Mack Attack

Running Head: MACK ATTACK

Mack Attack

Cynthia Harden

October 5, 2009

Organizational Behavior

MGMT645

Review of Case and Relevant Facts

Morgan Stanley was once one of the most powerful brokerage firms on Wall Street but due to mismanagement its reputation has been declining. Philip Purcell, the previous CEO was forced to resign and John Mack was hired to replace him. Under the previous management team the company had grown soft and timid. There was also a feeling of isolation as the executives didn’t interact with the employees. John Mack has been tasked with changing that and bringing the company back to its previous glory days. (Thornton, Reed, Brady, Bush & Balfour, 2006).

Determining the Root Cause and Identifying the problem components

The main cause for Morgan Stanley’s decline is that upper management for the bank division was too averse to risk to take the necessary chances for profitable growth. Purcell, those in charge of the banking division, and the rest of the board were allowing things to stagnate and miss out on new investment opportunities. (Thornton, Reed, Brady, Bush & Balfour, 2006).

Generate and Evaluate Alternative Solutions

John Mack needs to make Morgan Stanley more profitable and a top player in the investment market again. In order to accomplish this he needs to change the management style that has been in place for a number of years.

1. John could continue using the Transformational leadership style he has begun with. He has created a vision and he is communicating that vision clearly to everyone (McShane, S. & Von Glinow, M., 2008) which has already begun to show results. Now he needs to build the commitment from his employees and stakeholders. The problem is that the results are slow in coming and this is bringing uncertainty to the market and to Morgan Stanley. This has caused the company to lose some top managers that they needed to keep to help continue the transformation.

2. John Mack could...