MAF 640MAF 640PAST YEAR JUNE 2013(QUESTION 4)

PREPARED BY :ELYAELYANA BINTI SHAFEEAMIRAH FARHANI BINTI ABD SALAMNURUL ZETA BINTI ABU SAMAHRAJA KHAIRUN NURFARHANNA BINTI RAJA HAMZAHNURUL AIN BINTI RADZALINURZATI ALYANI BINTI ASHARI

a) Explain one possible a) Explain one possible negative impact on Purple negative impact on Purple Berhad when the BOD decided Berhad when the BOD decided not to choose the new CEO not to choose the new CEO from among those who from among those who participated in the company’s participated in the company’s management and leadership management and leadership development program to development program to groom new leaders.groom new leaders.

The employees will be demotivated. This is because:

They will feel that their credibility is in doubt by the management.

They think they have a better understanding of the company’s management.

This could lead to unproductivity.

b) Why do you think the BOD b) Why do you think the BOD decided to appoint Serena Ann decided to appoint Serena Ann from the external managerial from the external managerial labour market as the new CEO labour market as the new CEO of Purple Berhad ? Support of Purple Berhad ? Support your answer with 3 reasons. your answer with 3 reasons.

1) Serena could bring new and fresh ideas.

◦ She may be an innovative person, and innovative will encourage employees to think beyond of their existing knowledge and will help to add value to the firm.

2) Serena has wider knowledge from her past experience.

◦ With the experience, she can redevelop the company’s vision and strategies, effectively manage company’s resources portfolio and organizational culture and help company to expand.

3) Serena could bring changes to the company.

◦ Changes in terms of leadership where the management team will be heterogeneous. This could lead to changes in the planning and strategies too.

◦ Outsider can see the weakness of the company clearly rather than the insider who will ignore the weaknesses and taking for the granted.

◦ E.g. : Top-to-down management changed to down-to-top.

c) Discuss 3 actions Serena c) Discuss 3 actions Serena Ann must take to change, Ann must take to change, shape and reinforce a new shape and reinforce a new effective organizational effective organizational culture in Purple Berhad.culture in Purple Berhad.

1) Using appropriate rewards system.

◦ By rewarding the desired behavior that reflect the new core values.

2) Support from top management.◦ Actively support the employees by giving

explanation on why the changes is needed where employees are treated with dignity and the changes are not being implemented drastically.

3) Employees participation.◦ Any decisions should be discussed with the

employee itself to enhance employees involvement in order to maintain good relationship.