Case Studies to Accompany

Noe, et al., Human Resource Management, 8th edition

by Alan J. Fazzari and Joseph B. Mosca,

Monmouth University
West Long Branch, New Jersey

Copyright: 2013

Table of Contents:
Title

Page

An Arbitrators Dilemma: Bullying or Self-Preservation?

Sexual Harassment or Just Being a Friendly Co-Worker?

33

Fire Me Why Dont You?

62

The Acquisition and the Role of Human Resources

82

AN ARBITRATORS DILEMMA: BULLYING OR SELF-PRESERVATION ?

Objectives
Learn that bullying at work can and often does lead to negative consequences for
those involved and other employees.
Describe the process and sequence of events that lead up to an arbitration hearing.
Understand that even with the best of intentions, an employees actions can be
mis-interpreted by others due, in part, to biases and past experiences.
Identify the importance of gathering all the critical facts and data to
managements position prior to legal proceedings.
Understand the pros and cons of having empowered teams in the workplace.

INTRODUCTORY NOTES
According to Namie (2000), one in every five United States employees was bullied with
repeated, deliberately harmful verbal abuse. A recent survey cited that more than half of
the working American population has suffered or witnessed workplace bullying including
verbal abuse, job sabotage, abuse of authority or destruction of workplace relationships
(Cable, 2007). This equates to an estimated 54 million employees 37 percent of US
workers have been bullied at some point in their work lives, while even more have
witnessed acts of workplace bullying.

Workplace bullying is defined as a persistent pattern of negative acts directed at a worker

(Baron & Neuman, 1996; Keashly, 1998), any form of harassment whether mental or
physical, intentional or not, which is unwanted by the person at which it is aimed
(Anonymous, 2006), or a form of interpersonal aggression or hostile, anti-social behavior
in the workplace (LaVan & Martin, 2008). It may also involve incivility and aggression

with the intention to cause humiliation and distress along with someones work being
undermined and the individual belittled (Lee & Brotheridge, 2006).

To date, in the United States, there is no single, specific statute that governs workplace
bullying (Mack, 2005), although ethically and morally it violates basic human and
workplace principles. Specific studies of workplace bullying and ethnicity are rare (Lewis
& Gunn, 2007). It was noted, however, in their research study a higher prevalence of
bullying amongst non-White groups as compared to White groups with personalized
bullying being the most prominent. When colleagues bully other colleagues the focus of
the attack is first and foremost personal.

Unfortunately, as indicated by the Dignity at Work study into bullying, Human Resources
has been reluctant to get involved in resolving conflict until it is absolutely necessary and
that as a result bullying in the workplace is escalating (Fuller, 2006). The changing face
of the Human Resource function itself, with many of the HR departments being
centralized or moved off site, functions being outsourced, and HR becoming more
strategic is contributing to the demise of the peoples champion. In addition to this,
although there has been a steady decline of Union membership over the years (Dickens
and Leonard, 1985), bargaining units by contract are for the most part obligated to defend
their members when dismissed for alleged violence or bullying in the workplace.

Workplace bullying links itself with a lack of trust of management, a poor organizational
climate, higher absenteeism and turnover rates, reduced productivity, anxiety, depression,

and high litigation costs (Anonymous, 2008). Coaching, awareness, and training of
workers, including management at all levels, in addition to a good solid no tolerance
policy for bullying that is supported by labor and management is usually a good first step
in adjusting employees attitudes towards other workers and their colleagues.
Understanding the complex dynamics of bullying and aggressive behaviors in the
workplace by Human Resources and its impact on the well-being of employees is
necessary for proactive action regarding these dysfunctional and conflict-escalating
behaviors on the job.

PROFILES
Diane Arnold has a high school education and has been at Wonder Life, Inc. for 12
years. Beginning her employment as an assembler, Diane learned the product and process
through experience. She is presently the Supervisor (Advisor) of the electronic
departments.
Michael Crowe has been with Wonder Life, Inc. for over 30 years having worked in the
factory in almost every position on almost every product. Michael is a natural at handling
conflict and guiding others to a win/win outcome. He serves as the Chief Union Steward
at Wonder Life, Incs. contractual bargaining unit.
Juan Cruz is a very hard working Hispanic employee who supports the educational
programs and teambuilding at Wonder Life, Inc. Juan serves as the team leader and
liaison between management and employees who work in the electronics departments.
Juan is married to Lisa Cruz, an employee (associate) in People Services.
Albert Donnely joined Wonder Life, Inc. 10 years ago as their Human Resource
Manager. As the organization grew so did Alberts responsibilities. Presently the Vice
President of People Services, Albert and his team have been recognized on numerous
occasions by the national, state, and local professional Human Resource associations for
everything from innovation and creativity, workplace education, and best practices to
economic development, best employer to work for, and Human Capital Business Leader.
Mark Howell is a manufacturing engineer and one of the creative geniuses behind the
development of the new centralized packing process. Mark has been with Wonder Life
for five years and is well respected by the rank and file.

Sam Jones is an African-American employee who works alongside of Juan Cruz in the
electronics department. Sam is also a member of the contractual bargaining unit and
began his employment approximately three years ago. Sams brother Gene Jones is the
union steward for the paint shop areas.
Mary Kilmore is the shop steward of the electronics areas. Mary is a long-term
employee and has been in many positions prior to her present one as lead person on one
of the assembly lines.
Mr. Lee is a retired Vice President of Human Resources from Lexicon Oil. Mr. Lee now
spends his time consulting and also as a mediator and arbitrator for those organizations
needing his services. He is registered with the State Department of Labor and the State
Mediation and Arbitration Association/Board. Mr. Lee has only served in the capacity of
an arbitrator for two years now which equates to three cases.
John Martin is Wonder Life, Inc.s Vice President of Operations. John is a 30 year
veteran of the organization and has facilitated many new processes and innovative ideas
from Quality Circles to Just-In-Time Inventory. John has watched the company grow
from a small $3 million in sales organization to its present revenue of $120 million.
Vincent OConnolly is another lead person in the electronics department. Vincents
people skills are much to be desired. His temper is volatile and his sarcasm is so
prevalent while he is talking that many employees try to avoid any contact with him.
Victor Pastore is the plant director. No stranger to bargaining units, Victor has appeared
during a few arbitration hearings in other organizations. Victor always wants to learn
something new, and then try it on one of the assembly lines while looking for continuous
improvements in process control. Victor has a no tolerance policy for almost all nonbusiness like behaviors: excessive absenteeism, bullying, lateness, pilferage, etc.
Pedro, Lewis, Jose are three Hispanic employees who work in the shipping and
receiving department of Wonder Life, Inc. Each one is a member of the bargaining unit
and on average has been with the company for three years. Their performance has been
stellar and their records indicate no incidents of reprimand.
Joan Rossi is a People Services employee serving mostly in an administrative assistant
capacity.
Susan Wolfe, the People Services Manager of Wonder Life, Inc. joined the organization
approximately two months before Albert Donnoly arrived. Together Susan and Albert
created the department from the ground up. Susan is extremely competent in screening
and recommending the right candidate for consideration at Wonder Life, Inc. This, plus
her skills in employee relations continue to make the company an Employer of Choice.

THE DAY BEGINS

At 6:45 AM the production lines of Wonder Life, Inc. were being set up by lead people.
The normal routine had begun for the 7:00 AM start time. Department Supervisors,
known as Advisors, were accessing the data base for their daily work schedules and
production loading. The Vice President of People Services and Quality, Albert Donnelly,
and the Vice President of Operations John Martin, walked the factory floor. They assisted
wherever needed and greeted employees, referred to as associates, working on the ten
productions lines, in the warehouse, paint shop, test engineering, quality assurance,
shipping, receiving, and a myriad of other factory departments. Some small talk took
place and went a long way in lifting everyones spirits. The first shift of Wonder Life,
Inc.s multi-shift manufacturing operation consisted of 225 direct labor associates
represented by the International Brotherhood of Electronic Assemblers Union. The
second shift had 80 additional direct labor associates. The relationship between
management and labor was a good one. Years of working collaboratively to achieve
harmony resulted in a motivated, dedicated, and loyal workforce. Efficiency, quality, and
productivity were exceeding projections which translated into a healthy bottom line for
Wonder Life, Inc.

WORKER INVOLEMENT TEAMS

For years Albert and his department led a journey to create worker involvement teams
throughout the company. The model was most successful in manufacturing which
resulted in upwards of 18 moderately self-directed work groups. These teams made most
of the decisions for their departments. They would hold bi-weekly meetings to discuss
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production, product, quality, and other projects that were part of their goals and
objectives. Some stellar members of each team would also become participants on
broader based cross-functional teams. These cross-functional project teams created lists
of cost saving, continuous improvement ideas through brainstorming sessions when their
groups came together. They also met on a consistent basis in an effort to find solid
solutions to challenges facing departments throughout Wonder Life, Inc. and its
customers.
One such meeting had begun immediately following the start-up of the assembly lines.
The topic was a summary discussion of a project that emanated from the strategic
business plan; centralized packaging. Presently, each assembly line had its own
packers. These packers were positioned at the end of each line. They would receive the
assembled product, package it in an inner carton and place it on a nearby pallet. The
pallet, when full, would be moved to another location in the plant. Product was then
unloaded and additionally re-packed into an outer carton usually specified by the
customer. This process was considered labor intensive and thus costly. (See Figure # 1).
As Wonder Life, Inc. sales continued to grow, additional resources were required;
assembly lines, employees, equipment, and overall space. Unfortunately, space had
become a rare commodity. A new addition to the building was being considered in the
five year plan but that did not solve the present problems being faced. In spite of the
overall lack of room, efficiency on the production floor was consistently improving
except for on-time shipments. They held steady at a level of 96%. Customers were not
expressing any concern at the moment but John knew it was only a matter of time before

demand exceeded supply at Wonder Life, Inc. They needed to stay ahead of the curve and
maintain high levels of customer satisfaction.
The new central packing system should help solve the problem with late shipments and
space. It would relieve each assembly line of their personal packers. No longer would
packers be solely dedicated to any of the ten lines. Several assembly lines employed two
packers so the new plans should free up close to 12 associates. They would be placed
elsewhere in the factory. Some might actually become associates of the new Central
Packing Team.
With central packing when the assembled product reached the final work station, the
assembler would place the product in an inner carton and then on a conveyor system
connected directly to his/her work station. This conveyor would take the inner carton to a
central location in another part of the plant closer to the shipping dock. Pallets would be
arranged to receive each lines merchandise. The product would then be separated
according to customer order, placed in it's proper outer carton, and set on a dedicated
pallet for shipping. The project took the cross-functional team several months to
complete. Initial savings of labor, including overhead, fixed, and other variable costs,
were projected to be in excess of $1million in less than two years. (See Figure 2). A great
deal of effort also went into creating the universal outer packaging materials that were an
integral part of this process. It was not an easy task to develop one outer carton that
would be aesthetic and yet practical enough to fit all sizes and shapes of products. The
team did so, however, through a great deal of hard work and research. Customer focus
groups gave the packages a thumbs up so Wonder Life, Inc. felt comfortable they were
on the right path. In addition there would need to be changes to existing conveyor
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systems, loading capacity, scheduling of similar products during similar times, and
training programs. The cross functional team that took hold of this new approach was
excited to see it finally had all come together. See Figure # 2.
THE COMPANY
Wonder Life, Inc., a 75 year old privately owned manufacturing company is a leader in
its market niche of developing life-safety systems for buildings. Wonder Life, Inc. has
tough competitors with deep pockets. These companies had a majority of the market but
Wonder Lifes 40% share was more than enough to keep them busy at their one factory
on the east coast. Wonder Life enjoyed a steady long-term approach to pleasing its
customers. It had built a very loyal customer base that continued to return because of
Wonder Lifes attention to detail and quality assurance.
At the forefront of this success were the associates that worked there. People Services
(Human Resources) has successfully led a charge to create a team based culture mostly
throughout manufacturing. There were inroads being made throughout the remainder of
the company but the focal point had been rank and file associates. The facility was multicultural and diverse. Associates attended on average 40 hours of various types of training
and education each year. Teams participated in their departments goal setting, did their
own hiring, scheduling of production, became experts in total quality management
techniques, and assisted research and development in the creation of new products. These
tasks were just a few of the many processes undertaken by the teams in the factory. Value
added opportunities were sought willingly by associates. These resulted in productivity
and process savings of nearly three million dollars in the three years preceding the

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centralized packing system. The team philosophy was working very well by all measures
of profit, job satisfaction, productivity, and customer delight. The teams also benefited by
these savings through a variety of employee relations programs including profit sharing.
The cross-functional or departmental team meetings were commonplace. These were
working meetings where either data was reviewed regarding goal attainment or new
projects were discussed. After each meeting associates that represented their teams made
an effort to pass along the information they gained to others who worked with them. It
was common for associates to suggest and then create new and innovative ways to satisfy
better the customer. It was common to witness one of these meetings taking place during
any hour of the day.
THE CENTRAL PACKING TEAM MEETING
At the cross-functional meeting of the centralized packaging team, in attendance was
Juan Cruz, the lead packer from one of the assembly lines, Mary Kilmore, a union
steward, Vincent OConnelly, the lead set-up, Diane Arnold, the supervisor (advisor),
Victor Pastore, the director of manufacturing (coach), Mark Howell, manufacturing
engineering representative, and John Martin, the Vice President of Operations.
During the meeting a summary of the new system proceeded without hitch. The teams
hard work over the last few months truly paid off. Everyone was pleased. Questions were
easily responded to in an effort to work out any last minute details prior to
communicating with others in the plant and office. There were no longer any concerns or
bitterness that had been commonplace in the beginning of the project. Originally, the
Union had expressed doubt about the new system mainly due to a feeling that layoffs
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might occur because of this new technique. Management assured the Union no one would
loose their position due to the new packing method. In fact the organization was
planning to hire over 20 additional production associates within the next few months to
keep up with forecasted product demand. People Services adjusted the overall manpower
plan in manufacturing recently because sales had been on a steady increase for three
months now thus creating the need for additional labor. Everyone at the team meeting
was satisfied. They agreed that within the week they would formally meet with their
teams and explain the new system. A projected date of full implementation was
approximately eight weeks in the future. Actions would now need to move quickly in the
event anyone else outside the core team had input that resulted in changes. The various
conveyor systems would now be ordered and sub-assembled off site. When ready they
would be moved to the company and installed. The meeting ended with a brief
celebration of donuts and coffee. Following the jubilation everyone went back to their
work stations.
HORSING AROUND TURNS UGLY
Each day at 8:00 AM, one hour after the manufacturing lines were up and running, a daily
production meeting also took place in another part of the building. The meetings were
facilitated by the Production Scheduling Department. Advisors, Plant Management,
Quality, Manufacturing Engineering, Procurement, Engineering, People Services,
Customer Service, and Test Engineering were always in attendance. Several Vice
Presidents also participated in this daily gathering where each function reported out
updates in a round robin fashion. The purpose of the gathering was to enhance
communication and information across the organization. Each day everyone would know
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what was taking place elsewhere in the company. This way meeting attendees could relay
information to their respective teams and departments in an effort to plan accordingly.
These operation meetings usually lasted for approximately 45 minutes unless something
needed additional attention. If so, more time would be taken so a plan of action would be
set into place.
During the production meeting, which began soon after the central packing meeting
ended, a voice came over the intercom. Normally, it would not raise any eyebrows,
however, the page required the immediate response of Albert and Diane Arnold. Both
were at the production meeting. By the tone of the message it appeared as if something
was in need of urgent attention. Diane phoned the extension number being requested. A
lead person on the floor requested that both Albert and Diane immediately come to the
area in question.
Albert and Diane excused themselves, left the meeting and rushed to the area. Upon their
arrival they witnessed associates huddling together, talking loudly, and crying. They also
noticed several male associates making an attempt to walk Sam Jones, an African
American packer from the assembly line, to Dianes office. On the opposite side of the
line, other associates appeared to be escorting Juan Cruz, a Hispanic associate up toward
Alberts office. Albert and Diane thought it best to immediately split up. Albert began to
walk toward his office trying to catch up with Juan and the men walking with him. Diane
went toward her office to meet Sam and his group.
Other pages were coming across the intercom asking for Victor Pastore, the Plant
Director, and Chief Union Steward Michael Crowe. Soon they too had reached the area.

