BohSne 15e Im 01cases

Solutions for Comprehensive Cases
case
UNITED TECHNOLOGIES SEEKS INTANGIBLES

1 WITH EDUCATION PLAN
This case highlights the importance of creating HR benefits and training that are constantly
evolving to meet the needs of a knowledge-oriented company operating on an international scale.
United Technologies has been able to build a corporate culture based on education and employee
loyalty that other companies could learn from.
1. Although altruism may have been part of the motivation for United Technologies initially
launching its Employee Scholar Program, the effort appears to be paying off in terms of the
company’s labor turnover, earnings and other financial statistics, and managerial feedback. It is
clear that the company considers its contract with its employees to be relational based versus
contract based. Although critics of the program are partially correct that often the ROI on
programs such as United Technologies’ are often neglected, they need not be. Part of an HR
manager’s responsibilities are to create new ways to measure the productivity of employees.
Measure could be developed to more accurately gauge the benefits of ESP-like employees.
That said, not all of the benefits of a company’s training and education programs can be
measured in terms of ROI. Even if they can be, they often take time to manifest themselves.
2. Many small companies lack the financial ability to institute tuition reimbursement programs.
Other companies that are contract based, such as the temporary employment firm Manpower,
for example, would have a hard time making such a program work. Nonetheless, these firms
can develop other programs to reward employees who make an effort to get advanced degrees
on. Promotions and recognition are two avenues.
3. One way would be to tally a company’s overall worker turnover in the years following such a
program’s inception and also to tally the turnover among the program’s participants. Are the
statistics high or low? Tracking these employees and their promotions as well as their
contributions to the company and their work group’s contributions both in terms of the
financial return and other intangibles such as new-product development and efficiencies
achieved could also help uncover measures that could be used to gauge the success of a tuition
reimbursement program.
239
© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the
U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
case
RUNNING THE GLOBAL RECRUITING

2 MACHINE: CLIENTLOGIC
This case highlights the challenges of recruiting employees for BPO operations globally, including
employees in the United States. Client Logic’s systematic recruiting system and how the company
overcome its staffing challenges should make for interesting classroom discussion, not just in terms
of staffing but also offshoring decisions.
1. Since most applicants are walk-ins at ClientLogic, the company might consider establishing a
presence at major universities in tier-two cities. This could be done by creating relationships
with college recruiters, advertising in school newspapers, or even developing recruiting
software that can be installed at electronic kiosks at colleges, such as ATM and ticket
machines, for example. Advertising at sporting events could also be effective.
2. If you have students from developing nations in your classroom, ask them to explain to the
class how people are typically recruited in their countries and on college campuses. Contrast
their experiences with students from the United States or other developed countries.
3. One way would be to track the success of employees recruited using different methods,
depending upon their countries. Another way would be to interview employees recruited from
competing companies to see how the recruitment process differs there. This information could
be used to refine ClientLogic’s processes. Lastly, the satisfaction of the company’s clients,
based on their experience with the firm’s customer service, could be tracked to identify ways
that the company’s up-front, client needs-assessment process could be improve the Client
Logic’s staffing process.
240© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
case
JOB ANALYSIS AND HIRING DECISIONS

