Going to the X-Stream Case Study

1152 words 5 pages
Case Study 2: Going to the X-Stream
Tamara A. Scott

MGMT 3600 Sec. E02
Spring 2013
Professor Emily Lane

Gil Reihana is a smart, young, ambitious, and educated entrepreneur. After graduating college with an information technology degree, Reihana inherited a substantial amount of money. With investments from multiple family members & coupled with his inheritance, Reihana launched X-Stream. X-Stream is a technology company that assembles personal computers and sells them through chain stores & independent retailers throughout New Zealand and Australia. The company gained a reputation for having “quality hardware, customized products, excellent delivery times, and after-sales service” (McShane &Von Glinow, 2013). In
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Another issue is with Ramesh Patel, head of e-business applications, who worked with a friend on a new software program. What he thought was done as a favor, was later billed to the company as a $25,000 consultancy fee. Jason Palu’s research and development manager wanted to quit, Jason and Don wanted more money in their respective departments, and to add to an already stressful workplace, the human resources manager has suggested implementing a more structured and professional workplace atmosphere that involves a performance management system; many of the managers strongly oppose this suggestion. Each one of these issues individually could be the demise of a very successful company, but combined, could be catastrophic. The umbrella issue in this organization is leadership. Gil Reihana has a very relaxed approach to managing his employees. He gives more freedom than necessary, which in turn has caused many of his senior management team to feel entitled to behave in any manner they see fit. They have taken advantage of his lack-luster performance as a leader. Leadership is defined as “the ability to influence, motivate, and enable others to contribute toward the effectiveness of the organizations of which they are members” (McShane & Von Glinow, 2013). Reihana does not seem to display any of these characteristics. His senior management team has taken leadership roles beyond just their department. Reihana does not seem to have the control, influence,


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