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Leadership and Strategy Challenges Analysis

The document discusses several issues with the organization's leadership, strategy, structure, and HR practices. It notes that there is no strategic plan or clear alignment between leadership and organizational goals. Decision-making is highly centralized and employees are not involved. The existing structure is outdated and cannot support current business needs. HR policies around recruitment, performance management, and learning & development either do not exist or are not implemented effectively. This leads to issues like role confusion, low motivation and engagement, and high turnover. Overall, the lack of strategic direction and planning, outdated structures and policies, and absence of key HR systems are negatively impacting the organization.

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Hailu Arega
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0% found this document useful (0 votes)
6 views6 pages

Leadership and Strategy Challenges Analysis

The document discusses several issues with the organization's leadership, strategy, structure, and HR practices. It notes that there is no strategic plan or clear alignment between leadership and organizational goals. Decision-making is highly centralized and employees are not involved. The existing structure is outdated and cannot support current business needs. HR policies around recruitment, performance management, and learning & development either do not exist or are not implemented effectively. This leads to issues like role confusion, low motivation and engagement, and high turnover. Overall, the lack of strategic direction and planning, outdated structures and policies, and absence of key HR systems are negatively impacting the organization.

Uploaded by

Hailu Arega
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

INTERVIEW QUESTIONS

Leadership, Strategy and Decision Making


 Whether leadership members of Kerchanshe are aligned with the
mission, vision and goals of the organization and work hard for
their realization.
 The leadership has little or no alignment with the mission, vision
and goals of the organization.

Root Cause: -
 Absence of strategic document and the way forward is in the mind of
the owner,
 Failure to timely updating the vision, mission and goals as the
business expands,
 Formal awareness of the mission, vision and goals of the
organization hasn’t ever been Created in any form.

Impact: -
 Hindered expansion and efficiency of the business,
 Fail to prioritize resources,
 Weak team spirit, Fragmented way of getting work done or no
integration among business functions.
 Deter the leadership performance and commitment.

 Whether the organization has any strategic plan


 There is no any formal Strategic plan

Root Cause:
 Dive into varies business lines without proper feasibility
study.
 Lack of awareness of significance of strategic plan

Impact:
 Every function’s business plan is not integrated and aligned
with the other (Absence of synergy).
 Lack of appropriate way to measure companywide success, and
performance.
 Absence of ratified organizational structure
 Lack of needed capability to run the business.
INTERVIEW QUESTIONS

 Decision Making
 Highly centralized decision-making process is practiced. Almost all
decisions need green light from the CEO.
 No decision right officially provided based on the organization
layer of management.
 Employees are not made a part of decision or there is no
participatory decision-making process, except for supplying
information for decision makers,

Root Cause:
 No official or formal organizational structure
 No formal authority of delegation or policy which states
where and how decision should be taken.
 Externalizing decision to the other management
 Afraid of taking risks and blame shifting
 Absence of formal communication platforms
Impact:
 Decisions are getting very late/are not speedy.
 Deter quality of decisions
 Externalizing decisions to put away accountability.
 Pave ways for interference on decisions and operations
 Reduce employee motivation, responsiveness, and belongingness.

 Whether there is power struggle and bypass of authority within the


leadership team or not
 A sort of power struggle has recently been observed to take
autonomous power.
Root Cause:
 Absence of well-defined structure and delegation of
authority
Impact:
 Hinders innovation and team spirit.

STRUCTURE
INTERVIEW QUESTIONS

 The existing structure is too old and fragmented to accommodate the current
business development of Kerchanshe.
 Very wide span of control, and almost all functions directly report to the CEO.
Root Cause:
 No well-defined strategic direction
 Lack of proper attention of the top management

Impact:
 Poor capabilities and integration of works
 Role confusion,
 Lack of proper line of communication
 Hinder decision-making process
 Over or under utilization of efforts

Job Description and JEG


 The available JDs are superficial.
 Most of the employees have no JDs,
 The JEG hasn’t been revised for long periods.

Root Cause:
 The JDs haven’t been revised for long period of time.
 Absence of approved and comprehensive organizational structure,
 Lack of attention

Impact:
 Role confusion
 Duplication of effort
 Idle manpower
 Difficult to measure performance
 Unjust salary and benefits package
 Employee dissatisfaction and high turnover rate

Recruitment and Selection Policy


 Except for HR manual, there is no policy or manual remarkably developed for
recruitment and selection process.
 Induction is rarely practiced for newly employed staff.
 No onboarding training for newly employed staff.
Root Cause:
 Absence of HR strategy
 Absence of clearly stated onboarding guideline.
INTERVIEW QUESTIONS

Impact:
 Reduce organizational belongingness and morale of employees,
 Hinder employee progression to cope up with the working
atmosphere,
 Low employer branding/reputation damage,
 High turnover,
 Incapable employees/loss of best potential new blood,
 High recruitment and training costs,

Promotion and Succession Management


 There is neither promotion nor succession plan policy being practiced.
 Sometimes some employees might be picked by hidden hands for promotion .
Root Cause:
 Absence of proper performance management
 Transactional and reactive HR system and practice,
 turnover of employees,
Impact:
 Inequity among the employees.
 Loss of motivation and engagement among the staff members.
 limit career development,
 restricts innovation.

