MEMORANDUM

To: Howard Duff (Chief Executive Officer)

From: Duff Beer Human Resources
Subject: Incident involving security personnel
Date: 9/20/17

Incident with Security Personnel

After several different security implementations, we have been able to reduce our theft greatly.

All has been smooth until this morning, Wednesday, September 20, 2017. We were notified that

an incident occurred involving a security guard and an employee. The employee was taken from

the premise by EMS personnel. The employee is not harmed and is not pressing charges.

Although, the occurrence of this incident forces us to take another look at the security processes

that are in place. We do not believe there will be any need to eliminate any of these processes but

reform will be imperative. This memo includes our analysis of why this occurred, possible

solutions and their cost, and finally our recommendation.

Narrative of Incident

Wednesday, September 20, 2017, the human resource department was notified of an incident

involving an employee and a security guard. The employee entered the facility, stayed for 10

minutes and walked to his vehicle. The guards watching the cameras notified the head of security

(Duff Man), that an employee is engaged in suspicious behavior. Duff Man ordered two guards

to go confront the suspected thief. Upon questioning the employee made a run for the exit. The

guards chased him down and one of them was able to bring him down. The employee resisted

which led to the guard striking him in the face. The employee lost consciousness immediately. It
was not until 30 minutes later and 15 minutes of the employee regaining consciousness before

emergency services were called.

Why This Incident Occurred

After an HR led investigation of this incident, we have been able to identify the core cause of

this incident. Duff Man has been in full control of the security department for several weeks

now. Duff Man has total control over training, hiring, and implementation of security processes.

Duff Man has created a culture of violence among his subordinates. He has instructed them to

use brute force towards any employee who will not subdue to them. He has preached to his

guards of his goal of 100% of elimination of theft. He has threatened to fire any guard who

allows a product to be stolen when they are on duty. This culture is unacceptable and must be

eliminated immediately.

Solutions to Prevent Further Incidents of this Nature

1. Removal of Head of Security

The first and most evident solution involves the removal of Duff Man from his position

as Head of Security. Duff Man demanded this type of behavior from his subordinates. A

new leader from the outside could help eliminate this culture of brutality.

2. Removal of Security Guards

Regardless of Duff Mans job security, it is important that we screen out some of these

guards who do not represent our values. We have already put the two involved in this
 incident on indefinite leave. We believe it is important to take another look at the

credentials and behaviors of the employees hired by Duff Man himself.

3. Third Party Security Service

There are many companies that provide security personnel to other companies. One of

these is the local, Iron Guard Security Services. This company would do all the hiring

and managing of the employees they provide us. They have an excellent track record of

being professional and effective.

4. HR Supervision of Security Department

Our last solution involves creating a system of checks and balances for the security

processes we currently have in place. HR would conduct all hiring of security guards. We

would also hold a daily meeting with Duff Man. Also, we would have several security

officers who would act as moles. They would give us daily updates on the operations of

the security department.

Cost Analysis for these Solutions

1. Cost of Solution 1

Duff Man could be removed from his post indefinitely which would cost nothing. He

would not be owed anything by Duff Beer. The main cost would be in hiring his

replacement. The search process would cost up to $20,000 and the salary we would be

willing to pay is $180,000. This would be $20,000 less than Duff Mans salary.
 2. Cost of Solution 2

We estimate that the screening and hiring process of our current guards would cost

$10,000. We believe that this cost be one of the most cost-effective solutions.

3. Cost of Solution 3

Our current payroll for security guards is $400,000 per year. We would also have to pay-

out our existing security guards. We could hire a high quality third party security

company for $350,000 per year.

4. Cost of Solution 4

The cost of HR supervision would be $120,000 per year in salaries. We would hire 4 new

HR professionals who would be concentrated on security.

Our Recommendations

After weighing all the pros and cons of these solutions we have been able to unanimously decide

on a solution. We believe that the most cost effective, liability eliminating, and functional in our

operation, would be to hire a third-party security company. We also believe that the head of

security position should be eliminated and security concerns delegated out among executives.

For questions, counsel, or concerns, contact the Human Resources at (616) 555-9801.