Professional Documents
Culture Documents
CASE STUDY I
Helen Flagg was an outstanding sales person in
the Ajax Discount Store. She knew the products
well, kept up to date with her recordkeeping and
was willing to work overtime whenever necessary.
None of her co-workers came near her level of
overall sales performance.
Because of this effective record Helen was
promoted to manager of the childrens-wear
department. Almost from her first day in the new
position trouble began to occur. Flagg complained
about her subordinates lack of motivation and
dedication, feeling that they were overpaid and
that many should be fired.
Naturally this caused difficulty in the department,
and two of the better sales people quit abruptly.
Flaggs superior discussed these problems with her,
but after several such discussions Helen still
couldnt understand why she should approach her
job differently.
Finally her superior offered Helen her old job back
as a salesperson with no cut in pay. At first Helen
was happy about this switch back to her old job. No
more problems with those lazy employees. But then
she became worried about her lack of success as
a manager, and this caused her sales to fall. Even
though her boss reinforced her on several
occasions, telling her that not everyone can
CASE STUDY II
There were six major banks in the city. All of them
were affected in various degrees by a cost squeeze
prevalent in the banking industry. Two of the banks
laid off several hundred employees. Ajax Trust
released 250 people, including 60 officers. Benson
Bank released 600 employees, including 90 officers.
Rumors permeated the industry and many employees
were worried about their jobs. The Cortland Trust, the
fourth largest bank in the city, announced the release
of 700 employees, 200 of whom were officers.
Now the rumors became really heavy. The Hawthorne
Trust Company, second largest in the city, had no
intention of releasing any employees. Even in the
deep depression of the 1930s, no employee had ever
been released because of poor business. The senior
management of Hawthorne simply planned to let a
no-hiring rule and normal attrition handle the
problem.
They were a conservative group and felt that any
announcement of their decision might appear to be
flamboyant in the banking community, so no mention
was made to the press or to the employees of the
bank. It was felt the employees would understand the
banks tradition of no releases due to business
conditions, which wasnt a stated policy but had a
long history. Over the next several weeks, many
supervisors reported poor morale, jittery employees,
and a drop in productivity. All of this was traced to
retrenchments in competitor banks and the everpresent worry that Hawthorne would be next.