Final answer:
Paul Krass's primary challenge is managing interpersonal dynamics in the workplace, and he can address it through understanding personalities, employing effective communication, promoting a transparent culture, and balancing work-life to prevent burnout.
Step-by-step explanation:
The primary challenge Paul Krass is facing is C) Managing interpersonal dynamics in the workplace. This involves understanding and addressing the complexities of work relationships and their impact on both individual and team performance. To aim to address this challenge, Paul can take several steps. Firstly, he should observe and consider the personalities involved, including the co-director's and the new hire's, to identify strengths, weaknesses, and the root of the conflict. Secondly, he needs to employ effective communication and negotiation skills to facilitate a dialogue between the conflicting parties, aiming to resolve misunderstandings and align goals. Thirdly, promoting a culture of transparency and open dialogue can prevent future conflicts and enhance collaboration. Lastly, recognizing the importance of maintaining a good work-life balance can help prevent burnout and sustain a positive workplace.