13

All the parties received a quick briefing as to what took place by an associate who had
been in the area. Victor and Michael walked toward the larger group assembled and
attempted to calm them down. After about 10 minutes most associates began to return to
their work stations. Others asked to take a short break. Their request was granted.
Diane made it to her office, immediately phoned Joan Rossi from People Services and
asked her if she could come down to her office for a few moments. Joan obliged and
walked down to join the meeting not really cognizant about what had occurred. They
were soon joined by Michael Crowe, the chief union steward. Diane and Michael began
to question Sam as to what occurred. Joan listened at first before she also asked a few
questions. Sam was a mediocre employee who had been with Wonder Life for about 3
years. His brother Gene Jones, who had been with the company for close to 10 years, was
a union steward for the paint department. At the same time in another part of the building,
Albert and Susan Wolfe, the Manager of People Services, began to interview Juan. Juan
had been with the organization for five years and was an excellent performer. Presently,
he was a lead person on one of the assembly lines and filled in as a packer when needed.
His wife Lisa Cruz was the Administrative Assistant for People Services. Juan had been
the representative in attendance at the central packing team meeting earlier. Albert
wanted to make sure that all their actions from here forward were in line with good
business practices, contractual guidelines, company policy, and procedure so another
union representative was asked to join.
In his meeting with Albert and Susan, Juan reported that after his central packing
meeting, he went back to his work station.

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Juan: I explained briefly to the team what we talked about at the meeting this morning.
I told them a more formal meeting would take place in a few days so that I could explain
in more detail the entire process. I went over to my station and began to work. While I
was there Sam began calling me names and teasing me. I asked Sam to stop, but he just
kept calling me names. Some of them were pretty nasty. After a while I called him a few
names back but I kept asking Sam to quit it. He just continued and laughed about it. I
dont know why this happened. Sam and I are friends and have been for years. We shoot
hoops together on the school playground go to lunch together at work, and also at times
drove together to work.
Susan: Then what happened?
Juan: Well, Sam continued to call me out. He called me some body parts and the ladies
on the line were getting pretty embarrassed. I continued to ask Sam to stop or else? Then
Im not sure why I did it but when Sam bent down to pick up a box in order to pack more
product, I hit him in the head. I saw some blood coming from his forehead after that.
Then we started slapping, punching, and shoving each other around.

There was a long pause and Juan looked down at the floor.

Albert: Go on Juan.
Juan: I then saw Pedro, Lewis, and Jose, run over to break it all up. Jose leaped over
the conveyor belt and fell. He must have hurt his leg because he was limping when he got
to us.

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Albert found out later that Jose had gone to the emergency room of the local hospital,
received seven stitches, and was released.

Juan: The three of them split us apart. They held us and tried to calm Sam down. He
was all wound up. I saw Jose take Sam to the men's room. I think he was going to clean
out the cut over his eye. Hey, Im real sorry. I didnt mean to hit him that hard.
Susan: Okay Juan, what happened next?
Juan: I think while they took Sam to the bathroom, Pedro took me to Dianes office.
There were quite a few people who saw this all happen. They must have heard Sam
calling me names.
Albert: I think well probably call them up here later, Juan. Let me write down the
names of those that were out there on the lines.

Albert and Susan put together a list of names who Juan said were working in the area.
When the list was completed, they felt they had more than enough information. However,
Juan said there was more.

Juan: Wait theres more. As I was waiting with Pedro by Dianes office, we saw Sam
and Jose coming from the bathroom. It looked like Jose was walking him toward your
office, Albert. Suddenly, he must have noticed me. He picked up something from the
shelves where we are going to put the new conveyor belt and started to run toward me
saying, you snuck me, Im going to get you. Then Jose and Lewis came over again and
tried to hold him back. He swung that pipe real good and it broke on one of the shelves.

16

Thank goodness he didnt hit anyone with it. He just kept yelling and coming at me
swinging. Finally, Pedro, Lewis, and Jose held him tight. Thats when I moved away and
I think you were paged

At that point, Juan said that was all he remembered until Albert and Diane showed up on
the floor. With the agreement of the Union, Susan escorted Juan to the door. They thought
it best that he go home for the day and pending further investigation they would contact
him as to the next step. Juan willingly left the building. He would be paid for the full day.

Before they contacted anyone that saw the incident on the floor, they telephoned Diane.
Albert asked how Sam was and told her hed be down there in a few minutes. Albert and
Susan joined Sam in Dianes office with a Union representative.

Albert: Sam tell us what happened out here today.

Sam: Juan and me were joking around. I called Juan a name. We was joking. Then when
I went to pick up a box to pack some product, I felt something hit my forehead. When I
looked up, Juan was taking jabs at me so I defended myself. We got into a little match on
the floor. Then I saw Pedro, Lewis and Jose running toward me. After that I dont
remember much except being in the bathroom with someone wiping some blood from the
cut over my eye where he snuck me.
Albert: Thats all that happened?
Sam: Thats what I remember. Oh yea, when Jose was taking me out of the bathroom to
the first aid room, I saw Juan at Dianes office. I wanted to go over to him to shake hand

17

and let things go. All of a sudden I saw Pedro and Lewis come running over again and
grabbing me. Before they did I picked up something from the shelf to defend myself. I
thought they were going to knock me down. All I wanted to do was shake Juans hand
and get back to work.

After a few more questions, Albert figured the stories were different enough to move
ahead with the questioning of others who may have witnessed the event. Susan asked
Sam if he felt good enough to drive home.

Sam: Theres nothing wrong with me. My cut stopped bleeding and I want to go back
to work.
Albert: Sam, its best if you go home for the day. Im going to talk with some others
who were in the area. Tomorrow we might want to talk with you more. For now though
youll be paid for the rest of the day. Its best you leave.
Sam: So wheres Juan? Did he get ditched too? Hey, he snuck me. I didnt do anything,
no matter what anyone says around here. Im telling my brother about this.
Reluctantly, Sam got up and walked briskly to the door mumbling. He kicked the door
opened and left the building while Susan was watching.
THE INVESTIGATION CONTINUES
Associates were called to Alberts office one at a time. Susan did the same in her office in
an effort to speed up the process. Union representation was present in both meetings.
They both got bits and pieces of information from everyone who was working on the
same assembly line as Sam and Juan. They were also able to obtain some additional

18

information from coaches who had been in the area and other associates who happened to
be in the mens room at the time Sam was brought there.

Albert and Susan put their notes together from the meetings they held with over 20
witnesses to the event. Their summary noted that Sam called Juan quite a few vulgar
names after Juan returned from his meeting. Sam would not let up no matter how many
times Juan asked him to stop. Sam just continued and continued. Then he laughed about
it. When Sam bent down to pick up a box witnesses did note that Juan smacked him
above the eyes and immediately Sam began to bleed. Associates also said that Pedro,
Lewis, and Jose ran over and broke up the fight that resulted from the punch. They did so
and then took Sam to the mens room and Jose to Dianes office. While in the men's
room, other employees came to help. One was also a union steward, Mary Kilmore who
had been with the company for close to 20 years. Mary and the others said that while in
the mens room Sam was bleeding from the cut over his eye and he kept saying things
like: "he snuck me" and I'm going to get him." Mary said that Jose tried hard to calm
him down and told Sam its not worth it.

Susan and Albert also noticed there was consistency in what happened after Sam left the
mens room. Witnesses reported that after Sam was calm he wanted to go back to work.
Others told him to go to the First Aid room while they contact Diane and Albert. The First
Aid room was in close proximity to the rest rooms but you would have to go around
Dianes office to get there. Sam reluctantly agreed. He was escorted by Jose. As they
walked out of the rest room and toward the first aid office Sam, instead of turning toward

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the first aid room, he immediately turned in the direction of the Dianes office. He saw
Juan waiting there with Pedro. Everyone interviewed said they heard Sam yell something
to the effect of you snuck me.

Then Sam picked up his pace while Lewis and Jose tried to calm him down once again.
Witnesses saw Sam rush overt toward Juan and as he did Sam picked up a piece of PVC
piping. Then he started to swing it as he was walking fast. They said the force behind the
swing would have seriously hurt someone had he connected. He broke the pipe on one of
the shelves. Again Lewis, and Jose came in and held Sam back. Pedro took Juan away
from the area. All of this reportedly occurred within less than 12 minutes.

With this consistent information from so many witnesses Albert and Susan spoke with
John, Victor, Diane, and Michael. They said they had more than enough information and
the best decision to make at this moment was to dismiss both associates based upon
Article VII, Section 5A of the contractual agreement between Wonder Life and the
International Brotherhood of Electronic Workers.
if any employee represented by this bargaining unit is caught in a fight
regardless of who is at fault, they will be dismissed immediately pending additional
investigation if deemed warranted. This dismissal will take place without
compensation. A thorough and complete investigation will take place by management,
with union representation present, as soon as practical. A final report and decision will
be provided to the Chief Steward upon completion.

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The preponderance of information gathered pointed to the fact that Sam continually
edged Juan on by calling him inappropriate names while in the employ and on the site of
Wonder Life. Juan repeatedly asked Sam to stop but Sam did not. Juan reportedly threw a
punch at Sam when he bent down to pick up a box. A fight resulted and even after a
calming period Sam willfully and purposefully went to attack Juan again.
The following day when Sam and Juan arrived Diane and Michael sat with each
separately and informed them they were no longer employed at Wonder Life for the
reasons stated in the contract under Employee Behavior; Fighting on the premises. They
were escorted separately out of the building.
As Juan was being walked out he apologized and left the building. Sam, on the other
hand immediately consulted with his brother, Gene and filed a grievance, stating he was
unjustly terminated. As a member of the bargaining unit Sam had the right to take this
action. Sams position was, he thought Pedro, Lewis, and Jose, the three Hispanic
employees who reportedly attempted to help on two occasions, were not trying to assist
him but rather going to harm him. That is why he picked up the pipe and swung it. Sam
posited that he did not yell anything at Juan. He did not say hes going to get him, and
he did not swing the pipe at Juan, but rather at Pedro, Lewis and Jose because Sam felt
they were going to harm him.

THE GRIEVANCE

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The grievance was accepted by the union which was surprising to management since they
had been at every meeting with each witness. The process took its normal course of the
contractually agreed upon three step process where management and labor attempt to
defend their positions in a series of meetings. The evidence from the witnesses was
shared and discussed. During each meeting though Sam denied, refuted, or defended the
accusations and eye witness accounts. After several weeks and numerous meetings
neither the union nor management was able to reach an accord. Wonder Life, Inc. stood
steadfast on the dismissal of both associates. The Union was being pressured by Sam to
get him reinstates to his original job. Union representatives made a recommendation to
seek arbitration.
Arbitration was the end result of a failure to reach an accord during the three step
grievance process. The contractual agreement requires binding arbitration. It was well
within Sams rights as a dues paying member of the union to recommend this step in the
process. Michael and the union leadership would now need to file the necessary
paperwork which would begin the process of arbitration. Initially both labor and
management had to agree upon an arbitrator from a list that would be provided by the
State Department of Labor. It would take a few weeks for the process to unfold, papers to
be filed, and agreements reached. In the meantime Sam would remain dismissed without
compensation. He was not allowed on company property. Any discussion with the union
had to take place off-site or at their headquarters.
Juan did not pursue a grievance. He contacted People Services a few days after the
incident and again apologized for his behavior. Juan informed the company he would be
looking for another job elsewhere. He inquired how this incident might affect a
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recommendation, if requested by companies showing interest in Juan. Susan assured Juan

that policy at the time was not to provide anything more than a confirmation of dates of
employment, position title, and salary. In less than two weeks People Services was
informed by his spouse, Lisa, that Juan was gainfully employed at a local warehouse for
upscale dinnerware.
During the next two months the arbitration process unfolded as expected. The same five
names and backgrounds of arbitrators were separately provided by the State Department
of Labor to Michael and Albert. If neither one accepted any of those suggested another
five would be sent along a few weeks later. As it turned out, it took three attempts (15
names) before one individual was agreed upon by both parties. An arbitrator, Mr. Lee,
was selected to hear the case. Mr. Lee had a background with manufacturing and
diversity issues. His final decision after hearing the case would be binding. The
arbitration process is similar to listening or having a trial in a courtroom. Both sides have
the opportunity, through counsel if they choose, to present their case. The grievance is
given to the arbitrator for review. During the actual case, witnesses are called and cross
examined and any evidence is reviewed. The arbitrator then renders a decision. In this
case will Sam be re-instated to his position as he is requesting or will he be dismissed?
At the time when both labor and management were preparing their cases for arbitration
the news media was covering the S.L. Samson trial live from a courtroom on the West
Coast. The break rooms and cafeteria at Wonder Life, Inc. had television capabilities for
associates. They were all tuned into one of the most amazing courtroom dramas of the
legal system. A football legend, S.L. Samson, was being tried for the murder of his wife
and her alleged boyfriend. Flashbacks during commercials of a blue Ford Bronco on a
23

Los Angeles highway being pursued by police continued to pop up on the screens during
down time of the trial itself. Associates all had their opinions whether the football legend
was guilty or not and the conversations during lunch breaks showed how truly divided
and confused employees were about what some claimed should have been a cut and dry
case. Associates debated the merits of the legal system and watched in awe on how
attorneys worked hard to defend and/or prosecute the most famous legend of the college
gridiron. It was a time when Americans were sitting at the edge of their chairs waiting for
the verdict from the jury. The courtroom had made it into Americas living room.

ARBITRATION
A date for the arbitration hearing was agreed upon by all parties. The arbitrator, Mr. Lee,
showed up at the building of Wonder Life at 7:00 AM to meet and talk with Albert and
Michael. The tenor of the union membership was surprised the union even accepted to
move this case along. At times some members expressed their concern that their dues
were being spent on what they considered a losing cause. The grapevine in the factory
worked quickly and without any recourse to anyones feelings. Quite a few associates
witnessed what occurred and felt that Sam got what he was asking for. Of course his
brother, Gene, also a union steward, continued to defend Sams behavior. Soon it became
apparent a dividing line was being drawn. The union leadership was concerned that their
members at Wonder Life, Inc. might become angry with the manner in which they were
handling this case. None-the-less, they felt everyone deserves a fair hearing and is
innocent until proven guilty. Thats what my dues pay for said Sam, one afternoon
before the hearing.

24

The arbitration hearing began in the training center at 8:00 AM and lasted until 5:00 PM.
Eighteen witnesses from those interviewed were called to testify from the company. They
were the same associates who watched it happen first hand. All were cross examined by
the union. Some witnesses became emotional once again and cried during the hearing
similar to what occurred on the day the fight took place. Mr. Lee requested to be taken
on a tour of where the incident took place so that he could see where the first aid room
was and where the pipe was swung and where the office of the supervisor was and where
the actual fight occurred. Mr. Lee looked around the plant for approximately 45 minutes
while on his tour.

In general when associates took the stand they expressed their surprise that the case has
come this far. They testified the contract is clear; ANYONE caught in a fight with
another employee is dismissed. Zero tolerance for this behavior. It is like in High School,
said one associate, it is tough to prove who threw the first punch, or who called the first
name, you both go to the principals office and most likely you both get suspended. As
the day unfolded, witnesses pointed to both employees being equally at fault. Sam swung
a pipe. Sam taunted Juan. Juan threw a punch. Sam was rushing over to Dianes office
where Juan was waiting. One associate noted when asked what he felt about the whole
event that took place, Sam was just loosing it, he didnt know when to stop.
During lunch no one was allowed out of the room. Food was brought in. When the case
resumed no matter who was called upon a similar report was given. the name calling
started by Sam and the pipe was swung by Sam. After it ended Mr. Lee promised both

25

attorneys a ruling in approximately six weeks. All parties left without any further
discussion. Once back out on the floor the rumors and grapevine took over quickly.
Stories ranged from Sam was fired on the spot to Sam is being reinstated.
Production was at risk of being negatively affected by the chit chat for the day.

Albert and Michael waited each week for a decision by Mr. Lee. After eight weeks both
sides agreed to call and ask when it would be completed. Sam wanted to know what to do
and Susan and Diane were curious whether they needed to hire someone permanently for
the position. Mr. Lee apologized and promised it would be in the mail in a few days.

