Analysis of the Concerning Management Conflict - Case Study Example

Foster has many options to consider but she should redefine Chen’s roles through a new contract and mutual agreement with Chen. This is because of such factors as Chen’s willingness to work with the company, Chen’s commitment to the success of the company, the implications of Chen’s contract, demonstrated the ability of Chen to ensure the success of the business in China, and management competency of Chen to sustain the current stage of the company’s growth in China.

Chen states that he is willing to continue working with the company, even after the expiry of his current contract and this means a dedicated employee who should be retained, especially for his recognized output and to reduce possible costs of recruiting and training new personnel, which may be a recurrent activity should a suitable replacement be hard to find. The fact that Chen has successfully spearheaded Levendary café’s expansion initiative also shows his commitment to the company’s goals and makes him an ideal asset.

Denver’s office may not be comfortable with his initiatives but he implements these for the best interest of the organization and victimizing him for this would be unfair. With the realized success in China, noting that the company is almost breaking even in the region, Chen is likely to promote the sustainability of Levendary in the region or any other region and he should therefore not be forced out of the company. Chen’s contract also grants him autonomy and this means that restricting his authority is a breach of contract.

This entitles him to resign and take legal actions against the company and while apparent implications could include monetary compensation for the remaining period of his contract, the breach is likely to portray a negative image of the company, especially because the victim is a local and the company is foreign. Chen may not be a professional manager but his enterprising person or local baron traits may still be necessary for the company’s growth in China. A risk avoidance strategy (Kerzner n.p.) that redesigns a system is, therefore, the best option and would involve mutual consent between Mia and Chen for restructuring the management of the Chinese subsidiary.

Under the new arrangement, Denver would assume more responsibility and authority in the Chinese market, because this would meet Chen’s demand, and Chen would spearhead expansion measures based on new guidelines. A conflict exists between Denver and China offices and while Chen proves to be uncooperative but important, redesigning his contract based on his consent, would resolve the conflict and allow Denver authority over the operational decision in the Chinese market.