Rio Grande Case Analysis [PDF]

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Teresa de la Cruz Mary Rose Dionisio Bea Dy Bettina Escolano David Garcia Loisirc Go



Case Analysis: Rio Grande Supply Company Background Jasper Hennings, the president of the Rio Grande Supply Company, always promoted a culture among his management team based on integrity, honesty and especially respect for each and every employee; which he stressed the particular importance of through one part of the Internet use policy - management was not allowed to access and review anything that other employees do on Rio Grande’s computers. Of course, the Internet use policy also stressed that said computers were only to be used for business-related activities, and anyone caught violating this company policy would be face disciplinary action and could face dismissal if the infraction is serious enough. Recently, Chief of Operations Henry Darger dismissed a female employee for accessing a fellow employee’s email. However, upon this employee’s dismissal, she informed Hennings that Darger was also using the internet for non-work related means during work hours. Darger later confessed that he was undergoing several personal problems and had resorted to watching copious amounts of pornography during work hours in order to cope. Hennings is now faced with the following dilemma: dismiss Henry for breaking company policy in using the company computers for non-work reasons, or keep Henry as an employee as he is a valuable asset to the company. Problem Statement What might be the best way for Jasper Hennings to draw the line between upholding company policies as well as its values and retaining Henry Darger, a valuable employee?



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Objectives To establish Jasper Hennings’ right course of action in handling the case of Henry Darger in a fair manner that is in line with the company’s policies. To properly evaluate the decision the fired female employee based on the conditions and circumstances of her dismissal. To refine, improve and reinforce the vision and culture of the company.



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Key Points and Issues Misuse of the company’s resources by utilizing the company’s computers for nonwork related reasons. No real enforcement of company policies. The actual circumstances surrounding the female employee’s firing are rather vague. There is the possibility that said employee was fired not for breaking company policy herself, but catching Darger in the act of breaking company policy. Darger himself had confessed to breaking company policy. Analysis of the Problem Internal environment of organization includes corporate culture which is essential in gaining competitive advantage in the market. Energizing and motivating employees by instilling key values, beliefs, and shared goals can generate high performing organization.1 In the case of Rio Grande, Jasper Hennings sought to instill a culture of integrity, honesty and especially respect for each and every employee through company policies such as the internet use policy. There is an apparent decision to be made regarding the case of Henry Darger who has confessed to breaking company policy. Considering the key points stated above, certain factors need to be considered in deciding a course of action such as adherence to the company values, rules and protocol, cost and difficulty of hiring another chief of operations, and consequences of keeping Darger on the company. As a cultural leader, Jasper needs to be able to effectively communicate and reinforce Rio Grande’s values in day to day activities for his employees to follow suit. In a time of crisis such as the Henry Darger case, Jasper would have to ensure that the company's policies and decisions continue to uphold company culture. A further look into the internet use policy in SWOT and evaluation of alternative options would best aid in decision making. Rio Grande has a company policy on internet security that prohibits employees from using their work-station computers for non work-related activities. However, there are no software filters on computers, thereby allowing employees to visit any website they please. Below is a SWOT analysis of the said policy.



1 Daft, Richard L. Management. 10th ed. South-Western: Cengage Learning, 2012. Print.



Company Policy SWOT Analysis on internet security



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STRENGTHS



WEAKNESSES



Results in most of the management team setting a good example by acting according to the company’s values. Employees are more empowered knowing they are trusted by top management to follow company policy without supervision.



The company’s Internet policy is easy to exploit and abuse, especially when one is never caught. Lack of monitoring tools and refusal by top management to implement them makes the internet policy hard to enforce.



OPPORTUNITIES



THREATS



Internet history may serve as a reference for studies on employee productivity or similar reports. Employees may be aided by top management based on browser history



Monitored internet access records can possibly leak and be obtained by competing companies. A change in Internet policy to a stricter, more monitored one might be met with hostility from the employees. Internet surveillance may invade the privacy of the employees which could prompt complaints as well as threats of quitting.



