Problem #1: The Mill is profitable, but has not been maximizing profits. (Their year-over-year revenue is not increasing, but rather remains stagnant) This is a problem because the owners would like to sell the company in the near future, but the value of the company is not within a range where they would like to sell. This problem forces the owners to look at what they have, and have not been doing in order to try and maximize profits.

Problem 1 explanation: Chapter of Making Decisions; and Chapter of Leading People within Organizations. Resistance to change can also be an option. The owners have opted not to make any changes in the company, in an effort to keep the historic (turn back time feel) aspect of the mill.

Problem #2: Barbara, the Manager of the Mill is actively disengaged as she does not feel empowered to effectuate true change within the company.

Problem 2 explanation: Leadership, Motivation, Communication

Select any two OB concepts or theories in the textbook to explain each of these problems from an OB perspective.

In total, you would have used four OB concepts/theories (two topics/theories to explain each problem). The same OB concepts/theories cannot be used to explain more than one problem.

The chapters used to identify OB concepts/theories to explain problem 1 must not be the same to locate OB concepts/theories for problem 2. For example, you cannot use the chapter on motivation to identify OB concepts/theories for problems 1 and 2. You can however use the same chapter to locate both the OB concepts/theories to explain anyone of the two problems.