Chapter 12, Problem 10CR

Summary Introduction

To determine:

The resignation of a CEO can create a huge impact towards the business and to the employees. It creates uncertainty in the business and that can lead to a considerable threat on the trust that his leadership has exhibited to his subordinates. This for sure can create ambiguity in the business because leaders and his actions towards the business and employees have an influence to motivate and demotivate his subordinates.

Introduction:

CEO’s leave for many reasons but their obligations towards their subordinates and their actions could affect an organization in many ways. Leaders who can influence his subordinates to do better even when he is not around are called, change leaders who have groomed and inspired their employees to face even drastic changes in the business. When a CEO leaves, his responsibilities and tasks need to be transferred at the right time before the news creates the ambiguity in the environment. The CEO also needs to ensure the trust he gained within the team is transferred to the next person inline and support smooth function in the business as usual.