THE OUTCOME:
Another two weeks passed and the decision arrived via registered receipt mail. Albert
called Diane, Susan, and John into his office. He opened up the envelope and began to
read the decision out loud to the team. In his decision Mr. Lee ruled in favor of the
plaintiff. An excerpt of the decision stated that;
Overall it is the feeling of this arbitrator that Sam an employee of Wonder
Life, Inc. undoubtedly felt his life was in jeopardy at the time of this incident. The
three Hispanic gentlemen supposedly coming to quell the fight and help out were
most likely in the mind of the plaintiff, trying to do him additional harm since they
were all of one race other than his own. It is therefore in the opinion of this Arbitrator,
Mr. Lee, that the plaintiff, Sam, is to be re-instated to his former position or one of
equal compensation and level immediately with no retroactive back pay or
benefits.

26

This was not at all what was expected. Those assembled in Alberts office thought it was
an open and shut case. John needed to read it himself.
Could this be true? said John. The testimony was clear enough from the
witnesses. Those three guys; Pedro, Lewis and Jose came to help and assist, not to harm.
At least thats what I heard everyone say. What about the swinging of the pipe. That
happened after the punches were thrown by Sam and Juan; quite some time to be exact.
Along with that fact, the punches that were actually thrown were thrown before these
three guys came to assist. They actually had to restrain him twice. Jose went to the
hospital and received stitches in his knee as a result of jumping over the conveyor belt
and slipping while doing so. Is this guy, Mr. Lee crazy or what?

A phone call was made to Michael. He said he had not opened his mail as of yet. When
he got off the phone Michael did so quickly. He called his team to his office. The decision
astounded even the union, and union counsel. Since this was contractually binding
arbitration there could be no appeal. Wonder Life, Inc. had to live with it.

As the decision was communicated to the various sectional stewards the membership
were also amazed. One member asked, so if someone fights or does not listen to
management, like in this instance to go to get first aid or if someone attacks someone or
others with a pipe, its apparently okay?
Sam was reinstated as per the courts decision. He was not an ideal employee following
the incident. He would not participate during team meetings, snapped at fellow workers

27

and began to disregard requests from his advisor. Sams arrogance increased with each
passing week. His co-workers did not want to get close to him for fear of reprisal.

Two months after being reinstated, Sam found himself in trouble with the law again. This
time it took place outside the workplace. He was arrested allegedly selling illegal drugs in
a school zone. He was incarcerated prior to standing trial. He did not call out from work
and no word came from his brother. The contractual agreement cites;
if any employee or a representative of the employee does not call the company
after three consecutive days of absence without notification, it will be determined that
they have abandoned their position at Wonder Life, Inc. Therefore they will be
dismissed without recourse.

Sam was released from the company. Two months later a local newspaper reported that
Sam was found guilty of selling drugs in a school zone and sentenced to prison.

ADDITIONAL RESOURCES

28

Anonymous (2006, April - May). Bullying in the workplace. The British journal of
Administrative Management, 29.
Anonymous (2008). Workplace violence update: What you should know now. HR Focus,
85(6), 7-11.
Baron, R.A., & Neuman, J.H. (1996). Workplace violence and workplace aggression:
Evidence on their relative frequency and potential causes. Aggressive Behavior,
22, 161-178.
Cable, J. (2007). Survey: Half of Americans have experienced workplace bullying.
Occuptational Hazards, 22. Retrieved February 21, 2009, from Research Library
database. (Document ID: 138243571).
Dickens, W.T. & Leonard, J.S. (1985). Accounting for the decline in union membership.
Industrial and Labor Relations Review, 38(3), 323-333.
Fuller, G. (2006, October). Staff pay the price for HRs ambitions. Personnel Today,
10.
Keashly, L. (1998). Emotional abuse in the workplace: Conceptual and empirical issues.
Journal of Emotional Abuse, 1, 85-117.
LaVan, H. & Martin, W.M. (2008). Bullying in the U.S. workplace: Normative and
process oriented ethical approaches. Journal of Business Ethics, 83, 147-165.
Lee, R.T., & Brotheridge, C.M. (2006). When prey turns predatory: Workplace bullying
as a predictor of counteragression/bullying, coping, and well-being. European
Journal of Work And Organizational Psychology, 15(3), 352-377.
Lewis, D. & Gunn, R. (2007). Workplace bullying in the public sector: Understanding the
racial dimension. Public Administration, 85(3), 641-665.
Mack, J.A. (2005). The law of bullying off the playground and into the workplace. Bench
& Bar of Minnesota, 62(8). 20-24S.
Namie, G. (2000). US Hostile Workplace Survey: Survey Results. Retrieved from the
campaign Against Workplace Bullying Web site: www.bullybusters.org.

DISCUSSION QUESTIONS
1. Define any issues or problem(s) as you see them leading up to the arbitration
hearing?
29

2. Outline the steps you would have followed had you been leading the
investigation?
3. What parts of this case would you say are most critical in the decision making
process (list 4 only)?
4. How would you set up your case before the arbitrator if you represented the
company? The union?
5. What are some questions you might you ask of managements witnesses? Unions
witnesses?
6. Why do you think the arbitrator ruled as he did? Do you also feel Sam may have
feared for his life?
7. By not upholding the termination of the Sam what would be the overall effect on
other employees?
8. Juan never returned. He never grieved the case of his dismissal. Why do you think
that happened?
9. How might an incident like this affect managements interpretation of the union
contract? Do you think the wording now needs to be changed?

30

Inner Carton

Assembly Operation

Outer Carton

Shipping

Figure 1: Old Method of Packaging

31

Carton Placed on Conveyor Belt To

Central Packing
Assembly Operation & Packaging into Inner Cartons

Central Packing Sorts Product to

be Shipped

Product Loaded on Trucks and

Shipped

Figure 2. New Centralized Packing Method Eliminating Process Steps

32

SEXUAL HARASSMENT OR JUST BEING A FRIENDLY CO-WORKER

Objectives
Learn that sexual harassment can have a devastating effect on employees
Identify the various steps in an employee disciplinary process
Understand the importance of learning various cultural customs which may result
in workplace behaviors unfamiliar to human resource departments
Learn that trust in human resources is a key component in whether employees
report alleged incidents of sexual harassment
Understand that constant workplace education, updated policies and procedures,
and reinforcement by human resource departments are necessary in order to
maintain a safe harassment free work environment.
INTRODUCTORY NOTES
Sexual harassment is so widespread that up to half of working women have reported
experiencing some form of it at some point in their careers (Loy, P.H. & Stewart, L.P.,
1984; Schneider, B.E., 1982). Sexual harassment negatively impacts employees in many
ways, including on the personal level (Merkin, R.S., 2008). Workplace sexual harassment
has been shown to increase psychological distress and increase physical illness (Huerta,
Cortina, Pang, Torges, & Magley, 2006), increase disordered eating (Cleary & Schmieler,
1994), and result in symptoms of nervousness, anger, depression, weight loss and
sleeplessness (Vijayasiri, 2008). Unfortunately few victims of sexual harassment at work
file complaints.

Although research definitions of sexual harassment vary (Rospenda, Richman, Ehmke, &
Zlatoper, 2005), from a legal perspective it is a form of sex discrimination characterized

33

by unwelcome sexual advances, requests for sexual favors and other verbal or physical
conduct of a sexual nature that affects the terms, conditions, or employment decisions
related to an individuals job (quid pro quo harassment) or creates an intimidating
hostile, or offensive working environment (hostile environment harassment) (Gross,
2008).

Employers have a duty of care to provide a safe working environment (Gillen, 2008).
Productivity and morale will improve by making employees comfortable in their work
environments. What if, however, an alleged harasser claims he/she is from an
environment and culture (Jamaica) where warm and friendly, fun-loving, easy going and
embracing are all part and parcel of the essence of ones daily life style? Although
Jamaican upbringing is one that instills a sense of caution and constant insecurity
(Patterson, 1995), the overwhelming majority of Jamaican children are well adjusted
(Smith & Green, 2007). These value orientations (Gaines, 1997), noted above, are
defined as organized sets of beliefs that are communicated by societal agents, e.g.
schoolteachers, families, the media, religious leaders. In turn, we all differ in the extent to
which we internalize these cultural values (Gaines, Ramkinssoon & Matthies, 2003). As
employees we bring these beliefs into our jobs. They can and do affect others, sometimes
positively, other times in a negative manner.

Our workplaces have become multi-cultural and diverse more so now than ever before.
The challenges Human Resource professionals presently face due to the many varied
customs and beliefs brought into organizations is overwhelming. Cookie cutter decisions

34

usually do not work for the long run when faced with the many varied backgrounds,
values, and attitudes inhabiting our businesses. It becomes even more critical that Human
Resource professionals and Management take the time to learn about the multiplicity of
traditions and customs employees bring to their jobs. Without this knowledge a recipe for
disaster is eminent.

PROFILES
Anne Brady is the Manager of Employment and Organizational Development at Wheels,
Inc. Anne has been with the company for seven years and has served in various Human
Resource positions during her tenure. Anne is a straight shooter and believes in following
policy and procedure to the letter.
Alex Pascale, the Vice President of Human Resources, joined Wheels, Inc. close to 15
years ago. He has an MBA from Cornell University in Human Resource Management and
a MA in Psychology from New York University. Alex and Jane Keegan brought the
Human Resource department from being an Administrative function to a dynamic,
nationally recognized leader in employee relations.
Jane Keegan is the Human Resource Manager of Wheels Inc. Jane was hired
approximately two months before Alex. They shared an office for the initial seven
months Alex was on the job learning the culture, creating policies, procedures and
programs for employees. Janes strengths lie in employee selection and retention.
Darrell Howard, Wheels Inc. Vice President of Operations is a quiet, laid back leader
who is well respected by employees throughout the company. Darrell comes from a
strong background in manufacturing having been employed by several Fortune 50
companies when he graduated college.
Nancy Nader is one of the nine Plant Supervisors at Wheels Inc. Nancy always has a
positive attitude and continually goes out of her way to help employees both at work and
in their personal lives. Nancy came up through the ranks learning each and every product
over the years while an assembler, lead person, and quality technician. Nancy is one of
the strongest proponents of teams and collaboration at the company. Her consistent
upbeat attitude and constant reinforcement of employees has resulted in significant
increases in productivity and quality.

35

Robert Mason, the Production Control Manager of Wheels, Inc., has been in his position
for close to 25 years. During that time Robert has gain the reputation of being able to
schedule any product request by a customer within 24 hours of its acceptance. Roberts
ability to load the factory without stretching resources is second to none in the field
especially since he rarely uses any of the computer models on the market.
Yvonne Stevens is a recent addition to the Production Scheduling department having
been an assembler for two years and then working in shipping and receiving for a year.
Yvonne is constantly on the move throughout the plant and works closely with each team
in scheduling product for maximum production.
John Ritter has been the Chief Union Steward at Wheels, Inc. for close to 20 years. John
is a straight shooter and in meetings with employees tells it like it is. John has
negotiated seven contracts between Wheels, Inc. and the bargaining unit.
Jerrick Tulley is an Employee of Jamaican Ancestry who works in the factory on one of
the assembly teams. Jerrick has been with Wheels, Inc. for a little less than a year now
and enjoys telling stories to employees about his homeland. Always smiling and chatting,
Jerrick had to be told on several occasions to focus his energies on his work and the
product.
Bill Nessor the Shipping Supervisor is another long-term employee of Wheels, Inc.
having joined the company right out of high school 25 years ago. Bill has been in a
variety of positions at the company while learning the flow of product from design to
production but found his niche in shipping. On-time deliveries are presently at 96%.
Jeff and Sam are two production employees on the same team as Jerrick.

Wheels, Inc.
Wheels, Inc. (Wheels) is a multi-shift manufacturing company. Its first eight hour shift
begins promptly at 6:00 AM. The second shift starts at 3:00 PM. Wheels, Inc. has been in
business for approximately 50 years and is located in a low to moderate income
neighborhood of residential and industrial real estate. Wheels, Inc. employs 600
individuals from a variety of diverse demographics. Approximately 410 employees work
in the factory on assembly lines, in the warehouse, shipping, receiving, tooling,

36

component insertion, packaging, quality, and test. The remaining 190 employees are
spread throughout the office and in the field as salespeople and technical support.

Wheels produces an assortment of products for the automobile industry. Business has
grown each year along with market share. With the onslaught of electronic and
computerized components making up most of the modern automobile, Wheels holds a
tight rein on the market of component circuitry that are critical to the braking system.
Wheels ability to claim repeat business is its reputation for quality. Never in its history
has it had a recall or has a part failed to perform. Other companies produced similar
products but could not boast about the excellence in reliability Wheels possesses. The
giant automakers, both American and Foreign, are loyal customers.

Wheels factory employees are unionized. The relationship is positive and productive.
This is shown by the lack of grievances, the collaboration in attaining training grants for
education of workers, and the willingness of both parties to form a proactive unionmanagement committee. The committee meets every two weeks to discuss any concerns
prior to them growing into unmanageable work challenges. The average tenure of the
Wheels employee is around 15 years. It was not uncommon during the yearly employee
recognition dinner to award longevity gifts to dozens of 15, 20 and 25 year veterans.

Wheels is proud of its employee relations programs. These range from numerous
technical training opportunities offered during work hours, its management development
and diversity curriculum, team centered work models, and plenty of incentives for

37

continuous improvements in quality, productivity, delivery, self-development, and sales.

Every employee is required to attend a minimum of 50 hours of education each year on
company time. A full curriculum of courses is offered from Wheels University, a separate
building on the ten acres of land Wheels owns. There are courses which are mandatory
like The Elements of Diversity, Hazardous Materials Training, Teambuilding, and
Harassment. Within the initial month of employment each employee is required to attend
these four classes. Mastery of the material is evaluated by a self-paced test and case study
analysis. Any language barriers are alleviated through interpreters the company hires or
has on sight. Wheels is dedicated to maintaining a safe, secure, and happy workplace. A
large portion of its training budget comes from State Department of Labor grants. The
remainder is an allocation within the Human Resource budget itself.

Behind the training and employee relations success is a very proactive Human Resource
function and a team of managers who consistently stay abreast of new benchmarks and
innovative models used by other companies. At times Human Resources consults with
local universities in areas they need some assistance; generational differences, life-style
benefits, compensation programs and diversity challenges. Management feels strongly
that they need to be up-to-date on how to work together as a team for the satisfaction of
the customer.

OPERATIONS
Productivity and efficiency is on a continuous up tick at Wheels. Attendance is excellent,
and the teams are in a constant mode of finding new ways to improve upon anything and

38

everything within their department. Vice Presidents and other top management are very
visible and maintain an open door policy. They tour the factory and the office often
greeting associates and asking for feedback on almost anything related to the business.
By so doing a better pulse on the organization as a whole is gained. Employees are
grateful about this approach and it proves beneficial. Communication throughout Wheels
appears to be well grounded and up-to-date.

Every day there is a regularly scheduled production update meeting facilitated by Robert
Mason, the Production Control Manager. These meetings provide everyone with an
opportunity to gain updates on activities, customers, order input, quality, or events that
took place the day before. The meetings, held at 2:30 every day, provide critical key
employees from both shifts the opportunity to share information.

At about 3:30 on April 6th, the Vice President of Human Resources, Alex Pascale,
received a phone call from Nancy Nader, a supervisor from the first shift. Both Alex and
Nancy had recently left the production update meeting and returned to their offices.
Nancy asked Alex if he would come to her office and speak with Yvonne Stevens, a
Production Control employee. Nancy was very vague, most likely, he thought, because
the assembly lines were just getting up and running and she was rushed. He found out
though, that Yvonne was upset about an employee who inappropriately touched her about
45 minutes ago. Alex dropped what he was doing, left his office, and began to walk into
the plant. While in transit several employees stopped him and asked, Alex, do you know
what happened to Yvonne?

39

Alex: No, not yet.

Alex soon reached his destination. While in Nancys office, Yvonne, was sitting in a
chair, visibly troubled and in tears.
Nancy: Hi Alex,. I was just told that Yvonne informed several other supervisors
that she was sexually harassed by Jerrick Tully in the Tool and Dye department
right after the second shift started.

As Yvonne continued to cry. Alex sat in an adjacent chair, waited a moment, looked at
Nancy, then back at Yvonne.

Alex: Nancy, can you go get Yvonne a glass of water please? While Nancy was
out of the office Alex sat as a tearful Yvonne patted her eyes with several tissues from
Nancys desk. Nancy returned quickly with water in hand and gave it to Yvonne.
Alex: Yvonne, are you doing okay? Do you want to talk about it?
Yvonne: Sure, as long as that pervert stays away from me. With tears
continuing to roll down her cheeks, My husband is going to kill me.
Alex: Would you like to tell us what happened?

