15-01-2014, 04:53 PM
HUMAN RESOURCE DEVELOPMENT ASSIGNMENT
HUMAN RESOURCE DEVELOPMENT.docx (Size: 26.31 KB / Downloads: 21)
SUMMARY OF THE CASE
This case is based on a news snippet published in a business magazine. The news became a discussion among executives in companies. The real case starts with the resignation of three star performers of India’s most leading FMCG Company. The story behind the resignation of these employees was due to a fake contract promised between an event management company and these people. One of these 3 persons approached the event management company to host a theme party and was promised, in return, they will be awarded the contract they were negotiating. Believing this the event management company footed all the expenses of these persons in that party. But later by approaching the FMCG Company, the event management company came to know that the identities of three executives were false and awarded to another agency. Since the event management company was a small one, they claimed to reimburse the expenses incurred to them. When the FMCG Company came to know about this scam, an internal investigation team was set up and the suspects were questioned. They claimed ignorance about any promise given to the event management company, but they were certain that the event management outfit had footed the bill. After enquiry, all of them resigned from the company, but the internal talk was that they were forced to quit from the company. After seeing the news snippet, some executives expressed their opinion as “making a big issue of such a trivial matter will cost the company and it lost three star performers, they should have been asked to pay back the host, instead of all the drama”.
PROBLEM IDENTIFICATION:
1) Whether the action taken against the employees by FMCG Company was proper?
2) Whether the behavior of executives towards the event management company was ethical or not?
3) Is it justifiable to receive any kind of gratification from vendors by executives?
4) Whether the dismissal of three fast-trackers will affect the company’s performance adversely or not?
5) How this problem affects other employees as well as organizations?
6) Is there any financial burden for the company?
7) Will losing three star performers affect the performance of the company?
SELECTION OF ALTERNATIVES
1. Help the employees understand the true financial impact of decisions they have taken.
2. Put mechanisms in place for communicating vital issues to frontline employees.
3. Close the perception gap between senior leadership and middle managers.