Executive SummaryWhen Wolfgang Keller took over as CEO of Konigsbrau-Hellas AE, a Greek subsidiary of Munich-based Konigsbrau AG, he created a culture of camaraderie and emphasized the points strength of the distributors by providing them with strong support and services. The company promoted personal interactions between the sales force and distributors and encouraged after-hours and weekend meetings. Dimitri Petrou was hired as commercial director responsible for sales mainly due to his experience and maturity. His reserved personality and distant management style created conflict between him and Keller. The conflict escalated a bit when Keller wrote his evaluation. He claimed that Petrou was ineffective in his role and lacked the personality to maintain personal contact with customers and the sales force. Petrou countered that Keller was a micromanager and often interfered with sales and marketing functions. This case demonstrated how the difference in management style, personality and culture can cause conflict. It also demonstrated why managers must learn to trust their subordinates and offer constructive criticism to be effective and that the appraisal system can have a negative effect if not conducted correctly. The analysis of this case led to the following recommendation:1. Provide more power to management.2. Reevaluate the evaluation system.3. Nico Chorafas as Sales Director working under Dimitri Pterou4. Dimitri Petrou will take over as head of marketingBackgroundKonigsbrau-Hellas AE is a Greek subsidiary of Munich-based Konigsbrau AG, known as the best-managed and most profitable premium beer producers in the world. His worldwide sales have been... half of the paper... experience as a commercial director of multinational companies. Keller understood his strengths and weaknesses, but failed to capitalize on the positives and correct the negatives in a constructive manner. Petrou's personality may not fit, with the requirements of his sales manager title, in a culture where the company's Greek subsidiary was promoting. It was a culture of camaraderie within the company with strong service and support to the sales force and distributors. But Keller must understand the differences in culture and personality and cannot assume the same mentality. As a manager, Keller must learn to use his resources appropriately and deal with conflicts constructively and tactfully. The appraisal system can be a powerful tool for staff motivation and development if used correctly, but it can do the opposite and create animosity if not fully understood.