The Case of Tom Robinson

1. The Case of Tom Robinson Sesame Chen, Sarah Frelich, Fred Kim, Matthew Spanovich

2. Overview of the Situation • Peter Eppen promoted to District Sales Manager • Area Sales Rep Tom Robinson given responsibility for Winn-Dixie HBA • Sales are down and Division Sales Manager Frank Salvagni suspects Tom is “slacking” • Frank suggested a 6 month performance review • Frank wants Tom fired • Tom comes to Peter about quitting • Tom’s performance over the past 2 years has been in the upper third of all personnel

3. Management’s Responsibility • Sales are down and it’s management’s job to increase shareholder wealth • Also, it is management’s job to successfully balance personal and corporate goals • We have identified 4 options, each with its own benefits and risks, that address this problem and offer a solution • Before we analyze the situation, we want to analyze Tom’s performance

4. Analysis of Tom Robinson • Strengths • Performance in the upper third of all employees • Weaknesses • Tom lost his motivation to work and refuses to be promoted • Opportunities • Based on Tom’s past production, he projects well as a future manager • Threats • If we keep Tom, there may be a continuous fued between him and Frank • If we keep Tom in the same role, we will continue to lose money in HBA • If we fire Tom, we will lose a good employee, it would be very costly, and there is a risk that we would not be able to hire an employee of the same quality

5. Tom’s Performance

6. Option # 1 • Put Tom on the 6 month performance review with the goal of firing him • Benefits: • Opportunity to evaluate Tom’s performance • Opportunity to replace Tom with someone who is motivated and will work harder • Tom does not have a sense of achievement, one of the 3 business needs • Tom admitted HBA sales are down and that he is not up to the challenge • Tom also is not motivated by empowerment; in fact, he does not want to be promoted

7. Option # 1 • Put Tom on the 6 month performance review with the goal of firing him • Benefits: • Will confirm your faith & confidence in Frank • Will show other workers that you are serious about “slacking” • Allowed time to evaluate Frank’s recommendation • Motivate Tom to work harder

8. Option # 1 • Put Tom on the 6 month performance review with the goal of firing him • Risks: • Frank may simply have a personal bias against Tom • There may be other variables affecting Tom and his work output • You will be firing an employee who has consistently performed in the upper third • Cost of firing and hiring is very expensive • You may not find another employee as qualified as Tom

9. Option # 2 • Call Frank and Tom into the office to discuss the problem and find a solution • Benefits: • You can hear both sides of the story • Tom will be able to explain his future intentions • You can be a mediator between the two • You may be able to help Tom and Frank find a solution • You can ask Tom what resources he needs to be successful and what motivates Tom to succeed

10. Option # 2 • Call Frank and Tom into the office to discuss the problem and find a solution • Risks • There is little empirical evidence, but rather simply qualitative analysis • You may not be able to mediate between the two, who have had spirited arguments • You risk either or both employees quitting because they feel insulted by the meeting’s proceedings • The employees may be afraid to speak their minds in the presence of a boss • This could cause more conflict

11. Option # 3 • Move Tom from his current role to a lower level in the organization, including a pay raise on his old salary • Benefits: • Tom has already proven himself in lower positions, allowing you to keep a good employee • Ability to train Tom in management • Find a competent replacement for Tom • The pay raise may act as extra motivation for Tom, which is an important component of production

12. Option # 3 • Move Tom from his current role to a lower level in the organization, including a pay raise on his old salary • Risks: • Tom may just quit • You do not want to take away Tom’s sense of association, as he already does not feel a strong sense of belonging to the company • Tom’s colleagues may gossip that Tom is not qualified for his position • Cost of hiring Tom’s replacement is very high

13. Option # 4 • Interview Frank, Tom, and Gary separately, and base the decision off of these meetings as well as an analysis of Tom’s work • Benefits: • Communication is the most effective tool in management • Respects the privacy of the employees • 360 Performance Feedback • Provides the most evidence out of any of the previous options on which to base an opinion, allowing for a balance of individual and corporate goals

14. Option # 4 • Interview Frank, Tom, and Gary separately, and base the decision off of these meetings as well as an analysis of Tom’s work • Risks: • Could give these employees a bad name • Other employees might be distracted by rumors • This would require a lot of time, which is money

15. Our Recommendation • We would recommend Option # 4 • Interview Frank, Tom, and Gary separately, and base the decision off of these meetings as well as an analysis of Tom’s work • For this situation, the key step is to discern the reality by separating all the variables. • Flexibility going forward