Question

After several months of searching your company has just hired a new CEO. Your previous CEO was hard-nosed and it was his way or the highway. During his tenure with the company employee withdrawal was at an all time high to the point where the good employees had left for greener pastures and you were left with employees with high levels of continuance commitment. You have great hope that the new CEO will be able to turn the company around and that job performance and employee commitment will return to the high levels prior to your previous CEO.

Write a press release to introduce your new CEO to your workforce and the community.  

Explain how the CEO will use power and influence to improve job performance and organizational commitment.  

Include an explanation of how they will use power and the tactics they will use to influence others.  

Explain how they will resolve conflict and negotiate disputes.  

What convinced you to hire this leader.

Answer 1

To: The press

From: Charles Mark, VP Communications & PR, Broadview Accounting

Date: June 12, 2018

Subject: Strategic changes in the leadership of the company

Dear All,

Our company is doing good in the recent times and this is being reflected in the company’s quarterly reports. The growth from last quarter to this quarter is 2.2%. To facilitate the generation of revenues and profits in the company, the management has made the strategic decision to appoint a new CEO. We are very pleased to announce that Tony Deluka is the new CEO of Broadview Accounting.

Tony Deluka holds a wide range of rich experience in the industry. He has been associated with various prestigious companies like Facebook, GE, Bank of America, etc. He is a strategic genius who can be given the credit of facilitating various strategic mergers and acquisitions in the industry.

Lily Stuart, our beloved former CEO, will remain with as the Chairman of the company. We cannot thank Lily enough for her strategic genius, which helped our company to become the most profitable company last year.

We hope that our company keeps growing strong under the strategic leadership of Tony and Lily and we emerge as the shining players in the industry, every year.

Sincerely,

Charles Mark,

VP Communications & PR, Broadview Accounting

The CEO compensation must be performance based to keep it fair and ethical. If the company is not performing well, then the CEO does not deserve to draw higher salaries. This will also improve the answerability of the CEO towards the company’s performance.

CEO’s compensation must be directly linked to the risks that the company takes, under his leadership. If the risk fares well, then the CEO can have a part in the profits. However, if his decision was not effective and the company went to losses, he must bear the burden of his losses as well. In such case, the compensation cut will be directly related to the company’s performance. Pay for performance must be the golden mantra used in CEO’s compensation ruling.