Carlos is the manager of a graphic design firm, and he relies on a top-down stra
ID: 398852 • Letter: C
Question
Carlos is the manager of a graphic design firm, and he relies on a top-down strategic management approach to maintain tight control over the activities of his employees. The company has recently started to lose market share to its more innovative competitors, and Carlos wants to encourage his employees to start contributing to the strategy formulation process to make the company more competitive. Which of the following steps should Carlos take?
a. Take an extended vacation and see how the business naturally reorganizes itself in his absence.
b. Schedule indidvidual meetings with employees and demand that they come prepared with five ideas.
c. Allow eemployees to take whatever appreach they feel is appropriate when dealing with customers.
d. Desingate Friday afternooons as time for employees pursue outside interests loosely related to the business.
Explanation / Answer
Answer: (b) Schedule individual meetings with employees and demand that they come prepared with five ideas.
Explanation: In the given scenario, Carlos wants his employees to start contributing to the strategy formulation process. So far, he has always followed a top-down strategic management approach where in he was giving the orders and the employees were simply following them. But now, if he wants to involve his employees in the decision making process, he should follow a process that encourages employees to think independently and come up with new ideas that benefits the organization. Conducting one one one meetings with the employees and asking them to brainstorm new ideas can help Carlos to develop new strategies and new approach in running the business.