Since Nancys office is in the middle of the production floor, Alex and Nancy both
noticed that other employees on the assembly lines within the area were looking at them.
At that point, Alex decided that trying to have some privacy out there would soon become
compromised.

40

Alex: Yvonne, lets go up to my office and talk about this.

Yvonne: Whatever

Alex left Nancys office and escorted Yvonne back to his office where they could have
more privacy and confidentiality. As they were walking Alex was met by Jane Keegan,
the Manager of Human Resources. Jane walked alongside both of them. Jane has just
returned from a meeting off site. Alex briefed Jane quickly on the little that he knew up to
that point.

Alex: Jane, call Nancy and have her ask Jerrick to go to her office and wait
there until I come out to see him. Also call John Ritter, the shop steward, to sit
and wait with Jerrick. Nancy can fill John in on the little that we have at the
moment. When you are finished meet me in my office. I need to ask Yvonne a few
questions about the incident she reported. Jane obliged and went into her office
while Alex walked with Yvonne into his.

After a few minutes Jane returned to Alexs office. While there, Alex asked Yvonne to
explain more about what happened.

Alex: Yvonne, tell us what happened. Jane will take notes about what you say.
You mentioned in Nancys office that you were harassed?
Yvonne: I am so upset now, I dont want to talk about it. I would rather leave
the building now and talk about this tomorrow.

41

This came as somewhat of a surprise to Alex and Jane since previously Nancy told him
that Yvonne reported the incident to several supervisors in the plant.

Alex: Yvonne, Nancy said you told some supervisors already that Jerrick
sexually harassed you. What exactly does that mean?
Yvonne; starring blankly at Alex, I want to go home now, Ill talk about it
tomorrow. I just want to go home. I am way too peeved to get into this now.

Silence prevailed for a few more moments.

Yvonne: Jerrick, that jerk, put his hand on my butt while we were talking in the
tool and dye department right after the second shift began. He hugged me and
thanked me for something the team and I did and then he squeezed my butt. Will
you please let me go home now? I want to get out of this place. When my
husband hears about this hes going to really be upset. Im not sure what hes
going to do.
Alex: Hang in there Yvonne. While the incident is fresh in your mind lets talk
more about it.
Yvonne: No, not now, maybe tomorrow. Let me outa here.
Alex: Okay Yvonne. Jane, please read back what we heard Yvonne say. Yvonne
you can make any changes if you would like. Yvonne, if after you agree, I would
like you to sign the notes and Jane will co-sign them.
Yvonne: Sure, whatever. I just want to get out of here.

42

Jane obliged. She read back the little information that Yvonne provided. Yvonne chose
not to change anything. Yvonne signed her name on the bottom of the notes. Jane did the
same. Jane left the office to get copies of the notes. Upon her return she provided Yvonne
with a copy and Alex with another copy. Then she created a manila file folder and placed
a third copy in it, labeled it Yvonne - Investigation 04/06/08.

Yvonne: Can I go now?

Alex: Sure, is there anything else we can do for you now though?
Yvonne: Sure, just keep that creep away from me.
Alex: Yvonne, when you return tomorrow for work, I want you to call me
immediately. Well sit down and continue talking about what happened. Well
make sure you and Jerrick are not in the same area. I will be going with Jane soon
to talk with him.
Yvonne: Why do you have to talk with him? Hes just going to lie about
everything. Just ask some of the other women here, theyll tell you.
Alex: Yvonne, please be assured we will do a full and complete investigation of
this incident. I am not sure what you mean about other women. Whats that all
about?
Yvonne: Noting, just let me outa here.
Alex: Yvonne, youll be paid for the remainder of the day. But there is one last
item I need to impress upon you. Do not talk to any other employee about this,
please. Well walk you to your car. Go home and well see you tomorrow as soon
as you come into work.

43

Yvonne: I dont want you to walk me to my car. Thatll look pretty obvious that
something happened. I can walk by myself. Whats wrong you dont trust me?
Alex: It has nothing to do with trust, Yvonne. We just want to be certain you are
able to get home safely.
Yvonne: I can get home safely. Its when I get home what my husband is going
to say and do that worries me. Hes not going to like this you know. Like, hes
going get real angry.
Alex: I am sure he will, Yvonne. Just tell him well investigate this fully and
when it is all over what has to be will be. Ask him not to do anything that he will
regret later himself if that is what you are leading up to.
Yvonne: Sure, whatever. Let me get out of here.
Alex: Okay Yvonne, please again talk to no one. Go to your car and drive home.
If you would like we can call you later. Talk to no one about this please. Are you
sure you dont need a ride?
Yvonne: Sure, whatever. I can drive by myself. I dont need any help.

Yvonne got up, Jane followed and they both walked to the exit. Jane watched Yvonne as
she entered her automobile, started it, and pulled away. Jane returned to Alexs office.

Alex: Jane is this the same Jerrick employee that was warned a few months ago
with what Anne Brady complained about?
Jane: I think so.

44

Alex: Pull his file and review it, please. Im going to talk with him. Meet me in
Nancys office as soon as possible.

Alex left the office, Jane went to the employee files and pulled Jerricks file. She opened
it and in the section marked discipline she noticed a written warning. Jane read the notes
and the warning that followed. The last paragraph stated:

Upon completion of a thorough investigation by Human Resources it was

found that Jerrick Tulley did not fully comprehend the harassment policy and
procedures here at Wheels, Inc. despite attending the training classes provided.
Jerrick continually reported during the investigation that in his home country
of Jamaica they are friendly, warm and fun-loving. It is not uncommon to ask
someone to come over his house and have dinner and celebrate. Although we
do not condone what occurred, Human Resources recommends that it is in the
best interest of all those involved that Jerrick return to work and:
1. No longer ask any female employee to join him at his residence for
celebration and dinner after they have initially refused.
2. Jerrick will attend the upcoming Diversity class for the second time and
continue to attend until he has mastered this area of work relationships as proven
by the assessment given at the end of the class.
3. Jerrick will read and become familiar with Wheels Harassment policy. If an
interpreter is needed, one will be provided.

45

4. Jerrick will no longer make physical contact, e.g., placing his arm around
another female employee, hold their hand, brush up against, etc. while talking
with them on company property.
5. Jerricks primary responsibility here at Wheels, Inc is to work according to the
guidelines set forth in the contractual agreement between Local 1234 of the ABC
Brotherhood and the Wheels, Inc, Employee handbook.
6. Should Jerrick again physically infringe upon another employees rights or
space or should Jerrick be found in violation of company policy or procedure he
will immediately be dismissed without recourse. Should Jerrick consistently ask
employees to join him at his house after refusal, dismissal from employment here
at Wheels, Inc is in order. We will not tolerate or accept any events that infringe
upon the rights and safety and well-being of another employee. This is especially
critical in the area of workplace harassment.
While turning the page, Jane also noticed a letter from Anne, Wheels, Inc. Manager of
Employment and Organizational Development. It stated.
Although I do not agree with this decision to retain an employee who blatantly
disregarded numerous requests of this person to stay away and not ask me any longer
to join him at his residence, I have no choice but to accept the investigations findings.
It is just a matter of time before this employee commits this act again with someone
else

Anne
1/03/2008

46

Jane stood there speechless. She remembered the case and the subsequent decision a little
more than three months ago. She also remembered how upset Anne was at the decision
and the constant verbalization of Anne following the closing of the investigation; its
only a matter of time before he (Jerrick) does it again.

Returning To The Company

A few minutes had passed since Yvonne had left the building and Alex was walking
toward Nancys office. A page for him came over the intercom. Alex stopped at the
nearest phone, dialed, and heard Nancy pick up on the other end.

Nancy: Alex, I thought you were talking with Yvonne. Are you finished?
Alex: Sure am, she didnt want to talk any longer. To make a long story short she
left the building to go home. Jane walked her to the door. She got in her car and
drove off from what I understand. Shell be back tomorrow and well talk then. At
least that is what she promised. Im on my way now to talk with Jerrick. Hes still
in your office right?
Nancy: Sure is, but you got bigger problems now. Yvonne is out on the loading
dock talking to the team in Shipping and Receiving. Shes telling everyone what
happened. Obviously she did not go home.
Alex: Geez, I cannot believe this. Jane and I told her to go straight home. That is
what she continued to say she wanted to do. Jane walked her to the door and saw

47

her pull out of the parking lot. She must have come back through one of the other
entrances.
Nancy: Well shes here now and by the looks of it shes causing a real problem
out there.
Alex: Nancy do me a favor, stay with Jerrick. Ill be there in a few moments.
Call Jane and ask her to meet me in Shipping by the loading dock.
Nancy: Sure thing.

In a matter of minutes both Alex and Jane were out on the loading dock much to the
amazement of Yvonne. Practically the entire department was listening to her talk about
what occurred. As they approached, Bill Nesser, the Shipping Supervisor, also was
returning from Wheels nearby warehouse. Bill also noticed the crowd.
Alex and Jane approached the crowd. They noticed and dispersed quickly. Yvonne looked
startled.

Alex: Yvonne, you had told us you wanted to go straight home and did not want
to talk about this today. What are you doing back here in the plant when I
specifically asked you not to tell anyone about what occurred?
Yvonne: Whatever, like I cant talk to people now? Im out of here.

With that Alex and Jane watched Yvonne walked down the steps to the parking lot past
Bill and into her automobile. She pulled away quickly. Bill came up the stairs and asked,
Alex whats gong on?

48

Alex: shaking his head, Bill, Ill tell you later. Jane, can you make a note of this
and place it in the investigation file.

Celebrating or Getting Too Close?

Alex and Jane walked over to Nancys office where Jerrick was sitting looking at a
magazine with John. Nancy was nearby working with employees on one of the
production lines. Alex entered her office, introduced himself and Jane. They then waved
Nancy to join them. The five of them were in Nancys office. Alex closed the door, but
again that did not keep employees from looking over through the large glass partitions
that afforded little privacy. Jane sat prepared to take notes and Nancy stood by the door in
case anyone attempted to enter or knock.
Alex: Hi Jerrick, how are you doing?
Jerrick: Fine sir, great day today. The team broke another record yesterday. I
was happy when I came to work today. I shook my teams hands and thanked
them for the great jobs we are doing. Why am I here sir? Did we do good again?
Alex: I am sure you and the team did well, Jerrick. I do not know at this moment
if you broke another record though and I am glad you are happy. Jerrick, when
you were shaking your teams hands today was Yvonne in the area?
Jerrick: Oh yes sir, so was Jeff and Sam and a whole bunch of other people
were passing along. We were all happy. Were we too loud, sir?
Alex: I am sure you were not too loud Jerrick. Celebrating is good. Tell us how
did you congratulate Yvonne?

49

Jerrick: Oh sir I shook her hand and gave her a big hug. She is the best. She
schedules our work fantastic and if it werent for her our team would not be in the
lead for the monthly award. I hugged her sir.
Alex: Did you do anything else while hugging Yvonne Jerrick?
Jerrick: What do you mean sir? I do not understand. We are a friendly people. I
hugged her. Maybe I lifted her off the ground a little because we was so happy.
Did I hurt her sir? I did not mean to hurt her sir if I did.
Alex: I am not sure if you hurt her Jerrick. Yvonne claims you squeezed her butt
while you were hugging her. She then had to push you away and also says she
asked you to stop but you would not.
Jerrick: Oh no sir, I did not squeeze her butt, sir. I did hug her and I shook her
hand and others also sir. I did not squeeze her butt sir. Yvonne kept getting close
to me and was brushing up against me with her body sir. Would you like me to
show you what she did sir? You can ask Jeff or Sam or anyone from the team sir.
Jane: Jerrick, remember in January when you were told to not hug people at
work or get close to them because of what Anne said and the classes you had to
attend again?
Jerrick: Oh yes Miss Jane, but we were just celebrating our good work. Here
Miss Jane let me show you what I did. I am sorry if I hurt anyone. Here, Miss
Jane let me show you.

Jane looked at Alex and Nancy and saw their nods. Jerrick got up and so did Jane. Jerrick
shook her hand and then hugged Jane from around the shoulders for about three seconds.

50

He released. Then he shook Alexs hand, Johns, and also Nancys. Then he hugged
Nancy in the same manner. He released and sat once again.

Jerrick: See Miss Jane. Did I do good? I did not touch your bottom Miss Jane or
Miss Nancy.
Alex: So you are telling us you did not inappropriately touch Yvonne in any
manner? Did you invite her over to your house?
Jerrick: Oh no sir, again she was the one brushing and rubbing up against me
sir. We are a friendly people sir, so I think nothing of it. I invite everyone over to
my house sir to celebrate.
Alex: Okay Jerrick, here is what I want you to do. You go back to work now,
dont tell anyone about what we talked about today if they ask. You just tell them
we were talking to you about the work you are doing. If they continue to ask you
call Miss Nancy here. Is that okay with you Jerrick?
Jerrick: Yes sir, I will go back to work now sir. Thank you sir, Miss Jane, Mr.
John, and Miss Nancy.

With that Jerrick rose from his chair, and left the office. Jane, Nancy, John and Alex stood
there trying to sort things out. They agreed that the two stories are in conflict. Tomorrow
when Yvonne comes to work talking with her is even more critical.

51

The Next Day

The following morning at 7:00, Alexs phone rang. He picked it up. It was Darrell
Howard, the Vice President of Operations.
Darrell: Hey Alex, Im here with Yvonne. She says that yesterday she was
harassed by Jarreck and nothing is being done about it. Do you have a few
minutes?
Alex: Sure Darrell, Ive been waiting for her to call me. That is not accurate
though, lets you and I meet alone first. I suggest Yvonne waits in the conference
room until we are finished.
Darrell: Okay, I guess so. Ill be down in a few minutes.

Alex took the file containing notes from yesterdays investigation, opened it up and
placed it on the conference table he had in his office. He waited for Darrell. After
approximately 10 minutes Darrell entered Alexs office. They both sat at the table.

Alex: Hey Darrell, I am not sure what is going on with Yvonne but if what you
said over the phone is accurate we have a problem here with this employee.
Yesterday during the start of the second shift Yvonne reported to some supervisors
on the floor that Jerrick grabbed her butt. She ended up in Nancys office. Jane
and I though it best to talk with her here in my office for privacy. When we tried
to get something from her she kept saying she wanted to get out of here and
would talk with us today. Hey, we tried. Its all in our notes. Here take a look. She
even signed them.

52

Doug peered down at the notes and glanced back at Alex.

Alex: When she finally left the building yesterday, Jane watched her get into her
car and drive off site. Then minutes later we get paged by Nancy again who tells
us that Yvonne is back in the building on the loading dock telling everyone about
what happened. This was after Jane and I repeatedly told her not to discuss this
with anyone. When we went back there and asked her what she was doing, she
copped an attitude, walked away, got into her car and drove away. She caused
quite a stir out there, Darrell and quite frankly I did not appreciate it that she
disregarded my request to not talk to anyone.
Darrell: Yea, she can be a bit of a hard head. Just like her mother who works in
the circuit board department. Shes been here for 20 years now and sometimes its
like talking to a wall. Okay, so you got this under control?
Alex: I am not sure Darrell. Well continue to investigate this claim by Yvonne
but now that she says we are not doing anything about it concerns me more
Darrell. Oh dont let that bother you. Shes probably just reaching out again to
get someones ear

With that Darrell stood up. Alex looked a little perplexed at this last statement. Darrell
walked and said, hey keep me up to date on what happens. We have a ton of product to
ship today so I need everyone. Ill send Yvonne over to you. You ready for her?

Alex: Yea sure, let me get Jane.

53

Alex called Jane into his office. He briefed her as to what has just occurred. Jane then
went to the conference room and asked Yvonne to join them in Alexs office. They
entered Alexs office sat at the conference table.

