1. The key challenges that Tom Morris and his management team face, include the appointment of the most qualified candidate to replace John Goodwin after he retired. Meanwhile, Tom Morris and his management team must identify the optimal solution to the issues presented concerning the operations of both the Corporate Identity Marketing Division (CIM) and the European Advertising Division (EAD) (Banaham & Casse, 2007). The election of Carlos Cramer as the interim Director of CIM raised various concerns, which the CEO must address adequately in order to ensure that his management team is not divided. Furthermore, merits and demerits of the proposed integration of both the CIM and EAD must be evaluated carefully.

Tom Morris faces the challenges of deciding the optimal course of action with a view of organizational objectives. As such, the arguments presented for integration of both divisions must be evaluated with consideration of potential implications on the organizations profitability, client retention and attraction, including continued motivation of employees in their respective capacities. Since there are those opposed to integration of the two divisions, Tom Morris and his management team must take into consideration the respective arguments. Therefore, the decision made must prioritize the business before taking into account individual struggles for power within the organization.

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The argument elicited concerning the appointment of the new director for CIM is critical and poses a significant challenge in making the appropriate appointment. As such, the merits of internal and external recruitment of the new director to replace John Goodwin are challenging since there are divisions in the management team. It is evident that there are those who consider an external appointment of new director as relinquishing power and control to an outsider. Meanwhile, others believe the external recruitment will present the management with fresh ideas and perspectives on critical issues. Evidently, Tom Morris and his management team face the challenge of ensuring that the best business decisions are made concerning future of CIM and the most qualified candidate for appointment as the permanent director of CIM.

2. The persistence of power struggles at the top of the company may have detrimental impacts on the future of Corporate Identity Marketing division (CIM). Success of any division within the organization requires a harmonious transition between leaderships; hence ensuring the key operation of the division continues without interruptions. The power struggles at the top management will have an impact of reducing attention of the management on the key issues that not only impact the division but the entire organization. CIM is characterized by entrepreneurship innovations of employees assigned to the division (Banaham & Casse, 2007).

In order for employees to function in an optimal manner, they require the firm leadership and assurance that their leaders are focused on the divisions priorities (Sharifzadeh). Since CIM operations are significantly different from those of other organizational divisions, power struggles will impair the employee performance and undermine the divisions contributions towards organizational goals. Furthermore, power struggles at the top management may contribute to the impairment of performance of the entire division since the top managers may be perceived as struggling for their individual and selfish needs without considering future of the division and impact that their actions may have on the entire organization (Glaser, 2006).

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Meanwhile, the top leadership, which emerge as winners in the power struggle may not be adequately qualified and competent to manage CIM. Therefore, the employees in the division would lose faith in their leadership since they may perceive them rather as a political appointees than qualified professionals capable of appreciating the critical nature of CIM functions and mandate. Evidently, power struggles have the potential to alienate employees, reduce morale and motivation leading to underperformance of the entire division. It threatens the future of the CIM division since its relevance to the organization is premised on its capacity to deliver results, which other divisions in the organization cannot produce. As such, any actions that impair the divisions performance and productivity will result in the division being dismantled or integrated into another division in the future (Banaham & Casse, 2007).

3. Solution to the current power struggle can be achieved only through identification of a way to turn the conflict into an opportunity. The CEO, Tom Morris, must identify the best way in which the arguments presented can be accommodated without appearing to favor one side at the expense of the other. Therefore, Tom Morris must evaluate the arguments presented for and against the appointment of an external director for CIM director. It includes the proposal presented by Carlos Cramer, the interim director of CIM, to integrate both the CIM and EAD divisions (Banaham & Casse, 2007). The identification of common ground, where both sides to each argument agree is critical into changing the conflict into an opportunity (Glaser, 2006).

Additionally, Tom Morris can argue that both arguments have their respective merits. Therefore, the optimal way to determine which argument is the most practical, profitable and feasible is through the implementation of the trial period. Giving each side an opportunity to demonstrate the merits of their respective arguments would have impact of eliminating the conflict and promoting competitiveness and innovation among the top managers in the organizations. Both sides to the arguments presented should be given a defined period, within which to implement their proposed solution.

After the completion of the trial period, an assessment would be conducted to determine the most productive approach towards the management of CIM and its future. It will not only eliminate the conflict, but it will foster the development of a competitive spirit across the organization; hence converting the conflict into an opportunity to grow both organizations productivity and individual employee competitiveness.

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