Problem Solution: Gene One

Problem Solution: Gene One

University of Phoenix

MBA/520 Transformational Leadership

Dr. Lola Jackson

Problem Solution: Gene One

Gene One is a biotech company that has seen steady growth since entering the biotech industry in 1996. In order to remain competitive in the market, Gene One believes it "needs IPO capital for new development, advertisement, and marketing if it is to remain successful," (Scenario, 2006). In order for the initial public offering (IPO) to be successful, Gene One needs a solid foundation to build upon. Following the 9-step problem based learning model, Gene One can take an in-depth look at key concepts such as effective teamwork through cooperation, trust, and cohesiveness, sources of conflict in organizations, knowledge management, elements of organizational structure, and assess the influence of organizational structure on power and politics.

Situation Analysis

Issue and Opportunity Identification

In order for Gene One to remain competitive in the biotech industry, the company announced its intention to become a publicly held corporation. Despite the fact that management agreed upon specific goals, resistance amongst management has caused some internal tension. The Vice President of Technology Research Labs has already tendered her resignation in response to hearing about the plan to become a publicly traded company. The Chief Financial Officer (CFO) is cautious with the timing of the proposal considering a recent scandal in the biotech industry. The Chief Technology Officer (CTO) is resistant due to the demands that Wall Street may put on her ability to produce, new, effective products on a timely schedule. Even two Executive Board members are showing their skepticism despite giving the go ahead on the plan. With all negativity, it will be important for the Chief Executive Officer (CEO) to create an effective team through cooperation, trust, and cohesiveness.

"As competitive pressures intensify, experts say organizational success increasingly will depend on teamwork rather than individual stars," (Kreitner & Kinicki, 2004, Ch. 13, p. 18). While competition is typically perceived as good amongst team members; however, from an interpersonal standpoint it can create unnecessary tension and animosity. By refocusing the management team on the end-state goal, Gene One can use the lack of knowledge and confidence as an opportunity to build a cooperative, cohesive team. "Cohesive groups have a shared sense of togetherness or Ð''we' feeling," (Kreitner & Kinicki, 2004).

In the biotech industry, research and development of new products is not something that is cohesive to quarterly deadlines. The CTO believes that going public will hinder her area of expertise with the pressures of Wall Street. "A common source of conflict is goal incompatibility. Goal incompatibility occurs when personal or work goals seems to interfere with another person's or departments' goals," (McShane & Von Glinow, 2004, Ch. 13, p. 9). Gene One can use this conflict as a starting point to improve communication amongst the management team. The lacks of opportunity, ability or motivation are key areas Gene One can improve upon to create a "win-win orientation," (McShane & Von Glinow, 2004).

Due to a lack of knowledge in the area of an IPO, questions, ideas, and concerns are floating around causing even more conflict and turmoil. Gene One's best avenue for this possible endeavor would be to find someone to tap into to assist the organization with the implementation of the IPO that may be able to alleviate some of the management teams concerns. "Knowledge management is any structured activity that improves an organization's capacity to acquire, share, and use knowledge in ways that improves its survival and success," (McShane & Von Glinow, 2004, Ch. 1, p. 39). Gene One can use knowledge management to strength the current management team, recruit new talent, and to strengthen the whole company.

To date, Gene One has had a centralized organization structure. With the IPO, it would appear that a more decentralized structure might be needed to grow. "Centralization means that formal decision-making authority is held by a small group of people, typically those at the top of the organizational hierarchy. Most organizations begin with centralized structures, as the founder makes most of the decisions and tries to direct the business toward his or her vision. But as organizations grow, they diversify and their environments become more complex. Senior executives aren't able to process all the decisions that significantly influence the business. Consequently, larger organizations tend to decentralize, that is, they disperse decision authority and power throughout the organization," (McShane & Von Glinow, 2004, Ch. 15, p. 14). Gene One has the opportunity to decentralize their formal decision-making process at a time when change seems to be imminent. Decentralization will allow upper management to concentrate on the impending IPO and beyond, while lower management can make the day-to-day decisions about operations.

The politics of the CTO not wanting to even consider the possibility of going public and the speculation that she may want to leave Gene One causes concern for the power of her knowledge and potential patents on Gene One's founding product. "The most basic prerequisite of power is that one person or group believes it is dependent on another person or group for something of value," (McShane & Von Glinow, 2004, Ch. 12, p. 4). Gene One has the opportunity to educate their current management, including the CTO, as to the pros and cons of the IPO. Without making this a priority, Gene One may lose the very person whom developed the product that has put Gene One "on the map".

Stakeholder Perspectives/Ethical Dilemmas

"Corporate social responsibility (CSR) refers to an organization's moral obligation toward all of its stakeholders," (McShane & Von Glinow, 2004, Ch. 1, p. 27). Stakeholders have interests, rights, and values in the success of Gene One and the impending IPO. Each group of stakeholders has their own interests, rights, and values that can cause ethical dilemmas amongst the groups.

Board members are elected individuals who oversee the management of the organization and generally are from outside of the company. The Board members invest their knowledge and