Alex: Yvonne lets talk about what happened yesterday. You mentioned that
Jerrick grabbed your butt. Tell us about that please.
Yvonne: A bunch of us were standing around the Tool and Dye department. We
had just found out that we were on top in productivity and quality and had a great
chance of winning this months award. I guess we were making a lot of noise. We
were happy at the results. Suddenly, Jerrick came over to me placed his arm
around me, and gave me a hug. I tried to move away. Then he grabbed my butt
and tried to hug me again. He asked me if I would like to come over his house and
have dinner and meet the family. I pushed his hands away and said no, dont you
ever touch me again. Then I got out of that department and walked over to Jimmy,
the Paint Shop Supervisor to tell him what just happened. Like, I need this crap.
Hes a creep. Hes asked about eight other girls to come over his house already to
have dinner and meet the family. Just ask them theyll tell you.
Alex: Thanks Yvonne. Well get to those eight other women in a moment. Do
you remember some of the others that were in the same area when you were
talking about your productivity?
Yvonne: I think Jeff and Sam were there. There were others also, Monty, Mary,
maybe Lucy. Why?

54

Alex: Well, to be honest you are saying he grabbed your butt. When we spoke
with Jerrick he told us that you brushed up against him and kept rubbing against
him. He did admit to hugging you and wondered if he hurt you. Otherwise we
have two different stories now.
Yvonne: I never brushed up against him. That jerk, who does he think he is? Just
ask anyone that was there where his hands went. Also, go ahead ask the other
ladies about being invited over to his house. Theyll tell you. Hes a little too
friendly in my opinion.
Alex: Hey, lets go over this one more time now. Besides that, can you give Jane
a list of those names of the other ladies you are saying were asked by Jerrick to
join him at his house?

Yvonne repeated the same story. Jane took notes. Then Yvonne wrote for Jane a list of
eight ladies all of whom Yvonne claims were asked by Jerrick to join him at his house on
numerous occasions.

Alex: Yvonne, now tell us what happened yesterday after we asked you and you
agreed to leave the building and go home. Thats what you wanted to do. Then
you show up on the loading dock. You caused quite a mess out there. You know I
have to write this up and place it in your file. Do you want to explain why?
Yvonne: Whatever, do what you gotta do. I will not work with him again
though. He better not be in my department when I am there. My husband told me
hes going to take care of things no matter what you do.

55

Jane: Now Yvonne, thats not the way to help out. Two wrongs dont make a
right. If your husband does anything then it will only cause more problems for
you and your family. Is that what you want?
Yvonne: Whatever, just keep Jerrick away from me. I do not want him fired, I
only want him to stop doing this to us. Is there anything more that you want? I
told you everything.

Once again Jane took a copy of the notes from the meeting to the copy machine. When
she returned, she asked Yvonne to read it and then sign them after she makes any
changes. Jane signed and dated the copies also. Yvonne went to her desk. Jane and Alex
closed the door and went over the notes from the two meetings. They knew at this point
they had to call at least Jeff and Sam up to talk with them. They also agreed that this was
not turning out as expected. The eight woman employees also needed to be talked with
over the next few hours. Why would they not report something like this to human
resources. Jane and Alex developed a plan of splitting the interviews so that neither one
of them would have to do it all themselves. They also needed to ask someone to be a
witness to what was being said in either case.

They also had to deal with the fact that in Jerricks file was a prior violation notice and
the note that stated dismissal would be in order should Jerrick violate any of the
requirements set forth in the notice.

56

It was quite a surprise to find out about the other women. No other record of any incident
with any of these women has ever been recorded. It was confusing to hear that there
were others he has allegedly invited over to his house, made physical contact with by
placing his arm around them and hugging them all after the Anne incident. There were
eight (8) to be exact. Wheels, Inc. prided itself on the enormous amount of training in
diversity and harassment it continually offered and required employees to attend. There
was follow-up also by Supervisors and Management to make certain everyone
understood the consequences of not abiding by policy. Why then did no one come
forward from these eight mysterious women?

Then there were the words of Anne echoing that it is only a matter of time. More
embarrassing is the fact that she worked in the Human Resource Department. Jane and
Alex outlined their plan for the next few days. It included calling Jeff and Sam to discuss
what they saw. Also they knew they had to call up others from the department who may
have been there at the time of the incident. The plan also included sitting with each of the
eight women and discussing what they heard from Yvonne about Jerrick. In the end the
both of them knew that they would have to make some possibly unpopular decisions once
again.

Additional Interviews
Over the next few days the eight alleged other victims were interviewed. In each of the
cases similar things occurred. Jerrick would be in a jovial mood because of some success
or achievement that had taken place with the team. He would then thank a female that

57

was in the area and who had helped in some manner to achieve the success. Jerrick
would hug the woman, place his arm around her, and ask her to join him at his house and
meet the family. None of those involved had made a formal complaint about Jerrick.
None of the ladies had even let Human Resources know what was going on.. He was
harmless were the words consistently echoed by each woman employee involved. The
touching, hugging, and inviting were part of his approach and they all said no to the
invite. Each one noted he was a touchy, feeling sort of guy. He would try several more
times and their responses were always, No thanks. Go back to work. Each woman was
asked if she knew about the harassment policy and what to do if they felt they were
compromised? Individually again they all responded they are familiar with it but felt
nothing was wrong with him. He is harmless. Each lady gave a report of a touchy
feely person who is harmless Never once did Jerrick ask anyone to bring their spouses
or significant others with them. Also noted was the fact that Jerrick never asked any male
co-workers to join him and his family.

Jeff and Sam were called also and interviewed. Each one told a slightly different story.
Jeff reported he saw his hands brush against her buttocks. Sam said he saw Yvonne walk
past Jerrick just a little too closely and brushed against him. Maybe it was because of the
crowd gathered and there wasnt much room to pass. Sam really didnt pay much
attention to this. However, they both did say suddenly Yvonne became upset, muttered
something and darted out of the department.

58

Alex and Jane needed to list the priorities and the problems within this investigation. It
was apparent there was more than one. Also since this occurred in the past there must be
a root cause as to why this area of behavior has not been quelled as of yet. What was
more disconcerting was the fact that the group of female employees felt they could
handle it themselves because Jerrick was harmless.

Yvonne initially only wanted an apology from Jerrick along with him never to approach
her or come close to her again. She did not want Jerrick dismissed. Jane and Alex
reviewed and re-reviewed their notes. Wheels, Inc. had a progressive discipline policy,
but was this incident so severe that they should skip the steps and let him go as requested
originally by Ann when the initial challenge took place and was documented?
It was 7:00 PM. Alex and Jane decided to call it a day. They had a lot to think about.
They planned to meet with Darrell, Nancy and the shop steward early the following
morning with a decision.

59

Additional Resources
Cleary, J.S., & Schmieler, C.R. (1994). Sexual harassment of college students:
Implications for campus health promotion. Journal of American College Health,
43(1), 3-10.
Gaines, S. O., Jr. (1997). Culture, ethnicity, and personal relationship processes. New
York: Routledge.
Gaines, S.O., Jr., Ramkissoon, M, & Matthies, B.K. (2003). Cultural value orientation
and accommodation among heterosexual relationships in Jamaica. Journal of
Black Psychology, 29(2), 165-186.
Gillen, S. (2008, May). Unwelcome attention. Community Care, (1724), 16-17. Retrieved
February 19, 2009, from ProQuest Central database. (Document ID:
1496915581).
Gross, B. (2008). Sexual harassment: Dressing for a hostile environment. Annals of the
American Psychotherapy Association, 11(3), 38-41.
Huerta, M., Cortina, L. M., Pang, J. S., Torges, C.M., & Magley, V.J. (2006). Sex and
power in the academy: Modeling sexual harassment in the lives of college
women. Personality and Social Psychology Bulletin, 32(5), 616-628.
Loy, P.H., & Stewart, L.P. (1984). The extent and effects of the sexual harassment of
working women. Sociological Focus, 17(1), 31-43.
Merkin, R.S. (2008). The impact of sexual harassment on turnover intentions,
absenteeism, and job satisfaction: Findings from Argentina, Brazil and Chile.
Journal of International Womens Studies, 10(2), 73-91.
Patterson, O. (1995). The culture of caution. New Republic, 213(22), 22-26.
Rospenda, K.M., Richman, J.A., Ehmke, J.L.Z. & Zlatoper, K.W. (2005). Is workplace
harassment hazardous to your health? Journal of Business and Psychology, 20(1),
95-110.
Schneider, B.E. (1982). Consciousness about sexual harassment among heterosexual and
lesbian women workers. Journal of Social Issues, 38(4), 75-98.
Smith, D.E., & Green, K.E., (2007). Violence among youth in Jamaica: A growing public
health risk and challenge. Pan American Journal of Public Health, 22(6), 417424.
Vijayasiri, G. (2008). Reporting sexual harassment: The importance of organizational
culture and trust. Gender Issues, 25, 43-61.

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Discussion Questions:
1. Define the problem(s) here as you see them?
2. Is there any additional information you would have attempted to obtain? Why or
Why not?
3. What, if anything, would you report to Anne as she has asked about the case?
When would you report anything to Anne?
4. How might you handle the separate stories of Jeff and Sam?
5. Given the file of Jerrick which reported a similar incident, what process would
you now follow as you made your decision?
6. Do you feel there is a need to further improve upon the overall diverse culture at
Wheels, Inc.? Defend your position.
7. What would you do about Yvonne coming back into the building?
8. What about the other 8 employees who had training in harassment and never
came forward?
9. What would your decision be and why?

61

FIRE ME WHY DONT YOU?

Objectives
Learn that providing feedback to employees on a consistent basis is critical and
necessary for performance improvement.
Understand that even in a culture of coaching, some employees tend to blame
others for poor performance.
Learn that the best defense against having to dismiss an employee is hiring the
right employee in the first place.
Describe the process of a productive performance evaluation meeting.
Identify the various signs to an unmotivated employee.
Understand that constant documentation of employee performance and behavior
is critical for decision making.

INTRODUCTARY NOTES
Firing an employee is incredibly difficult, however, there are times when it has to be done
and as a manger you mat be the one chosen to do so (King, 2008). What is even more
difficult to digest as a manager is when an employee asks you to fire them especially
since they feel that no matter what they do it will not be good enough. On the one hand
some companies feel that the employee should assume full responsibility for his or her
own career, for keeping their qualifications up to date, for moving to the next position
level and most daunting of all for achieving job satisfaction (Patch, Rice & Dreilinger,
1992). Other organizations, however, create a climate and culture of coaching whereby
they are interested in improving the ability of their managers so they can improve their
performance and prepare them for future roles (Lindbom, 2007). This culture is one

62

which a regular review of performance and just-in-time feedback benefits everyone

involved.

Feedback on performance is a necessary evil, giving it as a manager, and receiving it

from others. (Craig, 2008). If done properly it can assist an organization with motivation
and morale and increased performance. If done poorly, it can cause long-term
performance and behavioral problems. Employees are satisfied and benefit mostly from
performance appraisal systems when supervisors are supportive and there is trust between
the individuals involved in the process (Whiting, Kline & Sulsky, 2008). The
performance appraisal and providing knowledge of results is often considered one of the
most important human resource practices (Boswell & Boudreau, 2002), and has
increasingly become part of a strategic approach to integrating Human Resource
activities and business policies while assessing and developing employees and
distributing rewards (Kuvaas, 2007).

There are three opportunities according to McKay, 2008) when as managers and leaders
we can do something about our employees performance: at the time of hiring (hire
correctly in the first place); through training and coaching; show poor performers the
door. If a manager feels they have hired an individual who does not have the right
personality, mental ability and attitude to do the job, no amount of training or coaching
will matter.

63

A good leader must be able to both deliver rewards for good performance and
punishments for poor performance along with being able to rally the staff in an effort to
achieve an organizations goals and objectives (transactional leadership and
transformational leadership) (Vigota-Gadot (2007). Balancing a relationship with fairness
and equity for employees is a key element of success and motivation. If management
finds itself in a position where there is a good chance that dismissing someone is
inevitable, make certain everything was done in an effort to have supported the
employees potential success; training, coaching, sharing of specific results,
communication and a series of performance appraisals listing actions needed for
improvement (Creveling, 2008).

At times, however, no matter what management or Human Resources does, some

employees are just not a match for the organization and they do not own up to their
deficiencies or lack of performance. Rare as it is, some employees also have their own
agendas and may want an organization to fire them. No matter what the cause, even
with at-will employees if a manager finds themselves in the untenable task of having to
let someone go, do so with respect and in a manner that keeps the employees dignity
intact (Koeppel, 2007).

PROFILES
Paul Apel is the Second Shift Supervisor at Generations. He has been at the company for
four years now and was promoted from the rank and file after two years. Paul has
minimal experience as a supervisor and thus was afforded the opportunity to attend
numerous training and development programs. Pauls mom, Grace Cotter also works at
Generations.

64

Grace Cotter, Pauls Mom has been with Generations for 25 years. She is a Union Shop
Steward. Grace has always been a very dedicated employee and is competent in all of the
various operations that go into the production of the clothing lines Generations is famous
for.
Jim Bausch, the Production Manager of Generations, was formerly an Industrial
Engineer before he was promoted. Jim believes in mentoring and developing his
employees and is supportive of the many educational programs available for those who
want to move ahead in the company. Jim has a high level of trust in his supervisory staff.
Judy Donato is the Human Resource Manager of Generations. Judy began her career at
the company as an administrative assistant for Dennis Howell. As the company grew,
however, there became a need for a Human Resource department. The respect that the
employees have for Judy was proof enough she was the best candidate for the position.
Joe Frazier is the other second Shift Supervisor at Generations. Joe keeps to himself and
rarely collaborates with Paul on any production or quality matters. Joes performance is
excellent and customers rarely have any complaints about product that comes from his
departments.
Dennis Howell is the Chief Operating Officer of Generations. Having come from the
garment district in New York, Dennis is more than technically competent to do the job
necessary for the customer Dennis rarely holds departmental meetings and usually lets
Jim handle the people end of the business.
Chang and Rosalina are employees on the Second Shift. They are very verbal in letting
management know that something is wrong with the manner Paul treats their co-workers.
Cindy Lampson is the attorney who Paul has hired to represent him.

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GENERATIONS NEWEST SUPERVISOR

Paul Apel, a Supervisor at Generations, has been with the organization for approximately
four years. He was promoted from the rank and file after his second year with the
company. Generations is a clothing factory with one location in the Northeastern
portion of the United States. Being newly promoted, Paul was afforded a significant
amount of training, development and mentoring. The Human Resource department
created with Paul and his manager, James Bausch (Jim), a developmental plan. The
plan outlined the competencies needed to be successful on the job and the focus of
training and education in order to achieve mastery in these necessary skills and
abilities. Paul was one of two supervisors on the recently enhanced second shift. Due
to an average 15% growth in business in the past three years, management decided to
increase the size of the workforce. Adding a larger second shift made sense since
machinery and equipment were readily available. Generations has a first shift also
but it was at maximum capacity. Manpower could not be added.

66

Paul held past positions of responsibility elsewhere as a prison and security guard. His
mom, Grace Cotter, has been with Generations for twenty-five years. During the last
ten years, Grace has been a union steward. Grace is a very dedicated, focused
employee. She thought about retiring a few times so she could spend her days with
her grandchild, Pauls son, but she decided at 60 years old shed rather keep active
and work. Besides, Grace was a valued employee and Generations appreciated this
by rewarding Grace with out-of-contract bonuses and some extra time off when
needed. Recently, Grace underwent hip surgery. Generations accommodated her due
to the follow-up physical therapy which took place during work hours. Her physician
told her there would always be some residual pain but Grace forgets this while at
work. Her pleasant demeanor and knowledge of the product line is one of the many
reasons why so many employees of Generations want to work with and respect
Grace. The admiration management has for Grace surely played a part in the decision
to promote Paul over other qualified non-Generations candidates.
After two years as a supervisor of the 2nd shift, rumors about Paul began to make their
way to Jim. One such story noted that Paul is rarely seen, if at all, during the second
shift. He opens the shift up, sets up the various departments under his supervision, makes
certain the work is distributed appropriately according to the production schedule, and
then either disappears into his office or leaves the building. If an employee asks him a
question he either ignores the employee or tells him/her to do it the way they think they
should do it. There was additional hearsay that Paul had a temper. He would yell at his
employees for no apparent reason. Most of the 2nd shift was Asian and Mexican.

