Problem causes

 The new CEO failed to realize the dynamics of the functioning of the Chennai unit.
He failed to understand the organizational culture. He had a worldview shaped by his
previous experiences in US, Germany and China. The work cultures are very formal
and often strict. He failed to understand that the informal commune like environment
actually propelled the workers.
 The employees also might have got affected by the sharp contrast of the ethnicity of
the new CEO. From being governed a local personality like Srinivasan to being
administered by a foreigner might have established a feeling that they are being ruled
by an outsider.
 John failed to understand the responsibility towards the community that the Chennai
unit possessed. The major drawback was that he didn’t understand the culture and
importance of his presence in the school event. Certain behaviours are perceived
differently in different places of the globe. His absence in the school event would not have
mattered in some other context. But in this case, it was seen by the community members
and also the employees as a sign of disrespect and arrogance. John chose to avoid the
event because he was lacking confidence which rose from the communication barrier.
But being a senior manager, he should have attended the even despite all the
discomfort. It created a snobbish image of John.
 As we can see from the Exhibit 2 in the case that the Chennai unit has been
manufacturing oil cooled bearings solely till now. Suddenly it was planned to
manufacture air cooled without much prior information. This was done at a point
when the employees were demotivated, and certain employees were leaving. The
setting up of the new plant was also another cause of discontent. As mentioned earlier
the workers worked as a commune. With the establishment of the separate plant and
transfer of some employees to the new plant, there was a feeling of separation
amongst the employees.
 To summarise, John Marker established a somewhat Autocratic framework in the
company contrary to the custodial framework that was prevalent in the company
previously.

Solution
 In order to handle the situation, John Marker, the new CEO should seek help the
former CEO, Raghu Srinivasan and explain the situation, the mistakes he made, and
what the goals he actually wanted to make the company achieve. He should also
explain the actual aims of his actions which actually had adverse results. Mr.
Srinivasan knows the details of the company’s functioning and the sentiments of the
workers. He might be able to advise John Marker efficiently as he is aware of certain
subtleties that John is unaware of. Moreover, since the employees look up to him as a
guardian, his presence can convince and pacify the employees.
 When the current crisis subsides, John Marker should look beyond the mechanical
functioning of the process and try to create an emotional and communal connect with
the workforce. He must make the employees feel that he is not an outsider bossing
 over them but somebody who is one of them. He should start this by learning more
about the local customs and culture and implement the values.
 He should be liberal in his approach and recognize that the family-like environment in
the workplace. He should do away with the stringent rules and establish a comfortable
and commune like environment where the workers would be motivated.