preview

Rudi Gassner and the Executive Committee of Bmg International (a)

Better Essays

This case explores the roles of CEO Rudi Gassner and the 9-person executive committee in leading BMG International. BMG International is the international music subsidiary of Bertelsmann, a German company that is the second-largest media conglomerate in the world. In particular, the case describes a 1993 decision that Gassner and the executive committee must make about whether or not to change managers' business plans and bonus targets as a result of a newly negotiate reduced manufacturing cost. Some of the major and important issues discussed include: the complexities of managing and growing a large global business; the tensions between centralized corporate control and decentralized local management in a global organization; the impact …show more content…

Although Gassner sometimes used authoritarian power to impose his decisions; it would be wrong to call him an autocratic leader. This is because in many instances he had used consultation, participation and delegation in making decisions. For example, when he formed the Executive committee his intention was to encourage his subordinates participate and jointly make decisions on strategic issues.
He had also used delegation of authority as means of empowering his subordinates. His decision to appoint Regional Directors with an autonomous decision making authority in their respective region can serve as a good example of delegation of authority.
3) Evaluation of the Executive Committee Meetings
Basically the Executive Committee Meetings (ECMs) are not effective in achieving their intended purposes. This is not to say that they are a total failure and a waste of time since they have brought some unforeseen advantages in addition to partly achieving their objectives. I would like to point out the strengths and weaknesses of these ECMs.
Strengths
 The Executive Committee Meetings have helped to create mutual respect and trust among top level executives.
 They have helped to prepare clear business plans for each region and country.
 Through the periodic performance review of each region, the ECMs have helped to create a healthy and constructive competition among Regional Directors.
 The ECMs have created an

Get Access