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A case study on “ Firing my best salesperson”

Submitted by:Fatema tuz zohora R-152444Nusrat salma R-152453Nusrat Hossain R-152439Tahmina Akter R-152448

Course title: Human Resource Management & OBCourse code:MGT-5304

Submitted to: Mohammad Jonaed kabir Associate professor & coordinator of IIUC

Submission date:22.08.2015

PART 1Introduction

Case study

Documented study of a specific real-life situation or imagined scenario, used as a training tool in business schools and firms. Students or trainees are required to analyze the prescribed cases and present their interpretations or solutions, supported by the line of reasoning employed and assumptions made.

A case is usually a "description of an actual situation, commonly involving a decision, a challenge, an opportunity, a problem or an issue faced by a person or persons in an organization."1 In learning with case studies, the student must deal with the situation described in the case, in the role of the manager or decision maker facing the situation.

An important point to be emphasized here is that a case is not a problem. A problem usually has a unique, correct solution. On the other hand, a decision-maker faced with the situation described in a case can choose between several alternative courses of action, and each of these alternatives may plausibly be supported by logical argument. To put it simply, there is no unique, correct answer in the case study method.

The case study method usually involves three stages: individual preparation, small group discussion, and large group or class discussion.

Importance of Case Study

Cases allow students to learn by doing. They allow students to step into the shoes of decision-makers in real organizations, and deal with the issues managers face, with no risk to themselves or the organization involved.

Cases improve the students ability to ask the right questions, in a given problem situation. Their ability to identify and understand the underlying problems rather than the symptoms of the problems is also enhanced.

Case studies expose students to a wide range of industries, organizations, functions and responsibility levels. This provides students the flexibility and confidence to deal with a variety of tasks and responsibilities in their careers. It also helps students to make more informed decisions about their career choices.

Cases studies strengthen the student's grasp of management theory, by providing real-life examples of the underlying theoretical concepts. By providing rich, interesting information about real business situations, they breathe life into conceptual discussions.

Cases provide students with an exposure to the actual working of business and other organizations in the real world.

Case studies reflect the reality of managerial decision-making in the real world, in that students must make decisions based on insufficient information. Cases reflect the ambiguity and complexity that accompany most management issues.

When working on a case study in a group, students must also be able to understand and deal with the different viewpoints and perspectives of the other members in their team. This serves to improve their communication and interpersonal skills.

Case studies provide an integrated view of management. Managerial decision-making involves integration of theories and concepts learnt in different functional areas such as marketing and finance. The case method exposes students to this reality of management.

Summary

Greg Johns is a sales director for International widget industries(IWI). Recently a top sales person under John named Bob Pullock got noticed stealing from company by inflating expense reports and overstating sales. After that Jhon was told to redress the situation. John identified there might be some extenuating circumstances such as family pressures. So considering all these circumstances John is to solve this disciplinary problem.

Part 2

Problems Identification

1.What should you do now?2.Why should you do it?3.How would you do it?4.Is your decision ethically and legally right?

Developing Alternative Solutions

Alternative Disciplinary actions:

1. Oral warning: The mildest form of discipline is the oral warning. The manager should begin by clearly informing the employee of the rule that has been violated and the problem that this infraction has caused.

2. Written warning: The written warning becomes the part of the employees official file. This is achieved by not only giving the warning to the employee but sending a copy to the personal department to be inserted in the employee’s permanent record.

3. Suspension: Suspension or layoff would be the next disciplinary step, usually taken only if the prior steps have been implemented without the desired outcome. This temporary layoff from the job for specific period of time

4. Demotion: If suspension has not been effective and management wants strongly avoid dismissing the problem employee, demotion may be an alternative A demotion is a constant punishment to the demoted employee.

5. Pay cut: By cutting the pay of the problem employee and saving the investment the organization has already made in that person is rather a wise decision.

6. Dismissal: Dismissal should be used only for the most severe offenses. It may be only feasible alternative when the employees behavior is intolerable.

1.What should you do now?The salesperson should be fired.2.Why should you do it?Because his actions represent gross misconduct- deliberate and willfulviolation of the employer's rule.3.How would you do it?

(A)Disciplinary procedure:

Framing a charge and issuing a latter: As the employee committed an act of misconduct that requires disciplinary action, the employee concerned should be issued a charge sheet.

Consideration of explanation: On getting the answer for the letter of charge served, the explanation furnished by the convicted emplyees is not satisfactory.

