ACCA Strategic Professional · Strategic Business Leader · Managing strategic change
Zenith Logistics faces a sudden loss of its largest customer and must cut costs within weeks. The CEO announces a restructuring plan without consulting staff and enforces it using her formal authority, accepting that some employees will resist. Which change management style, in Balogun and Hope Hailey's terms, is the CEO using?
The CEO is using the direction style. She imposes the restructuring through formal authority with no consultation, which is appropriate when a crisis demands speed. Collaboration, participation and education all involve involving or persuading staff, which would be too slow and does not describe her approach.
- ACollaboration
- BEducation and delegation
- CDirectionCorrect
- DParticipation
Explanation
Direction involves the use of managerial authority to impose change with little or no consultation, and suits a crisis where speed is vital. Collaboration and participation both involve staff input, and education and delegation relies on persuasion over time, none of which match an announced, enforced plan.
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