University Assignment: MGT811 Critical Incident Report on Management

This report, prepared for MGT811, examines a critical incident where a company CEO is accused of sexual harassment. It analyzes the CEO's behavior, the ethical implications, and the application of contemporary management theories. The report explores the importance of ethical leadership, social intelligence, and interpersonal skills in addressing such crises. It recommends that the board consider replacing the CEO due to the damage to the company's reputation and the potential threat to employees. The report also emphasizes the need for robust recruitment processes to assess managerial capabilities and ethical conduct. It concludes by reiterating the importance of ethical behavior and strong leadership in maintaining a positive and safe work environment.

Running Head: Management
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Contemporary Management Capabilities
Name:
MGT811
4/2/2020

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Contents
Introduction.................................................................................................................................................2
Explanation of the situation using the theory...............................................................................................2
Recommendations for the board..................................................................................................................3
Conclusion...................................................................................................................................................5
References...................................................................................................................................................6

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Introduction
The report will majorly focus on the skills of the business manager, capabilities and how
the manager addresses the behavior of the management problem in the organization. In this
report, the key personal competencies will be addressed which helps in analyzing the problem in
the future. In this report, an incident scenario has been given in which the CEO of the company
has just been credibly accused of sexual harassment by the subordinates of the previous positions
as COO of another company (Wagner and Hollenbeck, 2014). The story of accused of sexual
harassment is gaining the virility in the media and online. When this story of harassment is viral
CEO is denying that he didn’t harass two ex-employees. In this report, the recommendation will
be given to the key personal competencies so that the board can assess whether the CEO meets
the current recommendation or not.
Explanation of the situation using the theory
In the scenario, the CEO has accused the two employees in their previous company and
he was in the position of the COO. The story of harassment of the previous employees has been
viral through online media channels. When the CEO has been asked about whether he has
exploited the previous employees and has done something illegal or wrong then he has denied
that he has not done anything illegal (Osagie, et al., 2016). Employees are generally accused of
sexual harassment by the senior authorizes which is not stating the good behavior in the
company and it is even against ethics. The stories in the media are getting viral means there is
some solid video in which there are unique and consistent details that were supported by the
people.
As per the theory of contemporary management, critical situations are analyses by
considering the internal and external factors and underpinning the relationship between soft and
hard skills. The behavior of the management should be ethical as per the contemporary
management as it involves planning, organizing, leading and control the operations of the
business (Morral, et al., 2015). When any issues emerge in the business then-contemporary
management helps in examining that behavior and decides by taking the optimal course of
action.

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There were several capabilities which are required in the good manager such as they
should satisfy and balance the internal needs. The CEO of the company should have the
capabilities that they should be generally accepted by their followers. The CEO should exploit
their authority power and should formally deal with good attributes. In the scenario, the CEO has
credibly accused of sexual harassment of two previous employees in the company which is not
indicating good capability (Prieto, et al., 2014).
There were several skills and capabilities which the CEO or key the managerial should
have such as they should be multi-tasking, should have the ability to make effective decisions,
have good communication skills which can easily attract the other employees, etc. The business
behavior should be maintained by the manager or the CEO and should not perform any activity
which is unethical or wrong (Kindström and Kowalkowski, 2014). In the given scenario, the
CEO has harassed the two employees of the previous company which is showing their unethical
behavior at the business premises and it is not acceptable by any employees in the company.
There were several managers' behavioral skills that the manager should follow at the
business organization that they should not harass any employees for the work. They should not
have the right to take advantage of the other employees for their needs and wants (Lapiņa, et al.,
2014). The business operations conducted by the manager and CEO should be in the ethical form
but in the scenario, the CEO is performing the unethical activity as it is sexually harassing the
employees.
Sexual harassment at the work is breaking the social-cultural behavioral pattern and it is
not only a sex-based content but it is affecting the whole environment of the company. The story
of the acquisition of eh two employees has been spread online which is not only affecting those
two employees' reputation but it is ruining the career for the CEO too (Dabke, 2016). In the
whole journey, the CEO of the company should not be supposed to work with any organization if
he will leave with the tag he is the victim of sexual harassment.
Recommendations for the board
It is recommended to the board to focus on the contingency model of the leadership
which states that the effectiveness of the leader is contingent upon his or her behavioral styles

