BRIDGE WATER CASE STUDY

BRIDGE WATER CASE STUDY

Statement of the problem: Bridgewater is facing the problem of the transition of leadership. The firm faces the challenge of ensuring that the administration that precedes Dalio’s can maintain the unique culture of giving values to meaningful work as well as fostering meaningful relationships. Dalio, who stepped down as the CEO of Bridgewater and in his tenure, led the company into acquiring assets and keeping a track record of excellent returns. Over the years, Dalio has been maintaining the organization’s unique qualities that made it stand out and succeed. As he steps down, it is not clear how the company will move on and keep its standards of services and values without his leadership.

Theory: The person-environment fit approach best suits the crisis that Bridgewater is currently going through. The theory explains that an individual should match and be compatible with the work environment.

Applying the person-environment fit theory: Bridgewater associates get the credit for standing out as the world’s largest hedge fund for long. However, Bridgewater was founded by Dalio, who led the organization to escalate fortunes in terms of assets at $120 billion and keeping a track record of excellent returns. The company is currently undergoing a process of leadership transition since Dalio stepped down from being the CEO. The problem with the change is finding an individual a leader who will uphold the strong principles as Dalio. Transitioning to the right leadership is the company’s primary challenge. Bridgewater upholds values, such as ensuring meaningful relationships and works. The company fears that Dalio’s stepdown will eventually lead to the undermining of the core principles that kept the organization running for all the years. They believe that Bridgewater cannot thrive without those values and principles. Therefore, the solution to Bridgewater’s problem would be soucing for new leadership that suits the needs of the organization. The company should hire passionate individuals who will foster the vision and mission of the organization, conversant with its values, and understands in Dalio’s style of leadership.

Recommendations:

• I recommend that the organization ensures that every of its employee understands its vision, mission, and core principles. This involves creating awareness or training on the principles and values that the organization holds as key to its success.

Action plan:

• Conduct weekly training on the core principles and values that Dalio Discusses in his book.
• Give every employee a copy of Dalio’s book. Ask the employees to read the book and share the values that they find most interesting, and they would like to uphold.

References

Polzer, J. T., & Gardner, H. K. (2013). Bridgewater Associates.

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