3 AT OVANIA CHEMICAL
This case highlights the different elements that go into the staffing process. It includes aspects of
job analysis, testing, discrimination concerns, decision making and the like. One of the key issues
that will come out of this analysis is that the process requires a good deal of judgment, even when
prescribed methods and practices are followed. Hopefully, the case will make the process come
alive for students. The case is real, but the names and locations have been changed to protect the
anonymity of those involved.
1. Job analysis depends a great deal on the knowledge of content experts (managers, incumbents,
consultants, and so on), and in the case of a job that does not yet exist, some forecasting and
projecting must go on. Some students will suggest that you begin with the job as it currently
exists and extrapolate from this based on the technological changes. But considering the extreme
changes that are likely, it is probably better in this case to start with the broad responsibilities
of the job and work backwards from there. From these 3–5 broad responsibilities, more specific
duties can be inferred, and these can be broken down into specific (behavioral) tasks. This infor-
mation is used as a basis for the job description, and the job description then will serve as the
foundation for developing a job specification (knowledge, skills, abilities, other characteristics).
2. Because the dimensions are based on job analysis information, they are likely to be content-valid.
However, there may be other criteria that should be examined, such as experience, interests, and
the like. Given the considerable responsibility of this job, an employee’s commitment would
also seem important as would his or her integrity.
3. Because the job did not yet exist and persons would be entering a training program, it would not
be feasible to try to hire (using achievement testing) only someone who could do the job imme-
diately. In addition, Ovania might run into legal battles if they were to eliminate from consider-
ation anyone who could do the job given training.
4. Given the nature of the job, an applicant’s reservation about getting down into the treatment
tanks is a very legitimate concern. However, this is not a gender-specific issue. Any applicant
(man or woman) would have to accept this as part of the job. In reality, managers in this
company used this aspect of the job as part of a realistic job preview (RJP).
5. This is a judgment call. Instructors might suggest 80 as the cutoff. But play around with cutoff
scores and the list of top applicants changes. In a purely compensatory model, the top candidates
are not the same as if the cutoff is 80. Lower the cutoff to 70 and the list of the top three candi-
dates changes again. Use this as a vehicle for discussing with students that there is a good deal
of subjectivity in selection even when using “rigorous” selection devices.
6. As noted above, the three most acceptable candidates depends on how the information is com-
bined. The judgment calls needed (and the degree of subjectivity around this) make for some
difficult decisions.
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242 Solutions for Comprehensive Cases
7. There are some legal concerns here. First of all, if a woman or minority makes the cutoff under
one set of criteria but not under another, there are legal grounds for a discrimination case. But
digging deeper, there is a more troubling concern: Aptitude testing (used here) requires criterion-
related validity. Achievement testing can be justified based on content validity. So there is a
mismatch in this situation. In this case, the company used aptitude testing with content validity,
which is not likely to hold up in court. But since the job does not yet exist, it would not be feasible
to try to develop criterion-related validity data.
case
ILL-FATED LOVE
4 AT CENTREX ELECTRONICS
This case highlights a change in HR policies some companies are moving to: totally flexible work
hours. Ask your students to discuss different businesses and the pros and cons of attempting such a
change. Ask them if their opinions would be different if they were the owners of these firms.
1. There are three exceptions to the employment-at-will doctrine—violation of public policy,

implied contract, and implied covenant. The exception used in this case would likely be implied
covenant. The attorney for Miller-Canton would likely argue that there was no positive evidence
that she gave sensitive or confidential information to Mike Domzalski. It will be noted that
Miller-Canton had been an exceptional employee with an above average salary increase and
recent research awards. Thus her abrupt termination was unfair and showed a lack of good faith
and fair dealing by the employer.
2. Policies covering a company's confidential or proprietary information are positive employment
documents. When correctly written they cover important areas of the employment relationship.
For example, they might explain what is expected of employees who handle confidential data
and what can happen to employees when the policy is violated. However, problems can arise
when the wording of the policy is ambiguous and open to interpretation. What exactly is a
“competing organization”? Or, how is a romantic relationship to be defined?
3. The answer to this question will elicit different responses. Is dating a “romantic relationship” or
must the couples be engaged before the term applies. Since the term is ambiguous and, therefore
open to interpretation, it illustrates how poorly written company policies can lead to
employee/management problems.
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case
RETURNING ETHICS TO PUTNAM