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and the good leader is the one who knows what leadership should thrive in the situation. If the
leadership styles suit the situation then are the best and if it does not suit then it has to be
changed. It is recommended to the boards that the CEO of the company has to be changed and
the new CEO has to recruit as the current CEO does not meet the leadership skills at the
situations (Breznik and Lahovnik, 2016). The reputation of the company is also at stake as many
other employees of the company are also getting the fear of being sexually harassed by the CEO.
Although the CEO has declined that he has not sexually harassed the two employees of the
previous company but there is no strong evidence he has. An effective leader should have social
intelligence which helps in understanding the social situations and dynamics and operate the
functions by considering the social situations and dynamics (Wong, 2017). The CEO does not
have the skills of social intelligence as he has accused the employees of sexual harassment at the
working place so exposing the other people is not the contingency leadership.
It is recommended that CEO should have the interpersonal skills which are the subset of
the social intelligence in which leader talk about the soft skills and should have the good oriented
aspects with the other employees (DuBose, et al., 2015). The CEO in the given scenario is
accusing the employees who are not moral conduct and he is also not maintaining the
relationship-oriented aspects. The board of directors should replace the CEO as it is creating the
threaten for the other women workers too and making the business environment negative so they
have to replace them with the CEO which has the good contingency leadership skills and should
know how to maintain the dignity and ethics at the working place.
It is also recommended that the te reputation si getting affected that how can the company
appoint the CEO which has the last previous tracks are so bad so it is recommended to the boards
to make some research and find out the details of the CEO of the company and should not only
terminate him from the company but should be imprisonment for doing such unethical and
wrong conduct (Bocean, et al., 2014).
It is recommended to the board while appointing the new CEO for the company they
should look for the managerial skills, capabilities a behavioral and should also check the past
tracks of the employees so that the reputation of the company does not get harmed and even the
employees feel safe at the working place. There are several other skills which the CEO should

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have such as to manage the conflicts, prudence, courage, building the trust and accountability at
the working place, etc. so it is recommended that the current CEO should be replaced as they do
not have such skills and he is creating the negative environment for the company (Hemel and
Lund, 2018).
Conclusion
From the above report, it is concluded that the CEO of the company should be replaced
for conducting unethical and wrong behavior at the working place. Even it is recommended to
the boards that the current CEO should not only replace but he should be imprisoned for sexually
harassing the employees. The CEO of the company does not have the good Contemporary
Management Capabilities and due to which he has accused. The CEO does not have the skills of
social intelligence as he has accused the employees of sexual harassment at the working place so
exposing the other people is not the contingency leadership. The board of directors should
replace the CEO as it is creating a threaten for the other women workers too and making the
business environment negative so they have to replace them which is the major recommendation
done as per the given scenario.

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References
Bocean, C. G., Delattre, M., Ocler, R., Sitnikov, C. S., Wu, Q., He, Q., & Duan, Y. (2014).
Dynamic capabilities for CSR management: towards identifying common
processes. Society and Business Review.
Breznik, L., & Lahovnik, M. (2016). Dynamic capabilities and competitive advantage: Findings
from case studies. Management: journal of contemporary management issues, 21(Special
issue), 167-185.
Dabke, D. (2016). Impact of leader’s emotional intelligence and transformational behavior on
perceived leadership effectiveness: A multiple source view. Business Perspectives and
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DuBose, J. J., Leake, S. S., Brenner, M., Pasley, J., O’Callaghan, T., Luo-Owen, X., ... &
Azizzadeh, A. (2015). Contemporary management and outcomes of blunt thoracic aortic
injury: a multicenter retrospective study. Journal of Trauma and Acute Care
Surgery, 78(2), 360-369.
Hemel, D., & Lund, D. S. (2018). Sexual harassment and corporate law. Columbia Law
Review, 118(6), 1583-1680.
Kindström, D., & Kowalkowski, C. (2014). Service innovation in product-centric firms: A
multidimensional business model perspective. Journal of Business & Industrial
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Lapiņa, I., Maurāne, G., & Stariņeca, O. (2014). Human resource management models: aspects
of knowledge management and corporate social responsibility. Procedia-social and
behavioral sciences, 110(0), 577-586.
Morral, A. R., Gore, K. L., & Schell, T. L. (2015). Sexual assault and sexual harassment in the
US military. Volume 2. Estimates for department of defense service members from the
2014 RAND military workplace study. RAND NATIONAL DEFENSE RESEARCH
INST SANTA MONICA CA.

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National Academies of Sciences, Engineering, and Medicine. (2018). Sexual harassment of
women: climate, culture, and consequences in academic sciences, engineering, and
medicine. National Academies Press.
Osagie, E. R., Wesselink, R., Blok, V., Lans, T., & Mulder, M. (2016). Individual competencies
for corporate social responsibility: A literature and practice perspective. Journal of
Business Ethics, 135(2), 233-252.
Prieto, I. M., & Pérez-Santana, M. P. (2014). Managing innovative work behavior: the role of
human resource practices. Personnel Review.
Wagner III, J. A., & Hollenbeck, J. R. (2014). Organizational behavior: Securing competitive
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Wong, G. K. W. (2017). Leadership and leadership development in academic libraries: A
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