Issuing a show -cause latter: Then Show-cause notice will be issued by the manager as I am convinced that there is sufficient prima facie evidence of employee’s misconduct.

Forming a fall pledge inquiring committee: As the process of inquiry is over and the findings of the same are recorded, the inquiry officer suggest to fire him.

Passing the final order of punishment: Disciplinary action-dismissing the problem employee is to be taken as the misconduct of the employee is proved.

(B)Factors to be considered before taking Disciplinary Action

Undermining the Employee's work history and extenuating factors( familypressures), factors include seriousness of the problem and implications for other employees have been considered.Because no company can tolerate stealing on the part of its employees. If I cannot trust the salesperson, his presence with my company will have a corrosive effect on all that he deals with, including customers and co-workers.

(C)Termination interviewFor dismissing the employee termination interview must beconducted. Termination interview is the interview in which an employeeis informed of the fact that he or she has been dismissed. Guidelines inthe textbook for a termination interview include:

a) Plan the interview carefully Make sure the employee keeps the appointment time. Never inform the employee over the phone. Allow 10 minutes as sufficient time for the interview Have employee agreements, the human resource file and a release

announcement (internal and external) prepared in advance. Be available at a time after the interview in case questions or problem

arise. Have phone number ready for medical or securities emergencies.

b) Get to the pointAs soon as the employee enters, give the person a moment to getcomfortable and then inform him or her of my decision.c) Describe the situationBriefly explain why the person is being let go. Describe the situationgently rather than attack the employees personally.d) ListenContinue the interview until the person appears to be talking freely andreasonably calmly about the reasons for his or her termination and thesupport package.

e) Review all elements of the severance packageDescribe severance payments, benefits, access to office support peopleand the references will be handled

4.Is your decision ethically and legally right?Ethics refers to the principle of conduct governing an individual or a group.Ethical decisions are characterized by two things. First, they always involve normative judgments which implies that something is good or bad, right or wrong, better or worse. Second, ethical decision also always involve morality, which is society's accepted standards of behavior.

So Decision to dismiss the salesman involves normative judgments and morality for his misconduct(stealing from the company)

legal justification:Punishment for conviction and misconduct (Conditions of service and employment (Chapter 2 sec -23)Bangladesh Labor Law 2006(1) Notwithstanding anything regarding lay-off, retrenchment, discharge and termination of service as provided elsewhere in this Act, a worker may be dismissed without prior notice or pay in lieu thereof if he is-

(a) convicted for any criminal offence ; or (b) he is found guilty of misconduct under section 24.

(2)Any worker found guilty of misconduct may, instead of being dismissed under sub-section (1), in consideration of any extenuating circumstances, be awarded any of the following punishments, namely:

(a)Removal; (b)Reduction to a lower post, grade or scale of pay for a period not

exceeding one year; (c)Stoppage of promotion for a period not exceeding one year; (d)Withholding of increment for a period not exceeding one year; (e)fine; (f) suspension without wages and subsistence allowance for a period not

exceeding seven days(g)censure or warning.

(3) A worker who is dismissed under sub-section (1) or removed as a measure of punishment under sub-section (2) (a) shall, if his continuous service is not less than one year, be paid by the employer compensation at the rate of fourteen days wages for every completed year of service, or gratuity, if any, whichever is higher;

Provided that no compensation shall be payable if the worker is dismissed for misconduct as specified in sub-section (4) (b)

(4) The following acts and omissions shall be treated as misconduct -

(a) Willful insubordination or disobedience, whether alone or in combination with others to any lawful or reasonable order of a superior; (b)Theft, fraud or dishonesty in connection with the employer’s business or

property; (c) Taking for giving bribe in connection with his or any other worker’s employment under the employer; (d)Habitual late attendance; (f)Habitual breach of any law or rule or regulation applicable to the

establishment; (g)Riotous or disorderly behavior in the establishment, or any act subversive of

discipline; (h)Habitual negligence work; (i) Habitual breach of any rule of employment, including conduct or discipline, approved by the chief Inspector; (j)Falsifying, tampering with, damaging or causing loss of employers official

records.

(5) If a worker who is dismissed from service under sub-section (1) (a), is acquitted on an appeal, he will be reinstated to his original post without back wages or to any new post suitable to him; and if such reinstatement is not possible, he shall be paid compensation at the rate payable to a person on discharge excluding the compensation already paid to him for his dismissal.

So, I made decisions that involves ethics based on what is legal.