5
This case highlights how the financial company Putnam is dealing with the ethical problems that
plagued it and is working to improve its long-term performance, legal standing, and reputation.
1. If a company and its corporate executives pressure workers to improve returns without a
corresponding focus on ethics, employees will be more prone to “crossing the line.” Not all of
those breaches will necessarily catastrophic, but they can be, as the Bernard Maddoff ponzi
scheme and numerous other scandals in the have shown.
2. Changing Putnam’s compensation structure undoubtedly was key in terms of encouraging
Putnam’s employees to play by the rules and focus on long-term returns. However, it would
have been less-successfully implemented without the other cultural changes Haldeman
instituted. The cultural changes sent a clear signal to employees that the company was serious
about the new direction in which it was headed.
3. Since this case was written, Putnam’s success has been mixed. Its smaller funds, by and large,
have outperformed its largest funds, and new investments with the company have fallen.
Putnam’s managers may be content to wait for longer term returns. The question is, can the
company’s investors? Ask students what they think. Point out that Putnam may need to make
additional changes but that those changes may or may not relate to its HR strategies. For
example, the changes could pertain to its investment models or some other operational area.
case
REALIGNING HR PRACTICES
6 AT EGAN’S CLOTHIERS
This case focuses on the unintended consequences of appraisal and the connection it has to other HR
practices, in particular, compensation. One of the difficulties with performance appraisal is that it is
a powerful tool and can have potentially dramatic effects. These can be positive—and these can be
negative.
1. The overall investment in HR (HRIS, training, staffing, and so on) is laudable, but the appraisal
and compensation systems need to be thoroughly reviewed. They are having detrimental effects
on employee performance (teamwork) and customer service.
2. The appraisal system has several problems. Although the evaluations may be based on objective
data, they may not capture the full range of employee responsibilities. Consequently, these
objective appraisals suffer from criterion deficiency. (They do not take into account customer
interactions/service, stockroom maintenance, and so on.)
The forced distribution essentially pits one employee against another, and this competitive-
ness diminishes the teamwork needed in a retail environment. Posting sales information daily
may be motivating but demoralizing at the same time. (It would be difficult to complain, but a
large portion of employees would likely resent this kind of publicity.) Perhaps departmental
postings would be preferable.
3. Increased sales are partly due to the appraisal system as well as the compensation tied to it. But
the favorable economy is also likely to have a big impact. This has the potential to raise con-
cerns about criterion contamination as well. If the economic environment reverses—and sales
drop—it will look like the employees are not doing a good job.
Equally important, other aspects of performance (e.g., after-sales service) are being
neglected, and this is directly due to the appraisal system. The old saying “what gets measured
gets done” has a corollary: “What doesn’t get measured doesn’t get done.”
An easy change to the system would be to incorporate a behavioral element that addresses
how results are accomplished and includes areas of the job that are not easily reduced to objec-
tive measures.
4. Absenteeism has probably decreased because of the competitive—and highly public—aspect
of performance management. On the other hand, employees are likely to seek a better work
environment in another company. Not surprisingly, the best employees are likely to have the
most options about where else they can go.
245
case
A PERFORMANCE APPRAISAL SNAFU

7
1. Several problems are evident in this case.
a. There is no evidence that the organization established objective job standards by which to
appraise employee performance. Absence objective and formalized performance criteria,
managers will likely apply their own subjective standards to evaluate the performance of
their subordinates.
b. Garth Fryer may have evaluated his employees as outstanding in order to eliminate having
to confront average, “or poor-performing employees,” or potentially disgruntled
employees. This is the situation Fryer now faces with Marcus Singh. Unless managers
have the willingness to honestly evaluate the performance of their subordinates, they may
simply inflate employee ratings to avoid the conflict that a poor or average evaluation may
invoke. Furthermore, in a self-review evaluation process, employees can have an over
inflated impression of their performance. This may be particularly true where evaluations
are tied directly to salary increases.
c. Supervisors should never hold performance appraisal meetings with their employees until
all levels of management agree on the evaluation to be given. As this case illustrates,
having to lower an initial evaluation through a subsequent meeting can only generate
resentment from an employee. When supervisors reverse initial appraisals they can look
incompetent, unprepared, or at worst “foolish” in the eyes of employees. The credibility
and respect of the manager is seriously eroded.
d. Popelmill is at fault by not communicating to his managers his expectations for the
performance appraisal process. If he expected a distribution of employee performance in
each unit, subordinate managers need to know this when evaluating their employees.
2. Responses to Question 1 largely provide answers to this question. Knowing the objectives of
the performance appraisal system, and specifically how the review process was to function,
would have eliminated many of the problems encountered in this case.
3. Peer appraisals have both strengths and weaknesses. On the positive side, peers, as
performance evaluators are in a good position to appraise the daily work performance of fellow
employees. They can observe performance first-hand and, therefore, are knowledgeable about
how employee performance can affect business goals or objectives. On the negative side,
employees may “overrate” their fellow employees if they fear their appraisals will not be kept
confidential. Additionally, peer ratings may be based on subjective factors not entirely relevant
to job success. Finally, unless properly trained in performance appraisal techniques and rating
errors, peers are subject to the same evaluation mistakes committed by managers.
Solutions for Comprehensive Cases 247
4. The attitude of Marcus Singh is new a serious issue for Garth Fryer. Fryer must assume
responsibility for some of the problems encountered. If Singh’s attitudinal and behavioral
problems continue, Fryer must meet with Singh and explain that his poor performance will
affect Singh’s future performance evaluation. Additionally, he must explain how Singh’s
satisfactory performance rating can be judged more acceptable.
case
THE LAST STRAW FOR AERO ENGINE