Performance and Reward Management,


 The performance evaluation system is highly exposed for subjectivity.
 The outcome of employees’ performance evaluation is not made to align with
reward management.
 No reward management as a system,
 Salary and employee benefit package is not attractive or lag to the market.

Root Cause:
 Absence of business and HR strategy, and pre-set KPIs,
 The performance evaluation template doesn’t realize the actual
nature and behavior of each function.
 Not benchmarking the labour market

Impact:
 Very high turnover rate
 Little or no job satisfaction
 Erroneous performance result and employee dissatisfaction,
 Reduce harmonious work relationships,
INTERVIEW QUESTIONS

 Employees become demoralized, and demotivated.


 Affect employees’ productivity.
Learning and Development
 Learning and development hasn’t been practiced well.
Root Cause:
 Absence of proper performance management and reward system.
 No dedicated annual training budget and commitment,
Impact:
 Poor job performance,
 Low employee motivation and productivity,
 Affect employee career structure or succession,
Technology
 There is progressive IT usage in the company but not fully utilized.
 IT supported irrigation system is being practiced for coffee farming.
Root Cause:
 weak project management system
 The increase in volume of transaction and company’s
growth.
 absence of IT strategy,
 incapability/technical limitation of staffs,
 resistance to change of digitizing the business
operations,

Impact:
 Prolonged project delivery time.
 Poor resource utilization and cost minimization
 Budget overruns and extensive delays for critical IT
projects,
 Low productivity/efficiency,
 Poor customer service and reputation,

Organizational Culture
 There is somehow collaborative, but it inclines to competitiveness.
 No platform for employees to let them reflect their feedback and pain points on the
operation of the company and their personal issues.
 There is informal communication system
INTERVIEW QUESTIONS

Root Cause:
 Absence of shared vision
 absence of scheduled employee engagement
 Absence of communication guideline or policy
Impact:
 Neglect voice of staffs
 Lack of conducive working environment.
 Lower commitment, efficiency, and productivity
 Misinformation among staffs

Common questions

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The lack of a defined performance and reward management system at Kerchanshe results in subjective performance evaluations, little to no alignment between performance outcomes and rewards, and unattractive salary and benefits packages. This fosters employee dissatisfaction, high turnover, and reduced productivity. Employees are demoralized and demotivated due to erroneous performance results, which disrupts harmonious workplace relationships and decreases overall productivity .

A highly centralized decision-making process at Kerchanshe delays decision speed and deters the quality of the decisions made. It creates dependency on the CEO for approval of all significant actions, which reduces employee motivation, responsiveness, and a sense of belonging. This centralized approach leads to externalizing decisions, shifting accountability, and increases interference in operations, thereby hindering innovation and efficiency among the leadership team .

The competitive organizational culture at Kerchanshe, coupled with an absence of a shared vision and communication guidelines, results in an environment where employees' feedback and concerns are neglected. This lack of proper communication decreases employee morale and commitment, thereby impacting their efficiency and productivity. The informal communication system contributes to misinformation and breeds a less conducive working environment .

Insufficient use of technology due to weak IT strategies and resistance to digitizing operations at Kerchanshe results in prolonged project delivery times and poor resource utilization, leading to budget overruns and extensive delays in critical projects. This inefficiency adversely affects customer service and the company's reputation, as productivity and operational efficiency remain low, further hindering the company's growth and market competitiveness .

The absence of a strategic plan at Kerchanshe results in a lack of integration and alignment across various business functions, which leads to inefficiencies in resource allocation and hinders the overall expansion and efficiency of the organization. Without a strategic plan, there is no appropriate framework to measure company-wide success, which further complicates performance evaluation and prioritization of resources, ultimately impacting the leadership performance and commitment within the company .

Lacking a formal recruitment and selection policy significantly damages Kerchanshe's employer branding and increases employee turnover. The absence of a structured onboarding process diminishes new employees' sense of belonging and morale, leading to higher turnover rates. It also results in increased recruitment and training costs and causes the organization to lose potential talents or 'new blood' due to a poorly defined recruitment strategy .

The absence of formal and comprehensive job descriptions at Kerchanshe leads to role confusion, duplication of effort, and challenges in measuring performance. It causes employee dissatisfaction and high turnover rates due to unjust salary and benefits packages, and lack of clarity in roles and expectations contributes to decreased job satisfaction and motivation among employees .

The lack of a learning and development strategy at Kerchanshe leads to poor job performance and affects employee motivation and productivity. Without dedicated training budgets or a commitment to developing employees, staff members lack the necessary skills for career advancement, which negatively impacts succession planning. This stagnation in employee development reduces the organization's ability to innovate and sustain a qualified workforce for future leadership roles .

Kerchanshe's outdated and fragmented organizational structure leads to poor integration and communication across business functions. This impedes decision-making processes by creating wide spans of control where almost all functions report directly to the CEO, creating bottlenecks. It also results in role confusion and inefficient use of resources, which hinders the company's ability to adapt to the current business development needs and opportunities, limiting its growth potential .

The absence of an HR strategy at Kerchanshe leads to the absence of formal promotion and succession management plans. This results in inequity among employees, loss of motivation and engagement, and restricts career development and innovation. As promotions might be influenced by hidden biases rather than merit, employees feel undervalued, leading to dissatisfaction and limited career growth within the organization .

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