Risk avoidance and risk reduction are the possible strategies that should be considered in helping the SVP, his employees, and the organization. Risk avoidance, according to Baker (2009) involves application of an alternative approach that eliminates a problem or its effects. Conflicting attitude from employees and clients identifies situational leadership approach that is yielding returns, though with employee turnover as a consequence. Introducing a management level between the SVP and his staff, while retaining the SVP’s direct contact with clients, is likely to eliminate the employees’ negative attitude, risk of high turnover, and its effects. Cost of employing the supervisor will be less than the long-term cost of recruiting and training employees and the negative image that the employees’ experience can have on the organization. Risk reduction, according to Boehm, Lane, Koolmanojwong, and Tuner (2014), involves lowering probability of risk occurrence and understanding the SVP’s expectations from his employees and training employees to meet the expectation is an example. This is better than recruitment and training of new employees but is relatively costly.
The SVP’s strengths identify need for his retention in the organization. Risk avoidance and risk reduction are the possible mitigation strategies but relative cost effectiveness of risk avoidance, through changing structure, is the best option for managing the situation.
Boehm, B., Lane, J., Koolmanojwong, S., and Tuner, R. (2014). The incremental commitment spiral model: Principles and practices for successful systems and software. Upper Saddle River, NJ: Addison-Wesley