8
1. While there are ample causes to discipline Tom Kinder, management handled the case in an
incorrect manner. While Tom received a verbal discussion regarding his poor attendance, and
one written warning for absenteeism, these were given over a lengthy period of time. It is clear
that management tolerated both Tom's absenteeism and his declining productivity problems
before suddenly terminating his for one incident of loafing. This case represents common
instances where management is willing to tolerate the poor performance of an employee and
then take drastic action over one incident which doesn't warrant the discipline imposed.
2. This question should elicit a variety of answers. Students will likely answer based on their
attitudes toward helping employees with family problems or a straight work for performance
standard.
Employers need to be sensitive and responsive to the personal needs of their employees.
This is especially true where the employee has a lengthy service record and has been a
productive and valued employee. Furthermore, where the employee has special skills or
abilities not easily replaced, managers are likely to go the extra mile to assist a troubled
employee. However, giving a troubled employee too much latitude can cause problems for the
employer. Over concern for one employee may cause other employees to complain if they don't
receive similar assistance when they have personal problems or they might resent having to
make up work for the troubled employee who has excessive absenteeism. Management has to
be receptive to the needs of an employee but management must also consider the needs of the
organization and other employees.
3. This case illustrates a clear lack of progressive discipline to the poor work performance of Tom
Kinder. Over the 18 months prior to his discharge Kinder had a chronic attendance problem for
which he received only one verbal warning and one written warning. This disciplinary action is
hardly sufficient to support a discharge for poor absenteeism. Additionally, Tom was never
forewarned that his poor attendance or low productivity was bad enough to warrant discharge.
The just cause standard of forewarning was clearly violated.
4. Management would likely defend its discharge of Kinder by arguing that it gave Tom ample
opportunity to recover from his personal problems but that it finally had no choice but to
terminate him. Kinder's excessive absenteeism and low work performance could no longer be
tolerated. Management will argue that progressive discipline was not necessary since Tom was
well aware of his excessive attendance problem. Discharge should not have been a surprise to
him. Also, management will likely profess that it had been more tolerant with Kinder since he
was a long service employee with a good work record. Labor will argue that the company
violated its own policy of progressive discipline by not applying all the steps of progressive
discipline to Tom's attendance problem. Also, he was not forewarned that discharge was near.
Thus, he had no opportunity to correct his work problems. Finally, labor will argue that Kinder
was denied his due process rights. He had no opportunity to tell his story for the Saturday
loafing incident. Management doesn't have to accept his explanation but it does need to afford
Kinder a due process interview.
Solutions for Comprehensive Cases 249
In this case the discharge of Kinder was overturned. Had management followed it's own
policy of progressive discipline, just cause, and due process the termination of Kinder would
have been upheld. It was management's handling of the case, more than the poor work
performance of Kinder that led to the reinstatement of the employee.
case
9 I.B.M: TAKE AS MUCH VACATION TIME

AS YOU WANT TO?
This case highlights a change in HR policies some companies are moving to: totally flexible work
hours. Ask your students to discuss different businesses and the pros and cons of attempting such a
change. Ask them if their opinions would be different if they were the owners of these firms.
1. The upsides are the freedom, or at least the sense of freedom, the policy seems to offer. This is
proving attractive to job candidates and helping with the IBM’s recruiting efforts, especially
when it comes to recruiting talented employees who are parents and caregivers. The downside,
as Hewitt consultant Kim Stattner states, is if the leaders of the company don’t take time off
themselves. That will set the tone for the rest of IBM’s workforce.
2. A flexible vacation policy makes more sense for knowledge-intensive industries such as tech
firms, bio-medical firms, and consulting firms. Service companies open to the public are likely
to find the policy prohibitive. Restaurants, museums, hospitals, and law enforcement agencies
are among these organizations.
3. IBM should encourage its employees to take vacation time as they need so as to avoid stress and
health problems. This could be done via the company’s corporate communications. The firm’s
executives should, by taking time off, also demonstrate that working from dusk until dawn isn’t
ideal.
case
NEWELL’S DECISION TO DOWNSIZE:

10 AN ETHICAL DILEMMA
1. Newell Corporation has always prided itself on its proactive HR policies and the excellent
relationship it holds with employees. This positive employee-management setting has been,
and continues to be, a primary goal of the organization. The ethical dilemma faced by senior
management in this lay off decision is how to equitably treat employees while obtaining the
desired level of employment. Specifically, should the company lay off junior employees, most
of whom would be minorities, or should all employees, regardless of seniority, be subject to
termination. If the decision is to lay off according to seniority, the company defeats its
objective to increase the minority levels of its work force and, arguably, the clear purpose of
the corporation’s 2000 vision and value statement. However, disregarding seniority in the
downsizing decision will likely expect senior employees bringing into question the companies
traditional HR practices long respected and favored by employees.
2. There are several problems Newell faces as it downsizes its workforce.
a. If minorities are primarily laid off, the company loses its goal of increasing the minority
composition of its workforce. Furthermore, diversity as a corporate goal becomes
questionable. Minorities may feel discriminated against and possibly file discrimination
charges. The company’s excellent reputation in the community may surfer especially
among the minority population.
b. Newell will have lost the training investment in minority employees. Also, it can be
assumed that future promotions to management positions would come from minorities,
another setback to the company’s diversity goals.
c. If mostly senior Caucasian employees are laid off, this could cause negative feeling toward
the company or, at worst, racial tensions toward minority employees. Charges of reverse
discrimination may be heard. The tradition of using seniority in employment decisions will
be questioned.
d. Laying off senior employees reduces the company’s most experienced employees—
employees highly needed in an economic downturn situation.
3. One option would be for Newell to offer a buy-out package to senior employees. This would
reduce employment voluntarily while reducing the cost of high wages and associated benefit
costs. Employees close to retirement might welcome this option while preserving the jobs of
low seniority, mostly minority, employees.
The company could discard using seniority in employment decisions electing instead to lay
off employees based upon the performance and skill levels of employees. Here, the lay off
would be gauged on the merit of employees. This option would allow the company to retain its
most productive employees while dismissing poor or average performers. This would be a
good choice given the economic plight of the company.
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252 Solutions for Comprehensive Cases
Finally, the company may elect to use seniority to lay off employees. Management may
simply feel that to discard the practice of using seniority for employment decisions would
negatively affect the attitudes and loyalty of employees.
4. Student answers will vary. Hold a class discussion working toward a decision equitable to the
majority of students.
case
SOMEONE HAS TO GO:

11 A TOUGH LAYOFF DECISION
1. Managers and supervisors face critical decisions when they are required to lay off employees.
These decisions become even harder when those to be released are valued individuals and
productive employees. This is the problem facing Mike Martinez, manager of the technology
upgrade unit.
When layoff decisions are necessary, it is entirely natural for managers to consider the per-
sonal backgrounds and particular needs of their employees. This is the “human nature” aspect
of employment decisions. However, ultimately the decision to release employees must center
on the current and past work performance of employees, including the future potential of those
employees to the organization. Therefore, in this case, such factors as knowledge of airline
technology, ability to service customer needs, the skills and abilities of employees, and the
value of individual employees to the company are critical criteria for consideration in the layoff
decision. When employees are relatively similar across their performance dimensions, seniority
can become a factor when retaining or terminating an employee.
When managers or supervisors allow the personal background of employees to influence
their employment decisions, then HR decisions become very subjective and harder to defend.
Charges of favoritism or possible discrimination charges can arise. Furthermore, how does a
manager objectively evaluate the different personal needs of his or her employees?
2. Aero Performance should offer a severance package to the laid-off employee. The package can
include items such as resume preparation, interviewing tips, and suggestions for finding future
employment. Martinez could call other airline maintenance companies to determine if they have
job openings. A severance payment should be given. The dollar amount of the payment could
be based upon the employee’s monthly salary and years of service. Aero Performance might
elect to extend its medical package to the employee for four to six weeks or for a suitable period
of time until new employment is found.
3. If Martinez bases his layoff decision solely upon objective, performance-related criteria, there
should be no potential legal implications to his decision. While Brenda Baldwin has felt some
resentment for being a female in a male-dominated industry, there is no definite indication of
her being discriminated against. One key to avoiding employment lawsuits or EEO discrimina-
tion charges is to base HR decisions solely on objective, job-related criteria.
4. Termination interviews should be handled in a confidential, professional, and respectful manner.
The employee should be told why the decision was necessary and how the decision was made.
Chapter 13 in the textbook provides excellent suggestions for holding all types of termination
interviews.
253

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Solutions for Comprehensive Cases

UNITED TECHNOLOGIES SEEKS INTANGIBLES

RUNNING THE GLOBAL RECRUITING

JOB ANALYSIS AND HIRING DECISIONS

1. There are three exceptions to the employment-at-will doctrine—violation of public policy,

RETURNING ETHICS TO PUTNAM

A PERFORMANCE APPRAISAL SNAFU

THE LAST STRAW FOR AERO ENGINE

9 I.B.M: TAKE AS MUCH VACATION TIME

NEWELL’S DECISION TO DOWNSIZE:

SOMEONE HAS TO GO:

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