Identify problems or issues The problem is that there is a lack of direction. The employees feel threatened by the intrusive and invasive meddling of their new owners, the managers of MegaFirm. Most of the employees are resistant to the change in management. They are too used to the informal and flexible leadership style that is typical of the former old Mick and John partnership era. Adding insult to injury, the two new MegaFirm officers have set up a formal organizational structure that has its advantages and disadvantages. One advantage is that the employees will not be guided on which benchmarks to overshoot in each accounting period. The benchmark is based on a study of what is the ‘average’ skill needed for a person to perform a job specification. Diagnose situation: what’s going on? The employees are resistant to the change in leadership style. The employees are threatening to leave because they resist the change where the officers of MegaFirm have set up a formal organizational structure in the company. The employees want to hold on to the old ways where they were happy at the informal and flexible style of the two partners Mick and John. Their other two partners, Erik and David left the partnership because they believed that research projects should not be curtailed as envisioned by Mick and John. What contributed to the problems/current situation? There are many factors that contributed to the problem. One factor is the refusal of the partners to accept new investors to fund the business. The new investors could have contributed much–needed capital to increase the working capital, revenue, and profits. Another factor is the withdrawal from the partnership of Mick and John. And, the intrusion by the Mega firm managers contributed much to the employees’ dislike of a change to the new work environment. Lastly, the remaining partners lacked the human resource mind How does it relate to theory and research? (ie compare the situation in the case with what we’ve covered, e.g. does it illustrate a concept, etc) The problems mentioned above are conceptually related to many related theories and researches discussed. For example, the two remaining partners should attend seminars on leadership training in order to increase their capacity to function the jobs. Many managers have reached such a high position because they own the business just like persons involved in this case study but they lacked the training to maximize the management of people and scarce resources. For, a better management style would include the mixture of conceptual skills and interpersonal factors. The good manager should also acquire these interpersonal skills and factors and learning the best possible combination of the skills and factors that permeate each unique factory situation. The two managing partners must learn to accept that MegaFirm has the right to intrude they had contributed lots of money to the business. Also, the employees must accept that the formal and ‘red tape’ style of MegaFirm for synergy will be created when both the company’s old business culture of informality is infused with formal line and staff style of MegaFirm (Benfari, 1999, p. 2). Developing options and recommendations What would you do to fix it? A no holds barred brainstorming is the best remedy to the situation. All the parties will treat each oth