Issues
Inappropriate use of coercive power:
Paul Kost exercised coercive power which is the ability to punish if employees failed to conform or prevent someone from obtaining desirable rewards. This source of power could make things difficult for employees due to the implied force or disciplinary action that relates to threats and punishments and so employees working under such a coercive director are unlikely to be committed that leads to low productivity. Furthermore, punishment strategy could result in undesirable side effects such as anxiety, resentment, reducing employees’ loyalty and work performance in the workplace. To add on, the distinct outcome that might result from the use of coercive power is that it often generates resistance when use excessively. This indicates that resistant employees do not wish to comply with the request such it might lead workers to deliberately avoid carrying out instructions or might even sabotage goal attainment. Thus, the issue of depending too much on such coercive power could cause a ruthless and impoverished style of leadership as well as the coercive behaviour could violate the concept of empowerment that lead to hostility, aggression and high absenteeism on the part of subordinates.

Inappropriate Organizational structure
Fairisle Polytechnic has an inappropriate organizational structure and so there was a lack of proper formal arrangement of jobs within the institution which is important in running the campus effectively and attaining its objectives. Hence, the result of an improper organizational structure in the Fairisle Polytechnic would cause low motivation, unequal workload and communication breakdown. * Unequal workload as inappropriate organizational structure could cause unequal work distribution between departments in which some sectors of the school are usually understaffed and need to work intensely to complete the workload whereas other areas need to keep themselves occupied by finding work to do. * Communication breakdown as processes might be misperceived without an effective communication. When Fairisle Polytechnic has a poor structure, there would not have a right chain of command that act as an effective tool to pass on accurate and updated information through the institution that are essential to maintain the flow of management in all faculties. This indicates that low productivity can be resulted because ineffective communication could cause employees to have an improper working environment for them to work efficiently. Thus, improper organizational structure leads to imprecise or missing information that could affect every department and even cause confusion as departments might not be clear on what their responsibilities exactly are. * Employees would follow the organizational structure of the school to guide their daily tasks and so if the structure were not clear would eventually cause employees to lose motivation. When the channels to deliver changes or new ideas are disorganized, workers would lose interest in working efficiently.
Scarce resources
Staff had tried to resist the squeezing of resources which suggests that there was a problematic matter of resource scarcity that would more likely to generate conflict as each employee or department that needs the same resource necessarily undermines others who also require that resource in order to achieve their objectives. When employees feel the need to safeguard the interests of their individual department over the needs of the school as a whole, then the institute would suffer. Consequently, conflict would occur since employees would be fighting over scarce resources due to insufficient financial and other resources for every worker to accomplish their goals.
Recommendations
* Coercive power
The effectiveness use of power would not solely rely on one source of power as it might limit its effectiveness. It would be more appropriate to avoid using coercion except when absolutely necessary such as during economic crisis or when there are threats to the survival of the association because it is difficult to use and is likely to result in undesirable side effects such as anxiety and resentment. In addition, it would be sensible to understand that a behaviour might be suppressed due to punishment, it might not be abolished permanently and the person who directs punishment might be viewed negatively by others. Instead of exercising coercive power like giving punishment to weaken the undesirable behaviour, reward power could be implemented to influence and motivate employees so as to improve their performance in the institute. Reward power is based on the individual's ability to reward desirable behaviour. Many employees are motivated by rewards and incentives to comply with instructions given by a superior. In this case, Paul Kost could provide extrinsic rewards such as wage increases and job promotions due to jobs well done and might also use intrinsic rewards such as praise and recognition to influence behaviour. The purpose of reward power is to trigger that part of human nature that appreciates being recognized for high performance. As such, reward power acts as positive change agent that could be an effective influence to persuade since incentives are being offered and also overcome resistance of employees which in turn reduce dissonance. Moreover, a proper allocation of rewards could influence both performance and satisfaction. In his journal, author Artz, stated that employees earning more under performance pay have greater job satisfaction. Paying workers based on performance rather than by time would lead workers to have more incentive to increase effort unless their extra effort is satisfactorily paid by the employer. This research illustrates that employees who receive high rewards report greater job satisfaction and performance. Ultimately, high rewards are given to reward high performance and small rewards or no rewards to those who have low performance. Though it might lead to initial dissatisfaction of low performance employees who receive little or no rewards, the expectancy of the individual would make effort to improve performance to achieve greater benefit in the future. Therefore, one method to minimise the impact of resistance and resentment of employees is to establish performance standards and appraising employee performance in order to motivate, control and maintaining satisfying employees who remain productive in the workplace.

* Scarce resources It is evident that a way to reduce conflict due to resource scarcity is to increase the amount of resources available. To illustrate, Paul Kost being the decision maker of Fairisle Polytechnic might instantly dismiss such resolution as a result of the costs implicated. However, it is important to compare these costs thoroughly with the cost of dysfunctional conflict arise due to resource scarcity. As a result, it would be more appropriate to increase the resources to solve the disputes and allow staff to carry out their duties accordingly. * Change the organisational structure:
Organisational structure is an important process as it affects the way Fairisle Polytechnic arranges its departments. Having a good structure is vital as it allows employees to be clear with the hierarchy of responsibilities, attain goals since it allows the chain of command and fosters teamwork where everybody works toward a common goal. It is also crucial for communication purposes as it enables the distribution of authority and it helps to better evaluate employees’ performance such as working skills and timelines in which they complete their work such superiors could perform appraisal based on employees’ performance. Consequently, there is a need to reform its organisational structure such as through work specialisation, departmentalisation and formalisation. For instance, departmentalisation identifies how employees and jobs are grouped together. One type of departmentalisation that could be used in Fairisle Polytechnic is functional structure that grouped related occupational specialities together. This allows cost-saving advantages that accrue from specialisation such duplication of people and equipment are minimised (textbook p. 372). It also increases employee identity with that specialisation and direct supervision could be easier in functional structure since superiors manage workers with common expertise and issues. Ultimately, such departmentalisation help to reduce constant movement of employees from one department to another which promotes stability that enhance an effective organisational structure. Besides, proper training could be provided to boost a strong organisational structure. To illustrate, when employees are trained and understand what the proper channels of communication are, how the institute operates and how to work together would allow organisational structure to remain intact.