67

During his first six months as a supervisor, Pauls overall performance was rated as being
Outstanding. This is the highest rating an employee can attain. Following the next six
months his performance appraisal rating had dropped to a C+ (Competent Plus) which
translates to functioning above average. During his second year, however, Pauls
execution and the productivity of his department during the 2nd shift began to deteriorate.
Quality slipped and more often than not when the first shift arrived the morning after,
they needed to clean up and also re-do some of the production orders because of errors
made in sewing, cutting, and final pressing. This caused a backlog in shipping to worldwide designers, distributors, and major department stores that were waiting for the new
seasonal clothing lines. Top Management trusted Middle Management and the
Supervisors. This trust resulted in an unwritten hands-off position toward the second
shift. If it aint broke dont fix it was the mantra of Jim and his first shift team.
Unfortunately, recent events had begun to show that things were not as rosy as once
thought.
Several key areas were in need of immediate focus for Paul; external customer attention,
change mastery, leadership, work ethics, integrity, communication, internal customer
focus, and development of self and others. Human Resources consistently works with
Paul on updating his developmental plan. The recommendation was to provide another
formal evaluation in three then six months later to be certain improvement was noted in
these critical competencies. Paul expressed his dissatisfaction with this outcome but
accepted the assessment none-the-less.

THE REPORTS CONTINUE

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Jim and the Human Resource Manager of Generations, Judy Donato, continued to hear
the reports from employees that Paul was not a pleasant person to work with. One tale
said that Paul would not let employees go on their break unless they asked permission of
him directly. Jim also noticed the error rate was significantly higher than previous on the
2nd shift. A plan to visit the 2nd shift unannounced was discussed between Jim and Judy.
Each one did just this within the next week. Jim and Judy noticed the same thing. Paul,
when visited unannounced, was either in his office reading the newspaper, on the
telephone, or talking to the female coach of one of the physically challenged employees.
Generations had an agreement with the local Association of Disabled Citizens (ADC).
Generations hired individuals who were somewhat physically challenged into jobs that
were not too demanding. Accommodations were always made. This was a part of their
community relations goals and objectives. ADC provided assistance in the form of a
coach to help the employee(s) and also the company.
The visits did not appear to cause any concern for Paul. He always explained who he was
talking with and also why he might have been on the phone. The coach would
immediately leave Pauls office when Jim or Judy arrived. Paul then would make his way
into the plant and spend time on the floor with his employees as if to ignore the visitors.

Several days passed and there was little positive change in the reports from other
employees. The scrap rate, productivity, and the quality coming from the 2nd shift were
unchanged. Additional information surfaced that reported Paul would now leave the
building for long periods of time with the ADC coach or another non-employee female
who visited him. He waited until he certain Jim or Judy were not showing up and then he

69

would change his personality, start his tyrants and leave. Nothing of this, however, was
mentioned from the other 2nd shift supervisor, Joe Frazier. Joes employees never
complained and their production results were well on target if not exceeding standards.
Jim and Judy chose not to discuss any of this with Joe at this moment.

Judy and Jim began to investigate further what the grapevine was saying. Aside from
increasing the amount of times they visited or stayed long past the primary shift, they
would ask employees as they walked through the aisles during their visits, hows it
going? Usually they got nothing but silence especially when Paul was walking around.
There were at least six occasions, during different times of the shift, within a three week
period when they had arrived and Paul was no where to be found. They waited for about
an hour each time. Upon Pauls return hed usually have a pizza box or a sandwich with
him. His explanation was he went to get dinner and there was a crowd which caused the
delay. Paul would always walk in with the coach from ADC.

THE VISITS WITH THE TEAMS

Judy decided one evening to join one of the team meetings from the shift. These took
place on a bi-weekly basis. The teams would discuss projects, workloads, resources,
processes, etc. During the course of one of these meetings, Judy decided to ask bluntly
how they felt they were being treated by management. At first there was a deafening
silence. Judy waited and asked again if management was pleasant and helping them get
their work done.

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Quite frankly, Judy noted, the quality and productivity of your team on the second
shift is not up to standards. Our customers are getting concerned about late shipments and
shabby workmanship. Some of them are considering leaving us and going elsewhere for
their clothing. That means layoffs if they do.

Soon the silence was broken and Chang, an expert seamstress, interjected.

Chang: He, Mr. Paul, yell at us. He no respect us, he tell us to take a hike when we ask
him for help. Mr. Paul say go back to work and do what you are hired to do and stop
complaining. Then he closes his door with that woman inside his office. We no see him
for long time. Every night this happens.
Rosalina, another senior seamstress also broke into the conversation. All I know is Mr.
Paul sometimes leaves his office, walks out the building with the coach lady, and doesnt
come back for about two hours or more. Its not our fault we are not doing good. He
never helps us. Our needles are dull, our machines need adjustments and cleaning, and
the cutting machine is not as sharp as it should be so our seams are off the line.

Judy: Why didnt anyone ever say anything before today?

Chang: We afraid of Mr. Paul. He yell at us and tell us to find another job if we no like
it here. Mr. Paul tells us there other people who he can get to do our jobs.

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Judy took notes as more information came from the team for the next thirty minutes or so
all with the same theme; Paul may not have been living up to the expectations set forth
during the performance evaluation. Judy decided that it was time to work with Jim on yet
another plan to get to the bottom of the second shift challenges. Customers were not
happy, employees were fearful, and with the increase of potential business coming to the
company through some excellent new designs, marketing, sales, and styles, Generations
needed to put its house in order.

Judy and Jim put together what they hoped would be one last plan to get this part of the
shift back on track. The first action they took was to talk with Joe the other Supervisor.
Joe stated he was unaware of any of the problems employees claimed. Joe never heard
any yelling or threatening coming from Paul. He also never saw Paul leave the building
except to smoke periodically during employees break time or their lunch. Joe did admit
Pauls door was often closed but he figured he was working on production related issues.
Joes area of the factory was located quite a distance from Pauls section of the plant. The
machines did make quite a bit of noise also. A huge wall divided them and there were
separate entrances that employees could use if they so chose. Joes section and teams
were extremely busy and he did admit he has had little to no contact with Paul for months
except to say hello in the beginning of the shift and at debriefing meetings with Jim.

Another week had passed since the team meeting and more data came in from
Operations Information System. It all pointed toward additional errors, shabby quality
inspections, late shipments, elevated machine breakdowns, and increased customer

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returns. Productivity dropped to less than 84% based upon standard. Overall it did not
look good. Judy and Jim agreed to meet with Paul formally and lay the facts out on the
table in the form of another formal performance review with yet one last follow-up plan
to improve.

THE FINAL PLAN TO GET BACK ON TARGET

Two days after they received the operations data, Judy and Jim asked Paul if he would
join them as soon as he got his shift up and running. A little hesitant, Paul agreed. The
three of them met in the conference room on the production floor so they would be able
to monitor the factory just in case someone needed them. Jim began;

Jim: Paul, we need to look at some of the recent numbers. They are not good and quite
frankly I am worried. We are all worried. Well-Mart, one of our largest customers is about
ready to pull the plug on our spring fashion line because of quality issues and late
shipments. Paul, help me understand whats going on? During your last performance
review we put together a plan and you agreed to make some serious improvements. From
what these numbers say we seem to be going in the wrong direction.

Paul: Oh not this again, Come on people, youre just picking on me again and honestly
Im getting tired of this. In fact, to be honest with you, I think youre harassing me. Its
not my fault you gave me a bunch of incompetents out there. These people cant sew for
nothing. Judy, where did you get them from? No matter what I do its not good enough

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anyway. My best is just not good enough for this place. Its the same thing over and over
again.

Judy: Paul, listen. I sat in on one of your team meetings from your shift last week. Your
employees told me about you yelling at them constantly, threatening to fire them, and
replacing them. Then they said you leave the building for long periods of time with the
coach from ADC, or you close your door with the coach from ADC and are no where to
be seen for the better part of the shift. Were not sure whats going on here Paul but as
Jim said the numbers are not good and if what the employees are saying about your
behavior, it may be inappropriate while here at work.

Paul: Oh yea youre going to believe them over me now. Just like you both. I told my
mother to get out of here a long time ago. You dont appreciate anything I do. And my
personal life is my personal life. If I want to go to lunch with a woman, thats none of
your business.

Jim: Youre right to a point Paul. Were not making this personal. What you do on your
time is your business. What you do on company time and property is all of our business.
It appears you are taking a lot of company time to work or talk with this lady. We heard
that from more than just a few employees. She is supposed to be here to help coach her
employee. Lets get back to these numbers Paul. Whats your take on why they are still
decreasing?

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Paul: Hey Jim, no matter what I say it doesnt matter. Youve already made your mind
up. Give me the review will you? No better yet, why dont you just fire me. Thats what
you want to do anyway. Fire me why dont you?

Jim: Looking very shocked at what he just heard. Paul we have no intention of letting
you go at this moment. We want to talk with you about your performance as we have
been doing for months now. We want to share with you again some areas that need
improvement. You need to take some ownership of the problem. We want you to focus on
this and not blame everyone else. Judys staff will work with you on hopefully a last
development plan so you get back on track. I want to put someone on the shift with you
to lend a hand so he can help with the areas customers are concerned about.
Paul: Becoming angrier, I dont need anyone to help me. Hey, this is ridiculous. Youre
just out to get me no matter what I do or say. Fire me why dont you? Im tired of this
already. Ill just collect unemployment until I find another job. I cant seem to please you
guys anyway. Its my entire fault, right?

With that Paul rose from his seat, went to the door, opened it, and left. As Jim and Judy
watched in utter amazement Paul walked out the exit door, got into his automobile and
drove off the premises.

Judy and Jim sat speechless. They had not expected this sort of reaction. They looked at
each other. Judy looking at Jim said, okay now what? One might consider this job
abandonment.

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DISMISS PAUL OR NOT?

Jim: Well, if he wants us to fire him why not. Lets do it.

Judy: What! We do that and well end up with a lawsuit on our hands. This was a
performance review meeting and not a very good one at that. We did not come here to
dismiss Paul. Since when does an employee ask to be fired? Somethings up with this
guy and I dont like it.

Jim: I know Judy but I thought we can just let anyone go with or without cause. Didnt
you say once we were an employer at will?
Judy: Sure try it some time. He used the big H word on us Jim. Hes looking for
something. I would not fire him, not just yet. Id get him back in here and finish the
evaluation first then we can decide what to do.

Jim: Doubt that will ever happen. He left the building Judy remember? He abandoned
his job. You tell me we cant let him go for that? Now who am I going to get to cover the
shift?

Some more discussion took place. Judy and Jim waited a bit hoping Paul would return.
Instead, after about 30 minutes the phone rang. It was Dennis Howell, the Chief
Operating Officer.

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Dennis: Jim, its Dennis. I just spoke with Paul. He called me from his car. He said you
and Judy were pushing him around and harassing him about 30 minutes ago, telling him
hes no good, that he curses at employees at night and said he is running around with
some lady from the ADC? Whats going on? We got a lot of product to get out of here.
Can I see you? Paul says he wants to meet with me and Judy also. I also got a call from
Grace, Pauls mom. Shes also on her way up to my office. She says her son also called
her a few moments ago also and was really upset about the way he was being treated.
Grace said that she doesnt know the whole story but has heard some rumors that the 2nd
shift doesnt like Paul and wants a new supervisor because hes too tough. I think we
better talk before we have a real problem on our hands.
Jim, Judy and Dennis met. Jim explained what happened at the recent meeting they had
with Paul. He told Dennis they were just following the performance appraisal
recommendations they wrote a few months ago. Dennis was aware of the production
numbers, the quality decrement, and shipments being delayed from Pauls teams. Dennis
had been working with Jim on this for quite some time. When Dennis heard that Paul
wanted to be fired he was also quite surprised. He agreed with Judy that something must
be wrong. He planned to meet with Grace in a few moments and had to get back to Paul
about the meeting he asked for. Jim and Judy left Denniss office.

AN ALTERNATIVE FOR PAUL

Paul did not show up for work the next two days although he had made a call and left a
message that he would be out ill. He also followed up with a phone call during the day to
meet with Dennis. Judy decided after the two days of call outs from Paul, to meet with

77

General Counsel and asked that a release agreement be drawn up providing Paul with a
severance package of 4 weeks pay if he signs and releases the company from any action.
General Counsel had no idea why Generations should do this. If the Supervisor was
ineffective and if he has not shown up for work the past few days then why not just let
him go? Unless we have some doubts that the stories are true from the employees? After
a two hour meeting, Counsel decided to agree. An agreement was created. Paul was
contacted by Judy who left a message to meet with Jim and her the following day. They
wanted to discuss his request.

Paul showed up Wednesday. This time, however, he went directly to Dennis and wanted
to talk only with him and Judy. Dennis let Paul speak his mind and vent. He did not call
Jim immediately. Judy joined them and was surprised Jim was not present. When Judy
raised the concern about not having Jim in the meeting, Dennis ignored it and continued
to ask Paul questions. Paul reported to them both that he feels there is no hope and no
future for him at Generations, and that Jim is setting him up to fail. He again asked to be
dismissed after a 30 minute discussion. When it appeared as if there was little hope to
convince Paul to remain and finish working through the performance evaluation, Judy
shared with Paul Release Agreement. She asked if he would considered something like
that. Paul asked to see it first. Paul read it, signed it, and was handed a check for four
weeks severance. A copy of the agreement was given to Paul. He left the building.

Judy informed Jim later about the meeting and its result. He was not pleased that Dennis
held the meeting without him. He told Judy that undermines his authority and all the

78

work he has done with Paul. None-the-less Jim had no choice but to accept what
happened and now needed to make arrangements for a new Supervisor on the 2nd shift.
Judy and Jim spoke to the teams on the shift to inform them that Paul would no longer be
coming to work and they would soon have a new leader. For the time being though Jim
would stay on the shift for a few hours and then Joe would take over from the other end
of the plant. Everything would work out just fine so have patience. Jim gave some of the
senior employees a bit more responsibility in the transition and told them their
compensation would be adjusted accordingly.

PAULS ATTORNEY
Two days following that meeting, Human Resources was contacted by an attorney, Cindy
Lampson who reported she was representing Paul. This made little sense to Judy but she
took the call regardless. Since Jim happened to be with her she placed the telephone on
conference so he could listen and comment if need be. The conversation was a cordial
one. Notes were exchanged verbally. Pauls attorney, Cindy Lampson, noted that
Generations had no grounds to dismiss Paul and they must reinstate him with full back
pay. Paul was planning to pursue a lawsuit for unlawful discharge and harassment against
Generations. To say the least Jim and Judy were again confused. Judy pointed out to
Cindy that they were in possession of a release of all claims that Paul signed in
acceptance of fours weeks of severance pay.

Judy: Paul chose to resign. We accepted his resignation. The company was very
generous and provided him with a release and four weeks severance pay. Im really not

79

sure why Paul is saying we dismissed him. The letter we have on file from Paul states, I
am resigning my position as Supervisor of the 2nd shift of Generations effective
immediately.

At that point, Cindy excused herself. She told Jim and Judy she needed a bit of time to
discuss this action of which she was unaware with Paul. She asked Judy to kindly fax a
copy of the release and Pauls signed letter. Judy obliged. Cindy was never heard from
again.
Later that same day Generations received a Notice of Hearing from the State
Department of Unemployment to be held on the behalf of Paul Apel. Apparently Paul had
also filed for unemployment benefits. Jim asked Judy how can he collect if he chose to
resign from his position? Judy was just as perplexed.

Because of their schedules, neither Jim nor Judy could appear in person. They made a
phone call and sent a follow-up letter stating their position with back up documentation.
The Unemployment Office phoned regardless on the date listed originally in their first
correspondence. As Jim and Judy were walking out the door to go to an off-site meeting
the receptionist stopped them. She told them there was an unemployment investigator
waiting on the phone to talk with them both.

The investigator would not take no for an answer, nor was she going to re-schedule the
hearing. She forcefully asked Judy for an explanation of the events that led up to the
dismissal of Paul. Judy continued to note that Paul was given numerous performance

80

evaluations, had a number of developmental plans and finally had voluntarily resigned.
The company was in possession of a signature on a resignation letter to that effect. The
investigator noted she was also in possession of the document. She then demanded that
Judy fax over or deliver in person immediately all appraisals and notes in Pauls
personnel file. Judy asked for identification and informed the investigator of this
inconvenience. If they wanted the file they could send along a courier with a subpoena.
Following 30 minutes of working up the chain of command Judy finally gave up and
faxed 39 pages of information detailing Pauls work history including performance
appraisals, warnings, development plans etc. they were all received by the local Office of
Unemployment.

Three work days later Generations received notice Paul was being awarded full
unemployment benefits with no penalty. The investigator noted in her report that
Generations forced Paul to resign against his will. It was not contestable.

