Aes Corporation Case Solution

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NEGATIVE IMPACT ON CHANGES

In front of the problem and challenges, we need to found the main problem and solve it, and we should be careful to make changes on what we have right now. Every small steps of changes may cause serious problem in the company. We need to find someone who really passion about company and have known the company really well to make right changes. Therefore, I am in favor of keep the founders and do not make any changes by directors due to potential risks will be arise in the future.

Other members of the Board of Director may concern the company crisis directly result by the leader of company, and they believe if two founders have no ability to lead us, we should change them. But, I do not believe this is a good idea. First, company value strongly related to founders’ personal beliefs. Bakke and Sant are parents of AES, they used their own personal value to create company principles. They are the people who really know the true value and implicate it to company culture. Company culture is a core factor to make everyone work together as a family. If we decided to have a new CEO, it may cause core value changes, and company will take apart into new and old beliefs among the employees. Second, no one else will know company status better than current founders. They are the founder of our company, and they worked in this company since 1990s. They know every decision and problem inside the company. Thus, they will be the people who can find and fixe problems as soon as possible. Third, two co-founders have experiences with crisis issue in the past, they can learn from past mistakes and find solutions. Other directors may pay more attentions on their ability than experiences, however, in the past crisis, Bakke and Sant made a right decision to call upon outside expertise to help steer the company. They may lacks ability to solve the problem, but they have ability to make good decision, and lead company to overcome the crisis. I have confidence that they will make good decision too. We need a leader to lead the company go to right direction, but not only ask them to solve all kind of problems. Finally, leader’s change means management style will also changes, employee will have more concern about this change. It may cause employees lose confidence and trust to the company.

In addition, no changes should be make by directors. As what I represented above, we should let founders to make decision on whether change the management style, company structure, and other major problem inside the company or not. They knows company better than anyone else, and they have both experience and ability to find the problem and overcome the crisis. Also, employee is a major factor of company crisis. We need to make our employee feel stable, safe, and continue with our mission of fun working environment, Any changes will influence their attitude, motivate and performance. It may also cause employee turnover. Facing the problem, we need everyone work together and give our employee confidence and let them trust us in order to have better performers to live through the crisis.

CONCLUSION

From all the evidence above, I believe it is a good decision to allow the founders to continue to be in charge, and do not make any changes by directors. Because the founders’ unique management style to empower employee to enjoy their job, also tied up with social responsibility will increase our company’s performance. Also, loyal employees’ role is not estimated. We need to make sure any changes will not have negative impact on employees and cause huge turnover. Thus, it is time to rebuild our faith and trust in the founders who have achieved so much in the AES’s history, let the founders decide whether we should change or not, and keep our good company environment in oder to make our employees have better performances.