Development and Selection of Alternatives Alternative 1: Fire Henry Darger Advantages: There would continue to be consistency in upholding the company’s values and policies. It is the alternative that shows the most fairness. There will be no special treatment to anyone regardless of position, and employees would not perceive that certain employees are favored over others. Disadvantages: Replacing Henry would be costly and difficult for the company, as he’s been around for some time and COOs have particular skillsets that takes time to cultivate. Another company may benefit from hiring Henry and exploit him for his learned company information and developed company techniques. Potential lawsuit for wrongful termination if the internet fair-use agreement is not explicitly stated in the contract Compensation fee for firing can be inordinate, especially for a top-level manager like Henry.



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There would be a need to investigate and deal with other employees who also violated (or will happen to violate) the policy on the use of computer system. Alternative 2: Rehire the female employee, preferably in a different department, and put her as well as Henry Darger under probation, and suggest that Henry undergo therapy or counseling, Have the female employee sign a Nondisclosure agreement that would not reveal to anyone that she was fired and rehired. Advantages: Shows fairness in that it doesn’t imply particular employees are more favored over others. The company will not need to expend resources and put in time to hire and train a new COO to fill Henry’s empty spot. The company will not lose any of its employees Jasper would be upholding the company’s values by enacting disciplinary action, but he will also be seen as considerate for choosing probation to deal with the first offense.. Disadvantages: Promotes the mindset that the company’s policies aren’t as rigidly enforced as previously thought, leading to more employees possibly breaking policy for as long as they could get away with it. Possible tensions may arise if Darger and the female employee are in proximity with each other again. Condones worker inadequacy and utilization of company time and resources for inappropriate activities Alternative 3: Keep Henry Darger, put him under probation (or another disciplinary sanction) and do not rehire the female employee. Advantages: The company won’t be expending resources to find a replacement for Henry Darger. Disadvantages: - Promotes the mindset that company policies can be bended in favor of its officials. - Implies that Jasper favors particular employees, showing unfairness in upholding the company’s policies and culture. - The company could lose employees. - The female employee could press charges if she finds out, which could destroy the company’s reputation.



Selection of Desired Alternative In order to have a sense of consistency with company values, it is advised that Jasper choose to fire Henry Darger as he, a person who was tasked with enforcing these company values was caught breaking them.. While this has the main disadvantage of losing a valuable employee, company values in this case are far more important. Firing Darger would send a message to other



employees that the company is strict in upholding its values and encourage employees to stick to them.



Recommendations Fire Henry Darger Henry would have to be informed of his dismissal after the decision is made. A thorough explanation must be given - that the company has particular culture and values to uphold, as well as policies that have to be adhered to, all of which are held to high importance. Henry’s role, as COO, is to enforce these policies, but also serve as an example in exemplifying the company’s culture and values. Being in a top management position, he was being held to very high standards and his actions reflect that he has failed in his role. Compensation would be a good idea to show appreciation for the hard work he has done for the company. Remind employees about the company policies In order to pivot from the breach in company policy, mandatory seminars on the company mission, vision, values and policies are to be given to all employees following Henry Darger’s dismissal. This would remind the employees about the policies set by the company and would aid in ensuring that employees follow them. Implement a software filter for all employees: Implementing a software filter would be able to better monitor all employee activity online and would be a better more rigid enforcement of company policy. While this could be perceived by employees as a lack of trust between them and the top management, the consequences of the breaches done by both Darger and the female employee would warrant such changes. Review company mission, vision, values and policies To prevent further violations and to further instill the corporate culture, Jasper Hennings must refine and improve the company’s mission, vision, and values it espouses among its employees, and review the company policies on computer and Internet use. Conduct an investigation on the circumstances surrounding the female employee’s firing. An investigation should be conducted concerning the conditions of the female employee’s firing. The reason that the employee was fired could be because she caught Darger viewing pornography instead of breaking the policy herself. Should she be a victim of Darger’s foul play instead of actually breaking company policy, she should be rehired as an employee.