Additional Resources
Craig, T. (2008, April). How to give feedback. Personnel Today, 31,
Creveling, J.P. (2008). When it becomes necessary to fire an employee. Chemical
Engineering, 115(2), 51-54.
King, R. (2009). Firing employees is sometimes necessary. Snips, 78(1), 83
Koeppel, D. (2007, July 5). One key to a problem-free firing is dignity. New York Times
(Late edition East Coast), p. C.5. Retrieved April 18, 2009 from Banking
Information Source database. (Document ID: 1299540811).
Kuvaas, B. (2007). Different relationships between perceptions of developmental
performance appraisal and work performance. Personnel Review, 36(3), 378-397

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Lindbom, D. (2007). A Culture of coaching: The challenge of managing performance for

long-term results. Organizational Development Journal, 25(2), 101-106 .
McKay, R. (2008). Zero tolerance for poor performance. NZ Business, 22(3), 22-23.
Patch, F., Rice, D., & Dreilinger, C. (1992). A contract for commitment. Training &
Development, 46(11), 47-51.
Vigoda-Gadot, E. (2007). Leadership style, organizational politics, and employees
performance: An empirical examination of two competing models. Personnel
Review, 36(5), 661-683.
Whiting, H.J., Kline, T.J.B., & Sulsky, L.M. (2008). The performance appraisal
congruency scale: An assessment of person-environment fit. International
Journal of Productivity and Performance Management, 57(3), 223-236.
DISCUSSION QUESTIONS

1. Would you have let him go as he is requested?

2. Would you have continued with the performance appraisal?
3. If you were the Chief Operating Officer and/or Judy, would you meet with him? If
so with or without Jim?
4. How might this have been avoided in the first place?
5. What are some of the areas of the performance appraisal process that might have
broken down?
6. If you were to meet with Paul that last time prior to signing the agreement of
release of all claims, what might you have said and done?
7. Why do you think Judy was reluctant to let Paul go as he so requested?
8. Was the four weeks severance package a good idea?
9. Do you agree with Office of Unemployments decision? Why or Why Not?

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THE ACQUISITION AND THE ROLE OF HUMAN RESOURCES

Objectives
Learn that Human Resources plays a critical role in the process of due diligence
while considering an acquisition.
Understand the sequence of actions and reactions that typically take place from
employees before, during and after an acquisition.
Describe the dos and donts for Human Resources if they are not involved in the
merger or acquisition of another organization.
Learn how Human Resources can also assist in evaluating then assisting with the
strategic fit between the combining organizations.
Understand that there will be times when Human Resources must assert itself as a
business partner when adding value to the process of acquiring or merging with
another organization.

INTRODUCTION
A strategic imperative underlying a merger or acquisition is to create synergy; a
strategic and operational advantage that neither firm can achieve on its own (Schweiger

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& Weber, 1989). During the 1980s acquisitions and mergers became a major part of
American business as evidenced by the 12,000 companies that changed hands during that
decade (Lubatkin, 1988). Merger mania (Geber, 1987), a term used often by business
researchers described the landscape of sheer volume of activity that permeated all parts of
the economy, from defense, to food services, to automotive, to insurance (Ulrich, Cody,
LaFasto & Rucci, 1989). As daunting as it may be, mergers and acquisitions continued at
a frenzied pace with the first half of 1998 ringing up more than $1.3 trillion in merger
activity worldwide ( Solomon, 1998). Unfortunately, statistics have shown that, overall,
acquirers have less than a 50-50 chance of being successful in a merger or acquisition
(Pappanastos, 1987), and although estimates vary up to one-third fail within five years
and as many as 75% are financial failures long-term (Marks, 1988).

Experts cite many reasons for the high rate of failure ranging from the wrong partner
chosen, to the wrong price, to bad timing. A merger or an acquisition is a corporate event
that also has the potential to create severe personal trauma and stress which can result in
employees feeling psychological, behavioral, health, and survival problems leading
ultimately to performance issues (Ivancevich, Schweiger & Power, 1987). An increasing
number of newly merged organizations experience dysfunctional changes in employee
behavior, lost productivity, leadership struggles, and various other human (employee)
problems (Manzini & Gridley, 1986). One of the key reasons for these problems and also
the loss of value a new acquisition experiences is the fact that senior executives tend to
underestimate the difficulties involved in integrating the organizations (Solomon, 1998).

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Top Management usually do not bring Human Resources into the process until it is too
late.

By so doing the due diligence process may fail to identify any additional problems not
evident to those untrained in Human Resources and its many tentacles. A skilled team, a
well defined process, and a focused integration plan can help ensure the overall success
of an acquisition (Douglas, 1999). Successful mergers or acquisition have shown that (1)
there was a pre-merger evaluation of the potential association from the human resource
perspective, (2) a specific human resources strategy for the merged or acquired company
was an element in the integration process, and (3) effective and accurate employee
communications programs were conducted both during and after the deal (Schuster &
Zingheim, 1990. A positive management style, good solid leadership, work rules and
processes, training, constant communications, consistent compensation, benefits and
incentive programs all lend themselves to a more mature blending of talents and
continued successful growth. Human Resources can help employees move past any stress
and resistance to change resulting from an acquisition or merger in addition to
minimizing any post-deal damage if they are involved in pre-deal due diligence. As
Marks (1988) reports from a senior executive recently having gone through an
acquisition;
what will make or break this acquisitions financial success will be how people
are treated, not the business decisions. Business losses can be recouped, but if
you treat someone poorly early in the game you can never change the feelings
that result.

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PROFILES
Peter Wolfe has been the CEO and major stockholder of Scorecard, Inc., a privately
owned company for 35 years. Having taken the reins over from his father, Peter has kept
the legacy alive for the family. Peter is a conservative and risk adverse leader but has also
been able to realize nearly 5% growth each year since he came aboard. Peter has created
a family culture for employees and is a shirt sleeve CEO constantly looking for new
ideas and products from staff.
Doug Franks is the VP of Operations for Scorecard, Inc. Doug is a quiet, unassuming
man in his mid-fifties. He has been at Scorecard for 25 years and has watched the
company grow from a small sports shop to the multi-building operation it is presently.
Doug worked at two other manufacturing organizations before coming to Scorecard, Inc.
Both were Fortune 100 companies.
Joe Heyer is the Chief Financial Officer of Scorecard. Joe joined Scorecard a year after
his former company went bankrupt. Joe is a neighbor of Doug Franks, living several
houses away. Joe is an excellent financial analyst and is able to crunch the numbers
quickly and with unsurpassed accuracy. Joe, being the newest member of the executive
team tries very hard to be accepted by them by sharing information prior to it being first
reviewed by Peter.
Rudy Rothberger is one of the newest associates of the Board of Directors having
replaced a family member who passed away after serving 20 years. Rudy is the Senior
Partner of Rothberger, Stein, Simple, and Scheer, the largest public accounting and
investment firm on the east cost.
Alan Flynn was hired at Scorecard, Inc. about a decade ago as the Human Resource
Manager. At that time, the former Vice President of Administration and Finance, Jim
Meyers, was preparing to retire. That would leave a large hole in the top of the
organization representing Human Resources at the table. Alan is a quick learner and
Jim was an excellent mentor. The passing of the torch was seamless and when Jim retired
three years ago the Board approved the promotion of Alan to VP of Human Resources
and Quality.
Dave Willow is a Management Consultant and has known Peter for over 15 years. Dave
worked on a few projects with Peter as Scorecard, Inc. grew and took market share from
other competitors. Since a leader was needed upon completion of the acquisition of
Partners, Inc., Peter asked Dave if he would take on the responsibility. Dave agreed, and
became the General Manager when the deal was complete. .

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Richard Pierce is the General Counsel of Scorecard, Inc. Richard is a Harvard Graduate
and worked at a major Insurance company as Assistant Counsel prior to joining the team.
For the most part, Richard keeps to himself and with Alan continues to keep Scorecard,
Inc. out of court or litigation.

The Company
Scorecard, Inc., an organization located in the Midwest was founded 60 years ago.
Americans, enthralled with the opportunity of being able to attend a professional sporting
event on a Sunday afternoon also enjoyed being able to purchase the equipment and
memorabilia generic to the games themselves. As the years passed and radio and
television brought sports into a familys living room, Scorecard, Inc. was right there
developing and manufacturing equipment for the team and the consumer who wanted to
imitate their idol. Today, Scorecard, Inc. produces a full range of game and practice
equipment for baseball, football, basketball, soccer, tennis, and hockey. The company
continues to remain privately owned and it has seen financial growth of nearly 5% each
year for the past 35 years.

It was also 35 years ago when the owners son, Peter Wolfe, took over the position of
CEO. Grandchildren, nieces, nephews, cousins, aunts and uncles chose not to become
involved in the workings of the business. They did enjoy, however, the steady flow of
dividends that came their way each quarter since their initial purchase of shares in the
business. Scorecard is a three building operation located in York, Pennsylvania where the
seasons allow for a variety of sports to be played all year round. One building is
dedicated to the production and distribution of the wide variety of equipment and

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memorabilia for the sports themselves. Another much smaller building houses the
research and development teams and the third site is dedicated to the administrative
services of Sales, Marketing, Finance, Information Technology, Quality, Human
Resources, Procurement and a myriad of other support functions.

Scorecard, Inc. is non-union and has remained so due to a Human Resource department
that continues to stay well ahead of the curve regarding benefits, employee relations
programs, and compensation for its employees. Scorecard, Inc. employs approximately
500 hourly workers on three shifts. During the height of each sport season additional
temporary seasonal labor is needed so the number of employees can jump to 600 at any
given time. The other parts of the business employ an additional 150 professional
employees. Although not a major player on the Fortune 500 list, Scorecard, Inc. has not
had any challenges locating employees to work for them. Reaching Employer of Choice
Status has not been easy but the constant attention paid to Human Relations activities and
programs pays off. Members of the same family are not uncommon on the payroll.

A Code Driven Business

Business in part is driven by a set of very specific codes depending upon the level of the
equipment; professional, collegiate, high school, junior, municipal or pee wee. These
codes demand perfection from the company due to the fact that a game or event can be
called off and a team forced to forfeit if any piece of equipment is not 100% within
specifications. The codes themselves are not difficult to follow. The challenge is some
coaches always try to get the edge on their competition by pushing the limits with

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equipment specifications sent along to production. Scorecard, Inc. will not compromise.
A compliance officer, hired by management, makes certain that these specifications sent
in by customers are within the code limits. Every so often unfortunately, one slips by.

Due to constant changes in sports themselves and the codes placed upon the teams, along
with injuries and lawsuits, Scorecard, Inc. cannot amass any significant amount of
inventory of parts or sub-components. If something happens to change within the sport
due to one of those unfortunate injuries, money hungry attorneys or township politicians
grandstanding, all the remaining equipment for that sport becomes shrink for Scorecard,
Inc. which is very costly. Close to 85% of its sales is made-to-order. Productivity,
therefore, always must be at its optimum and quality must continuously improve on a
consistent basis. If a shipment is late or a product is damaged or out of specification,
customers will almost instantly go elsewhere. This places a strain on almost every
department. Any significant turnover or absenteeism would be devastating. Fortunately,
Scorecard, Inc. has one of the most progressive Human Resource functions in the
country. The Society of Human Resource Management recently awarded them the
coveted Innovative and Creative Practices Award at their National Convention. This
award is in addition to six others that have been bestowed upon Scorecard Inc.s Human
Resource team in as many years from the state, county and local Human Resource
Associations. Alan has also recently been informed by the Society that he is in the
running for the Human Capital Business Leader of the Year Award. This is the highest
coveted honor bestowed on a HR professional.

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Top Management Support, Yet Concern

Scorecard, Inc. prides itself on those Human Resource programs it has facilitated over
the years. The foundation for such progress comes right from the top. The CEO, Peter,
has attained advanced degrees in both Organizational Behavior and Business
Management. Peter is a frequent keynote speaker at Management conferences throughout
the country. Business owners and leaders in Human Resources travel from a distance to
listen to Peter talk about the programs which have benchmarked Scorecard, Inc. as one of
the Best Places To Work by the State Chamber of Commerce.

Last year Scorecard, Inc. closed their books with sales of $100 million. This was a huge
achievement for this mid-sized organization given the market which contains two giants
in the industry; Ruth Industries and Playoffs International. Both these organizations
together have approximately 75% of the total market for sporting equipment. Each has
inquired on numerous occasions as to purchasing Scorecard, Inc. The response has
always been an emphatic no.

Peter though does realize that the market continues to change thus creating a need to
diversify and expand. At any given time an organization from across the ocean can rise
up with a less expensive product and drive the market into a tailspin. The critical item
that Scorecard, Inc. has in its favor is its unending attention to detail and quality. Peter
and his predecessors have built a loyal following over the 60 years in business and have
never let shabby workmanship ruin a customer relationship. Unfortunately, given the
economic climate lately, price appears to be gaining on quality since a fair amount of

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funding has been cut at the school, collegiate, and also municipality levels for their sports
programs. Donations are also down significantly from long-term patrons who enjoy
watching their nieces and nephews play.

Over the past seven years a growth strategy has been consistently discussed among the
executives. They have noted and requested that their conversations be placed in the
minutes during strategic planning meetings. It is now time to set Scorecard, Inc. on the
path of diversification and aggressive growth noted Doug Franks, the Vice President of
operations. The Top Management team of Scorecard, Inc. has strongly suggested to Peter
that the purchase or merger of another organization similar or smaller in size with
excellent market potential is critical to survival. Ruth Industries and Playoff International
have slowly been acquiring the smaller and midsize sports equipment organizations over
the past few years along with some retail outlets. This has raised a red flag every year at
the planning meetings, but nothing has been done as of yet on the part of Peter.

A Conservative CEO
Scorecard, Inc., up to this point, has been very successful at chipping away at market
share in its product lines due mostly to quality and service as mentioned earlier. Peter,
however, has continued to remain extremely conservative and has stayed away from any
significant growth by means of an acquisition or merger. Although the concept continues
to be raised by his executive team and has been turned into a goal several times, nothing
substantive has developed. Whenever Peter or Joe Heyer, the Chief Financial Officer,
would look at a company that was for sale, Peter would analyze the numbers, data, pros

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and cons to a point of no sale. It became a case of paralysis by analysis. In effect if

Peter was going to move ahead with an acquisition or a merger he wanted a perfect place
and plan to put his familys money. He would consistently bellow at meetings, show me
another Scorecard, Inc. and Ill buy it on the spot.

The executive team of Scorecard, Inc. knows that risk taking is not within Peters
vocabulary. Why should it be when growth has been around 5% per year, the family has
been kept extremely well off financially, and the company has never had to downsize in
its history like the competition has. Scorecard makes money. Maybe not the amount that
its competition does but it has kept generations of families employed and satisfied for
years. During its recent strategic planning retreat the executive team once again had a
sense that the market will begin to soften and will change sooner rather than later. The
formal market analysis completed by Sales and Marketing pointed to the same
conclusion. Except for professional and Olympian teams, approximately 85% of all other
customers report they must begin to purchase on price soon due to finances and funding
becoming soft and even drying up from schools and benefactors. Rudy Rothberger , a
long term member of the Board of Directors informed Peter he would be attending the
strategic planning retreat. It was at this meeting that Rudy announced, a purchase or
merger must be made within the upcoming fiscal year. I speak for all the Board when I
say this

An Acquisition Must Take Place

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Rudy and the Board apparently recognized that over the years several officers have left
the company due to the lack of willingness on the part of Peter to diversify and grow.
There was no doubt that growth would increase the opportunities for employees to have
upward mobility. It could also bring into the company newer technologies that would
help push back the competition. As the Vice President of Human Resources, Alan Flynn,
echoed at every strategic planning meeting and beyond at the monthly updates,
employees who apply here at Scorecard, Inc do so for many reasons. One is they want
growth. Rarely do we any longer find a professional employee who is content with
his/her original position.

The strategic planning meeting for executives of Scorecard, Inc. ended after a week of
reports, forecasting, manpower planning, resource allocation, competitive analysis,
capital spending, and budgeting. Within the top three action items was the goal;

a serious consideration for an acquisition will be made during the upcoming

fiscal year. A team will be put together to evaluate potential diversification efforts
in the marketplace. Peter will put together this team within the month of January.
The team will work tirelessly to locate the best company within the parameters set
forth in an effort diversify and grow Scorecard Incorporateds product line.

