When they are offered full or partial support in increasing their skills, it is also necessary for them to be offered further possibilities for them to fructify the new skills. In a context in which -- like in the case of Federated Industries -- the people are not offered the chance to capitalize on the newly acquired skills and to also benefit from the adjacent rewards -- such as promotions and salary increases -- the firm will stand to face losses. Another distinctive element of the problem -- observed within another subsidiary -- was that of a selective process of managerial training. Only few of the employees were offered training and the morale of the rest of the staff members was negatively affected. This status quo can easily lead to more intensified problems, such as high employee turnover rates or reduced organizational performances. The conclusion is then that...

And this does not necessarily refer to the offering of training programs to all employees, but rather to the offering of equal opportunities to compete and enter the managerial training program, rather than leave the decision entirely on the hands of the supervisor, who could be subjective.
Overall, the human resource management system at the Federated Industries seems defective and unable to provide the company with sufficient managers. This means that the leaders are often brought from outside, with the specific limitations of increased costs and longer time to adjust and become integrated. The problem could be resolved if the leadership style was more transformational and more focused on the development of the employees.