In 2001, the Canadian plant experienced serious financial losses owing to a declining demand for its product in the face of mounting competition. The company was also subject to a strike that halted operations for two (2) months in 2000. The union was not pleased with the existing working conditions and with rates of remuneration as they were not competitive with industry standards. Initially, Executive Management considered closing its operations as the Canadian plant was operating at a loss and the actions of the union further exacerbated its financial situation. However, this was reconsidered and the following measures were implemented:  Nomination of a new Executive Management team responsible for improving the financial situation from losses to a satisfactory level of profitability.  Create better relations with the unions and the employees. The strike resulted in tense management relations that diminished job satisfaction and the level of employee engagement. The company conducted a job satisfaction survey and customer satisfaction survey which revealed: o Factory employees were not motivated to help in trouble shooting machine malfunctions. The result was an increased machine maintenance cost and longer lead times between manufacturing and delivery. Standards of performance for manufacturing to delivery were not being met. o Reduced discretionary effort by the sales staff and increased customer complaints. o Low level of participation in any non-work related activities such as, Games Night and the Annual Staff picnic.  Nomination of a new Executive Vice-President (EVP), Francis Noel to manage the Tuff Technologies Limited (Canada) operations with a clear mandate to rapidly generate profits within a one-year timeframe. The EVP adopted the approach that all decisions were to be made by him only and also critically reviewed previous decisions that challenged the current way of operating. This approach was opposite to that adopted by the previous EVP Jane Cummings who sought consensus from the Executive Management Team before making decisions and trusted Management as subject matter experts able to make decisions in their areas of operation. The Executive Management team was concerned with the negative consequences of implementing a more tightly controlled leadership style. The leadership style challenged every previous decision resulting in a lowered level of trust and reduced management autonomy. Despite this potential negative consequence, top management came to the conclusion that they had no choice, but to implement this tight control approach to achieve the financial turnaround objectives that would hopefully result in a successful at the close of the fiscal year 2002. At the end of the first quarter of 2002, there was a turnaround in the company’s financial situation allowing it to break even and then make a 10 percent profit at the end of the third quarter. Tuff Technologies Limited was even able to revisit its plans for expansion. However, the long term results of the new measures had a negative impact on staff, namely:  Disgruntled middle management who previously enjoyed a certain level of autonomy. There were rumours of at least 4 out of 10 managers planning to leave for the competitor. Additionally, there were complaints of not feeling appreciated for their efforts in turning around the company.  Complaints by the union that none of the company’s success was being passed on to the workers. The union demanded an increase in vacation days from 11 standard working days (Monday to Friday) to 15 working days and an increase in salary by 8 percent. The last increase was in 2000 of 5 percent.  Employees were displeased and confused about the direction of the company. Staff were only notified of the appointment of the new EVP and Executive Team one (1) week prior to their assumption via the company’s newsletter. The usual Town Hall meeting used to discuss company changes was not held to allow employees the opportunity to ask questions and seek clarification. Assignment requirements: As the Executive Management Team, based on the details of the case study prepare a PowerPoint Presentation for Mr. Noel, EVP advising on the course of action that should be taken to protect the financial situation and stability of Tuff Technologies Limited. When preparing your response, take into consideration the following issues:  Leadership and Motivation  Workplace Communication  Conflict Management  Compensation and Benefits Administration Each member should assume one (1) of the following roles of the Executive Team:  General Manager  Manager, Finance and Accounts  Manager, Legal Services  Manager, Human Resources  Manager, Plant Operations