to this problem is a case of insubordination by Johnson, who began to rally some of the staff in support of his case, and the inability by Smith to persuade Johnson to remain a positive force within the company, rather than the disruptive route he began to take.

3. Analyze the case from a power perspective, organizationally, managerially, individually and interpersonally.

From a power perspective, we see organizationally that Smith and Johnson’s goals are at odds. The power of influence is an important factor, but Smith and Johnson are not fully utilizing it. In the case of Johnson, he was able to build a coalition with some of the staff, enabling him to derail a project that had been approved by Smith.

In the case of managerial power, Johnson was able to instill fear into some of the staff, thus putting a priority into his project with Boston Mutual Fund. This brings the question of how the staff sees Smith and his ability as an individual and head of the organization to handle the issue at hand. Johnson on the other hand, has convinced most of the portfolio managers that his strategy is the best, and worth going head to head with Smith. Johnson accomplished this by using