Ma 302: Administrative Processes & Organizational Behavior – Jeffrey Smith
[pic 1]Ateneo de Davao UniversityGraduate SchoolMA 302: Administrative Processes & Organizational BehaviorCase: Jeffrey SmithPassed to: Prof. Cherrylyn F. De Leon-CabreraPassed by: Nicolette Liana C. Salvo, RNDate: February 24, 2016Statement of the ProblemJeffrey Smith the owner of the company is in a dilemma between losing a valuable asset to the organization and risking losing a number of portfolio managers and some in the research department between losing his entire business.IMC company is into investment advisory business. Its initial focus had been entirely upon consultation. After a few years, the founders realized that they could expand by managing investments  rather than just providing consulting services. Together with that expansion was to manage a mutual fund which sky-rocketed their assets overnight.Early that same year the group held meetings, to take advantage of the current booming economic climate. During one session, the VP for portfolio management, David Johnson suggested that IMC should accept responsibility for greater amount of mutual fund management. While the VP for Investment Department questioned his proposal because the company did not have the necessary personnel to manage additional mutual funds and therefore risked diluting its efforts. He added that the main focus of the company at that period was management of real estate investments had given the form a strong track record and good reputation.
The group decided that it was way too fast for the company to invest in such at that time. A few months past and a lot of the people in the company grew their interest in mutual funds. More mutual funds were catered to and assets and revenues grew. Apparently, it happened so fast that it made them think if they were giving David Johnson too much freedom. But since they were still staying consistent with the basics they agreed to keep it as is. A few months more had passed the proposal in corporation expansion in real estate investments was still being pushed. Johnson on the other and still insisted his proposal of expanding mutual fund activity and was being backed up by a group of people in the company. The president of the company affirmed his commitment to enhance real estate investment strategy and not mutual funds.The problem escalated when Johnson made a proposition that he might take some of the employees with him and pursue their endeavor. They tried to sort it out by meaningful conversations by explaining the stand of the firm. Johnson was praised for his efforts in contributing to the success of the company. After explaining the reason behind the decision if he will still pursue, the company would be aggressive in rational severing of relations.A few months later, he thought the problem was resolved. But another problem arised when Johnson and Wilson had an argument about Johnson manipulating other employees in the company, resulting unfinished tasks. The reason behind was the president did not give enough priority in that particular research because their client for the mutual fund had demanded it. It could have been done if they had informed Wilson. When Johnson was asked he gave an unreasonable reason of “ at that time it didn`t seem like such a big deal”