And so it began. An action plan would be put together by Peter himself after he returned
from his two week skiing vacation in Colorado.

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The Acquisition Team

Peter returned from his respite and began the process. He sent along an e-mail to his Top
Managers noting that Joe, Dave Willow, a consultant who has worked with Scorecard,
Inc. on various projects, and Richard Pierce, General Counsel would make up the
acquisition team. This was somewhat confusing to the other Vice Presidents. They were
curious as to why executives were involved in the first place at the primary stage of due
diligence and secondly why only these three. There was no representation from direct,
bottom line departments and this was a manufacturing company looking to purchase or
merge with another manufacturing company. At one of their early Monday morning
briefings Doug, asked Peter directly about the makeup of the team. The response was a
simple, this is the way I want to proceed, a small team that is capable of doing the job.
Its not open for discussion. This was out of character for Peters style of leadership
although his conservative nature may have been at play here. When the meeting ended
the e-mails shot quickly among the executives who were left out of the acquisition loop;
do they really know what they are doing? Can Peter really be objective and thorough
in a due diligence given our track record? Here we go again, another set-up to fail
venture were just a few of the feelings expressed over the intra-net. Quite dejected, the
Scorecard, Inc. officers returned to work as usual.

The Search Begins

During the search process that unfolded over the next few months only cryptic notes were
provided to the executives. They were unsure of any real progress by the team. Peter
stood firm on his original request that he wanted this to be low keyed and the team

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chosen would take care of everything. Four months into the search during one of Aprils
Monday morning briefings when Peter was off-site, Joe passed along some information
about an organization approximately 100 miles away that looked promising as a
purchase. Questions were asked but little solid information was forthcoming. Joe asked
the team to keep this confidential and not mention it to the employees.

At the next monthly executive meeting, a few days after Joe had informed the group
about the potential company, Alan and Doug felt it time to inquire about this possibility.
They had figured that Peter was aware of Joe informing them so they inquired whether a
full due diligence on the horizon. If so, why not involve other experts to move this
process forward more expeditiously? Their assumption was that the small acquisition
team could benefit from additional resources and they themselves could benefit from
more knowledge of the potential opportunity.

Alan was curious, for example, as to how many employees hey had, what was the product
line, human capital involved, benefits, size of facility, cost of payroll, compensation
levels, the culture, how many buildings are there, and on and on. Doug had similar
questions relating more to product, equipment, factory layout, technology, product line,
etc. They felt maybe it is time to just have a good conversation about this potential
growth opportunity.

During the meeting, Alan asked first about the potential company. Peter raised his
eyebrows and looked rather surprised that the group even knew and questioned where the

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information originated from. Joe spoke up and said he had informed them at their
Monday meeting so that they might be prepared better should something develop from
this search. Peter looked more frustrated and retorted that the information was to be kept
confidential and the topic is off the table. Peter pushed any additional questions aside
and informed the executive team that everything was being taken care of by himself,
Dave, Richard and Joe. Again, this did not sit well with the rest of the executives. They
did learn over the years in spite of being very well taken care of, Scorecard, Inc. is a
private company and there is little that can be done when the CEO, who is also the
majority stockholder, says no.

The following week Alan decided to contact Peter directly about what happened at the
meeting. He initially had to leave Peter a voice mail message because Peter was in a
meeting. He noted that he would follow up via e-mail. In Alans e-mail he expressed his
concern once again about isolating the rest of the executives and asked Peter to
reconsider having a good discussion about others getting involved at this point in the
upcoming due diligence. He cited once again the Human Resource and Quality
component and provided concrete reasons why it would be most beneficial to increase the
scope and breadth of the team. Alan also reiterated the team approach would benefit
Engineering, Operations, Marketing and surely Sales. We could begin to assist in data
gathering for the decision making process. Soon after Alan sent the e-mail, he happened
to pass Peter in the hallway. Alan mentioned the voice mail, the follow-up e-mail, chatted
a bit more and the two of them went their ways.

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Alan and Peter

Alan and Peter always had a fantastic working relationship. Peter was Alans coach in
many respects teaching him the business. Once a week they would have lunch together in
Peters office while they planned and reviewed the various employee relations, quality,
and development programs for the organization. Together they laid the foundation for a
nationally recognized Human Resource function and company when it came to Training
and Employee Education, Economic Development, Human Relations, Health Care
programs, continuous improvement, and Family Friendly Benefits. For a mid-sized
organization, Scorecard, Inc. was ahead of most of the multi-national companies in these
areas. The consistent attention paid to employees and their needs by Peter and Alan
continually paid off. Turnover was less than two percent, absenteeism less than one
percent and productivity along with quality was 99% based upon Manufacturing
Engineering standards. It took a lot of work and a great team to implement the multifaceted employee-centered programs but the results spoke for themselves.

About an hour after passing each other in the hallway, Alan received his reply from Peter.
Alan, thanks again for your interest and also being what appears as the liaison
between the executive team and myself. I would like to reiterate my position.
Joe, Dave, General Counsel and I will be taking care of everything. There is no
need to have anyone else meet or discuss or suggest any additional research or
get involved in the acquisition process. Hope to see you on Wednesday for our
weekly lunch. I have some ideas about pay for performance I would like to pass
along to you and discuss

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Sincerely,
Peter

The meetings apparently continued at the location of the potential acquisition since the
team was off-site more than usual. The executive team continued to receive bits and
pieces of information from Joe at the Monday morning briefings without Peters
knowledge. Nothing though was really of substance. The executives truly felt left out and
any questions they posed to Joe received confusing or no response. Doug noted during
one of the meetings that this process was the best kept secret ever at Scorecard. On the
brighter side, Jack Chambers, the Vice President of Research and Development for
Scorecard, Inc. spoke up one morning saying;
although were not included at least I can say after being here for ten years that
there might actually be an acquisition on the horizon. Im not sure what they do
but hey, at least well have something.

With that, the meeting broke up. Soon after the grapevine began to work at Scorecard,
Inc. Employees were talking to each other, asking their managers questions and several
even approached Doug during their lunch period asking questions about the company
Peter was buying.

A Recommendation
After approximately three weeks of due diligence by the team Joe told the executives that
a recommendation to the Board of Directors to purchase a company appeared to be

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reaching more of a reality. The organization was a small 150 employee manufacturing
company in New Jersey that made several complimentary retail products in the sporting
goods market. Partners Manufacturing, located in Whiting, NJ, produced a clothing line
and safety equipment for Tennis, Skiing, and Cycling. Joe described the company as a
very together place with a product line that will knock your eyes out. Partners had been
in business for 20 years now and the only reason for the sale was because the owner
became ill and no one on the family tree wanted to succeed him. Joe once again asked
them to keep this confidential and to let Peter break the news.

At a special executive meeting the day after Joe let them know, Peter formally announced
the recommendation made to the Board. The acquisition of Partners Manufacturing was
in its last stage and he wanted everyone to continue to keep their distance. When and
if this becomes reality I ask that we all do nothing until I say so. We will meet if the deal
goes through and we will plan accordingly. They were not to impose any notions or
suggestions into the new organization. Peter reiterated; it is hands off.

This was again out of character for Peter. Jack decided to ask a few questions about the
product line. Peter responded in a vague manner that they were producers of upscale
clothing and equipment for the tennis, skiing and cycling enthusiast. More questions
came forth from the executives except for Alan who remained very quiet given the
previous letter he received from Peter. He sat there and listened to the responses. They
did not at all make the team feel comfortable. Was this the right acquisition for them as a
company? What did they know about clothing? Other executives were not quiet at all.

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They excitedly asked Peter one question after another. Peter, becoming visibly upset,
stated that he was assured the due diligence was being thoroughly completed and all signs
pointed to an easy, compatible acquisition. He had begun to review the information and at
this point was pleased with what he saw. While looking straight at Joe, Peter said, lets
leave it at that He rose from his chair and exited the meeting. Joe followed closely
behind.

A Visit From the Acquisition

The executives did not feel any better. Jack had little comfort in knowing that he had not
had the opportunity to see the facility, talk with anyone or even evaluate their product
line. Sales and Marketing felt similar. How are their territories created? Whats the sales
force consist of? Do they have a mature product line and marketing effort? Are they a
stable company? What do we know about clothing became the major concern.

Again, Alan also had some questions and was not sure if he should wait or research them
himself with Joe. He did not get a good feeling if much attention was paid to critical
procedural items in any of the Human Resource areas. Also, what about their quality
assurance programs and processes? These did not have to be taken care of immediately
but it would be nice to see if and what kind of work might need to be done. Then again
Alan thought maybe we are all rushing it a little. He got burned once already by stepping
forward.

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Alan did notice though the mood swing in the other executives. When Peter had left the
meeting they became both critical and disgusted with the secrecy and evasive responses.
Alan thought it best to tell the group that they should break now and wait a little bit until
the dust settles. Then maybe ask Peter for a good sit down to discuss the particulars.
Reluctantly agreeing, they dispersed.

About one week later two executives of Partners Manufacturing came to Scorecard.
Peter greeted them at the door in the lobby. Doug and Alan happened to be in the same
area making a copy of some notes and drawings in the nearby copying center. As they
exited the center they noticed Peter shook the visitors hands but did not introduce them
to either Alan or Doug. He passed right alongside of them. Peter led the visitors to the
large conference room. Alan and Doug stood there speechless.

After several hours of meeting with the acquisition team along with a tour of the facility
the guests from Partners Manufacturing left. Peter went back to his office. Doug and Alan
thought it best to walk over and talk about what took place and the feelings of the
executives. Doug, however, received a telephone call and had to attend an emergency
meeting with marketing. Doug asked Alan, by default, to approach Peter when they had
their weekly lunch together. This was always the toughest part of his job; being the
spokesperson for the group. In the past it made the team a much stronger one though at
the risk of Alan being on the hot seat.

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Alan brought his sandwich and soup and sat with Peter for lunch as they normally did. He
began by mentioning to Peter that there was again was a general concern among the
executives since they saw the visitors touring the facility. They felt that they were
purposefully being left out of the acquisition process and they truly wanted to get
involved so they can learn the product line, the market, and the people. Peter became a bit
defensive once again and evaded questions consistently. It appeared to Alan that no one
should discuss what so many have waited for such a long time. To say the least the
meeting was very uncomfortable.

The requests for involvement finally caught up with Alan. Although more times than not
he was the messenger, in a three page e-mail Peter basically reiterated,
Alan,
Once again I find myself at a crossroad. We have worked together on so
many projects and have been more than successful on so many of them. I would
like one last time to remind you that I do not want anyone to interfere with the
new company, either during the process of due diligence and after the acquisition
should it result in same. I have been informed by the team that the new company
has a great operating system, a smooth Human Resource process, good products,
development, marketing efforts, sales territories which will be a compliment
to our business and stellar employees. Regarding quality, I have been informed
their processes are in order. The culture is what it is and it also appears to be a
good one for our employees growth. I am asking once again, for no interference.
I am not sure why you have not headed my requests in the past and quite frankly

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your continual questioning of my abilities is becoming rather irritating. To

say the least you yourself by not heading my former requests are becoming
somewhat of an irritant. Please cease bringing anything from the group to me or
discussing anything about this process with me until I am ready. Lets

continue our

lunch meetings and stay on target with our agenda in

Human

Quality and

Resource programs.
Sincerely,

Peter
Cc: File

Alan sat dismayed at his desk. He knew now that there were going to be major issues
ahead but he finally decided to pull back. He wondered though, why was Peter so overly
protective of both the process and the result. Also why had the executives themselves not
approached Peter. There was not much more than he could do. Alan made some notes,
printed out the e-mail, placed it in his briefcase and left for the day sensing that
Operations, Engineering, Marketing and Sales would soon be getting a similar letter. At
the following Monday morning briefing he found out they did not.

The Acquisition and its Results

Partners Manufacturing was ultimately purchased by Scorecard, Inc. The initial year was
a very difficult one. None of the executives from other departments were allowed to
intervene into any of the areas of their expertise. Alan stayed away from any of the

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confusion that occurred unless he was asked by the new General Manager, Dave, the
former consultant of Scorecard, Inc. Dave struggled. Although Partners had a small
Human Resource function, Dave wanted to be the final say on all the decisions made. His
sole goal was to make money.

The decisions he made in the area of Human Resources did not follow best practices and
were not at all in line with Scorecards. As an example, Dave would provide some
employees with time off, others with none, new employees with whatever he felt like
giving, and still others that resigned he sometimes would compensate them for unused
illness time and sometimes would not. The inconsistencies in his decision making were
creating an atmosphere of frustration for many of the employees.

The Sales force of Scorecard, Inc. had no idea on how to absorb the new product line into
the existing one. Advertising was left scrambling without any direction on how to get the
word out and how to Brand the new and existing products. Engineering could not make
heads or tails about what development was taking place for new lines and Operations
found it difficult to understand the manufacturing processes. Within the first nine months
after the acquisition 50% of the workforce of Partners left voluntarily. As Scorecard went
into its second year, they had to lend $3.5 million to the newly acquired company.

Still Peter defended his decision to acquire based upon the due diligence that had
occurred. He continued to appropriate money, a little at a time during the second year.
He was heard at several executive meetings saying I will not let it fail. We will do

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whatever it takes to make it succeed. The problems continued to mount as the second
year unfolded. Sporting equipment manufactured at the new company failed in the field.
Customer loyalty was waning overall and many employees at Scorecard sat watching and
trying to fix some of the problems that occurred at lest in the manufacturing part of the
operation. At the end of the second year, Partners Manufacturing lost over seven million
dollars. They needed to borrow again from Corporate. Peter, continuing on his quest to
make the company successful loaned the organization another $5 million.

The Human Resource problems continued to worsen. Alan was asked, as the other
executives to finally get involved after close to three years of steady decline. Policies and
benefits and consistency were still not in concert with corporate. Employees were
continually leaving at all levels of the organization. Performance evaluations were not
being completed, the benefits were still not in sync with Corporate and many of the once
highly though of employee relations programs at Partners Manufacturing had ceased.
Dave, in an effort to just get warm bodies on the job provided some candidates perks
that corporate never even considered. It became more and more difficult to repair. The
executives were asked to get involved and as quickly as possible. Each one felt that as
long as Dave stayed out of the process there was a little light for success.

During the fourth year after its acquisition Partners Manufacturing had been in such a
tailspin that it lost more money than Scorecard could justify. Peter went on record at an
executive meeting to report that

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I made a mistake and I need this team to forgive me. As an individual who
always believed in the power of teamwork and having proven it in so many ways
at Scorecard, I am not sure why I did not involve this team prior to and even
during the initial years of this acquisition. We have little choice but now to make
every attempt to sell Partners before it drags down our main business with it.

The executive team of Scorecard became involved and salvaged what was left of a once
somewhat reputable organization. The amount of money that had been pumped into
Partners Manufacturing would never be made up. It was likely now more than ever, that
Peter would not pursue another merger or acquisition in the future given the results of
this one. As the executive team left one of its Monday morning briefings Doug turned to
Gary and remarked; so what other mess are you going to get us into now? Then he
turned to Alan as most of the other executives did and said thanks for trying. Partners
was sold less than a year later at a net loss of millions.

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Douglas, J. (1999). Preparing for your next acquisition. CA Magazine, 132(6), 31-32.
Geber, B. (1987). The forgotten factor in merger mania. Training, 24(2), 28-37.
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human resources during mergers and acquisitions. Human Resource Planning,
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Lubatkin, M. (1988). Value-creating mergers: Fact or folklore? Academy of Management
Executive, 4, 295-302.
Manzini, A.O., & Gridley, J.D. (1986). Human resource planning for mergers and
acquisitions: Preparing for the people issues that can prevent merger synergies.
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Marks, M.L. (1988). The merger syndrome: The human side of corporate combinations.
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Solomon, C.M. (1998). Corporate pioneers navigate global mergers. Global Workforce,
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Discussion Questions:

1. What do you think went wrong here from a Human Resource point of view?
2. What has occurred behaviorally within the top management team?
3. Would you have done anything different had you been the VP of Human Resources?
4. What sort of strategy do you think the CEO was using in keeping others away?
5. In a due diligence process what usually takes place especially from the HR
Department in a company the size of Scorecard?
6. Do you think the dynamics of the executive team will change now given the failure of
this acquisition ?

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