It is essential in any business to have trust in and between leaders. Building trust takes time, but is necessary. When there is no trust between leaders and workers of an organization, disaster will ensue. Workers tend to become disengaged, and leaders will branch off to lead their own departments in different directions, losing the vital communications needed to run a functional organization.
When leaders do not agree, it affects so much more than their relationships, it affects those who they lead. They alienate and build mistrust amongst their subordinates and organizational stakeholders. Organizational structure falls apart and negative financial reports are usually the first indicators that there is dysfunction.
Section 1
Case Summary/Problem Identification
This case study introduces an APD, an organization that began in 1993 with the support of local government. APD is business based and offers professional services in the business education and consulting fields. Over the years there have been shifts in management. As new managers came, they brought along and implemented their style of management. The founder and CEO of APD, Pavel Dronov and the current president, Peter Golko are at odds over the way business is addressed and carried out. Disappointed and increasingly concerned with the way matters are being handled, Dronov must take matters into his own hands as he has lost oversight of the leadership of Golko.
Peter Dronov must figure out a way to get Golko to understand both his and the APD’s plight without discouraging Golko’s ability to lead. The case study dives into what happens when there is leadership transition, no focus on team building, and the human resources issue of organizational growth.
Because Dronov oversees APD’s operations from an absentee position, he is unsure of the way he should handle operations at the current point. With company revenue on a decline, low morale amongst company shareholders, and record low