Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
Liz hired Max Maxwell right out of college! Max had brought a lot to the plate at the
Brooklyn Sporting Goods firm where Liz served as Marketing Director over the baseball,
basketball, and hockey lines. Yesterday, Max submitted his resignation after only one year
on the job, and disclosed that he is leaving sporting goods and taking a job in Canada
where he will be marketing a hockey arena. Liz is beside herself and has decided to
personally conduct an exit interview. In evaluating this situation, you agree that Liz is
probably the best person to conduct this interview.
Feedback: It is best to use an outside agency to conduct exit interviews. Outsiders provide
anonymity and usually gain honest feedback from those who are leaving the organization.
226. Barney’s company creates promotional campaigns for other businesses. He just
learned that the firm lost the Lisle Account, a long-standing customer. On the short-term,
this will significantly reduce the need for several creative writers and web content
developers the company has on staff. As he prepares to call each employee in for
dismissal, Barney reviews the best way to approach this inevitable task. He decides that it
is best not to tarnish the image of the company so rather than tell each that they lost an
important account, he will blame the need to reduce the workforce on new technology the
firm is implementing and his personal evaluation of their work. He also plans to offer a
two-month severance, as long as each signs a no-compete agreement good for one year. In
that way, he may be able to call them back if new accounts emerge. All of these strategies
are considered good procedures that would surely avoid “wrongful discharge lawsuits.”
Feedback: According to Figure 11.9, “How to avoid wrongful discharge lawsuits”, Barney
should be honest about the business reason that the employees are being dismissed.
Employees should be given the true reasons they are being fired.